Course Code:

NATIONAL COLLEGE OF BUSINESS AND ARTS

CUBAO * FAIRVIEW * TAYTAY

COURSE SYLLABUS
BACHELOR OF SCIENCE IN
ACCOUNTANCY

Acctg. 6-07
Prerequisite:

Acctg. 5-07
COURSE TITLE:

FINANCIAL ACCOUNTING & REPORTING, PART II

Credit Units:

6 Units

COURSE DESCRIPTION :
This course is a continuation of Financial Accounting & Reporting, Part I. It is designed to cover the financial accounting principles relative to recognition, measurement, valuation.
And financial statement presentation of liabilities and shareholders equity including disclosure requirements. The related internal control, ethical issues, and management of liabilities
and owner(s) equity are also covered. It also deals with contemporary issues such as leases, employees retirement benefits, deferred taxes, and other current related items.
COURSE OBJECTIVES

By the end of the semester, the student will be able to:

1. Understand and be equipped with the conceptual framework of financial accounting especially the theories, assumptions, concepts and procedures applicable to the
measurement and reporting of liabilities (current and noncurrent), shareholders equity , special topics on leases, employee benefits and income taxes.
2. Be abreast with the recent pronouncements from IFRS and PFRS relating to Liabilities and Shareholders Equity accounts.

Course Outline
CONTENTS / TOPIC
Prelim period
1. Accounting for Liabilities Current Liabilities
1.1 Definition and composition
1.2 Recognition and measurement of
financial/nonfinancial liabilities
1.2.1 Recognition and measurement of financial
liabilities whose amount are definite trade
payables,short-term notes
payable,commercial paper, current portion of
long-term debts, accrued expenses
1.2.2 Recognition of current non-financial liabilities
unearned revenues, customers deposits,
outstanding gift certificates, liability
containers, bonuses, unearned service
contracts, others
1.2.3 Derivatives
1.2.4 Financial statement presentation and
disclosures
QUIZ
2. Noncurrent Liabilities
2.1 Definition and Composition
2.2 Recognition and measurement of noncurrent
liabilities
2.3.1 Issuance of bonds; accounting for interest and
amortization of premium or discount using
straight-line and effective interest methods
2.3.2 Extinguishment of bonds prior to maturity
(including conversion bonds into ordinary

ESTMATED
NUMBER
OF HOURS

SPECIFIC OBJECTIVES

Introduce, familiarize and

discuss in detail the
definition, recognition and
composition of current,
noncurrent and contingent
liabilities. Its measurement,
presentation and disclosure
in the Balance Sheet.

18

ACTIVITIES

Lecture /
seatwork

discussion

EVALUATION TOOLS

/ Quizzes / recitation /
assignments / examination

shares)
2.3.3 Financial statement presentation and
disclosures
QUIZ
2.4 Accounting for Long term Notes Payable
2.4.1 Nature of Long-term notes payable
2.4.2 Accounting for issuance of notes (Issued rate
and market rate different, Installment note
issued for noncash consideration, Innovative
mortgage notes, Note with an unrealistic
interest rate)
2.5 Provisions, Contingent Liabilities
2.5.1 Definition and nature
2.5.2 Financial statement presentation and
disclosures
QUIZ
Prelim Examination
Midterm Period
3. Accounting for Shareholders Equity
3.1 Contributed Capital
3.1.1 Share capital definition and classification
(Ordinary shares, Preference shares
cumulative, noncumulative, participating and
nonparticipating)
3.1.2 Authorization, subscription, and issuance of
share capital
3.1.3 Subscription defaults
3.1.4 Share issuance costs
3.1.5 Additional paid-in-capital-definition and
sources
3.1.6 Rights issues, shares warrants, and share
options

12

Introduce, familiarize and

discuss in detail the
composition and accounting
for Shareholders Equity
account. Its measurement,
presentation and disclosure
in the Balance Sheet.

Lecture /
seatwork

discussion

/ Quizzes / recitation /
assignments / examination

3.1.7 Share appreciation rights

3.1.8 Redemption and conversion of preference
shares
3.1.9 Share recapitalization and share splits
3.1.10 Treasury shares
3.1.11 Financial statement presentation and
disclosures
QUIZ
3.2 Retained Earnings
3.2.1 Definition
3.2.2 Fundamental errors (Correction of errors in
prior periods income, Change in accounting
policies)
3.2.3 Accounting for appropriations and
subsequent reversals
3.2.4 Accounting for dividends cash, property,
share, scrip, liquidating
3.2.5 Financial statement presentation and
disclosures
QUIZ
3.3 Other Shareholders Equity Items
3.3.1 Revaluation surplus
3.3.2 Unrealized losses on decline in value of
available-for-sale securities
3.3.3 Foreign currency translation adjustment
3.4 Computation of earnings per share and book
value per share of preference shares (if any) and
ordinary shares equivalents
QUIZ
Midterm Examination

12

12

Final Period
4. Special Topics
4.1 Leases
4.1.1 Nature and classification
4.1.2 Accounting for lease lessees viewpoint:
Operating lease, Capital lease/finance lease
4.1.3 Accounting for leases lessors viewpoint:
Operating lease, Direct Financing lease,
Sales-type lease, Sale of assets during lease
term
4.1.4 Accounting for sale-leaseback transactions
4.1.5 Leveraged
4.1.6 Disclosure requirements for leases
QUIZ
4.2 Income Taxes
4.2.1 Types of income tax allocation (Intraperiod,
Interperiod, Interperiod tax allocation)
4.2.2 Temporary and permanent differences
(Taxable temporary differences and
deductible temporary differences,
Recognition and measurement of income tax
payable, deferred tax liabilities and deferred
tax assets, Current and deferred tax expense
and income tax benefits, Financial statement
presentation and disclosures )
QUIZ
4.3 Accounting for Employee Benefits
4.3.1 Employee benefits defined
4.3.2 Short- term employee benefits (Recognition
and measurement)
4.3.3 Post-employment benefits [Nature of pension
plan,Types of pension plan (Defined
contribution pension plans, Defined benefit

12
Introduce, familiarize and
discuss in detail accounting
for leases, income taxes,
employee benefits and
share based payments.

12

12

Lecture /
seatwork

discussion

/ Quizzes / recitation /
assignments / examination

pension plans), Accounting for pension plans]

4.3.4 Termination benefits
4.3.5 Equity compensation benefits
4.3.6 Pre-retirement compensation plans
4.3.6.1 Share-based compensation plans (Share
award plans, Share option plans, Share
appreciation rights, Share purchase
plans)
4.4 Share-based Payment
QUIZ
Final Examination
REFERENCES:
1. Bazley, John D. Intermediate Accounting. 11th ed. Australia: South-Western, Cengage, 2010
2. Elliott, Barry. Financial Accounting and Reporting. 14th ed. England: Pearson, 2011
3. Padilla, Jr., Nicanor B. Financial Statements: Preparation, Analysis Manila: GIC Enterprises & Co., 2011
4. Philippine Financial Reporting Standard (PFRS) part 2: a project of PICPA Metro Manila: Manila: Conanan, 2013
5. Valix, Conrado T. Financial Accounting vol. 2 Manila: GIC Enterprises & Co., Inc, 2012
6. Wild, Shaw, Chiappetta, Kwok, Venkatesh. Fundamental Accounting Principles
McGraw Hill 2013
GRADING SYSTEM
LECTURE AND LABORATORY
(Cax2) + Periodic Examination
3
Where: CA = average grade of class standing which includes recitation, quizzes, long tests and projects
PG = preliminary grade
MG = midterm grade

PF
FX

= pre-final grade
= final examination

FG = PG + MG + PF + Final Examination
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