Course No.

:
Course Title :
Credit Units :
Pre-requisite :
Term

AC 514
Advanced Financial Accounting and Reporting Part II
3.0
AC 511 Advanced Financial Accounting and Reporting
Part I
2ND Semester, AY 2014-2015

Course Description
The course gives insights into the proper application of accounting techniques and
methodologies to advanced accounting problems related to business combination
and foreign currency transactions. It is designed to provide BSA 3 students with
conceptual knowledge of advanced financial accounting for business enterprise in
conformity with Philippine Accounting Standards (PAS) and Philippine Financial
Reporting Standards (PFRS).
The course discusses accounting concepts, principles, and underlying procedures
to effect business combination through net asset and stock acquisition. It also
illustrates the preparation of consolidated financial statements as a reporting
requirement by an entity undertaking business combination. The course also
deals with accounting for foreign currency transactions and the translation of
financial statements expressed in foreign currency into the Philippine peso.

TOPIC

COUR
SE
OUTCOME
S

Introduction of the
course
Course Orientation and
Requirements (1.5
hours)

Revisit USC Vision and

Mission Statements
School of Business and
Economics and
Department of
Accountancy aims
Course outcomes and
course requirements
Classroom rules and
policies (attendance,
grading system, and
submission of
requirements)
Course Introduction
Introduction to Business
Combination
Accounting principles
governing business
combination
Different forms of
business combination
Concepts of the two
entities involved in
business combination
Discussion of PFRS 3
Business Combination
Accounting for Business
Combination Under the
Net Asset Acquisition
Method (7.5 hours)

Cost of business
combination
Measurement of
identifiable assets and
liabilities of the acquiree
Recognition of goodwill
and gain from
acquisition
Journal entries after
completion of business

CO1

CO1

CO1,
CO2

INTENDED LEARNING OUTCOMES

1. Portfolio to be submitted at the end of

the semester (consolidated financial
statements of parent company and its
subsidiary and financial statements
translating foreign currency into the
Philippine peso).
2. Identify the fundamental standards,
concepts, and principles related to
business combination and foreign
currency operation.

1. Define business combination

2. Differentiate the two forms of business
combination
3. Distinguish the acquirer from the
acquiree and the parent from the
subsidiary
4. Discuss the important provisions of
PFRS 3 pertaining to business
combination

1. Compute the cost of business

combination under the net asset
acquisition method
2. Analyze and calculate the identifiable
assets and liabilities of the acquiree
3. Determine the amount of goodwill and
gain from acquisition
4. Prepare journal entries effecting the
business combination on the books of the
acquirer and the acquire

Bibliography
References:
BOOKS
Textbook
:
Guerrero, P. and Peralta J., Advanced Accounting Volume Two.
2013 edition, GIC Enterprises and Co., Inc. C2013
References
:
Alfredson, Keith, et. al., Applying International
Accounting Standards C2008
Baker, Richard E. et. al., Advanced Financial Accounting, 7 th ed.
Boston, Massachusetts: McGraw-Hill Irwin, C2009
Beam, Floyd A., et. al., Advanced Accounting, C2008
Epstein, Barry J., and Mirza, Abbas Ali. International and
Application of International Accounting and Financial Reporting Standards C2008
Jeter, Debrea and Chaney, Paul., Advanced Accounting,
International Thompson Publishing, C2008
Manuel, Zenaida Vera Crus., Advanced Accounting C2008
Mejorada, Nenita., Advanced Accounting Part II. C2005
Punzalan, Angelito R., Comprehensive and Procedural
Approach in Practical Accounting, latest edition
Stice, J. D., E. K. and Skousen F., Intermediate Accounting 18 th
ed. C2008
PUBLICATIONS
International Financial Reporting Standards (IFRS)
Philippine Accounting Standards (PAS)
Philippine Financial Reporting Standards (PFRS)
WEBSITES
http://www.fisher.swcollege.com
Fisher/Taylor/Cheng site
http://skousen.swcollege.com
Intermediate Accounting, Skousen
http://www.wiley.com/college/kieseo
Intermediate Accounting, Kieso & Weygandt:
http://www.wiley.com/gaap
International Accounting Standards, John Wiley & Sons:
http:www.booksites.net/benedict
Practical Accounting
http://www.rutgers/edu/accoundting/raw/fasb
Financial Accounting Standards Board
http://www.ifac.org
International Federation of Accountant

Grading System:
Midterm Grade:
2/3 Class Standing (Quizzes, Premidterm, Assignments, Seatworks, Orals)
1/3 Midterm Exam
Final Grade:
2/3 Class Standing after Midterms (Prefinals, Quizzes, Assignments,
Seatworks, Orals)
1/3 Final Exam