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accounting for special transactions accounting for special transactions accounting for special transactions accounting for special transactions...

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DOCUMENT:SYLLABUS DATE OF EFFECTIVITY: 25 June 2019

COURSE:

ACCOUNTING FOR SPECIAL TRANSACTIONS

COURSE CODE: BADVAC2X

VISION We are National University, a dynamic private institution committed to nation building, recognized internationally in teaching and research. MISSION Guided by the core values and characterized by our cultural heritage of Dynamic Filipinism, National University is committed to providing relevant, innovative, and accessible quality education and other development programs. We are committed to our: STUDENTS, by molding them into ethical, spiritual and responsible citizens. FACULTY and EMPLOYEES, by enhancing their competencies, cultivating their commitment and providing a just and fulfilling work environment. ALUMNI, by instilling in them a sense of pride, commitment, and loyalty to their alma mater. INDUSTRY PARTNERS and EMPLOYERS, by providing them Nationalians who will contribute to their growth and development. COMMUNITY, by contributing to the improvement of life’s conditions.

CORE VALUES 1.Integrity 2. Compassion

COPIES ISSUED TO: College of Business and Accountancy Learning Resource Center Faculty

3. Innovation

GRADUATE ATTRIBUTES INTENDED FOR NATIONALIANS (GAINs) 1. Conscientious and Reflective Leader 4. ICT Literate and Competent Communicator 6. Socially and Community-engaged Citizen Imbued with the Spirit of Patriotism 7. Innovative, Creative, and Critical Thinker 10.Interculturally Competent Collaborator 11.Life- and career-skilled Individual

Program Learning Outcomes (PLO) for Bachelor of Science in Accountancy 1. Student will be able to demonstrate competencies in the development, measurement, analysis, validation and communication of financial and other information. 2. Student will develop oral and written communication skills and critical thinking skills. 3. Student will develop an appreciation for the role of ethics in both the profession and the business world. 4. Student will exposed to the unique aspects of global business and accounting issues. 5. Student will equipped to understand the use technology. 6. Student will exposed to activities that help them work in groups. 7. Apply knowledge and skills that enable them to successfully respond to various types of assessments (including professional licensure examinations and certificatons)

4. Industry

5. Respect

6. Resilience

7. Patriotism

INSTITUTIONAL LEARNING OUTCOMES (ILOs) a. b. c. d. e. f. g. h. i. j. k.

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Exhibit the capacity for self-reflection Exhibit the willingness to engage in self-appraisal Apply moral and ethical standards in leading others Express ideas effectively Effectively use various ICT tools to convey ideas Participate actively in community-oriented advocacies that contribute to nation building Produce alternative solutions, processes, and approaches Apply problem-solving skills Provide solutions to challenges in respective areas of specialization Work effectively in teams of different cultures Engage in continuing personal and professional development

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COURSE CODE/NAME: BADVAC2X – Accounting for Special Transactions June 2019 Page 1 of 11

COURSE DESCRIPTION This course is designed to introduce the students to the concepts, procedures and standards relating to business combinations and related topics. Topics discussed are: Accounting for business combinations, consolidated financial statements, foreign exchange transactions and translation.

PRE-REQUISITE(S)

Prerequisite 1: BAFACR2X COURSE LEARNING OUTCOMES (CLO) PLO (BSA and BSAT) 1 2 3 4 5 6

At the end of the course, the student must be able to (CLO): 1. CLO1 - Explain the basic accounting concepts, principles and reason behind the PAS/PFRS governing special transactions. 2. CLO2 – Apply specific standards to recognize and measure special business transactions 3. CLO3 – Evaluate the performance of the organization and the managers in practical cases/problems. 4. CLO4 – Determine the account balances at the end of the period for preparing financial statements. 5. CLO5 – Prepare financial statements including the required disclosures in notes to the financial statements. 6. CLO6 – 7. CLO7 – 8. CLO8 – 9. CLO9 -

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CREDIT

3 Units TIME ALLOTMENT

4 hours per week

COURSE REQUIREMENTS QUIZZES (40%) Minimum of 2 major quizzes per grading period

CLASS STANDING (10%) 1. Recitation 2. Others:

PERIODIC DEPARTMENTAL EXAMINATIONS (50%) -

Midterm Departmental Examination

COURSE CODE/NAME: BADVAC2X – Accounting for Special Transactions June 2019 Page 2 of 11

Midterm: Quiz No. 1 Quiz No. 2

i. ii. iii. iv. v.

Finals: Quiz No. 3 Quiz No. 4

Seatwork Home work Attendance Board work Portfolio of activities

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Final Departmental Examination

CLASS POLICIES 1. Students are required to wear the prescribed uniform inside the school premises from Mondays through Fridays except Wednesdays. Wednesdays is a business attire day; Saturdays and Sundays are washdays wherein students must wear dresses allowed and/or specifically instructed by the College Dean. 2. Students are required to always wear their school ID and assigned school ID lace inside the school premises. 3. Students must attend at least 80% of the total credit hours of the subject to be considered enrolled 4. Cellular phones and other electronic communication devices are to be switched off or kept in silent mode during the class hours. 5. A student who fails to take any of the two major examinations may apply for a special examination upon establishing to the satisfaction of the College Dean, through supporting documents an incapacitating physical or mental condition, the death or serious illness of an immediate family member, or other exigencies. 6. Cheating in any form before or during an examination, test or written reports is prohibited.

GRADING SYSTEM MIDTERM GRADE COMPUTATION: Quizzes 40% Class standing Attendance 5% Assignments 5% Seatwork / Boardwork 10% 10% Periodic Examination 50% Midterm Grade 100%

TENTATIVE FINAL GRADE COMPUTATION: Quizzes 40% Class standing Attendance 5% Assignments 5% Seatwork / Boardwork 10% 20% Periodic examination 40% Tentative Final Grade 100%

FINAL GRADE: Midterm Grade Tentative Finals Grade Final Grade

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40% 60% 100%

COURSE CODE/NAME: BADVAC2X – Accounting for Special Transactions June 2019 Page 3 of 11

COURSE CONTENTS WEEK 1

COURSE LEARNING OUTCOMES

TOPIC LEARNING OUTCOMES At the end of the session, the learners will be able to: 1.

2.

3.

4.

2

Discuss the advantages and disadvantages of the partnership versus the corporate form of business Describe the purpose of the articles of partnership and list specific items that should be included in this agreement Prepare the journal entry to record the initial capital investment made by a partner Use both the bonus method and the goodwill method to record a partner’s capital investment

At the end of the session, the learners will be able to: 1.

2.

Understand the impact that the allocation of partnership income has on the partners’ individual capital balances Allocate income to

TOPICS Goal Setting and Proper Planning University and College vision and mission Classroom policies Goal setting and course planning

METHODOLOGY » Discussion

RESOURCES » Syllabus » University Manual and Handbook

Topic 1: Partnership Formation 1. 2. 3. 4. 5.

1. 2. 3.

Rules in distribution of profits and losses Different distribution schemes as agreed upon by partners (salaries, interest, bonus, etc) Statement of changes in partners’ equity

Formative Assessment: » Assignment » Seatwork » Recitation Summative Assessment: » Pencil – Paper test (Quiz & Midterm Examination)

Nature and classification of partnership Fair value/Agreed amount of non-cash assets Bonus and revaluation (goodwill) approach in partnership formation Financial statements of partnership

Topic 2: Partnership Operations

ASSESSMENT

» Lecture » Video Presentation Discussion

» Textbook » LCD Projector » Additional Hand – out Materials

» » » » »

» » Syllabus » Textbook » LCD Projector » Additional Hand – out Materials

Lecture Discussion Demonstration Problem solving

» » » »

Formative Assessment: Assignment Seatwork Recitation Board work

COURSE CODE/NAME: BADVAC2X – Accounting for Special Transactions June 2019 Page 4 of 11

WEEK

COURSE LEARNING OUTCOMES

TOPIC LEARNING OUTCOMES

TOPICS

METHODOLOGY

RESOURCES

partners when interest and/or salary factors are included

Summative Assessment: » Pencil – Paper test (Quiz & Midterm Examination)

3 At the end of the session, the leaners will be able to: 1. Discuss the meaning and effect of partnership dissolution. 2. Record the admission of partner under purchase of interest and direct investment 3. Record the withdrawal of a partner and conversion of partnership to a corporation

ASSESSMENT

Topic 3: Partnership Dissolution 1. 2. 3. 4.

Admission by purchase of interest (bonus and revaluation/goodwill approach) Admission by direct investment (bonus and revaluation/goodwill approach) Withdrawal/Retirement of a partner Incorporation of a partnership

» » » » »

Lecture Discussion Demonstration Problem solving

» Syllabus » Textbook » LCD Projector »

» » » »

Formative Assessment: Assignment Seatwork Recitation Board work

Summative Assessment: » Pencil – Paper test (Quiz & Midterm Examination) 4

At the end of the session, the learners will able to: 1. Determine the amounts to be paid among the partners in a liquidation 2. Determine the cash available for distribution to partners when one or more partners have become insolvent 3. Prepare a proposed

Topic 4: Partnership Liquidation 1. 2. 3. 4.

Lump sum liquidations Installment liquidation (schedule of liquidation) Safe payment schedule Cash priority program

» » » » »

Lecture Discussion Demonstration Problem solving

» Syllabus » Textbook » LCD Projector »

» » » »

Formative Assessment: Assignment Seatwork Recitation Board work

COURSE CODE/NAME: BADVAC2X – Accounting for Special Transactions June 2019 Page 5 of 11

WEEK

COURSE LEARNING OUTCOMES

TOPIC LEARNING OUTCOMES

TOPICS

METHODOLOGY

RESOURCES

schedule of liquidation based on safe payment schedule or cash priority program.

5

At the end of the session, the learners will be able to: 1.

2.

3.

6

Identify the classes of creditors and the order of payment Prepare statement of affairs to determine the estimated capital deficiency of the corporation Estimate the amount of recovery among classes of creditors

At the end of the session, the learners will be able to: 1. Describe and apply the five step model for revenue recognition 2. Record transactions recognizing revenue 3. Determine the proper presentation of contract asset and contract liability

ASSESSMENT

Summative Assessment: » Pencil – Paper test (Quiz & Midterm Examination) Topic 5: Corporate Liquidation 1. 2. 3. 4.

Classification of assets and liabilities under liquidating concern Statement of affairs Percentage recovery and estimated deficiency Statement of realization and liquidation

» » » » »

Lecture Discussion Demonstration Problem solving

» Syllabus » Textbook » LCD Projector »

» » » »

Formative Assessment: Assignment Seatwork Recitation Board work

Summative Assessment: » Pencil – Paper test (Quiz & Midterm Examination) Topic 6: Revenue from contracts with customers (PFRS 15) 1. The five-step model of revenue recognition 2. Recognition at the point in time and over time 3. Contract asset and contract liability 4.

» » » » »

Lecture Discussion Demonstration Problem solving

» Syllabus » Textbook » LCD Projector »

» » » »

Formative Assessment: Assignment Seatwork Recitation Board work

Summative Assessment: » Pencil – Paper test (Quiz & Midterm Examination)

7 COURSE CODE/NAME: BADVAC2X – Accounting for Special Transactions June 2019 Page 6 of 11

WEEK

COURSE LEARNING OUTCOMES

TOPIC LEARNING OUTCOMES

TOPICS

METHODOLOGY

RESOURCES

ASSESSMENT

MIDTERM EXAMINATION 8

At the end of the course the student should be able to: 1.

2.

3.

9

Understand the reason behind the elimination entry for intra asset sales Prepare elimination entry to remove unrealized gross profit from intra company sale Determine the consolidated balances including NCI

At the end of the session, the learners will be able to: 1. Determine the revenues, costs and gross profit from construction contracts 2. Determine the realized profit for each period under percentage of completion and cost recovery method 3. Record transactions for construction contracts 4. Determine the presentation of construction contracts in the financial statements

Topic 7: Revenue from contracts with customers (PFRS 15) 1. Other issues 2. Installment sales a. Recording of deferred gross profit and realized gross profit b. Gain or loss on repossession c. Financial statement presentation

Topic 8: Long-Term Construction Contracts 1. 2. 3. 4. 5.

Introduction to construction accounting Contract revenues, costs and gross profit Percentage of completion method Cost recovery method Financial statement presentation

» » » »

Lecture Discussion Demonstration Problem solving

» Lecture » Discussion » Demonstration

» Syllabus » Textbook » LCD Projector »

» Syllabus » Textbook » LCD Projector »

» » » »

Formative Assessment: Assignment Seatwork Recitation Board work

Summative Assessment: » Pencil – Paper test (Quiz & Midterm Examination) » Formative Assessment: » Assignment » Seatwork » Recitation » Board work

Summative Assessment: » Pencil – Paper test (Quiz & Final COURSE CODE/NAME: BADVAC2X – Accounting for Special Transactions June 2019 Page 7 of 11

WEEK

COURSE LEARNING OUTCOMES

TOPIC LEARNING OUTCOMES

TOPICS

METHODOLOGY

RESOURCES

ASSESSMENT Examination)

10

At the end of the session, the students will be able to:

Topic 9: Franchise and Consignment Accounting 1.

1.

2.

3.

Understand the nature of franchise arrangement Record transactions for initial and continuing franchise fee Record transactions between consignor and consignee

2.

Franchise accounting a. Contract asset and liability b. Initial franchise fee c. Continuing franchise fee Consignment accounting a. Account sales b. Consignment profit c. Inventory on consignment

» » » » »

Lecture Discussion Demonstration Problem solving

» Syllabus » Textbook » LCD Projector »

» » » »

Formative Assessment: Assignment Seatwork Recitation Board work

Summative Assessment: » Pencil – Paper test (Quiz & Final Examination) 11

At the end of the session, the students will be able to: 1. 2.

3.

Record import and export transactions Determine the foreign transaction gain or loss. Understand the nature and classification of financial derivatives.

Topic 10: Foreign Currency Transactions 1. 2. 3. 4.

Import and export transactions Foreign borrowing and lending Foreign currency transaction gain or loss Introduction to derivatives

» » » » »

Lecture Discussion Demonstration Problem solving

» Syllabus » Textbook » LCD Projector »

» » » »

Formative Assessment: Assignment Seatwork Recitation Board work

Summative Assessment: » Pencil – Paper test (Quiz & COURSE CODE/NAME: BADVAC2X – Accounting for Special Transactions June 2019 Page 8 of 11

WEEK

COURSE LEARNING OUTCOMES

TOPIC LEARNING OUTCOMES

TOPICS

METHODOLOGY

RESOURCES

ASSESSMENT Final Examination)

11 12

At the end of the session, the learners will be able to: 1.

2.

3.

12 13

Describe a variable interest entity, a primary beneficiary, and the factors used to decide when a variable interest entity issubject to consolidation Prepare consolidated cash flows Determine the basic and diluted EPS for consolidated entity

At the end of the session, the learners will be able to: 1. Distinguish functional from presentation currency and monetary and nonmonetary assets. 2. Translate financial statements using current method. 3. Translate financial statements using temporal method.

Topic 11: Hedge accounting and forward contracts 1. 2. 3. 4. 5. 6.

Import and export transactions with forward contract Criteria for hedge accounting. Measurement of effectiveness of hedge. Fair value hedge Cash flow hedge Options

» » » » »

Lecture Discussion Demonstration Problem solving

» Syllabus » Textbook » LCD Projector »

» » » »

Formative Assessment: Assignment Seatwork Recitation Board work

Summative Assessment: » Pencil – Paper test (Quiz & Final Examination) Topic 12: Translation of Financial Statements 1. 2. 3. 4. 5.

Functional vs presentation currency Monetary and non-monetary assets and liabilities Current method Temporal method Translation of foreign subsidiary

» » » »

Lecture Discussion Demonstration Problem solving

» Syllabus » Textbook » LCD Projector » Additional Hand – out Materials

» » » »

Formative Assessment: Assignment Seatwork Recitation Board work

Summative Assessment: » Pencil – Paper test (Quiz & COURSE CODE/NAME: BADVAC2X – Accounting for Special Transactions June 2019 Page 9 of 11

COURSE LEARNING OUTCOMES

WEEK

TOPIC LEARNING OUTCOMES

TOPICS

METHODOLOGY

RESOURCES

ASSESSMENT Final Examination)

13.5

FINAL EXAMINATION

TEXTBOOK [1] [2]

Guerrero and Peralta, 2017, Advanced Accounting: Principles and Applications Vol 1. GIC Enterprises, Manila

REQUIRED RESOURCES [3] [4] [5] [6]