University of San Carlos School of Business and Economics Accountancy Department

SYLLABUS
Course No. Course Title Credit Prerequisite Courses Revised : : : : : AC 510 Financial Accounting and Reporting, Part 3 3 units AC 506 Financial Accounting and Reporting, Part 2 by Mr. Ryan Mark B. Dajay Revised 2nd semester, AY: 2011 2012

Overview of the Course

AC 510 is the culmination of the financial accounting cluster. Having acquired the skills in the preparation of properly classified balance sheet, income statement, statement of changes in equity and statement of cash flows, the students will develop their ability to prepare financial statements from incomplete records.

Course Description
This course is the culmination of the Financial Accounting cluster. It covers reconstruction of accounts from incomplete records, change from cash basis to accrual basis of accounting, preparation of financial statements from cash basis to accrual basis, correction of errors, accounting changes, interim reporting, segment reporting, non-current assets held for sale: discontinued operations, derivatives, fund and other investments.

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General Objectives
During the semester, the students are expected to: 1. 2. 3. 4. 5. To reconstruct accounts out from incomplete records either from ledger postings, trial balance, reversing entries or financial statements. To prepare financial statement out from incomplete records using different methods. To differentiate, prepare and convert financial data from cash basis to accrual basis and vice versa. To identify and correct errors relating to the accounting process. Appreciate other topics such as Small, Medium Enterprise, Non-Current Asset helf for Sale, Current cost/ Hyperinflationary Econ. and derivatives.

Classroom Management
1. Attendance is a MUST up to Midterms. You may incur only ten (10) absences for both MW and TTH schedules. Otherwise, you will automatically be dropped from class and receive a grade of either NC (No Credit) or a failing grade of 5.0 whichever is applicable a failing grade of 5.0 whichever is applicable. 2. Students who incur three (3) absences will be asked by the instructor to see the Department Chair to secure permission to be re-admitted to class. A re-admission slip should be properly accomplished for this. 3. Tardiness is discouraged. Make sure that you come to class on time. It is a source of irritation and class disruption when students arrive late. Students who arrive 15 minutes after the start of class are considered tardy. Please note that three (3) tardiness is equivalent to one (1) absence. 4. A permanent seat plan will be made at the start of the semester. You are advised to keep to your assigned seating arrangement; otherwise, you will be marked absent for that day. 5. Classes should always start and end with a short prayer. The instructor can opt to lead the prayer or assign students to do this alternately. 6. Students should assist in maintaining the orderliness and cleanliness of the classrooms. Graffiti writing is strictly prohibited. Any student found violating this rule will be punished with the appropriate sanction. Before leaving the classroom, the instructor with the help of the students, should ensure that no litter/garbage is left behind and that chairs are in their proper order. Should the class be the last schedule for the day, the instructor should arrange that the lights and air conditioning units are switched off. 7. Going out of the classroom at any time is strictly discouraged. Make it a habit to go to the restroom during your vacant period or before the start of your classes. If you must visit the restroom, permission should be sought from the instructor.

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8. Use of mobile phones inside the classroom is strictly prohibited. Switch them off or place them under silent mode before entering your classes. The instructor has the right to confiscate mobile phones that rings and/or used during class hours. The confiscated unit can only be claimed from the Deans Office at the end of the semester. 9. The teacher reserves the right to ask the student to leave the room if his behavior is disruptive in class. 10. It is your responsibility to properly schedule your classes so that meals and snacks will be taken at its proper time. 11. Students are encouraged to see the instructor during consultation hours for any concerns, questions and assistance with regards to the course.

Suggested Learning Experiences

1. 2. 3. 4. 5. 6. 7. 8. 9. Lecture-Discussion Group Dynamics / Games Internet Research Class Interaction Seatwork / Boardwork Problem solving exercises Practice tests Individual assignments Individual / Group Presentations

Course Requirements
1. Regular class attendance and punctuality 2. Class participation 3. Seatwork 4. Individual research reports 5. Unit tests and quizzes 6. Practice Tests

Grading System
For the Midterm Grade: 1/3 Tests/Quizzes 1/3 Other Requirements 1/3 Midterm Exam For the Final Grade 1/3 Midterm Grade 1/3 Class Standing after Midterm 1/3 Final Exam

For purposes of transmutation, the course will use the following grade equivalent (at 50% passing):

Grade 1.0 1.1 1.2 1.3 1.4 1.5 1.6

Equivalent 100 98 to 99 95 to 97 93 to 94 90 to 92 88 to 89 85 to 87

Grade 1.7 1.8 1.9 2.0 2.1 2.2 2.3

Equivalent 83 to 84 80 to 82 78 to 79 75 to 77 73 to 74 70 to 72 68 to 69

Grade 2.4 2.5 2.6 2.7 2.8 2.9 3.0

Equivalent 65 to 67 63 to 64 60 to 62 56 to 59 55 to 57 53 to 54 50 to 52

Below 3.0 is equivalent to a failing grade or 5.0

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Specific Objectives

Contents

Mode of Delivery / Learning Activities and Resources

Assessment Scheme

WEEK 1

3 hours eveling expectations roup dynamics nteraction ecture-discussion L L Participation

Orientation I. Course Orientation 1. Brief introduction of each member of the A. Introduction class B. USC Vision-Mission 2. Reminding the students of the University C. Course syllabus Vision and Mission, School of Business Scope and Economics Aims, and Department of Sequencing of subject matter Accountancy Objectives Course requirements 3. Checking admission slips Evaluation and grading system 4. Discussing classroom rules and policies. 5. Setting of seat plan 6. Grouping of students 7. Presenting the course syllabus 8. Distributing individual copies of the syllabus 9. Discussion on the contents of the syllabus

G Question & answer I Learning statements Recitation Assignment

WEEK 2

3 Hours 1. The Accounting Process / Cycle 2. Source documents 3. Different types of journals and ledgers 4. T-accounts to analyze transactions into Debit and Credit parts 5. Year-end Adjusting Entries and its Importance Lecture-discussion Illustrative problems Participation Question & answer Recitation

UNIT I. REVIEW OF ACCOUNTING PROCESS At the end of the chapter, students should be able to: 1. Recall and describe the accounting process; 2. Analyze and journalize business 4|Page

transactions; 3. Use the T-accounts in analyzing the financial impact of a business transaction; 4. Review and journalize year-end adjusting entries; and 5. Analyze and journalize closing and reversing entries. WEEK 3 and 4 = 6 hours

6. Closing and Reversing Entries

UNIT II. RECONSTRUCTION OF ACCOUNTS At the end of the chapter, students should be able to: 1. Explain the reconstruction of the journal entries from the ledger postings; 2. Reconstruct transactions from the trial balance; 3. Journalize adjusting entries reconstructed from comparative trial balances; 4. Journalize adjusting entries reconstructed from the financial statements; and 5. Describe and explain the reconstruction of reversing entries.

1. Reconstruction of the journal entries from the ledger postings 2. Reconstruction of the transactions from the trial balance 3. Adjusting entries reconstructed from comparative trial balances 4. Adjusting entries reconstructed from the financial statements 5. Reconstruction of the reversing entries

Lecture-discussion Illustrative problems

Participation Recitation Individual Output

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WEEK 5

3 hours 1. Single-Entry Bookkeeping 2. Single-Entry System 3. Single-Entry Records a. Cash receipts book/cash disbursement book b. Memorandum book or Daybook c. Ledgers and other business records 4. Single-Entry Method of determining net income or loss 5. Preparation of Financial Statements from Incomplete Records a. T-account Method b. Report form or Schedule Form c. Worksheet Method Lecture-discussion Exercises / Seatwork Recitation Individual Output Assignment

UNIT III. SINGLE ENTRY OR INCOMPLETE RECORDS At the end of the chapter, students should be able to: 1. Define single-entry bookkeeping; 2. Describe the single-entry system; 3. Explain the difference between the different types of single-entry records and their functions; 4. Compute for the amount of net income or loss using the single-entry method; and 5. Prepare financial statements from incomplete records using the different methods. WEEK 6 and 7 = 9 hours

1. Cash Basis of Accounting vs. Accrual Basis of Accounting a. Nature / Concept At the end of the chapter, students should be b. Application able to: c. Advantages and Disadvantages 1. Define and explain the cash basis of 2. Transition analysis under the two accounting vis--vis the accrual basis of methods of accounting accounting; 3. Conversion from Cash basis to 2. Provide at least three (3) scenarios wherein Accrual basis of accounting the cash basis and accrual basis are used; 4. Preparation of financial statements 3. Cite at least three (3) advantages and from Cash basis to Accrual basis three (3) disadvantages of the two methods a. Accrual Basis Income Statement 6|Page

UNIT IV. ACCRUAL VS. CASH BASIS OF ACCOUNTING

Lecture-discussion Exercises and Computation Illustrative Examples Internet / Fieldwork Research on the application of the two methods

Recitation Group / Individual Output Assignment

of accounting; 4. Know how to convert financial data from cash basis to accrual basis; and 5. Prepare financial statements from cash basis to accrual basis. WEEK 8 = 6 hours

from Cash Basis Records b. Accrual Basis Balance Sheet from Cash Basis Records

UNIT V. CORRECTION OF ERRORS

1. Types of Errors Lecture-discussion a. Counterbalancing and nonAt the end of the chapter, the students should counterbalancing errors Illustrative examples be able to: b. Errors revealed by a trial 1. Classify the different types of errors relating balance Exercises and Computation to the accounting process; 2. Effect of Errors 2. Analyze the effects of errors on the a. Errors affecting only the balance financial statements; and sheet accounts 3. Prepare corrected financial statements b. Errors affecting only the income using the worksheet. statement accounts c. Errors affecting both the balance sheet and the income statement accounts d. Errors not affecting prior periods net income e. Errors affecting prior periods net income 3. Worksheet for the preparation of corrected financial statement

Recitation Individual Output

WEEK 9 7|Page

MIDTERM EXAMINATIONS

WEEK 10

3 hours 1. Change in Accounting Estimates a. Examples of accounting estimate b. Reporting and disclosure requirement 2. Change in Accounting Policy a. Examples of change in accounting policy b. How to report a change in accounting policy c. Reporting and disclosure requirement 3. Change in Reporting Entity Lecture-discussion Illustrative examples Item Analysis Participation Recitation Individual Output

UNIT VI. ACCOUNTING CHANGES At the end of the chapter, the students should be able to: 1. Define what is an accounting estimate; 2. Provide at least three (3) examples of an accounting estimate; 3. Enumerate the reporting and disclosure requirements relating to change in accounting estimate; 4. Define what is a change in accounting policy; 5. Provide at least three (3) examples of a change in accounting policy; 6. Explain how to report a change in accounting policy; 7. Enumerate the reporting and disclosure requirement relating to a change in accounting policy; and 8. Explain a change in reporting entity

WEEK 11

3 hours 1. Interim financial reporting a. General guidelines for interim reporting b. Components of interim financial Lecture-discussion Illustrative examples Participation Recitation

UNIT VI. INTERIM AND SEGMENT REPORTING; RELATED PARTY DISCLOSURES 8|Page

At the end of the chapter, the students should be able to: 1. Describe interim financial reporting; 2. Enumerate the components of interim financial report; 3. Illustrate how interim financial statements are presented; WEEK 12 = 6 Hours

report c. Presentation of interim financial statements

Reading of related Accounting Individual Output Standards (PAS 14 and 24)

Alternative Common Activity (Intramurals Week) Proposed Common Activity: Seminar/Training on Derivatives WEEK 13 = 3 hours Segment reporting a. Business segment and geographical segment b. Primary and secondary segment reporting c. Segment revenue and segment expense d. Segment assets and segment liabilities e. Presentation and disclosure requirements under PAS 14 8. Related Parties a. Definition b. Examples of related parties c. Disclosure requirements under PAS 24 Lecture-discussion Illustrative examples Participation Recitation

UNIT VI. INTERIM AND SEGMENT REPORTING; RELATED PARTY DISCLOSURES At the end of the chapter, the students should be able to: 1. Define what is segment reporting, business segment and geographical segment; 2. Describe primary and secondary segment reporting; 3. Discuss the different components of a segment report; 4. Provide the presentation and disclosure requirements relating to segment reporting; 5. Define a related party; 9|Page

Reading of related Accounting Individual Output Standards (PAS 14 and 24)

6. Provide at least three (3) examples of related parties; and 7. Provide the disclosure requirement pertaining to related party WEEK 14-18 = 9 Hours

Non-current Assets Held for Sale: Discontinued Operation (PFRS 5) Derivatives (PAS 32 & 39) Current Cost/ HyperInflationary Econ SME FINAL EXAMINATIONS

WEEK 19

TOTAL = 54 HOURS

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REFERENCES A. BOOKS Kimwell, M.B., Constructive Accounting, 6th edition Valix, C. et. al., Financial Accounting Volume 3, 2010 edition Philippine Accounting Standards compiled by Accounting Standards Council Philippine Financial Reporting Standards compiled by Philippine Financial Reporting Council. Skousen, K. F., Stice E. K. Stice, J. D., Intermediate Accounting. 15th edition, South-Western College Publishing, C2004. Kieso, Donald E. et al. Fundamentals of Intermediate Accounting. 1st ed., John Wiley & Sons. C2008 Epstein B. J., Mirza., International Accounting Standards. C2001. B. WEBSITES Intermediate Accounting, Skousen: http//:skousen.swcollege.com Intermediate Accounting, Kieso & Weygandt: http://www.wiley.com/college/kieso International Accounting Standard, John Wiley & Sons: http://www.wiley.com/gaap Practical Accounting: http://www.booksites.net/benedict FASB: http://www.rutgers/edu/accounting/raw/fasb IFAC: http://www.ifac.org

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