POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
COLLEGE OF ACCOUNTANCY AND FINANCE
DEPARTMENT OF ACCOUNTANCY
COURSE TITLE
COURSE CODE
INTERMEDIATE ACCOUNTING 3
CREDIT UNITS
COURSE PREREQUISITE
3 UNITS
COURSE DESCRIPTION
The course covers understanding and application of accounting principles and standards relating to: nature and composition of accounts, initial recognition, measurement and valuation, subsequent
events and transactions, subsequent measurement and the required disclosures of non-financial liabilities, shareholders’ equity, income taxes, employee benefits and leases.
ACCO 20103
ACCO 20053- Intermediate Accounting 1
Institutional Learning Outcomes
1. Creative and Critical Thinking
Graduates use their imaginative as well as a rational thinking ability to life
situations in order push boundaries, realize possibilities, and deepen their
interdisciplinary and general understanding of the world.
2. Effective Communication
Graduates are proficient in the four macro skills in communication (reading,
writing, listening, and speaking) and are able to use these skills in solving
problems, making decisions, and articulating thoughts when engaging with
people in various circumstances.
3. Strong Service Orientation
Graduates exemplify the potentialities of an efficient, well-rounded and
responsible professional deeply committed to service excellence.
4. Community Engagement
Graduates take an active role in the promotion and fulfillment of various
advocacies (educational, social and environmental) for the advancement of
community welfare.
5. Adeptness in the Responsible Use of Technology
Graduates demonstrate optimized use of digital learning abilities, including
technical and numerical skills.
6. Passion to Lifelong Learning
Graduates are enabled to perform and function in the society by taking
responsibility in their quest to know more about the world through lifelong
learning.
7. High Level of Leadership and Organizational Skills
Graduates are developed to become the best professionals in their respective
disciplines by manifesting the appropriate skills and leaderships qualities.
8. Sense of Personal and Professional Ethics
Graduates show desirable attitudes and behavior either in their personal and
professional circumstances.
9. Sense of National and Global Responsiveness
Graduates’ deep sense of national compliments the need to live in a global
village where one’s culture and other people culture are respected.
Program Outcomes
BSA and BSMA graduates must demonstrate the ability to review, interpret, evaluate
financial data and systems in compliance with established policies, procedures,
guidelines, agreements and/or legislation. They must be able to link data, knowledge and
insight together with different sources and disciplines to make informed decisions.
BSA and BSMA graduates should possess active listening skills and the ability to
communicate effectively one’s point of view, both orally and in writing, at all
organizational levels; be able to explain verbally and/or writing financial, statistical,
administrative matters/policies/procedures/regulatory matters/audit results at a level
appropriate to the audience and must be able to negotiate effectively.
BSA and BSMA graduates should develop an ability to work in groups, possess skills to
participate as member of a team or/and contribute to group effort; be able to teach others
new skills; be able to work to the satisfaction of the clients; negotiate and work with
diversity or work well with men and women from diverse backgrounds.
BSA and BSMA graduates must work with the highest standards of professionalism, to
attain higher level of performance and generally to meet the public interest, he must
conform to the ethical standards of the profession that include: Integrity, objectivity and
independence, professional competence and due care, confidentiality, professional
behavior and moral values.
BSA and BSMA graduates should possess general knowledge in gaining and
understanding of the different cultures in the world and developing an international
objective thus, he must possess competency in English language, adaptability to foreign
business practices, level of trainability and good capabilities in dealing with foreign
partners.
BSA and BSMA graduates should not only be conversant with IT concepts for business
systems but sound knowledge on internal control in computer-based systems,
development standards and practices for business systems, management of the adoption,
implementation and use of IT, evaluation of computer business systems, and managing
the security information.
BSA and BSMA graduates should possess broad base of knowledge concerning macroenvironmental, economic and industry issues, business process structures, functions and
practices. It includes knowledge in areas such as economics, quantitative models and
business statistics, organizational behavior, international business, ethics and corporate
governance.
Course Outcomes
Upon completion of the course, the students will be able to:
a. have sound knowledge of the accounting standards applicable
to the recognition, classification, measurement and derecognition
of non-financial liabilities, shareholders’ equity, income taxes,
employee benefits and leases.
b. understand the appropriate presentation of the major liability
and equity accounts and related revenues and expenses in the
financial statements, including the appropriate disclosures.
c. apply the accounting standards in the presentation of nonfinancial liabilities, shareholders’ equity, income taxes, employee
benefits and leases, and related revenue and expense items on the
financial statements, including the required disclosures.
d. apply the skills in systematic problem solving.
e. present computations and financial statements in good form.
f. appreciate the importance of appropriate accounting and
reporting for various users of accounting information.
g. realize the contributions of accounting standards to the
development of a more socially responsible and morally upright
professional accountant.
Course Plan
Week
Topic
Learning Outcomes
Methodology
Resources
Assessment
1
Orientation on course syllabus; grading
system; class management policies;
required textbook.
• Make the students at ease and eager to learn.
• Relate ACCO 20103 to ACCO 20053 and to higher level
accounting subjects such as Auditing and Integrated
Review for Financial Accounting and Reporting.
1-4
Non-Financial Liabilities
The Intermediate Accounting
Series, Volume 3 by Robles and
Empleo
• Online recitation
• Virtual presentation by
students of their answers to
assigned exercises and problems
• Online quiz regarding the
topic
5-9
Leases
The learner will be able to:
• understand the essential characteristics of liabilities
• distinguish provisions from contingent liabilities
(IAS 37);
• comprehend the concepts of various non-financial
liabilities such as warranties, premiums, unearned
revenues, customer loyalty awards, gift certificates
outstanding, refundable deposits, advances, accrued
liabilities and bonuses;
• account for different non-financial liabilities after
initial recognition;
• measure on financial liabilities in the statement of
financial position; and
• identify required disclosures for current liabilities
and contingencies.
The learner will be able to:
• describe the nature of leases and determine whether
a contract contains a lease based on IFRS 16;
• describe the accounting criteria and procedures for
capitalizing leases by the lessee;
• describe the accounting criteria and procedures for
recognition exception for accounting the lease by the
lessee;
• formulate entries relating to lease in the books of the
lessee;
• comprehend the accounting criteria and procedures
for identifying operating and finance lease by the
lessor;
• analyze the criteria how the lessor recognizes
finance
lease
under
direct
finance
or
manufacturer’s/dealer’s lease;
• formulate entries relating to lease in the books of the
lessor;
• present information arising from leasing
transactions on the face of the financial statements;
• account for sale and leaseback transactions; and
• Presentation of the grading
system; class management
policies and the rest of the
syllabus.
• Clarification of expectations
•
Online
lecture
and
discussion
• Problem solving
• Students to read the
financial statement
disclosures regarding nonfinancial liabilities of a PSE
listed company.
The Intermediate Accounting
Series, Volume 3 by Robles and
Empleo
• Online recitation
• Virtual presentation by
students of their answers to
assigned exercises and problems
• Online quiz regarding the
topic
•
Online
lecture
and
discussion
• Problem solving
• Students to read financial
statement disclosures
regarding leases of a PSE
listed company
10-12
Income Taxes
12-14
Employee Benefits
15- 18
Shareholders’ Equity
• identify the required disclosures in the financial
statements of the lessor and the lessee.
MIDTERM DEPARTMENTAL EXAMINATION
The learner will be able to:
•
Online
lecture
and
• understand the nature of income taxes (IAS 12);
discussion
• distinguish between accounting income and taxable • Problem solving
income;
• Students to read financial
• distinguish temporary and permanent differences;
statement disclosures
• recognize and measure current income tax, deferred regarding income taxes of a
tax assets and deferred tax liabilities;
PSE listed company
• account for the reversal of temporary difference and
the effects of operating loss carryforward;
• present financial information relating to income
taxes; and
• identify the required disclosures related to income
tax.
The learner will be able to:
•
Online
lecture
and
• enumerate and describe the different forms of discussion
employee benefits (IAS 19);
• Problem solving
• record and measure short-term and long-term • Students to read financial
employee benefits;
statement disclosures
• understand the difference between defined regarding employee benefits
contribution plan and defined benefit plan;
of a PSE listed company
• record and measure the post-employment benefit
cost under defined contribution plan and defined
benefit plan;
• measure and present in the financial statements data
relating to employee benefits; and
• identify the required financial statement
disclosures.
The learner will be able to:
•
Online
lecture
and
• distinguish a corporation from the other forms of discussion
business organization;
• Problem solving
• identify the different sources of corporate capital;
• Students to read disclosure
• describe the features of the different classes of share regarding shareholders’
capital;
equity of a PSE listed
• record properly subscription to share capital and company
issuance of share capital;
• record properly treasury share transactions and
retirement of share capital;
• account for stock rights, share warrants, share
options and share appreciation rights (IFRS 2);
• identify the factors affecting the retained earnings
balance;
The Intermediate Accounting
Series, Volume 3 by Robles and
Empleo
• Online recitation
• Virtual presentation by
students of their answers to
assigned exercises and problems
• Online quiz regarding the topic
The Intermediate Accounting
Series, Volume 3 by Robles and
Empleo
• Online recitation
• Virtual presentation by
students of their answers to
assigned exercises and problems
• Online quiz regarding the topic
The Intermediate Accounting
Series, Volume 3 by Robles and
Empleo
• Online recitation
• Virtual presentation by
students of their answers to
assigned exercises and problems
• Online quiz regarding the topic
• record properly dividend transactions;
• allocate cash dividends between preference share
and ordinary share;
• account for quasi-reorganization;
• compute book value per share; and
• Identify the required disclosures relating to
shareholders’ equity
FINAL DEPARTMENTAL EXAMINATION
Suggested Readings and References
• CIRC HF 5635 W37 2014, Warren, Carl S., Financial Accounting, 13th ed., 2014
• CIRC HF 5635 F56 2013, William, Jan R., Financial & Managerial Accounting: The basis for business decisions, 16th ed., 2013
• CIRC HF 5635 F5313 2013, William, Jan R., Financial Accounting, 15th 3d. 2013
• REF HF 5626 1594 W55 2013, Wiley 2012 Interpretation and application of international financial reporting standards, Bruce Mackenzie, 2013
• IAS 1: Presentation of Financial Statements, https://www.ifrs.org/issued-standards/list-of-standards/ias-1-presentation-of-financial-statements/
• IAS 12: Income Taxes, https://www.ifrs.org/issued-standards/list-of-standards/ias-12-income-taxes/
• IAS 19: Employee Benefits, https://www.ifrs.org/supporting-implementation/supporting-materials-by-ifrs-standard/ias-19/
• IAS 37: Provisions, Contingent Liabilities and Contingent Assets, https://www.ifrs.org/issued-standards/list-of-standards/ias-37-provisions-contingent-liabilities-and-contingent-assets/
• IFRS 2: Share-based Payment, https://www.ifrs.org/supporting-implementation/supporting-materials-by-ifrs-standard/ifrs-2/
• IFRS 16: Leases, https://www.ifrs.org/issued-standards/list-of-standards/ifrs-16-leases/
• Robles, Nenita S. and Empleo, Patricia M. The Intermediate Accounting Series, Volume 3, 2019 Edition, Millennium Books Inc.
Course Grading System
ONLINE MODE OF LEARNING
Class Standing
Quizzes
Assignments and other activities
Departmental examination
Total
70%
50%
20%
30%
100%
Final Grade = (1st Grading Period + 2nd Grading Period)
2
CORRESPONDENCE MODE OF LEARNING
Result from Online Final Departmental Examination
Result from the activities in the modules
Total
60%
40%
100%
Classroom Policy
The allowed number of absences for students enrolled in ACCO 20103 with once-a-week meeting is four (4). Request for excused absences or waiver of absences must be presented upon reporting back to class.
Special examinations will be allowed only in special cases, such as prolonged illness. It is the responsibility of the student to monitor his/her own tardy incidents and absences that might accumulate leading to a
grade of “FA,” (Failed due to Absences). It is also his/her responsibility to consult with the teacher, chair or dean should his/her case be of special nature.
All BSA and BSMA students are expected to be academically honest. Cheating, lying and other forms of immoral and unethical behavior will not be tolerated. Any student found guilty of cheating in examinations
will (at a minimum) receive a grade of 5.0 in the said test.
Consultation Time
Subject to the availability of the subject teacher, student may approach the subject teacher for queries about his/her grade as well as other academic requirements for the subject.
Prepared by:
Enhanced by:
Reviewed by:
(sgd.)
Noel A. Bergonia, CPA, MBA
Faculty Member
(sgd.)
Lyra Victoria V. Lascano, CPA, MBA
Faculty Member
(sgd.)
Lilian M. Litonjua, CPA, MBA
Chairperson
(sgd.)
Elsa R. Ruado, CPA
Faculty Member
Recommending Approval:
(sgd.)
Dr. Julieta G. Fonte, CPA
Dean, College of Accountancy and Finance
Approved by:
(sgd.)
Dr. Emanuel C. De Guzman
Vice President for Academic Affairs
Revised March 2021