UNIVERSITY OF SAN CARLOS

College of Commerce
Department of Accountancy
Course No ! AC "##
Course T$tle ! A%&ance% F$nanc$al Account$ng
an% Report$ng 'art I
Cre%$t ! ( un$ts
're)re*u$s$te Course ! AC "+, F$nanc$al
Account$ng an% Report$ng 'art II

Class Sc-e%ule ! .........
Venue ! .............
Instructor ! .............
Consultat$on /ours
an% Locat$on ! ..........
O&er&$e0 of t-e Course
This course deals with special contemporary accounting issues in the practice of accountancy.
It includes the proper application of contemporary accounting techniques and methodology to
advanced accounting problems and situations like branch and home office relationship, special
revenue recognition principles.
This course is designed to provide the student with conceptual knowledge of financial
accounting for business enterprises. It covers discussions on financial reporting, and
disclosures in conformity with Philippine Accounting Standards PAS!, Philippine "inancial
#eporting Standards P"#S!, and International "inancial #eporting Standards I"#S!.
Course Descr$pt$on
This course is the first part of advanced accounting. It discusses advanced accounting
principles applicable to special problems encountered by business entities and accounting
practitioners as well. It also covers the basic principles and concepts underlying income
recognition and measurement. $reater in%depth understanding and higher level of analytical
and critical thinking are required compared to the fundamental and intermediate accounting
courses.
Course O12ect$&es
&uring the semester, the students are e'pected to(
). understand the fundamental principles, concepts, and theories associated with
business operations involving home office and branch, installment sales, franchise, and
long%term construction contracts*
+. be familiar with the basic concepts and underlying principles involved in accounting for
,oint ventures, fire insurance and build%operate%transfer scheme*
-. demonstrate the competencies required in the practice of the accountancy as a
competent and socially responsible professionals* and
1
.. recogni/e the issues and developments in the practice of accountancy relevant to the
needs of the local, national, and global communities in a rapidly changing world.
Classroom 3anagement
). Attendance is a 01ST. 2ou may incur only ten )3! absences for 04" schedules or
seven 5! absences for TT6 schedules. 7therwise, you will automatically be dropped
from class and receive a grade of either 89 8o 9redit! or a failing grade of :.3
whichever is applicable.
+. Students who incur three -! absences will be asked by the instructor to see the
&epartment 9hair to secure permission to be re%admitted to class. A re%admission slip
should be properly accomplished for this.
-. Tardiness is discouraged. 0ake sure that you come to class on time. It is a source of
irritation and class disruption when students arrive late. Students who arrive ):
minutes after the start of class are considered tardy. Please note that three -!
tardiness is equivalent to one )! absence.
.. A permanent seat plan will be made at the start of the semester. 2ou are advised to
keep to your assigned seating arrangement* otherwise, you will be marked absent for
that day.
:. 9lasses should always start and end with a short prayer. The instructor can opt to lead
the prayer or assign students to do this alternately.
;. Students should assist in maintaining the orderliness and cleanliness of the
classrooms. $raffiti writing is strictly prohibited. Any student found violating this rule
will be punished with the appropriate sanction. <efore 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.
5. $oing out of the classroom at any time is strictly discouraged. 0ake it a habit to go to
the restroom during your vacant period or before the start of your classes. If you must
visit the restroom, permission should be sought from the instructor.
>. 1se of mobile phones inside the classroom is strictly prohibited. Switch them off or
place them under silent mode before entering your classes. The instructor has the right
to confiscate mobile phones that rings and=or used during class hours. The confiscated
unit can only be claimed from the &ean?s 7ffice at the end of the semester.
@. The teacher reserves the right to ask the student to leave the room if his behavior is
disruptive in class.
)3. It is your responsibility to properly schedule your classes so that meals and snacks will
be taken at its proper time.
)). Students are encouraged to see the instructor during consultation hours for any
concerns, questions and assistance with regards to the course.
2
Learn$ng Act$&$t$es
To aid in higher knowledge retention, recall and application, varied and effective learning
activities will be done such as lectures = discussions* practice tests* individual assignments*
and problem solving e'ercises.
E&aluat$on45ra%$ng System
This course will follow the standard grading system of the university as follows(
"or the 0idterm $rade(
Tests=Aui//es )=-
7ther #equirements )=-
0idterm B'amination )=-
"or the "inal $rade(
0idterm $rade )=-
9lass Standing after 0idterm )=-
"inal B'amination )=-
"or purposes of transmutation, the course will use the following grade equivalents at :3C
passing!(
$rade Bquivalent
).3 % )33 ).@ % 5> to 5@
).) % @> to @@ +.3 % 5: to 55
).+ % @: to @5 +.) % 5- to 5.
).- % @- to @. +.+ % 53 to 5+
).. % @3 to @+ +.- % ;> to ;@
).: % >> to >@ +.. % ;: to ;5
).; % >: to >5 +.: % ;- to ;.
).5 % >- to >. +.; % ;3 to ;+
).> % >3 to >+ +.5 % :; to :@
+.> % :: to :5
+.@ % :- to :.
-.3 % :3 to :+
<elow -.3 is equivalent to a failing grade or :.3
Course Re*u$rements
9lass Standings will include the following components(
). #egular class attendance and punctuality
+. Pre%tests
-. 9lass participation
.. Seatwork
:. Individual research reports
;. 1nit tests and qui//es
5. Practice Tests
3
Course Content an% Sc-e%ule
Or$entat$on
Introduce to the students the 1niversity Dision and 0ission, 9ollege of
9ommerce aims, and &epartment of Accountancy ob,ectives.
&iscuss classroom rules and policies.
9heck admission slips.
Course Intro%uct$on
Present the course syllabus as to scope, sequencing of sub,ect matter, course
requirements, and evaluation and grading system.
&istribute individual copies of the course syllabus.
6ee7 # ( -ours
7rientation
). #emind the students of the 1niversity Dision and 0ission, 9ollege of 9ommerce aims,
and &epartment of Accountancy ob,ectives.
+. &iscuss classroom rules and policies.
-. 9heck admission slips.
.. $roup the students.
9ourse Introduction
). Present the course syllabus as to scope, sequencing of sub,ect matter, course
requirements, and evaluation and grading system.
+. &istribute individual copies of the course syllabus.
6ee7 8 ) ( , -ours
Un$t I Account$ng for Agency Transact$ons
Sales agency and branch contrasted
Accounting for sales agency
Agency net income determined separately
Agency net income not determined separately
Un$t II Account$ng 9ranc- Operat$ons
6ome 7ffice and <ranch Accounting
#ecording transactions between home office and branch
Preparation of separate financial statements of branch and home office
Preparation of combined financial statements for home office and branch
#econciliation of home office and branch accounts reciprocal accounts!
6ee7 : ) , ; -ours
Un$t III Account$ng for 9ranc- Operat$ons
4
Special problems
Interbranch transactions involving transfer of cash and merchandise
<ranch billing at amounts other than cost
"reight costs on shipments
6ome office E branch e'pense allocation
&etermination of branch true income
Preparation of combined income statement
6ee7 < ) ; ; -ours
Un$t IV Account$ng for Installment Sales
8ature and characteristics of installment sales
0ethods of recogni/ing gross profit on installment sales
Accounting procedures governing installment sales
Sale of personal property
Sale of real estate property
Trade%ins
#epossessions
Interest computation using annuity method
Preparation of financial statements
6ee7 #+ 3IDTER3 E=A3INATIONS
6ee7 ## ( -ours
Un$t V Account$ng for Cons$gnment Sales
8ature and operation of consignment sales
Accounting for consigned goods
9onsignor?s books
9onsignee?s books
Income determination
9ompleted consignment
1ncompleted consignment
Preparation of financial statement from the viewpoint of the consignor
6ee7 #8 > #( , -ours
Un$t VI Account$ng for Long term Construct$on Contracts
). Accounting for long term construction contracts
Percentage of completion method
5
9ost recovery or /ero%profit method
#evision of estimates
9hange order
6ee7 #: ) #" , -ours
Un$t VII Account$ng for F$nanc$ally D$stresse% Corporat$ons
Insolvency=<ankrupt
&efined and &ifferentiated
Doluntary vs. Involuntary
Secured vs. 1nsecured 9reditors
Assignee, Trustee, #eceiver
Proceedings
#emedies Available for #elief of &ebtor
Bquity Insolvency
<ankruptcy Insolvency
Statement of Affairs
8ature, purpose and Importance
"orm and 9ontent
9omputation of Amount Available, #ate of Bstimated Payment and &eficiency to
unsecured 9reditors
Preparation of the Statement of Affairs and the Supporting &eficiency Statement
Statement of #eali/ation and Fiquidation
8ature, Purpose and Importance
"orm and 9ontent
Analysis of Transactions and its Bffect on the Statement
Preparation of the statement of reali/ation and liquidation
6ee7 #, ( -ours
Un$t VI Commerc$al Franc-$se Operat$ons ?'o$nt of V$e0 of Franc-$sor@
). 0ethods of recogni/ing revenue
Accrual basis
Installment basis
+. Accounting for initial franchise fees and continuing franchise fees
-. &etermination of 8et Income earned by the franchisor.
6ee7 #< ) #A , -ours
Un$t VIII Bo$nt Venture an% Assoc$ate% Enterpr$ses an% F$re Insurance
). Accounting for Goint venture and associated enterprises
#ecording of transactions
6
"inancial reporting of interests in ,oint venture
+. Accounting for "ire insurance point of view of insurer!
#ecording of transactions
0easurement of income
6ee7 #; FINAL E=A3INATION
9$1l$ograp-y
A 9oo7s
$uerero, P., Peralta, G., Advanced Accounting. Dolume 7ne. +33> edition, $I9
Bnterprises and 9o., Inc, 9+33>
$uerero, P., Peralta, G., Advanced Accounting. Dolume Two. +33> edition, $I9
Bnterprises and 9o., Inc, 9+33>
Skousen, H. "., Stice B. H. Stice, G. &., Intermediate Accounting. ):
th
edition, South%
4estern 9ollege Publishing, 9+33..
Statement of "inancial Accounting Standard. 9ompiled by the Accounting Standards
9ouncil, PI9PA.
Hinnel, Hieso I 4eygandt, "inancial Accounting. -
rd
edition, Gohn 4iley and Sons, Inc.,
9+33..
Dali' I Peralta, "inancial Accounting. +333 edition.
Bpstein <. G., 0ir/a., International Accounting Standards. 9+33).
9 6e1s$te
Intermediate Accounting, Skousen( http==(skousen.swcollege.com
Intermediate Accounting, Hieso I 4eygandt(
http(==www.wiley.com=college=kieso
International Accounting Standard, Gohn 4iley I Sons(
http(==www.wiley.com=gaap
Practical Accounting( http(==www.booksites.net=benedict
"AS<( http(==www.rutgers=edu=accounting=raw=fasb
I"A9( http(==www.ifac.org
7
Attach a copy of the school calendar and mark the weeks corresponding to the course
schedule.
2010 Revision
8