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
