OBTL Plan AFAR 2: Accounting for Special Transaction

Republic of the Philippines

TARLAC STATE UNIVERSITY
Office of the Vice President for Academic Affairs
Collegeof Business and Accountancy
Department: Accountancy

VISION Tarlac State University is envisioned to be a premier university in Asia and the Pacific.

Tarlac State University commits to promote and sustain the offering of quality and programs in higher and advanced education
ensuring equitable access to education for people empowerment, professional development, and global competitiveness.
Towards this end, TSU shall:
1. Provide high quality instruction trough qualified, competent and adequately trained faculty members and support
MISSION staff.
2. Be a premier research institution by enhancing research undertakings in the fields of technology and sciences and
strengthening collaboration with local and international institutions.
3. Be a champion in community development by strengthening partnership with public and private organizations and
individuals.

E - xcellence
Q - uality
U - nity
CORE VALUES I - ntegrity
T - rust in God, Transparency & True Commitment
Y - earning for Global Competitiveness

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 OBTL Plan AFAR 2: Accounting for Special Transaction

Program Goals
To produce competent and ethical professional accountants, with an attitude of “learning to learn,” capable of adapting to change, and providing relevant contributions to the profession
and society in which they work.
Program Outcomes
GRADUATE should be able to:
1. Resolve business issues and problems with a global and strategic perspective using knowledge and technical proficiency in the areas of financial accounting and reporting, cost
accounting and management, accounting and control, taxation, and accounting information systems;
2.Conduct Accountancy/Accounting Information System research through independent studies of relevant literature and appropriate use of accounting theory and methodologies;
3. Employ technology as a business tool in capturing financial and non-financial information, generating reports and making decisions;
4. Apply knowledge and skills to successfully respond to various type of assessments; and (including professional licensure and certifications); and
5. Confidently maintain a commitment to good corporate citizenship, social responsibility and ethical practice in performing functions as an accountant.

Course Name Accounting for Special Transactions (AFAR 2)

Course Credits 3 units
Course Description This course is designed to provide fundamental knowledge to students concerning accounting for special transactions and advanced financial reporting issues
likely to be encountered in practice of their profession. It deals with the study of fundamental valuation accounting and accounting theory as applied to special
income and expense recognition methods and expanded business operation. The course includes specialized problems in partnership accounting, revenue
from contract with customers (PFRS 15) and accounting for domestic branches, The other topics deal with accounting for the effect of changes in foreign
exchange rates and other similar current issues. Likewise discussed are debt restructuring and accounting for financially distressed corporations.
Contact Hours/ week 3 hours
Prerequisite FAR 3
Course Outcomes After completing this course, STUDENTS MUST HAVE DEMONSTRATED:
1. Familiarity with the concepts of partnership accounting, and other advanced financial reporting topics like special revenue recognition, home
office and branch accounting, corporate dissolution and liquidation, and foreign currency transactions and translations.
2. (Use of) Knowledge on preparations of financial statements, and other internal financial reports of different specialized industries and with
specialized accounting problems peculiar to their operations.
3. Understanding of the fundamental valuation accounting and accounting concepts as applied to specialized accounting problems.
4. Competence in preparation, analysis and evaluation of financial and other special reports needed by specific businesses.

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 OBTL Plan AFAR 2: Accounting for Special Transaction

COURSE OUTLINE AND TIMEFRAME

Course Content/Subject Matter
Week 1-5 A. Partnership Accounting
Week 5-6 B. Corporate Dissolution And Liquidation
Week 7-8 C. Home Office, Branch and Agency Accounting (General and Special Procedure)
Week 9 D. Midterm Examination
Week 10 – 11 E. Revenue Recognition (PFRS 15)
Week 12 - 14 F. Revenue Recognition-Construction Accounting, Franchise and consignment Accounting
Week 15 - 17 G. Foreign Currency transactions, Hedging and Derivatives, and Foreign currency Translations
Week 18 H. Final Examination

Alignment of Course Outcomes with Summative Assessment Tasks

Course Objectives Summative Assessment Task Details

Familiarity with the concepts of partnership Attendance Attendance is measured by the registration or signing -in of the students to the online
accounting, and other advanced financial class.
reporting topics like special revenue recognition, Oral Exercises
home office and branch accounting, corporate Oral Exercises can be done on a scheduled basis or by surprise relating to topic at hand
dissolution and liquidation, and foreign currency Group Presentation or topic to be discussed as diagnostic assessment for student before discussion.
transactions and translations.
Formative Examinations Group presentation is a group activity of students that discuss or give lecture on the
(Use of) Knowledge on preparations of assigned topic. The group may use slides, videos or other presentation aid.
financial statements, and other internal financial Summative Examinations
reports of different specialized industries and Patterned to the Licensure Examination of Certified Public Accountants (LECPA), the
with specialized accounting problems peculiar to traditional way of assessing students earned knowledge is through the conduct of the
their operations. formative and summative examinations. Formative examinations will be conducted per
topic or group of related topics. While summative examinations are divided into two,
Understanding of the fundamental valuation midterm examination and final term examination. It can be done either through the
accounting and accounting concepts as applied traditional proctored pen and paper test (if permitted by circumstances) or automated
to specialized accounting problems. examinations with the use of technology or electronic media websites and various
application for test measurements (if face to face is not allowed). To achieve the outcomes
Competence in preparation, analysis and expected from the accounting graduates, the formative and summative assessments can
evaluation of financial and other special reports be done in multiple choice questions, true or false, essay, problem solving, creating
needed by specific businesses financial statements, working papers or reports, and the likes.

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OBTL Plan AFAR 2: Accounting for Special Transaction

LEARNING PLAN

Flexible Teaching Assessment

Textbook/ Resource Time
Desired Learning Outcomes (DLOs) Course Content/Subject Matter and Learning of Tasks
References Materials Table
Activities (FTLAs) (ATs)
Explain the role of the students, the faculty Introduction to Blended/ Flexible Learning as TSU Code Online Discussion Poll LMS and Week 1
and the TSU administration in the conduct of applied to Tertiary Education. Student Manual of the pertinent Questioning other
blended/ flexible learning. i. Students Role College Code preliminaries in the (Optional - educational
ii. Instructors Role Various TSU conduct of Bonus platforms
TSU Administration Role Memo and blended/flexible Points) (MS Teams,
Guidelines in the learning as applied Zoom,
conduct of to Tertiary Facebook,
blended / flexible Education. etc.)
learning.

1. Define and explain the purpose nature of Chapter 1. Partnership Formation Millan, Use of online Attendance Internet Week
partnership and how is differ from other i. Introduction Accounting for lecture (Slides, connection 1-5
business organizations. ii. Partnership as a Business Special Videos and Online Oral Electronic
2. Recognize the advantages and Organization Transactions discussion) Exercises device
disadvantages of a Partnership business. iii. Accounting for Partnership 2018e LMS and
3. Identify the different forms of partnership, (Concept) Use of scheduled Group other
and the different kinds of partners. iv. Accounting for Partnership Dayag, Advanced and unannounced Presentation educational
4. Journalize Partnership transactions Formation Financial oral exercises platforms
relating to formation, operation, dissolution v. Bonus or Revaluation approach on Accounting and Formative (MS Teams,
and liquidation Initial Investments Reporting 2019e Examinations Zoom,
5. Prepare, Analyze and interpret Partnership Use of work Facebook,
financial statements Chapter 2. Partnership Operations Guerrero, exercises such as Summative etc.)
6. Understand the concept and the different i. Distribution Of Profit Or Losses Advanced theoretical Examinations
methods on how to divide profit and losses ii. Methods of Dividing Profit or Loss Accounting application and Printed
of the Partnership to partners. iii. Illustration (Procedural problem solving Module
7. Appreciate and recognize Changes in the iv. Financial Statements For A Approach)
profit and loss ratio and can prepare Partnership Video Links

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OBTL Plan AFAR 2: Accounting for Special Transaction

corrections on errors of Partnership net v. Changes In The Profit And Loss Baysa and
income in prior periods. Ratio Lupisan,
8. Define, and identify the nature, and scope vi. Correction Of Partnership Net Advanced
of Partnership dissolution. Income in Prior Period Accounting 2018
9. Categorize the different factors that causes e
dissolutions Chapter 3. Partnership Dissolution
10. Identify the difference between admission i. Nature of Partnership Dissolution
of partner/s by means of purchase of ii. Accounting for Partnership
interest against by means of investment. Dissolution
11. Solve problems relating to different causes iii. Admission of Partner (Purchase of
of dissolution. interest, Revaluation of asset and
12. Define, and explain the nature and scope of Investment in partnership)
Partnership Liquidation in general. iv. Withdrawal, Retirement or Death of
13. Determine and prepare the different steps a Partner
in liquidating the partnership on a lumpsum v. Incorporation of a Partnership
and on installment basis
14. Prepare schedule of safe payment and Chapter 4. Partnership Liquidation
cash priority program. And identify the i. Liquidation
difference in their preparation. ii. Procedures in Liquidation
iii. Methods of Liquidation
iv. Pro-forma Entries
v. Lump-sum Liquidation
vi. Installment Liquidation
vii. Schedule of Safe Payments
Cash Priority Program
Millan, Use of online Attendance Internet Week
1. Understand the accounting concept of Chapter 5. Corporate Liquidation Accounting for lecture (Slides, connection 5- 6
distressed corporation. i. Introduction Special Videos and Online Oral Electronic
2. Journalize transactions needed in ii. Corporate Liquidation Transactions discussion) Exercises device
liquidation. iii. Statement of Affairs 2018e LMS and
3. Prepare and determine the different iv. Statement of Deficiency Use of scheduled Group other
terminologies utilized in preparing the v. Statement of Realization and Dayag, Advanced and unannounced Presentation educational
statement of Affairs, deficiency statements Liquidation Financial oral exercises platforms
and statement of realization and liquidation Accounting and Formative (MS Teams,
Reporting 2019e Examinations Zoom,

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OBTL Plan AFAR 2: Accounting for Special Transaction

4. Evaluate, and analyze the above- Use of work Facebook,

mentioned statements and appreciate their Guerrero, exercises such as Summative etc.)
importance. Advanced theoretical Examinations
Accounting application and Printed
problem solving Module

Video Links

Millan, Use of online Attendance Internet Week

1. Define the purpose, nature, scope, and Chapter 6. Home Office, Branch, and Accounting for lecture (Slides, connection 7-8
characteristics of home office. Agency Accounting Special Videos and Online Oral Electronic
2. Identify the accounting concept of a home i. Branch and Agency distinguished Transactions discussion) Exercises device
office and understand nature of ii. Accounting for an Agency 2018e LMS and
establishing an agency and branch. iii. Accounting for Branch Operations Use of scheduled Group other
3. Determine the advantages and iv. Reciprocal Accounts Dayag, Advanced and unannounced Presentation educational
disadvantages of establishing an agency v. Individual Financial Statements Financial oral exercises platforms
and a branch vi. Combined Financial Statements Accounting and Formative (MS Teams,
4. Journalize all needed entries relating to vii. Reconciliation of Reciprocal Reporting 2019e Examinations Zoom,
general and special transaction for agency Accounts Use of work Facebook,
and branch operations Special Problems in Accounting for Guerrero, exercises such as Summative etc.)
5. Recognize the different special problems Branch Operations (Shipments to branch Advanced theoretical Examinations
in accounting for branch operations billed at above cost; and Inter-branch Accounting application and Printed
6. Prepare and appraise Combined financial transactions) problem solving Module
statements of home office and branch
Video Links

Week 9
MIDTERM EXAMINATION

Flexible Teaching Assessment

Textbook/ Resource Time
Desired Learning Outcomes (DLOs) Course Content/Subject Matter and Learning of Tasks
References Materials Table
Activities (FTLAs) (ATs)

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OBTL Plan AFAR 2: Accounting for Special Transaction

1. Understand the application of the general Chapter 7. Revenue Recognition – Millan, Use of online Attendance Internet Week
and specific principles of PFRS 15 to Contracts with Customers (PFRS15) Accounting for lecture (Slides, connection 10-11
account for revenues from construction i. Introduction Special Videos and Online Oral Electronic
contracts, franchise contracts and ii. Core Principle of IFRS 15 Transactions discussion) Exercises device
revenues from consignment contracts. iii. The Five-Step Process 2018e LMS and
2. Recognize the five –steps process in iv. Contract Costs Use of scheduled Group other
revenue recognition v. Presentation Dayag, Advanced and unannounced Presentation educational
3. Specify some other revenue recognition vi. Other Revenue Recognition Financial oral exercises platforms
concerns Issues Accounting and Formative (MS Teams,
4. Define and explain the nature, scope, and Reporting 2019e Examinations Zoom,
characteristics of construction contracts. Chapter 8. Revenue Recognition – Use of work Facebook,
5. Identify and differentiate the different Contracts with Customers: Construction Guerrero, exercises such as Summative etc.) Week
methods of revenue recognition in Accounting Advanced theoretical Examinations 12 - 14
construction accounting i. Introduction Accounting application and Printed
6. Solve simple and complex problems ii. Construction Contracts problem solving Module
relating to different concerns in iii. Construction Revenue PFRS 15:
construction accounting iv. Construction Cost Revenue from Video Links
7. Journalize the different transaction v. Methods of Revenue Recognition Contracts with
necessary in construction accounting. in Construction Accounting Customers
vi. Recognition of Expected or
8. Prepare and evaluate financial statements Anticipated Losses
of a construction business. vii. Changes in Estimates
9. Define, explain and appreciate the concept viii. Contract Retention
, nature and scope of franchise and ix. Financial Statement Presentation
licensing business and consignment
10. Apply the five-step process in recognizing Chapter 9. Revenue Recognition –
revenue from franchise and licensing Contracts with Customers: Franchise and
transactions and from consignment. Consignment
11. Journalize all transactions related to i. Franchise and Licensing
franchising and licensing business. And ii. Franchise Accounting (Application
from consignment of PFRS 15)
12. Appreciate theoretical accounting concepts iii. Contract cost
applied to these special revenue iv. Uncertainty in the collectability of
transactions and relate them in solving Contract Revenue
problems v. Consignment Arrangements

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OBTL Plan AFAR 2: Accounting for Special Transaction

vi. Principal vs. Agent Consideration

vii. Consignment Accounting

1. Outline the standard and accounting Chapter 10. Foreign Currency Transaction Millan, Accounting Use of online Attendance Internet Week
concept of Foreign currency transaction i. Introduction for Special lecture (Slides, connection 15-17
and translation (PAS 12) ii. Accounting for Foreign Currency Transactions Videos and Online Oral Electronic
2. Evaluate the effect of foreign currency Transaction 2018e discussion) Exercises device
transaction to the company’s revenue. iii. Foreign Currency Transaction with LMS and
3. Appreciate the nature of Hedging and Hedging Dayag, Advanced Use of scheduled Group other
Derivatives and their advantages and iv. Fair Value Hedge Financial and unannounced Presentation educational
disadvantages v. Cash flow Hedge Accounting and oral exercises platforms
4. Identify the different methods of Hedging Reporting 2019e Formative (MS Teams,
and how to use them as a tool in managing Chapter 11. Foreign Currency Translation Examinations Zoom,
business. i. Introduction Guerrero, Use of work Facebook,
5. Understand the different foreign currency ii. Accounting Procedures (Current Advanced exercises such as Summative etc.)
translation methods . and prepare financial Method and Temporal Method) Accounting theoretical Examinations
statement applying these methods iii. Goodwill Arising from the Principles and application and Printed
6. Solve special problems concerning foreign Acquisition of Foreign Subsidiary Procedural problem solving Module
currency transactions and translations iv. Functional Currency is the Application 2017e
Currency of Hyperinflationary Video Links
Economy PFRS 9: Financial
v. Hedge of Net Investment in Instruments
Foreign Operations
PAS 21: The
Effect of Changes
in Foreign
. Exchange Rates

Week
FINAL TERM EXAMINATION
18

Suggested Readings
and References Textbooks:

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OBTL Plan AFAR 2: Accounting for Special Transaction

ADVANCED FINANCIAL ACCOUNTING AND REPORTING, Dayag 2019 edition

ADVANCED ACCOUNTING, Guerrero
ACCOUNTING FOR SPECIAL TRANSACTIONS, Millan 2018 edition

Other references:
Relevant Philippine Financial Reporting Standards (PFRS)
Relevant Philippine Accounting Standards (PAS)
Relevant International Financial Reporting Interpretations Committee (IFRIC)

Course
Requirements
Grading System STUDENT PERFORMANCE EVALUATION Weight Grade Equivale Description Remark Grade Equivalence Description Remarks
nce s
Attendance, Oral Exercises and/or 15% 1.00 98-100 Excellent Passed 3.00 75% Passing Passed
Group Presentation %

Formative Examinations 40% 1.25 95-97 Excellent Passed 3.50 75-78% C. Failure C. Failure

Summative Examinations 45% 1.50 92-94 Very Good Passed 4.00 71-74% C. Failure C. Failure

TOTAL 100% 1.75 89-91 Very Good Passed 5.00 Failed Failure Failed

Credit Grade (Final Grade) = (Midterm 2.00 86-89 Good Passed DRP Dropped Dropped Dropped
Grade + Final Term Grade) / 2

Abide by the BSA Retention Policy to

qualify for BS Accountancy Program.

2.25 83-85 Good Passed INC Incomplete Incomplete Incomplete

2.50 80-81 Good Passed UD Unofficially Failure Failed

Dropped
2.75 78-79 Satisfactory Passed

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Policies Online/ Flexible Teaching and Learning:

1. Microsoft Teams will be used as the primary platform in every class; thus, all students are advised to download and install the aforementioned
application. Just go to office.com. and login using your @student.tsu.edu.ph account, choose Teams from the list of applications, from there your
enrolled subjects will appear;
2. To uphold delivery of quality instruction, the class may also use added online platforms and applications like Zoom Cloud Meeting, FB Messenger,
Telegram and the like.
3. There are specific periods or schedules wherein synchronous learning shall be required. The student shall be ready as such to attend the said
scheduled meeting and make the necessary adjustments to be able to attend and be present.
4. Plagiarism in case of copyrighted articles is strictly prohibited and direct copying of classmates work will be sanctioned by not accumulating any
points, both on the part of the two or more parties involved.
5. Required output such as the Portfolio Journal for work exercises shall be submitted on the scheduled time stipulated or announced by the instructor
in charge. Failure to do so will render your portfolio non admissible for grading purposes.

Course Title: AY/Term of Effectively: Prepared by: Reviewed by:

ACCOUNTING FOR AY: 2020-2021

SPECIAL TRANSACTIONS PROF. VENUS L. CATACUTAN, CPA, MBA PROF. HENRY D. RUFINO, CPA, MBA
(AFAR 2) 1st SEMESTER Faculty Chairperson

Recommending Approval:

DR. JHONEL C. PANLILIO, CPA

Dean

Approved:

DR. ERWIN P. LACANLALE

Vice President for Academic Affairs

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OBTL Plan AFAR 2: Accounting for Special Transaction

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