FINANCIAL ACCOUNTING AND REPORTING  Accounting for SME

REVENUE RECOGNITION - PFRS 15 (14.29%)

DEVELOPMENT OF FINANCIAL  Installment Sales (PAS 18/ PFRS 15)
REPORTING FRAMEWORK, STANDARD-SETTING
 Long-term Construction Contracts (PAS 11/ PFRS 15)
BODIES, REGULATION OF THE ACCOUNTANCY
PROFESSION, CONCEPTUAL FRAMEWORK OF  Franchise Operations – Franchisor's point of
FINANCIAL STATEMENTS AND ACCOUNTING PROCESS view (PAS 18/ PFRS 15)
(5.71)  Consignment Sales (PAS 18/ PFRS 15)
Development of Financial Reporting Framework ACCOUNTING FOR HOME OFFICE, BRANCH AND
Standard-Setting Bodies (AASC, FRSC,PIC) AGENCY TRANSACTIONS (5.71%)
Regulation of the Accountancy Profession ACCOUNTING FOR BUSINESS COMBINATION -PFRS 3
Conceptual Framework (8.57%)
Accounting Process (Adjusting Entries and Accounting Cycle)  Acquisition of assets and liabilities (acquisition
PRESENTATION OF FINANCIAL STATEMENTS (14.29%) method);
Statement of Financial Position (SFP) o Determination of Consideration Transferred;
Statement of Comprehensive Income Recognition of AcquiredAssets and
Statement of Cash Flows Liabilities; Recognition and Measurement of
Statement of Changes in Equity Goodwill and Gain from a Bargain Purchase;
Notes to the Financial Statements Journal Entries;
ASSETS  Financial Statement Presentation;
FINANCIAL ASSETS (14.29%)  Accounting for SME
Cash & Cash Equivalents SEPARATE FINANCIAL STATEMENTS - PAS 27 (5.71%)
Loans and Receivables (Financial Assets at Amortized Cost)  Accounting for Investment in Subsidiary
Investments in Debt Instruments o at cost, equity method, and in accordance
Financial Assets at Fair Value through Profit or Loss (Except with PAS 39/PFRS 9
Derivatives)
Financial Assets at Fair Value through Other Comprehensive
 Accounting for SME
CONSOLIDATED FINANCIAL STATEMENTS - PFRS 10
Income
(7.14%)
Financial Assets at Amortized Cost
Investments in Associates (equity method of accounting)  Date of acquisition
Basic Derivatives (excluding Hedge Accounting)  Subsequent to date of acquisition
NON-FINANCIAL ASSETS (10%)  Determination of:
Inventories o Net Income/Total Comprehensive
Property, Plant and Equipment Income/Equity
Investment Property  Attribution to Equity Holders of
Intangibles Parent/Controlling or Parent’s
Biological Assets Interest,
Non-Current Assets Held For Sale  Non-controlling Interest,
LIABILITIES (10%)  Consolidated/ Group,
FINANCIAL LIABILITIES o Retained Earnings/ Common Share /
Accounts Payable and Other Trade Payables Dividends
Debt Restructuring  Attributable to Equity Holders of
NON-FINANCIAL LIABILITIES Parent /Controlling or Parent’s
Premiums and warranties Interest/, Consolidated / Group,
Unearned revenues for gift certificates and subscriptions o Accounting for SME
PROVISIONS AND CONTINGENCIES FOREIGN CURRENCY TRANSACTIONS (5.71%)
Recognition and measurement criteria  Without hedging activities (import, export, lending,
EQUITY (14.28%) and borrowing transactions)
Share Capital Transactions (PAS 32, PFRS 7)
Dividends
 Hedging Activities: Hedging Foreign Currency
Exposures, Foreign Currency Forward Contacts
Retained Earnings
Other Comprehensive Income
o Hedges that not requires a
Hedge Accounting (undesignated hedges)
Book Value per share and Earnings per Share
OTHER TOPICS (14.29%) o Hedges that requires a
Hedge Accounting (Fair value hedge, Hedge
Share-based payments (PFRS 2)
of a Firm Commitment, Cash flow hedge,
Borrowing Costs (PAS 23)
Hedge of a Forecasted Transaction
Leases (PAS 17/ PFRS 16)
(purchase or sale transaction)
Income Tax (PAS 12, PFRS 14)
Employee Benefits (PAS 19, PAS 26)
o Hedge of a net investment in foreign entity
Interim Reporting (PAS 34, PAS 24)
o Accounting for SME
TRANSLATION OF FOREIGN CURRENCY FINANCIAL
Segment Reporting (PFRS 8)
STATEMENTS - PAS 21/ PAS 29 (4.29%)
Cash to Accrual
SMALL AND MEDIUM SIZED ENTITIES/ MICRO  Translation from the functional currency to the
ENTERPRISES (5.71%) presentation currency (Closing/ Current Rate Method)
Small and Medium Sized Entities (Reporting Requirements,  Remeasurement from a foreign currency to the
Peculiarities, Principles for reporting Investments in Debt and functional currency (Temporal Method)
Equity Securities)  Restatement of Financial Statements
Micro Enterprises NOT-FOR-PROFIT ORGANIZATIONS (2.86%)
 Voluntary health and welfare organizations (VHWO)
ADVANCED FINANCIAL ACCOUNTING AND REPORTING  Hospitals and other health care organizations
(AFAR)
 Colleges and universities
PARTNERSHIP ACCOUNTING (14.29%)  Other not-for-profit organizations such as churches,
Formation, Operations, Dissolution (Admission, Withdrawal, museums, fraternity association, etc.
Incorporation of a partnership), Liquidation (Lump-sum method GOVERNMENT ACCOUNTING – GENERAL FUND (2.86%)
and Installment Method)  Basic Concepts, Budget Process, Journal Entries –
CORPORATE LIQUIDATION (5.71%) Books of National Government Agency
Statement of Affairs, Statement of Deficiency, Statement of OTHER SPECIAL TOPICS (2.86%)
Realization and Liquidation, Determination of the order of  Insurance Accounting (Insurer)
priority of claimants of company assets subject to liquidation  Build, Operate, and Transfer (PFRIC 12)
JOINT ARRANGEMENTS - PFRS 11 (5.71%)  IFRS for SMEs
 Joint Operations COST ACCOUNTING (14.29%)
 Joint Venture (equity method)  System of cost Accumulation or Costing System
  Job-order costing system
 Process costing system
 Backflush costing system (JIT system)
 Service Cost Allocation
 Activity-based costing system (ABC costing)
 Accounting for joint and by – products
 Standard Costing (two-way variance excluding mix
and yield variances)
 Service Cost Allocation
AUDITING THEORY (50%)
 Fundamentals of Auditing and Assurance
Services
o APPLICABLE STANDARDS
 Glossary of Terms (December
2002)
 IAASB – Interim Terms of
Reference (August 2004);
Philippine Framework for
Assurance Engagement
 Preface to International Standards
and Philippine Standards
 PSA 120 - Framework of Philippine
Standards on Auditing
 The Financial Statements Audit
- Client Acceptance, Audit Planning, Supervision
and Monitoring
o APPLICABLE STANDARDS:
 PSA 200 (Revised and Redrafted)
 PSA 210 (Redrafted)
 PSA 300 (Redrafted)
 PSA 240 (Redrafted)
 PSA 250 (Redrafted)
 PSA 260 (Redrafted)
 PSA 610 (Redrafted)
 PSA 620 (Revised and Redrafted)
 Understanding the Entity and its Environment
Including its Internal Control and Assessing the
Risks of Material Misstatement
o APPLICABLE STANDARDS:
 PSA 260 (Revised and Redrafted)
 PSA 265 (New)
 PSA 315 (Redrafted)
 PSA 320 (Revised and Redrafted)
 Audit Objectives, Procedures, Evidences and
Documentation
o APPLICABLE STANDARDS:
 PSA 230 (Redrafted)
 PSA 330 (Redrafted)
 PSA 500 (Redrafted)
 PSA 501 (Redrafted)
 PSA 505 (Revised and Redrafted)
 PSA 510 (Redrafted)
 PSA 520 (Redrafted)
 PSA 530 (Redrafted)
 PSA 540 (Revised and Redrafted)
 PSA 550 (Revised and Redrafted)
 Completing the Audit/ Post-Audit Responsibilities
o APPLICABLE STANDARDS:
 PSA 560 (Redrafted)
 PSA 570 (Redrafted)
 PSA 580 (Revised and Redrafted)
 Reports on Audited Financial Statements
o APPLICABLE STANDARDS:
 PSA 700 (Redrafted)
 PSA 705 (Revised and Redrafted)
 PSA 706 (Revised and Redrafted)
 PSA 710 (Redrafted)
 PSA 720 (Redrafted)
 PSA 800 (Revised and Redrafted)
 PSA 805 (Revised and Redrafted)
 PSA 810 (Revised and Redrafted)
 Auditing in a Computerized Information Systems
(CIS) Environment
o APPLICABLE STANDARDS:
 PSA 402 (Revised and Redrafted)
 Other Assurance and Non-assurance Services
o APPLICABLE STANDARDS:
 PSA 220 (Revised and Redrafted)
AUDITING PROBLEM (50%)
Evidence Accumulation and Evaluation –
Substantive Tests of Transactions and Balances
Audit of the revenue and receipt cycle
 Audit of sales and revenue transactions
 Audit of receivable balances
Audit of expenditure and disbursement cycle
 Audit of acquisitions and purchases
 Audit of payroll transactions
 Audit of inventory balances
 Audit of trade payable balances
 Audit of prepaid expenses and accrued liabilities
Audit of production cycle
 Audit of conversion activities
 Audit of inventory balances: work-in-process and
finished goods
 Audit of cost of goods sold balance
Audit of the financing cycle
 Audit of financing cycle transactions
 Audit of non-trade liability balances
 Audit of interest expense and finance cost balances
 Audit of equity accounts
 Audit of investing cycle
Audit of the financing cycle
 Audit of investing transactions
 Audit of investment account balances
 Audit of property, plant and equipment account
balances
 Audit of intangible account balances
Audit of cash balances
 Audit of cash receipt transactions balance
 Audit of cash disbursement transactions balance
TAXATION
1. Principles of taxation (11.43%)
 Nature, scope, classification, and essential
characteristics
 Principles of sound tax system
 Limitations on the power of taxation
 Tax evasion vs. tax avoidance
 Situs / place of taxation
 Double taxation
 Legislation of tax laws
 Impact of taxes in nation building
 Ethical tax compliance and administration
 Organization of the BIR, BOC, BOI, PEZA, and Local
Government Tax Collecting units
2. Tax remedies (11.43%)
 Remedies of the taxpayer
 Remedies of the Government
 Expanded jurisdiction of the Court of Tax Appeals
3. Income taxation (20%)
 Taxpayer and tax base
o Individuals, Corporations, Partnerships, Joint
ventures, Estates and trusts, Co-
ownerships, Tax exempt individuals and
organizations
 Gross income
o Inclusions in the gross income
o Exclusions/exemptions from gross income
o Compensation Income
o Business Income
o Passive income subject to final withholding
tax
o Capital gain
 Deductions from gross income
o Itemized deductions
o Items not deductible
o Optional standard deduction
o Deductions allowed under special laws
 Accounting periods
 Accounting methods
 o Reconciliation of income under PFRS and o Financial Planning and Budget
income under Tax Accounting o Activity-based costing (ABC) and activity-
 Tax return preparation and filing and tax based management (ABM)
payments o Strategic cost managements
o Manual filing  Management Accounting Concepts & Techniques
o Electronic filing and E-submission for Performance Measurement
o Large taxpayers and non-large taxpayers o Responsibility Accounting and Transfer
o Income tax credits Pricing
o Venue and time of filing of tax returns o Balanced Scorecard
o Venue and time of payment  Management Accounting Concepts & Techniques
o Modes of payment for Decision Making
o Use of tax tables o Quantitative Techniques
o Accomplishing of various income tax returns o Relevant Costing and Differential Analysis
and forms FINANCIAL MANAGEMENT (40%)
 Withholding taxes (at source, expanded or  Objective and Scope of Financial Management
creditable withholding tax, final withholding taxes  Financial Management Concepts and Techniques for
and withholding tax on government payments) Planning, Control and Decision Making
o Time of withholding o Financial Statement Analysis
o Income payments subject to withholding o Working Capital Finance
o Year end withholding of tax o Capital Budgeting
and requirements o Investment Risks, and Rates of Returns
o Venue and time of filing of withholding tax o Types and measurement of risks and
returns returns, risk measurement models
o Venue and time of payment o Capital structure and long-term financing
o Modes of payment decision
o Time of payment MANAGEMENT CONSULTANCY (4.3%)
o Use of tax tables and rates  Management Consultancy practice by CPAs
o Use of various withholding tax returns and
forms  Project Feasibility Studies
ECONOMIC CONCEPTS (5.7%)
 Compliance Requirements
o Administrative requirements (registration,  Macroeconomics
issuance of receipts, printing of receipts)  Microeconomics
o Attachments to the income tax return REGULATORY FRAMEWORK FROM BUSINESS
o Keeping of books of accounts and records, TRANSACTIONS (RFBT)
including report of inventories
o Prescriptive period of maintain books of LAW ON BUSINESS TRANSACTIONS
accounts and other accountingrecords  Obligations (10%)
4. Transfer taxes (17.14%)  Contracts (10%)
 Estate Tax  Sales (7%)
 Donor's Tax LAW ON CREDIT TRANSACTIONS
5. Value added tax and percentage tax (17.14%)  Pledge, Real Mortgage, and Chattel Mortgage (4%)
 Value Added Tax NEGOTIABLE INSTRUMENTS AND BOUNCING CHECKS
 Percentage Tax LAW
6. Documentary stamp tax (2.85%)  Negotiable Instruments (4%)
 Describe, Analyze and Compute Documentary Stamp  Bouncing Checks (2%)
Tax (Definition, Coverage and Exemptions, Tax Base LAWS ON BUSINESS ORGANIZATIONS
Rates, and Time and Manner of Payment)  Partnership (10%)
7. Excise tax (2.85%)  Corporations (28%)
 Describe, Analyze and Compute Excise o Including: Securities Regulations Code,
Tax (Concept, Applicability, Classification of Excisable Code of Corporate Governance, and SEC
Materials and Rates, Specific Tax, Ad Valorem Circulars and Ordinances on Filling, Fines
Tax, Coverage, Time of Payment) and Penalties.
8. Taxation under the local government code (5.73%)  Cooperatives (10%)
 Scope and different types of local taxes, Tax base LAWS ON OTHER BUSINESS TRANSACTIONS
and tax rates, Venue and time of filing of tax returns  Philippine Deposit Insurance Corporation (PDIC) (2%)
and payment).  Secrecy of Bank Deposits and
 Limited to Real Property Tax and Local Business Tax Unclaimed Balances Law (2%)
9. Preferential taxation (11.43%)  Anti-Money Laundering Act (AMLA) (5%)
 Senior Citizens Law  Intellectual Property Law (2%) EXCEPT PART 1 OF
 Magna Carta for Disabled Persons R.A. 8293
 Special Economic Zone Act (PEZA)  Data Privacy Act (2%)
 Omnibus Investments Code (E.O. 226, Book 1)  Electronic Commerce Act (1%)
 Barangay Micro Business Enterprises Act (BMBE)  Ease of Doing Business Law (1%) NEW
 Double Taxation Agreements (DTA) General Banking Laws (GBL), Financial Rehabilitation and
Tarrifs and Customs Code and Updates on special concerns Insolvency Act (FRIA), Updates on special concern have been
have been removed. removed. Ease of Doing Business Law (RA 11032) has been
added.
MANAGEMENT ADVISORY SERVIVES

MANAGEMENT ACCOUNTING (50%)

 Objectives, role and scope of management
accounting
 Management accounting concepts & techniques
for planning and control
o Cost Terms, Concepts, and Behaviour
o Cost Accumulation Methods (Job Order,
Process, ABC)
o CVP Analysis
o Standard costing and variance analysis
o Variable costing and absorption costing