1

COLLEGE : RVR COB DEPARTMENT : Accountancy COURSE CODE : MODFIN1 ROOM : L313/L312 INSTRUCTOR NAME : Ma. Gina T. Manaligod/

Michael Edward S. Mercado CLASS DAYS : M - H

CONTACT DETAILS : ma.gina.manaligod@dlsu.edu.ph/ michael.mercado@dlsu.edu.ph

CLASS TIME : 0800 - 0930/ 0940 - 1110

CONSULTATION HOURS : To be announced COURSE DESCRIPTION: This course MODFIN1, FINANCIAL ACCOUNTING AND REPORTING FOR ASSETS – PART 1, introduces the nature, functions, scope and limitations of the broad field of accounting theory. It deals with the study of the theoretical accounting framework of financial statements, accounting conventions, and generally accepted accounting principles. Its starts with the discussion of the standard setting process for accounting practice, national as well as international principles relating to the preparation and presentation of financial statements, the conditions under which they may be appropriately applied, their impact or effect on the financial statements; and the criticisms commonly leveled against them. The course covers detailed discussion, appreciation and application of accounting principles covering assets, both financial and non-financial. This course begins with a discussion of the objectives and functions of the International Accounting Standards Board (IASB) and the Financial Reporting Standards Council (FRSC), the standard setting process, the conceptual framework of financial accounting and Philippine Accounting Standard 1 (PAS 1) on the presentation of financial statements. This course will also emphasized on the interpretation and application of theories of accounting in relation to inventories, investments in debt and equity instruments, related party disclosures and intangible assets. LEARNING OUTCOMES (LO):

UNIVERSITY EXPECTED LASALLIAN GRADUATE

ATTRIBUTES (ELGA)

LEARNING OUTCOMES On completion of the course, the student is expected to be able to do the following:

Critical and creative thinker Effective communicator Reflective lifelong learner

LO1: Apply appropriate accounting standards on inventories, investments in debt and equity instrument, related party transactions and intangible assets in the analysis of business transaction. LO2: Prepare and present a group case analysis synthesizing the application of PAS 1, 2, 24, 28, 32, 38 and PFRS 7 and 9 in a real world scenario.

FINAL COURSE OUTPUTS: As evidence of attaining the above learning outcomes, the student is required to do and submit the following during the indicated dates of the term:

LEARNING OUTCOMES

REQUIRED OUTPUTS DUE DATE

LO1: Apply appropriate accounting standards on inventories, investments in debt and equity instrument, related party transactions and intangible assets in the analysis of business transactions.

At least fifty solved exercises/problems per unit with at least ten solved exercises/problems per major topic in the unit

Days 5, 11, 17, 23, 27

LO2: Prepare and present a group case analysis synthesizing the application of PAS 1, 2, 24, 28, 32, 38 and PFRS 7 and 9 in a real world scenario

One written group business case analysis and presentation

Days 30, 32

2

RUBRIC FOR ASSESSMENT: Solved Exercises/Problems CRITERIA EXEMPLARY

4 SATISFACTORY

3 DEVELOPING

2 BEGINNING

1 RATING

Completeness [80%}

The student solves all assigned exercises/problems and presents all solutions in good accounting form.

The student solves all of the assigned exercises/problems.

The student solves majority but not all of the assigned exercises/problems

The student does not solve majority of the assigned exercises/problems.

Neatness and Orderliness [20%]

The student solves exercises/problems in an orderly manner, corrects error properly, labels all solutions, writes legibly, uses ruler, uses money columns correctly and preserves the neatness of the assignment portfolio.

The student solves exercises/problems in an orderly manner and corrects errors properly.

The student somewhat solves exercises/problems in an orderly manner and correct errors somewhat improperly.

The student does not solve exercises/problems in or orderly manner and corrects error improperly.

TOTAL: Written Business Case Analysis CRITERIA EXEMPLARY

4 SATISFACTORY

3 DEVELOPING

2 BEGINNING

1 RATING

Content (Application of PAS 1, 2, 24, 28, 32, 38 and PFRS 7 and 9 and inclusion of recommendations on how to improve compliance to the PAS/PFRS) [80%]

The group applies appropriate PAS/PFRS and includes recommendations for the improvement of its compliance that will aid in decision-making.

The group applies appropriate PAS/PFRS and includes minor recommendations that have little impact on decision-making.

The group applies PAS/PFRS somewhat inappropriately and includes somewhat unrealistic recommendations.

The group applies PAS/PFRS inappropriately and includes unrealistic recommendations.

Format and Use of English Language [10%]

The group writes the report following the prescribed format with sentences and paragraphs having no spelling and grammatical error.

The group writes the report following the prescribed format with sentences and paragraphs having minor spelling and grammatical errors..

The group writes the report somewhat following the prescribed format having sentences and paragraphs with many spelling and grammatical errors.

The group writes the report not following the prescribed formant having sentences and paragraphs with many spelling and grammatical errors.

Teamwork [10%]

The group shows strong teamwork as evidenced in the oneness and consistency both in the flow and contents of the paper.

The group shows teamwork as evidenced in the consistency in terms of content of the paper.

The group shows somewhat a lack of teamwork as evidenced in some inconsistencies both in the flow and contents of the paper.

The group shows lack of teamwork as evidenced in the inconsistencies both in the flow and contents of the paper.

TOTAL:

3

Group Presentation CRITERIA EXEMPLARY

4 SATISFACTORY

3 DEVELOPING

2 BEGINNING

1 RATING

Oral presentation skills [35%]

The group communicates clearly the content of the report and generates interest and establishes rapport among audience.

The group communicates clearly the content of the report and generates some interest among audience.

The group communicates somewhat clearly the content of the report and generates little interest among audience.

The group communicates vaguely the content of the report and does not generate interest among audience.

Presentation content [35%]

The group includes all relevant items and materials in the report.

The group includes all required items and materials in the report.

The group includes some of the required items and materials in the report.

The group includes many irrelevant items in the report.

Proper use of Powerpoint tools and features (including design and creativity) [10%]

The group uses appropriately more than the commonly-used features of Powerpoint.

The group uses appropriately the common features of Powerpoint.

The group uses somewhat inappropriately the common features of Powerpoint.

The group uses inappropriately the common features of Powerpoint.

Teamwork [10%]

The group is organized and shows strong teamwork and camaraderie as evidenced in the presentation.

The group is organized and shows teamwork as evidenced in the presentation.

The group is somewhat organized and shows a hint of teamwork as evidenced in the presentation.

The group is disorganized and shows lack of teamwork as evidenced in the presentation.

Business Attire [10%]

All the group members are in complete business attire.

Some of the group members are in complete business attire.

Some of the group members not in business attire.

None of the group members are in business attire.

TOTAL: OTHER REQUIREMENTS AND ASSESSMENTS: Aside from the required outputs, the student will be assessed at other times during the term by the following:

• Proficiency Tests/Quizzes • Comprehensive Examination • Class participation/recitation • Promptness in submitting required works • Attendance and punctuality • Good manners and right conduct

GRADING SYSTEM:

Basis Percentage Comprehensive Examination 30% Average Quizzes * 50% Assignment Portfolio 10% Business Case Analysis 5% Class Standing** 5% Total 100%

4

GRADE POINT DESCRIPTION EQUIVALENCE 4.0 Excellent 97 - 100

3.5 Superior 94 - 96 3.0 Very Good 91 - 93 2.5 Good 87 - 90 2.0 Satisfactory 83 - 86 1.5 Fair 77 - 82 1.0 Pass 70 - 76 0.0 Failure Below 70%

COURSE GRADE REQUIREMENT 2.0 (83%) LEARNING PLAN:

LEARNING OUTCOME

TOPICS WEEK NO.

LEARNING ACTIVITIES

UNIT 1: FINANCIAL REPORTING STANDARDS COUNCIL AND THE CONCEPTUAL

FRAMEWORK

LO1 1.1. Financial Reporting Standards Council – creation,

objectives and functions; membership, standard setting process

1

Read Conceptual Framework and PAS No.1, Chapters 1 and 2 of Kieso book; and answer assigned exercises (please refer to list of homework)

1.2 The IASB, history, current structure and processes, globalization of capital markets, harmonization of accounting standards, formation and achievements of the IASC

1.3 Financial accounting and financial statements 1.4 The environment of financial accounting 1.5 Conceptual framework of financial accounting

UNIT 2: ACCOUNTING FOR INVENTORIES

LO1

2 & 3

Read PAS 2, Chapters 8 and 9 of Kieso book; and answer assigned exercises (please refer to list of homework)

2.1 Definition, nature, classes, recognition, measurement, valuation, classification, presentation, derecognition and disclosure

2.2 Inventory Recording Systems 2.2.1 Periodic inventory system 2.2.2 Perpetual inventory system

2.3 Costing Methods 2.3.1 At cost (Specific Identification, FIFO and

Average) – initial recognition 2.3.2 At lower of cost or net realizable value –

valuation at balance sheet date 2.4 Estimating Inventory Cost

2.4.1 Gross profit method 2.4.2 Retail inventory method (FIFO and Average)

2.5 Other Inventory Issues 2.5.1 Purchase commitment 2.5.2 Inventory valued at selling price 2.5.3 Use of more than one cost method 2.5.4 Borrowing costs 2.5.5 Lump-sum acquisition

5

UNIT 3: ACCOUNTING FOR INVESTMENTS IN EQUITY AND DEBT INSTRUMENTS

LO1

3.1 Nature, recognition, measurement, valuation,

classification, presentation, derecognition, and disclosure

3.2 Introduction to financial instruments 3.2.1 Definition of financial instruments – nature

and examples of financial assets and liabilities 3.2.2 Categories of financial assets and liabilities 3.2.3 Non-financial assets/non-financial liabilities –

nature and example 3.3 Investment in Equity Instruments

3.3.1 Marketable Equity Securities 3.3.2 Unquoted Equity Securities 3.3.3 Investment in Associates

4

Read PAS 24, 28, 32, PFRS 7, 9 and Chapters 17 and 24 of the Kieso book; and answer the assigned exercises (please refer to list of homework)

3.4 Investment in Debt Instruments 3.4.1 Trading 3.4.2 Available-for-sale 3.4.3 Held-to-maturity

3.5 Related Party Disclosures 3.5.1 Nature, purpose, definitions and disclosure

5 & 6

UNIT 4: ACCOUNTING FOR INTANGIBLES

LO1 LO2

4.1 Definition, nature, classes, recognition,

measurement, valuation, classification, presentation, derecognition and disclosure including amortization of identifiable intangible assets using straight-line method 4.1.1 Patents 4.1.2 Copyright 4.1.3 Trademarks and Trade Names 4.1.4 Research and Development Costs 4.1.5 Goodwill 4.1.6 Computer Software Costs 4.1.7 Franchise

7

Read PAS 38 and Chapter 12 of the Kieso book; answer the assigned exercises (please refer to list of homework); analyze and write the business case; and present the group report.

REFERENCES:

Kieso, Donald; Weygandt, Jerry; Warfield, Terry. (2011). Intermediate Accounting (IFRS Edition) Volumes 1 and 2. John Wiley and Sons, Inc. (TEXTBOOK) Compilation of Recently Approved Philippine Accounting Standards (PAS)/Philippine Financial Reporting Standards (PFRS)

Valix, Conrado T. and Peralta, Jose F. (2012). Financial Accounting Volumes 1 2 and 3 GIC Enterprises & Co. Inc. Skousen, Stice and Stice.(2010). Intermediate Accounting (17th Edition). Thomson South-Western. Lam, Nelson and Lau, Peter. ( 2009). Intermediate Financial Reporting: An IFRS Perspective . McGraw-Hill Education (Asia). Robles, Nenita and Empleo, Patricia. (2010). Intermediate Accounting (Based on PFRS/IFRS) Volumes 1, 2 and 3. Millennium Books, Inc. Alindada, Carlos; Ledesma, Ester and Lupisan, Ma. Concepcion. ( 2007). Intermediate Accounting : Applying International Financial reporting Standards Philippine Edition. John Wiley and Sons Australia Ltd. Kieso, Donald; Weygandt, Jerry; Warfield, Terry; Fargher, Neil and Wise, Victoria. (2008). Fundamental of Intermediate Accounting (12th Edition). John Wiley and Sons Australia, Ltd.

6

ONLINE RESOURCES: • http://www.iasplus.com • http://www.ifrs.com • http://www.wileyplus.com • http://iasb.org

CLASS POLICIES: 1. Only BSA students who passed the qualifying examination are qualified to take this course.

2. A contract called ‘Policies and Procedures for Incoming Modular BSA Students’ is given at the start of the

term.

3. This course is a prerequisite to Module 3. Only students who obtained a final grade of 2.0 in this course may qualify for Module 3.

4. A total of 4 departmentalized quizzes will be given in this course. A quiz will cover specific topics and is good

for 1.5 hours.

5. There is no midterm examination.

6. The comprehensive examination is departmental, covers the entire course syllabus and is good for three (3)

hours. This is given on the last day of the module and includes a combination of multiple choice theory and problem solving questions.

7. The assignment portfolio shall be written in a 2-column journal notebook. The notebook shall be checked every quiz day.

8. Guidelines regarding the business case would be given by the faculty member to the class at least one week prior to submission deadline. Deadline of submission as well as the schedule of report presentation will be included in these guidelines. The written reports must be submitted not later than 5 pm of the deadline date.

9. It is the responsibility of the student to be mindful of his/her absences/tardiness and performance in class.

10. Specific class policies on attendance, make-up quizzes, academic honesty, grading system, dress code, classroom management, and others not mentioned above, are to be discussed by the faculty member on the first day of classes.

11. Please observe office hours and consultation hours/schedule of the faculty member.

12. For student concerns regarding the BSA program or the course, please set an appointment with the Department Vice Chair. For all other inquiries, please visit the Accountancy Department. The Accountancy Department is located at St. La Salle Building, 3rd floor, Room 324. When inside the Department, students are expected to observe silence, and maintain the cleanliness and orderliness of the room. Important announcements will be posted on the Accountancy Department bulletin board, St. La Salle Building, 3rd floor, North Wing.

May 2012