POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
COLLEGE OF ACCOUNTANCY AND FINANCE
DEPARTMENT OF ACCOUNTANCY
COURSE TITLE
COURSE CODE
ACCOUNTING FOR SPECIAL TRANSACTIONS
CREDIT UNITS
COURSE PREREQUISITE
3 UNITS
ACCO 30013
ACCO 20053, ACCO 20063, ACCO 20073
COURSE DESCRIPTION
This course deals with specialized accounting problems likely to be encountered by accountants. The study of the various topics in this course is based upon fundamental valuation accounting and
accounting theory as applied to special income and expense recognition method and expanded business operations. This course also includes specialized problems in partnership accounting; corporate
liquidation; accounting for home office, branch and agency; and revenue from contracts with customers (sale of goods and services, consignment, installment sales, long-term construction contracts, and
franchising).
Institutional Learning Outcomes
Program Outcomes
Course Outcomes
BSA and BSMA graduates must demonstrate the ability to review, interpret, evaluate
1. Creative and Critical Thinking
Upon completion of the course, the students will be able to:
Graduates use their imaginative as well as a rational thinking ability to life financial data and systems in compliance with established policies, procedures,
a. Have sound knowledge of the accounting standards applicable
situations in order push boundaries, realize possibilities, and deepen their guidelines, agreements and/or legislation. They must be able to link data, knowledge and
to partnership; corporate liquidation; home office, branch and
insight together with different sources and disciplines to make informed decisions.
interdisciplinary and general understanding of the world.
agency; and revenue from contract with customer (sale of goods
2. Effective Communication
BSA and BSMA graduates should possess active listening skills and the ability to
and services, consignment, installment sales, franchising, and
Graduates are proficient in the four macro skills in communication (reading, effectively communicate one’s point of view, both orally and in writing, at all
long-term construction contracts);
writing, listening, and speaking) and are able to use these skills in solving organizational levels; be able to explain verbally and/or writing financial, statistical,
b.
Apply the law on partnership and understand the essential
administrative
matters/policies/procedures/regulatory
matters/audit
results
at
a
level
problems, making decisions, and articulating thoughts when engaging with
appropriate to the audience and must be able to negotiate effectively.
elements and general aspects in accounting for partnership
people in various circumstances.
3. Strong Service Orientation
formation, operation, dissolution and liquidation);
BSA and BSMA graduates should develop an ability to work in groups, possess skills to
Graduates exemplify the potentialities of an efficient, well-rounded and
c.
Apply the fundamental concepts in accounting for corporate
participate as member of a team or/and contribute to group effort; be able to teach others
responsible professional deeply committed to service excellence.
new skills; be able to work to the satisfaction of the clients; negotiate and work with
liquidation and home office, branch and agency.
4. Community Engagement
diversity or work well with men and women from diverse backgrounds.
d. Apply the fundamental concepts of revenue recognition in
Graduates take an active role in the promotion and fulfillment of various
accounting for consignment, installment sales, franchising, and
advocacies (educational, social and environmental) for the advancement of BSA and BSMA graduates must work with the highest standards of professionalism, to
long-term construction contracts;
attain higher level of performance and generally to meet the public interest, he must
community welfare.
conform to the ethical standards of the profession that include: Integrity, objectivity and
e.
Apply the accounting standards in the presentation and
5. Adeptness in the Responsible Use of Technology
independence, professional competence and due care, confidentiality, professional
preparation of financial statements, including the required
Graduates demonstrate optimized use of digital learning abilities, including
behavior and moral values.
technical and numerical skills.
disclosures;
6. Passion to Lifelong Learning
BSA and BSMA graduates should possess general knowledge in gaining and
f. Apply the skills in systematic problem solving;
Graduates are enabled to perform and function in the society by taking understanding of the different cultures in the world and developing an international
g. Present computations and financial statements in good form;
responsibility in their quest to know more about the world through lifelong objective thus, he must possess competency in English language, adaptability to foreign
h. Appreciate the importance of appropriate accounting and
business
practices,
level
of
trainability
and
good
capabilities
in
dealing
with
foreign
learning.
reporting for various users of accounting information; and
partners.
7. High Level of Leadership and Organizational Skills
i. Realize the contributions of accounting standards to the
Graduates are developed to become the best professionals in their respective
BSA and BSMA graduates should not only be conversant with IT concepts for business
development of a more socially responsible and morally upright
disciplines by manifesting the appropriate skills and leaderships qualities.
systems but sound knowledge on internal control in computer-based systems,
professional accountant.
8. Sense of Personal and Professional Ethics
development standards and practices for business systems, management of the adoption,
Graduates show desirable attitudes and behavior either in their personal and implementation and use of IT, evaluation of computer business systems, and managing
the security information.
professional circumstances.
9. Sense of National and Global Responsiveness
BSA and BSMA graduates should possess broad base of knowledge concerning macroGraduates’ deep sense of national compliments the need to live in a global
environmental, economic and industry issues, business process structures, functions and
village where one’s culture and other people culture are respected.
practices. It includes knowledge in areas such as economics, quantitative models and
business statistics, organizational behavior, international business, ethics and corporate
governance.
Course Plan
Week
1
1
Topic
Orientation on course syllabus;
grading system; class management
policies; required text book and other
instructional materials, and
references.
Partnership Formation
Learning Outcomes
• Understand the policies on attendance, integrity,
grading system and the contents of the course.
• Make the students at ease and eager to learn.
2
Partnership Operation
3
Partnership Dissolution
The learner will be able to:
• Define and describe partnership dissolution;
• Identify the different reasons of partnership
dissolution;
• Account for the admission of a partner by purchase
and by investment;
• Determine the partners’ equity upon withdrawal,
retirement, death, or incapacity; and
• Record the incorporation of a partnership.
4-5
Partnership Liquidation
The learner will be able to:
• Define and describe partnership liquidation;
• Identify and explain the causes of partnership
liquidation;
• Understand the nature of lump-sum and installment
liquidation;
The learner will be able to:
• Define different types of partnership and kinds of
partners;
• Understand the initial investment valuation and
recognition;
• Identify the different method of recording initial
investments;
• Journalize the required entries in the books of the
partnership; and
• Prepare the statement of financial position
immediately after formation.
The learner will be able to:
• Recognize and measure partnership income and
expenses;
• Identify the different methods of allocating
partnership profit and loss;
• Journalize profit or loss distribution to partners; and
• Identify errors and misstatements in the financial
statements.
Methodology
Resources
• Presentation of the grading Approved course syllabus to be
system; class management distributed to the students
policies and the rest of the
syllabus.
Clarification of expectations
• Lecture and discussion
• Instructional Materials in
• Problem solving
Accounting for Special
• Answer and analyze the
Transactions
theoretical questions
• Accounting for Special
• Students
to
read
Transactions by Gloria A.
Instructional Materials and
Rante, et al.
other resources
• Advanced Financial
Accounting 2021 Edition by
Dayag
• Online sources
• Lecture and discussion
• Instructional Materials in
• Problem solving
Accounting for Special
• Answer and analyze the
Transactions
theoretical questions
• Accounting for Special
• Students
to
read
Transactions by Gloria A.
Instructional Materials and
Rante, et al.
other resources
• Advanced Financial
Accounting 2021 Edition by
Dayag
• Online sources
• Lecture and discussion
• Instructional Materials in
• Problem solving
Accounting for Special
• Answer and analyze the
Transactions
theoretical questions
• Accounting for Special
• Students
to
read
Transactions by Gloria A.
Instructional Materials and
Rante, et al.
other resources
• Advanced Financial
Accounting 2021 Edition by
Dayag
• Online sources
• Lecture and discussion
• Instructional Materials in
• Problem solving
Accounting for Special
• Answer and analyze the
Transactions
theoretical questions
• Accounting for Special
Transactions by Gloria A.
Rante, et al.
Assessment
• Activities and Assignments
Quiz regarding the topic
• Activities and Assignments
Quiz regarding the topic
• Activities and Assignments
• Quiz regarding the topic
• Activities and Assignments
• Quiz regarding the topic
6
7-8
9
10-11
Corporate Liquidation
Accounting for Home Office, Branch
and Agency
Accounting for Home Office, Branch
and Agency – Special Problems
• Understand and apply the concepts of marshalling of
assets and right of offset;
• Journalize the realization of non-cash assets, payment
of liabilities and final settlement to partners in lump
sum and installment liquidation; and
• Prepare statement of liquidation with supporting
schedules of cash distribution (periodic schedule of
payment and cash priority program).
The learner will be able to:
• Prepare Statement of affairs with deficiency schedule;
• Journalize transfer of assets from financially
distressed company to trustee; and
• Prepare Statement of Realization and Liquidation.
• Students to read
Instructional Materials
and other resources
• Advanced Financial
Accounting 2021 Edition by
Dayag
• Online sources
• Lecture and discussion
• Problem solving
• Answer and analyze the
theoretical questions
• Students to read
Instructional Materials
and other resources
• Instructional Materials in
Accounting for Special
Transactions
• Accounting for Special
Transactions by Gloria A.
Rante, et al.
• Advanced Financial
Accounting 2021 Edition by
Dayag
• Online sources
• Instructional Materials in
Accounting for Special
Transactions
• Accounting for Special
Transactions by Gloria A.
Rante, et al.
• Advanced Financial
Accounting 2021 Edition by
Dayag
• Online sources
The learner will be able to:
• Lecture and discussion
• Differentiate the operations of home office, branch,
• Problem solving
and agency;
• Answer and analyze the
• Journalize the transactions of an agency, home office
theoretical questions
and branch;
• Students to read
• Journalize inter-branch transactions of merchandise
Instructional Materials
transfer (at cost) and inter-branch transfer of fixed
and other resources
assets;
• Prepare a reconciliation statement of home office and
branch accounts;
• Determine net income of an agency, home office,
branch and the consolidated net income;
• Prepare working paper for the combined financial
statements; and
• Prepare consolidated financial statements.
MIDTERM DEPARTMENTAL EXAMINATION
The learner will be able to:
• Lecture and discussion
• Instructional Materials in
• Journalize inter-branch transactions of merchandise
• Problem solving
Accounting for Special
transfer (at above cost) and inter-branch transfer of
• Answer and analyze the
Transactions
fixed assets;
theoretical questions
• Accounting for Special
• Prepare a reconciliation statement of home office and
Students to read Instructional
Transactions by Gloria A.
branch accounts;
Materials and other resources
Rante, et al.
• Determine net income of an agency, home office,
• Advanced Financial
branch and the consolidated net income;
Accounting 2021 Edition by
• Prepare working paper for the combined financial
Dayag
statements; and
Online sources
• Activities and Assignments
• Quiz regarding the topic
• Activities and Assignments
• Quiz regarding the topic
• Activities and Assignments
Quiz regarding the topic
• Prepare consolidated financial statements.
The learner will be able to:
• Apply PFRS 15 in accounting revenue from contract
with customer;
• Know the criteria in identifying a contract;
• Be able to identify performance obligations in a
contract;
• Differentiate performance obligations satisfied over
time from performance obligations satisfied point in
time;
• Be able to determine the transaction price and allocate
to the performance obligations;
• Be able to account for variable considerations; and
• Be able to account for contract modifications.
The learner will be able to:
• Understand the nature of consignment sales;
• Journalize the required entries in the books of the
consignor and consignee; and
• Compute remittance from the consignee, net income
resulting from consignment transactions and value of
merchandise in the hands of the consignee.
• Lecture and discussion
• Problem solving
• Answer and analyze the
theoretical questions
• Students to read
Instructional Materials
and other resources
• Students to read PFRS 15:
Revenue from Contract
with Customer
• Instructional Materials in
Accounting for Special
Transactions
• Accounting for Special
Transactions by Gloria A.
Rante, et al.
• Advanced Financial
Accounting 2021 Edition by
Dayag
• PFRS 15: Revenue from
Contract with Customer
• Online sources
• Activities and Assignments
• Quiz regarding the topic
• Lecture and discussion
• Problem solving
• Answer and analyze the
theoretical questions
• Students to read
Instructional Materials
and other resources
Students to read PFRS 15:
Revenue from Contract with
Customer
• Instructional Materials in
Accounting for Special
Transactions
• Accounting for Special
Transactions by Gloria A.
Rante, et al.
• Advanced Financial
Accounting 2021 Edition by
Dayag
• PFRS 15: Revenue from
Contract with Customer
• Online sources
• Instructional Materials in
Accounting for Special
Transactions
• Accounting for Special
Transactions by Gloria A.
Rante, et al.
• Advanced Financial
Accounting 2021 Edition by
Dayag
• PFRS 15: Revenue from
Contract with Customer
• Online sources
• Instructional Materials in
Accounting for Special
Transactions
• Accounting for Special
Transactions by Gloria A.
Rante, et al.
• Activities and Assignments
Quiz regarding the topic
12
Revenue Recognition: Sales of Goods
and Services
13
Revenue
Sales
14
Revenue Recognition: Installment Sales
The learner will be able to:
• Understand the nature of installment sales;
• Journalize the required entries to record the
installment sales transactions;
• Be able to account for the effect of repossession;
• Be able to account for the effect of trade-in; and
• Compute the revenue from installment sales
• Lecture and discussion
• Problem solving
• Answer and analyze the
theoretical questions
• Students to read
Instructional Materials
and other resources
• Students to read PFRS 15:
Revenue from Contract
with Customer
15
Revenue Recognition: Franchising
The learner will be able to:
• Understand the nature of franchising;
• Journalize the required entries to record the franchise
transactions;
• Compare and journalize the different methods of
accounting for initial franchise fee and the related cost
• Lecture and discussion
• Problem solving
• Answer and analyze the
theoretical questions
Recognition:
Consignment
• Activities and Assignments
• Quiz regarding the topic
• Activities and Assignments
• Quiz regarding the topic
of franchise revenues – prior to substantial
performance and upon substantial performance of
service; and
• Compute the revenue from franchising.
16-17
Revenue
Recognition:
Construction Contract
18
Long-term
• Students to read
Instructional Materials
and other resources
• Students to read PFRS 15:
Revenue from Contract
with Customer
• Lecture and discussion
• Problem solving
• Answer and analyze the
theoretical questions
• Students to read
Instructional Materials
and other resources
• Students to read PFRS 15:
Revenue from Contract
with Customer
The learner will be able to:
• Define different terms or accounts used in
construction contracts;
• Apply PFRS 15 in accounting for long-term
construction contracts;
• Determine the percentage of completion of a contract;
• Compute and journalize the transactions related to
construction revenue, costs, and gross profit (loss);
• Journalize billings and collections with mobilization
fee, retention fee and penalty clause; and
• Account for construction contracts with modification
clause.
FINAL DEPARTMENTAL EXAMINATION
• Advanced Financial
Accounting 2021 Edition by
Dayag
• PFRS 15: Revenue from
Contract with Customer
• Online sources
• Instructional Materials in
Accounting for Special
Transactions
• Accounting for Special
Transactions by Gloria A.
Rante, et al.
• Advanced Financial
Accounting 2021 Edition by
Dayag
• PFRS 15: Revenue from
Contract with Customer
• Online sources
Suggested Readings and References
•
•
•
•
Instructional Materials in Accounting for Special Transactions
Accounting for Special Transactions by Gloria A. Rante, et al.
Advanced Financial Accounting 2021 Edition by Dayag
PFRS 15: Revenue from Contract with Customer
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%
• Activities and Assignments
• Quiz regarding the topic
Classroom Policy
The allowed number of absences for students enrolled in ACCO 30013 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.)
Ma. Delia M. Liz, CPA, MBA
Faculty Member
(sgd.)
Dr. Gloria A. Rante, CPA
Faculty Member
(sgd.)
Lilian M. Litonjua, CPA, MBA
Chairperson
(sgd.)
Elsa R. Ruado, CPA
Faculty Member
(sgd.)
Jonald P. Binaluyo, CPA, MBA
Faculty Member
(sgd.)
Reynan C. Murtos, CPA, MBA
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