Metropolitan Park, Pres. Diosdado Macapagal Blvd.

, Pasay City 1300

COURSE OUTLINE College of Accountancy

and Management

COURSE TITLE : FINANCIAL ACCOUNTING THEORY AND PRACTICE, PART I

COURSE CODE : ACTG 03A

CREDIT UNITS : 6 units

PRE-REQUISITE : ACTG 01 (Fundamentals of Accounting I)

ACTG 02 (Fundamentals of Accounting II)

NO. OF HOURS : 6 hours lecture per week (108 hours per semester)

ACADEMIC YEAR: 2017 - 2018 :

INSTRUCTOR : Prof. Jason R. Radam

CONSULTATION HOURS :

EMAIL ADDRESS : [email protected]

I. COURSE DESCRIPTION: This course is designed for the student who has completed the fundamentals of
accounting courses. It covers topics on accounting and its environment, the conceptual framework for
financial accounting generally accepted principles, the recognition, measurement and statement
presentation of asset items in the statement of financial position. The course deals with the current trends in
accounting for statement of financial position and items in statement of financial performance based on the
Philippine Financial Reporting Standards (PFRS) set by the Financial Reporting Standard Council. It
requires development of greater in-depth understanding, high level of analytical and critical thinking in the
student.

II. COURSE OBJECTIVES:

Cognitive
1. Have a clear and definite understanding of the objectives of accounting and the principles
that have evolved in response to these objectives.
2. Have a sound knowledge of the generally accepted accounting principles, rules and methods
applicable to the recognition, measurement, valuation and financial statement presentation of
all assets accounts based on PFRS and PAS.
3. Know and understand the pronouncements of the International Accounting Standard Council
(IASC) as embodied in the International Accounting Standard (IAS).

Affective
1. Realize that the accounting process is not static but one that must respond to changes in the
economic, political and social environment.
2. Realize the value that the IAS and PAS contribute to the development of a more socially
oriented accountant.
3. Strengthen and practice the values of honesty, integrity, diligence and perseverance in the
practice of auditing.

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 Psychomotor
1. Apply the acquired knowledge to realistic problem situation.
2. Demonstrates the 5C’s: critical thinking, commercial ethics, computer literacy, communication
skills and community services.

III. COURSE SCHEDULE:

Week Date Subject Area & SpecificTopics in each area Activity*

1 Day 1 Vision-mission of the college Orientation

Classroom rules and policies Self introduction
Grade requirements Assignment of responsibilities
Course Overview

Day 2 Diagnostic Examination Give examination

Assessment of the result of exam

2 Day 3 Introduction to Financial Accounting Lecture

 Review of the Accounting Process Seatwork
 Definition of Financial Accounting Assignment
 Kinds of Financial Statements Recitation
 Users of Financial Statements
Conceptual Framework
 Objective of financial statements
 Qualitative Characteristics
 Elements of financial statements

 Limitations of financial accounting and financial

Day 4 Lecture
statements
Recitation/Boardwork
 Recognition Principles Assignment
 Measurement Principles Problem-solving
Quiz
Cash and Cash Equivalents
 Classifications and presentations
 Measurements
 Compensating balances
 Unreleased and undelivered checks
 Postdated checks

3 Day 5 Cash and Cash Equivalents Lecture

 Window dressing, Kiting, and Lapping Recitation/Boardwork
 Petty cash fund Assignment
 Imprest and fluctuating system Problem-solving
 Cash short or over Quiz

Day 6 Bank Reconciliation

 Definition Lecture
 Kinds of Bank Accounts Seatwork
Recitation/Boardwork
 Bank Statement
Assignment
 Balance per book and per bank
Problem-solving
 Reconciling items
 Methods of Bank Reconciliations

4 Day 7 Proof of Cash Lecture

 Definition Recitation/Boardwork
 Receipts and disbursements Problem-solving

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  Methods of Proof of Cash Quiz

Accounts Receivable
Day 8  Definition Lecture
 Classifications and presentation Seatwork
 Measurements Recitation/Boardwork
 Trade and cash discounts Assignment
 Gross and net method Problem-solving

5 Day 9 Notes Receivable Lecture

 Definition Recitation/Boardwork
 Measurement and presentation Problem-solving
 Interest-bearing and non-interest-bearing note Quiz

Day 10 Loan Receivable Lecture

 Measurement and presentation Seatwork/Boardwork
 Nominal rate and effective rate of interest Recitation
 Direct and indirect origination cost Assignment
Problem-solving

6 Day 11 Receivable Financing Lecture

 Definition Recitation/Boardwork
 Pledging of Accounts receivable Assignment
 Assignment of Accounts receivable Problem-solving
 Factoring of Accounts receivable Quiz
 Discounting of Notes receivable

Day 12 – Preliminary Examination

7 Day 13 Inventories Lecture

 Classification Seatwork
 Goods in transit Recitation/Boardwork
 FOB Shipping Point and FOB Destination Problem-solving
 Periodic and perpetual system
 Gross and net method

Inventory Valuation Lecture

Day 14  Measurement Recitation/Boardwork
Assignment
 FIFO, LIFO, Weighted Average, Specific
Problem-solving
Identification
Quiz
 Lower of cost or NRV rule

8 Day 15 Inventory Valuation Lecture

 Relative sales price method Seatwork
 Purchase commitments Recitation/Boardwork
Biological Assets Assignment
 Definition Problem-solving
 Agricultural activities
 Recognition and measurement

 Gain or loss from change in fair value Lecture

Day 16 Recitation/Boardwork
 Agricultural land
Problem-solving
 Government grant
Quiz
 Price change and physical change in fair value

9 Day 17 Inventory Estimation Lecture

 Gross profit method Seatwork
 Retail inventory method Recitation/Boardwork
 Conservative and Average cost method Assignment
Problem-solving

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  FIFO method

Day 18 Financial Assets at Fair Value Lecture

 Definition of investments Recitation/Boardwork
 Financial instruments Assignment
 Financial assets Problem-solving
 Financial liabilities Quiz
 Equity instruments
 Equity and debt security

10 Day 19 Financial Assets at Fair Value Lecture

 Financial assets at fair value Seatwork
 Financial assets held for trading Recitation/Boardwork
 Initial and subsequent measurements Assignment
 Financial assets at amortized cost Problem-solving
 Financial assets at fair value through OCI
Day 20  Reclassification of financial assets Lecture
Recitation/Boardwork
 Impairment of financial assets
Assignment
Investment in Equity Securities
Problem-solving
 Investment categories
Quiz
 Sale of equity securities
 Cash dividend, property dividend, liquidating
dividend, stock dividend
 Shares received in lieu of cash dividend
 Cash received in lieu of stock dividend

11 Day 21 Investment in Equity Securities Lecture

 Share split, special assessment Seatwork
 Stock right accounted for separately Recitation/Boardwork
 Stock rights not accounted for separately Assignment
Investment in Associates Problem-solving
 Definition
 Significant Influence versus Control
 Associate and Subsidiary
 Equity method and cost method
 Excess of cost over carrying amount
Day 22 Lecture
 Upstream and downstream transactions Recitation/Boardwork
 Measurement after loss of significant influence Assignment
 Equity method not applicable Problem-solving
Financial Assets at Amortized Cost Quiz
 Definition and classification of Bond
 Initial and subsequent measurement

12 Day 23 Financial Assets at Amortized Cost Lecture

 Acquisition of bond investment Seatwork
 Sale of bond prior to maturity Recitation/Boardwork
 Callable, convertible, serial, and term bonds Assignment
 Method of amortization Problem-solving
 Computation of effective interest
 Computation of price of bonds
Day 24 – Midterm Examination

13 Day 25 Investment Property Lecture

 Definition Recitation/Boardwork
 Investment property versus Owner-occupied Assignment
property Problem-solving
 Partly investment and partly owner-occupied Quiz

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  Recognition and measurement of investment
property
 Derecognition of investment property

Funds and Other Investments Lecture

Day 26  Definition Seatwork
 Current and non-current fund Recitation/Boardwork
 Accounting for funds Assignment
 Annual contribution at the end of the year or at Problem-solving
the beginning of the year
 Cash surrender value

14 Day 27 Property, Plant, and Equipment Lecture

 Definition Recitation/Boardwork
 Recognition and Measurement Assignment
 Elements of cost Problem-solving
 Acquisition of Property Quiz
 Derecognition of Property
 Property classified as held for sale
Day 28 Government Grant Lecture
Seatwork
 Definition
Recitation/Boardwork
 Recognition and measurement
Assignment
 Accounting for government grant Problem-solving
 Presentation of government grant

15 Day 29 Borrowing Costs Lecture

 Definition Recitation/Boardwork
 Qualifying asset Assignment
 Accounting for borrowing cost Problem-solving
 Specific borrowing and general borrowing Quiz

Day 30 Land, Building, and Machinery Lecture

 Accounting for Land Seatwork
 Accounting for Building Recitation/Boardwork
Assignment
 Capital expenditure and revenue expenditure
Problem-solving
 Subsequent cost
 Additions and improvements
 Major replacement

16 Day 31 Depreciation Lecture

 Concepts Recitation/Boardwork
 Depreciation period Assignment
 Methods of depreciation Problem-solving
 Straight line Quiz
 Composite and group method
 Output or production method
 Sum of the years’ digits
 Declining balance
 Change in useful life and depreciation method

Day 32
Depletion Lecture
 Exploration and evaluation expenditures Seatwork
 Wasting assets Recitation/Boardwork
 Depletion and depletion methods Assignment
 Revision of depletion rate Problem-solving
 Trust fund doctrine

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17 Day 33 Revaluation Lecture
 Cost model and revaluation model Recitation/Boardwork
 Accounting for revaluation surplus Assignment
 Treatment of revaluation surplus Problem-solving
 Sale of revalued asset Quiz

Day 34 Impairment of Assets

 Definition, recognition and measurement Lecture
Intangible Assets Seatwork
 Definition Recitation/Boardwork
Assignment
 Criteria for intangible asset
Problem-solving
 Recognition
 Initial and subsequent measurement
 Amortization of intangible assets
 Amortization period and method
 Change in amortization method and useful life
 Derecognition of intangible asset

Week 18 – Final Examination

IV. COURSE REQUIREMENTS:

V. GRADING SYSTEM:

Class Standing 40%

Quizzes (25%)
Seatworks (5%)
Assignments (5%)
Recitation (5%)

Major Examination 60%

Periodic Grade 100%

Prelim examination 30%

Midterm examination 30%
Final examination 40%
Semestral Grade 100%

VI. TEXTBOOK:

Financial Accounting Volume 1 (GIC Enterprise Co. Inc.)

By: Conrado T. Valix, Jose F. Peralta and Christian Aris M. Valix (2017 or later Edition).

VII. REFERENCES:

Intermediate Accounting Volume 1

By: Kieso, Weygandt, and Warfield, IFRS Edition (Latest), Mutual Books Inc.
Nenita S. Robles and Patricia M. Empleo (2017 or later Edition). Intermediate Accounting Volume 1.
Millennium Books, Inc.
PFRS (2017 or later Edition). Philippine Institute of Certified Public Accountants