UNIVERSITY OF SAN CARLOS College of Commerce Department of Accountancy Course No.

: AC 506 Class Schedule : Venue :

Course Title : Financial Accounting and Reporting Part II Credit : 6 units

Instructor : Pre-requisite Courses : AC 503 Financial Accounting and Reporting, Part 1 Overview of the Course AC 506 shows how accounting principles are linked to the central activities of a business operating, financing and investing. Also covered are financial reporting, and disclosures in conformity with Philippine Accounting Standards (PAS), Philippine Financial Reporting Standards (PFRS), and International Financial Reporting Standards (IFRS). Course Description This course is a continuation of AC 503 (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, including debt restructuring, and owner(s) equity are also covered. It also deals with contemporary issues such as leases, employees retirement benefits, and other current related items. Course Objectives During the semester, the students are expected to: 1. understand the fundamental principles, concepts, and theories associated with the management and control of liability and stockholders equity accounts; 2. develop a full understanding of the debt and equity financing activities of a corporate enterprise; Consultation Hours and Location :

3. understand that compliance and adherence to the generally accepted

accounting principles (GAAP) will lead to the proper presentation of liabilities and stockholders equity in the financial statement required by local, national, and global communities in a rapidly changing environment.

Classroom Management 1. Attendance is a MUST. You may incur only ten (10) absences for MWF schedules or seven (7) absences for TTH schedules. Otherwise, you will automatically be dropped from class and receive a grade of either NC (No Credit) or 2. a failing grade of 5.0 whichever is applicable. 3. 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. 4. 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. 5. 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. 6. 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. 7. 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. 8. 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. 9. 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. 10. The teacher reserves the right to ask the student to leave the room if his behavior is disruptive in class. 11. It is your responsibility to properly schedule your classes so that meals and snacks will be taken at its proper time. 12. Students are encouraged to see the instructor during consultation

hours for any concerns, questions and assistance with regards to the course. Learning Activities 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 exercises. Evaluation/Grading System This course will follow the standard grading system of the university as follows: For the Midterm Grade: Tests/Quizzes Other Requirements Midterm Exam For the Final Grade: Midterm Grade Class Standing after Midterm Final Exam 1/3 1/3 1/3 1/3 1/3 1/3

For purposes of transmutation, the course will use the following grade equivalents (at 50% passing): 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 95 93 91 89 87 85 83 81 79 to to to to to to to to to 100 94 92 90 88 86 84 82 80 1.9 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.0 77 75 73 71 69 67 65 62 59 56 53 50 to to to to to to to to to to to to 78 76 74 72 70 68 66 64 61 58 55 52

49 & below is equivalent to a failing grade of 5.0

Course Requirements Class Standings will include the following components: 1. Regular class attendance and punctuality 2. Class participation 3. Seatwork 4. Individual research reports 5. Unit tests and quizzes 6. Practice Tests

Course Content and Schedule Week 1 3 Hours 18

Orientation Remind the students of the University Vision and Mission, College of Commerce aims, and Department of Accountancy objectives. Discuss classroom rules and policies. Check admission slips. Group the students. Course Introduction Present the course syllabus as to scope, sequencing of subject matter, course requirements, and evaluation and grading system. Distribute individual copies of the course syllabus Investments in Debts and Equity Securities Investments in Debts and Equity Securities Financial Instruments: Recognition and Measurements (PAS 32 and 39) Classification of Securities Purchase of Securities Recognition of Dividends, Stock Rights and Interest from Investments Accounting for the Change in the Value of Securities Sale of Securities Transferring Securities between Categories Disclosure Balance Sheet Presentation Week 4 7 Hours Current and Non-Current Liabilities Current Liabilities and Provisions Definition of Current Liabilities (PAS 1) Nature and Classification Recognition Measurement Nature and Measurement of Provision (PAS 31) Financial Statement Presentation Non- Current Liabilities Nature and Classification Bonds Payable 24

 Accounting

Financial Week 8 Hours

Other long-term liabilities for bonds payable and other long-term liabilities Long-term notes payable Issuance of bonds at par at premium at discount Amortization of bond discount or premium Straight-line method Effective interest method Bond retirement at maturity date Bond retirement prior to maturity date Treasury bonds Bonds with common stock warrants Convertible bonds Original issuance Conversion Bond refunding Statement Presentation 6

Debt Restructuring Accounting for troubled-debt restructuring Asset Swap Equity Swap Modification of Terms Week 9 Hours Lease Accounting for lease (PAS 17) Definition Classification Operating lease Week 10 Week 11 Hours Midterm Examinations 6 6

Finance Lease

Week 12 13 Hours Employee Benefits Accounting for retirement benefits (PAS 19) Definition Classification Types of retirement plan Defined contribution plan Defined benefit plan Components of benefit expense Actuarial valuation method Actuarial gains and losses corridor approach Disclosures Week 14 - 15 Hours Equity Financing Accounting for Stockholders Equity I. Contributed Capital Concept of Corporation Organization of corporation Components of stockholders equity Types of capital stock Issuance of capital stock Cash Non-cash consideration Payment of liability Payment of services Exchange of other warrants Stock rights and stock warrants Stock option Stock appreciation rights Shared-based compensation Treasury stock and donated stock Recapitalization Week 16 - 17 Hours

12

12

12

II. Retained Earning Types of retained earning Unappropriated Appropriated Dividends Cash Property Share Liquidating Appropriation of retained earnings Preparation of Statement of Retained Earnings Meaning of reserves Statement of Changes in Equity Quasi-reorganization Common Activity Integration of Financial Accounting and Reporting Part I and Part II

Solve problems integrating all accounting principles covered in both AC

503 and AC 506 Review preparation of principal financial statements following PAS Discuss the need for adequate disclosure through the notes to financial statements Week 18 Bibliography A. Books Textbooks: Valix & Peralta, Financial Accounting Vol 1, 2 and 3, 2009 edition References: Weygandt, Jerry J. et al. Financial Accounting. 5thth ed. C2006 Stice, J.D., Stice, E. K., Skousen, F. Intermediate Accounting, 16th edition, South-Western College Publications (657.044 ST51), C2006 Philippine Financial Reporting Standards. Compiled by the Accounting Standards Council, PICPA FINAL EXAMINATION

Warren, Carl S. Accounting. 21st ed. Singapore: Thomson Learning. ( 657 W25), C2005 Valix, Condrado. Theory of Accounts. 2009 edition. Manila, Philippines GIC Enterprises.(657.04 V23), C2009 Alindada, C., Ledesma, E., Lupisan, M. C. Intermediate Accounting 8

Applying International Financial Reporting Standards. Phil. Edition: John Wiley & Sons Australia (657.044 AI 45), C2007 Robles, Nenita S. Intermediate Accounting. Quezon City, Philippines: John Lester Enterprises.( 657.044 R57), C2005 Philippine accounting standards and Philippine financial reporting standards, vol. 1. Sampaloc, Manila: Philippines Made Easy Books. (657.3 P53), Year Printed 2005 Cabrera, Ma. Elenita Balatbat. Intermediate financial accounting : theory and practice. - 2003 ed.. -Manila, Philippines : GIC Enterprises. (657.076 C11), C2003 Alfredson, Kieth et. al. Applying International Accounting Standards. Milton, Queensland: Wiley & Sons Australia (657.0218 Ap58), C2005 Epstein, B.J., Mirza, A.A., International Accounting Standards, C2004
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

Attach a copy of the school calendar and mark the weeks corresponding to the course schedule. Revised 2009

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