FAR EASTERN UNIVERSITY
Manila
Institute of Accounts, Business and Finance
COURSE SYLLABUS
Course Code
:
FIN ACT 1
Course Title
:
Financial Accounting and Reporting, Part I
Course Pre-requisite
:
FND ACT 2 – Fundamentals of Accounting , Part II
Course Credit
:
Six (6) units
Course Description
:
This course introduces the nature, functions, scope and limitations of the broad field of accounting theory. It deals with the
study of the theoretical accounting framework objectives of financial statements, accounting conventions, and generally
accepted accounting principles, standard setting process for accounting practice, national as well as international principles
relating to the preparation and presentation of financial statements, the conditions under which they may be appropriately
applied, their impact or effect on the financial statements; and the criticisms commonly leveled against them. The course
covers the detailed discussion, appreciation, and application of accounting principles covering the assets, financial and
nonfinancial. Emphasis is given on the interpretation and application of theories of accounting in relation to cash, temporary
investments, receivables, inventories, prepayments, long term investments, property, plant and equipment, intangibles, and
other assets, including financial statement presentation and disclosure requirements. The related internal control, ethical
issues, and management of assets are also covered. Exposure to computerized system in receivables, inventory, and
lapsing schedules is a requirement in this course.
General Course Objectives
:
At the end of the course, the student is expected to be able to obtain a comprehensive knowledge and understanding on
selected pronouncements of the Accounting Standards Council (ASC) as embodied in the PAS and principles underlying
measurement, valuation and presentation and disclosure of ASSETS.
Revised as of May 2009
1
COURSE CONTENT
Week
Learning Objectives
1
At the end of the session, the student is
expected to understand:
 Know the requirements for completing
the course successfully;
 Articulating his/her own expectation from
the course and the professor
 Nature, principles and scope of
accounting
 Nature, principles and objectives of
financial and related records of an
organization
 The nature, role and significance of
accounting theories and principles
 Principles of conceptual framework of
accounting
 Philippine financial reporting
standards/Philippine accounting
standards
 The concept and role of the true and fair
presentation of financial statements
At the end of the session, the student is
expected to understand:
2


Financial Reporting standards Council
(Creation, objectives and functions;
Membership/composition; Standard
setting process)
Focal
Points/Topics
1. Overview of the
course
2. Administrative
matters
3. Concepts and
principles relating to
the preparation and
presentation of
Financial
Statements.
Financial Reporting
Standards Council
and Conceptual
Framework for the
Preparation and
Presentation of
Financial
Statements
Competencies
Values
Planning and
Organizing
Understanding
1. Expectation
setting for both
students and
professor;
2. Formulation of the
seat plan
3. Lectures
4. Assignments
Teamwork
Cooperation
Judgment
Understanding
1. Lectures
2. Assignments
Flexibility
Revised as of May 2009
2
Teaching Strategies
Evaluative
Measures
1. Seat Plan
2. Summarized
student
expectation sheet
3. Quiz
1. Quiz
Week
Learning Objectives

3





Competencies
Teaching Strategies
Values
Evaluative
Measures
Flexibility
Creativity
Accountability
1. Preparation of
Financial
Statements
2. Quiz
The IASB, history, current structure and
processes, globalization of capital
markets, calls for the harmonization of
accounting standards, formation and
achievements of the IASC
At the end of the session, the student is
expected to understand:



Focal
Points/Topics
Users and their information needs
Objective of financial statements
Underlying assumptions in the
preparation of financial statements
Qualitative characteristics of financial
statements (Understandability,
Relevance, Reliability, Comparability)
Principles of Recognition and
Measurement (Measurement basis)
Elements of financial statements and
their definition
(Assets, Liabilities,
Equity, Income, Expenses)
Recognition and measurement of the
elements of financial statements
Concepts of capital and capital
maintenance ( Financial concept,
Physical concept)
Conceptual
Framework for the
Preparation and
Presentation of
Financial
Statements
Judgment
Understanding
Presentation
Skills
Revised as of May 2009
3
1. Lectures
2. Assignments
Week
4
Learning Objectives
At the end of the session, the student is
expected to understand:

5
Week
6
Definition of financial instruments [
Financial assets: nature and examples,
Financial liabilities: nature and examples,
Equity instruments: nature and examples
( Distinction between equity and financial
liabilities), Compound financial
instruments]
 Categories of financial assets/financial
liabilities
 Financial assets covered by Pas 32 & 39
 Other financial assets excluded from the
scope of Pas 39 and addressed under
other PFRS
 Approach in accounting for financial
instruments
 Nonfinancial assets/nonfinancial
liabilities: nature and examples
At the end of the session, the student is
expected to understand:
 Definition, nature and composition of
cash and cash equivalents
 Recognition and measurement of cash
 Management and control of cash
(Accounting of petty cash fund, Bank
reconciliation at a single date)
 Financial statement valuation,
presentation and disclosure
Learning Objectives
Focal
Points/Topics
Introduction to
Financial
Instruments
Accounting for Cash
Competencies
Values
Understanding
Analytical Ability
Decision Making
Skills
1. Lectures
2. Assignments
Accountability
Flexibility
Patience
Analytical Ability
Problem Solving
Skills
Presentation
Skills
1. Lectures
2. Illustrative
problems
3. Board work
4. Assignment
Honesty
Integrity
Fairness
Accountability
Focal
Competencies
Points/Topics
First Preliminary Examination
Revised as of May 2009
4
Teaching Strategies
Teaching Strategies
Values
Evaluative
Measures
1. Quiz
2. Internet works
1. Preparation of
Bank
Reconciliation
2. Quiz
Evaluative
Measures
7
At the end of the session, the student is
expected to understand:



8




Accounting for
Receivables
Analytical Ability
Problem Solving
Skills
Presentation
Skills
1. Lectures
2. Illustrative
problems
3. Board work
4. Assignment
Honesty
Integrity
Fairness
Accountability
1. Quiz
Accounting for
Receivables (cont’d)
Analytical Ability
Problem Solving
Skills
Presentation
Skills
1. Answering
assignments
2. Lectures
3. Board work
4. Giving
assignment
Honesty
Integrity
Fairness
Accountability
1. Quiz
2. Case Study
Definition, nature and classification of
receivables
Accounting for receivables [Recognition,
Initial and subsequent measurement,
Impairment and uncollectible of
receivables (Assessment and recording
of impairment loss, Reversal or recovery
of impairment loss), De-recognition,
Generating cash from receivables]
Accounting for notes/loans receivable
(Definition and types of promissory
notes, Recognition, Initial Measurement
and valuation at present value)
Receivable financing arrangements
[Accounts Receivable, Pledging (general
assignment of receivables), Factoring,
Assignment of specific receivable]: Notes
receivable (Discounting)]
Notes/loans receivable impairment and
un-collectibility
Financial statement presentation and
disclosure
Internal control measures for receivable
Revised as of May 2009
5
Week
9
Learning Objectives
At the end of the session, the student is
expected to understand:


10
Investment in equity instruments covered
by Pas 32 and 39 [Investment in
marketable equity securities (designated
at fair value through profit or loss,
Trading, available for sale), Investment in
unquoted equity securities]
Investment in debt instruments [Held-tomaturity investments, not held-to-maturity
(Trading, Available-for-sale)]
At the end of the session, the student is
expected to understand:





Focal
Points/Topics
Accounting for
Investments in
Equity and Debt
Instruments
including basic
concepts on
Derivatives (covered
by Pas 32 and 39)
Accounting for
Inventories
Definition, nature and classes of
inventories
Recognition
Initial measurement at cost
Inventory recording systems (Periodic
inventory system, Perpetual inventory
system)
Inventory costing methods (Items not
ordinarily interchangeable: Specific
identification; For items that are
interchangeable: First in, First out
method, Weighted average cost method)
Competencies
Values
Analytical Ability
Problem Solving
Skills
Presentation
Skills
1. Answering
assignments
2. Lectures
3. Board work
4. Giving
assignment
Honesty
Integrity
Fairness
Accountability
Analytical Ability
Problem Solving
Skills
Presentation
Skills
1. Lectures
2. Illustrative
problems
3. Board work
4. Assignment
Honesty
Integrity
Fairness
Accountability
Commitment
Revised as of May 2009
6
Teaching Strategies
Evaluative
Measures
1. Internet works
2. Quiz
1. Quiz
2. Internet works
Week
11
Learning Objectives





12
13
At the end of the session, the student is
expected to understand:





Week
14
Inventory estimation methods [Gross
profit method, Retail inventory method
(excluding peso value and retail info)]
Valuation at lower of cost and net
realizable value (Write down to net
realizable value, Reversal of write-down)
Other inventory issues (Purchase
commitment, Inventory valued at selling
price, Use of more than one cost method,
Borrowing costs, Lump-sum acquisition,
Inventory errors)
Financial statement presentation and
disclosures
Internal control and management of
inventory
Definition, nature and classes
Recognition
Initial measurement at cost
Valuation at lower of cost and net
realizable value (Write-down to net
realizable value, Reversal of write-down)
Financial statement presentation and
disclosures
Learning Objectives
At the end of the session, the student is
Focal
Points/Topics
Accounting for
Inventories (cont’d)
Competencies
Analytical Ability
Problem Solving
Skills
Presentation
Skills
Second Preliminary Examination
Accounting for
Analytical Ability
agricultural activities Problem Solving
and biological assets Skills
Presentation
Skills
Focal
Points/Topics
Accounting for
Competencies
Analytical Ability
Revised as of May 2009
7
Teaching Strategies
Values
Evaluative
Measures
1. Quiz
1. Answering
assignments
2. Lectures
3. Board work
4. Giving
assignment
Honesty
Integrity
Fairness
Accountability
Commitment
1. Lectures
2. Illustrative
problems
3. Board work
4. Assignment
Honesty
Integrity
Fairness
Accountability
Innovation
1. Quiz
2. Case Study
Values
Evaluative
Measures
1. Quiz
Teaching Strategies
1. Lectures
Honesty
expected to understand:







Property, Plant and
Equipment
Definition, nature and classes
Recognition
Initial measurement (Cash purchase,
Purchase on a deferred payment
contract, Issuance of securities, Donation
or discovery, Self-construction,
Exchanges of non-monetary and
monetary assets)
Expenditures subsequent to acquisition
Valuation or measurement subsequent to
initial recognition (Benchmark methodcost less accumulated depreciation and
accumulated impairment losses; allowed
alternative method- revaluation at fair
value less accumulated depreciation and
accumulated impairment losses
Depreciation of assets (Definition, nature
and causes; Factors affecting
depreciation; methods of depreciation (
Straight-line method, Declining balance
method, Sum-of-the-years digits method,
Group and composite depreciation)
Depletion of wasting assets
Problem Solving
Skills
Presentation
Skills
Revised as of May 2009
8
2. Illustrative
problems
3. Board work
4. Assignment
Integrity
Fairness
Accountability
Innovation
Week
15
16
Learning Objectives

Accounting changes affecting
depreciation
 Revaluation of property, plant and
equipment (Recording on date of
revaluation, Frequency of revaluation,
Revaluation increase, Revaluation
decrease, realized revaluation)
 Impairment of assets (Definition, when to
recognize and how to measure
impairment loss, measurement of
recoverable amount, impairment loss for
an individual asset, Impairment loss for
cash-generating unit, Reversal of
previously recognized impairment loss)
 Retirement and disposals
 Financial statement presentation and
disclosures
 Internal control and management of
property, plant and equipment
At the end of the session, the student is
expected to understand:



Week

Definition, nature and classes
Recognition criteria
Initial measurement and accounting for
intangibles (Patents, Copyright,
Trademarks and trade names, Franchise
rights, Lease rights, Computer software,
goodwill, Research and development
costs, Other intangible assets)
Learning Objectives
Focal
Points/Topics
Accounting for
Property, Plant and
Equipment (cont’d)
Accounting for
Intangible Assets
Focal
Points/Topics
Competencies
Values
Evaluative
Measures
1. Quiz
2. Case Study
Analytical Ability
Problem Solving
Skills
Presentation
Skills
1. Answering
assignments
2. Lectures
3. Board work
4. Giving
assignment
Honesty
Integrity
Fairness
Accountability
Innovation
Analytical Ability
Problem Solving
Skills
Presentation
Skills
1. Lectures
2. Illustrative
problems
3. Board work
4. Assignment
Honesty
Integrity
Fairness
Accountability
Innovation
Transparency
1. Quiz
2. Internet works
Values
Evaluative
Measures
Competencies
Subsequently incurred costs
Revised as of May 2009
9
Teaching Strategies
Teaching Strategies

17
Measurement subsequent to initial
recognition (Cost method, Revaluation
method)
 Amortization
 Impairment of value of intangible assets
 Reversal of impairment loss
 Retirements and disposition
 Financial statement presentation and
disclosures
Internal control measures for intangibles
At the end of the session, the student is
expected to understand:






Investment in cash surrender value of life
insurance
Investment in funds
Investment property
Interest in joint ventures*
Interest in associates*
Investment in subsidiary*
*Detailed discussion covered in Advanced
Accounting subjects
18
1. Accounting for
Other Types of
Investments
Analytical Ability
Problem Solving
Skills
Presentation
Skills
2. Accounting for
Noncurrent Assets
Held for sale
Final Examination
Revised as of May 2009
10
1. Lectures
2. Illustrative
problems
3. Board work
4. Assignment
Honesty
Integrity
Fairness
Accountability
Innovation
Transparency
1. Quiz
Textbook:
Financial Accounting Volume 1 by Conrado Valix and Jose Peralta, 2008
References:
Books:
 Financial accounting : tools for business decision making. Kimmel, Paul. 2010
 Financial accounting : a global approach. Monger, Rod. 2010
 Financial accounting : volume two. Valix, Conrado T. 2010
 Financial accounting. Vol 1. Valix, Conrado T. 2010
 Financial accounting : volume three. Valix, Conrado T. Valix, 2009
 Financial accounting. Albrecht, W. Steve. 2008
 Financial accounting : a business process approach. Reimers, Jane L. 2008
 Financial accounting. Harrison, Walter T. 2008
 Financial accounting. Williams, Jan R. 2008
 Financial accounting and reporting. Whittington, O. Ray. 2008
 Financial accounting and reporting. Elliott, Barry. 2008
 Financial accounting. Needles, Belverd E. 2007
 Financial accounting : a user perspective. Albright, Thomas L. 2007
 Financial accounting. Libby, Robert. 2007
 Financial accounting : instructors solutions manual. Needles, Belverd E. 2007
 Financial accounting. Vol. 2. Valix, Conrado T. 2007
 Financial accounting. Harrison, Walter T. 2006
 Financial accounting : ann introduction. Peirson, Graham. 2006
 Financial accounting : reporting & analysis. Stice, Earl K.
 Financial accounting. Britton, Anne. 2006
 Financial accounting and reporting. Whittington, O. Ray. 2006
 Financial accounting in an economic context. Pratt, Jamie. 2006
 Financial accounting, reporting and analysis. Elliott, Barry. 2006
Journal, Newspaper and Magazines:
 Accounting Times, PICPA
 IAS PLUS Newsletter, Deloitte and Touche
Revised as of May 2009
11



Global Eye on IFRS, Ernst and Young
Business World
Harvard Business Review
Online/URL:
 http://www.picpa.com.ph
 http://www.iasplus.com
 http://www.iasb.org
 http://www.ifac.org
Revised as of May 2009
12
Computation of Grades:
Computation of Periodic Grades
Class Standing
Average Quizzes (AQ)………………………………………………….…….30%
Class Participation (CP) ………………………………………………...…...10%
Major Examination (PEx/MEx/FEx) ………………………………………….……..60%
Total …………………………………………………………………….…………….100%
a. Determine 1st Preliminary Grade (1st PG)
1st PG = AQ(30%) + CP (10%) + PEx (60%)
b. Determine 2nd Preliminary Grade (2nd PG) and Midterm Grade (MG)
2nd PG = AQ(30%) + CP (10%) + PEx (60%)
MG = 1st PG (50%) + 2nd PG (50%)
c. Determine Final Period (FP) and Final Grade (FG)
FP = AQ(30%) + CP (10%) + PEx (60%)
FG = MG (50%) + FP (50%)
Passing Grade is 75% with an equivalent point of 3.0
Revised as of May 2009
13
Grade Point System
Grade
95
92
90
88
85
82
80
78
75
Below 75%
100%
94%
91%
89%
87%
84%
81%
79%
77%
Descriptive
Equivalent
Point System
1.00
1.25
1.50
1.75
2.00
2.25
2.50
2.75
3.00
5.00
Superior
Very Good
Good
Fair
Barely Satisfactory
Failure
Prepared by:
Reviewed by:
Approved by:
NORINA S. SALVADOR
JENNIFER T. BUEN
Curriculum Committee
ESTELITA D. BELLO
Dean - IABF
Faculty
GERRY V. FERNANDO
Curriculum Committee
Revised as of May 2009
14