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TABLE OT CONTENTS

Poge
nt

vil

Chopler

49

9l

Chopter
Chopier

117

Chcpter
Chopter

l89
2s3
DO

r53

n7

Chopter

321
331

Chopter
Chopter
Chopter

349

Acquisition

Chopier

405
428
443
508

Chopter
579

615
615

Chopter

12:

635

683

Chopter

13:

Chopter

14;

Chopter
Chopter

l5:

725
779

8ll

16:

Bt7

Clropter

BB5

Chopter
Chopter
Chopter

963
009

1055

\)u

THE PROPOSED CPA LICENSURE EXAMINATION SYTIABUS


PRACTICAL ACCOUNTlNG PROBTEMS II

l_echnique ond melhodology io problems likely tb'Oe eicounte,redTn proclle.


Condidotes should know ond understond problems involving occoitnting-oi
speciol ironsoctions ond their effecis ond presenlotion in the finoniiol
slotements.
The exominotion wjll contoin fifty (50) multipte choice problems, equitobly
ollocoted to ihe different subject oreos os indicoted below.
1.0 PortnershipAccounting
l.l Formolion

1.2 Operotions
1.3 Dissolution / chonges in ownership
1.3.1 Admission of o new portner

interest

l.3.l.l

Bypurchose of interest
By investment
1.3.1.3 Withdrowol, retiremenf or deoth of o portner

L3.1.2

ffi
J',?[JZ,;'"L] 3;SIi
be
;

used.

;*' #[,H Ji ,,qff gy#


^3
:,

Nole 2: ForTopic3 Quesfion shou/d be indicoted whether

specific/ portiol odjusfment or totot adjustment

2.0

3.0
4.0

(troceoble o the entire entity"


1.3.1.4 lncorpoiotion of o portnership
1.4 Liquidotion
1.4.1 Lump - sum method
1.4.2 lnstollment melhod
Corporole Liquidotion
2.1 Slotement of Affoirs
2.2 Stotement of reolizolion ond Liquidotion
Joint Arrongements (PFRS i l)
3.1 Joint Operolion
3.2 Joint Venture (Equity method)
3.3 Accounting forSME
RevenueRecognilion
4.1 tnstollment Soles
4- l .l Recognition of gross profit regulor soles versus instollment
soles
4.1.2 Defoult ond Repossession ondlrode - in merchondise:
Nofe l: Fair markef volue should be given insfeod of Esfimofed
price
Selling

Note 2: euestions os fo gain on repossession shourd be

dislingurshed os fo:
4.1 .3

Finonciol Stolement presenlotion

4.2

Long

- term Conslruction

4.2.1 Journol entries

Controcls (PAS 1 l)
ond determinotion of revenue, costs ond gross

profit
4.2.1.1 Percenloge of completion
4.2.1.1.1 lnput Meosures - cost to cost method ond
efforts - expended method
4.2.1.1.2 Ouiput Meosures - proportionol ond ociuol

ff$'.x"

4.3

5.0

6.0

4.2.1 .2 cosr necoi:*


4.2.2Compuiotion of gross omount due from / lo customers
4.2.3.Fino nciql Slolement Presentotion
4.2.4 Accounting for SME
Fronchise Operotions - Fronchisor's point of view (PAS 1B)
4.3.1 Journol enlries ond determinotion or revenue. costs ond gross
profit
4.3.1.1 lniliol Fronchise Fee (use of occruol melhod, instollment
soles method ond cost recovery melhod)
4.3.1.2 Continuing Fronchise Fee, Borgoin Purchose (Option), ond
Commingled Revenue

4.3.1.3 Repossessed Fronchise


4.3.1,.4 Option to Purchose the Fronchise Ouilet
4.3.2 Finonciol Stotemenl Presentotion
4.3.3 Accounting for SME
4.4 Consignment Soles
4.4.1 Computotion of Remitionce
4.4.2 Delerminolion of Profit
Accounting for Home Office, Bronch ond AgencyTronsoctions
5.1 Tronsoctiorrs on the books of the home officu= ond the bronch
5.2 Reconciliotion of reciprocol cccounls
5.3 Preporotion of individuoi ond combined firronciol stolements
5.4 Speciol procedures in home office ond bronch tronsocfions (inter bronch lronsfer of cosh cncl merchondise of cost or of billed price)
5.5 Agency trqnsoCtions ond determinotion of net income
Accounting for Business Combinotion (PFRS 3)
6.1 Acquisition of ossets ond liobilities (ocquisition method)
6.1 .l Determinolion of Considerotion Tronsferred
6.1.2 Recognition of Acquired Assets ond Liobilities
6.l.3Recognition ond Meosurembnt of Goodwill ond Goin from o
Borgoin Purchose
6.1.4 Journol Enlries
6.2 Finonciol Stotement Presentotion
6.3 Accounting for SME

7.0

8.0

Seporote Finonciol Stoternenl (PAS 2l)


Accounting for lnvestmenl in Subsidiory (cost model)
1.1
7.2 Accovniing for SME
Consolidoted Finonciol Stotements (PFRS l0)
B.l Consolidoied Finonciolstolement inSubsidiory
8..1.1 Dote of ocquisilion
8.1.2 Subsequent to dote of ocquisition
B.l.2.l Net income, diVidends, omortizotion ond impoirment of

goodwill

8.1.2.2 With intercompony tronsoctions (irrventories, lond ond


deprecioble ossels)
8.1.3 Determinotion of:
B.l.3.l Net income

8.'l.3.1.1 Atlributoble

B r .3. r
B.l .3.1 .3

to Equity Holders of Porenl/

S:ll:1'llp.frl5il?J,.'.:rnteresr

Consolidoted/ Group
8.1.3.2 Totol Comprehensive lncome
8.1.3.2.1 Attributoble lo Equity Holders
Controlling or Porent's lnterest
8.1.3.2.2 Non - controlling lnieresl
8.1.3.2.3 Consotidoted/ Group
8.1.3.3 Equity
8.1.3'.3.1 Attributoble to Equity Holders
Br33

of Porent/

of Porent/

2 s3l':'Ji3":!,H','i]::Jnreresr

8.1.3.3.3 Consolidoted / Group


-8.1.3.4 Retoined Eornings/ Common stock / Dividends
8.1.3.4.1 Attribuioble to Equity Holders of Porent
Controlling or Porent's lnteresl
B134

I.ffiJ,.':#

l.fi3ii'^1,:,3

Ho/ders of Porent

"if,,'!",

iui,iJ

8.2 AccountingforSME
9.0 Foreign Currency Tronsoctions
9.1 Wilhout hedging octivities

9.2

(import, export, lending, ond bonowing


tronsoctions)
Hedging Activities: Hedging For:eign Cunency Exposures
9.2.1 Foreign Cpnency Forword Contocts
e'2'1
occountins is Not Required

' [?xffi#?"%?Jt?*e
e.2.l.l.l

F:ffi:?.

Asset {lmpori} or Licbility (Export}

9.2.1.1.2 Speculotion

9.2.\.2 Hedge thot requirs o Hedge Accounfing:


9 2.1 .2.1 Foir volue hedge
.9.2.1.2.1.1 fledge of q- Firm Commiimenl
(Purchose or Sole Tronsoction)

e'2'1'2'2

ff:lill

ir""ffi.

or o Firrn commitmenr

(Purchose or Sole Tronsoction)


9.2.1.2.2.2 Hedge of o Forecosted tronsoctiorr
(PurChose or Sole Tronsoction)

9.3

9.2.1.2.3 Hedge of o net investmenl in foreign entiiy

Accounting for SME


Nofe: Commodity Hedging ond Swops

(f oreign currency, commodity ond


interest/ should be exc/uded
10.0 Tronslotion of Foreign Currency Finonciol Stotemenls (PAS 21lPAS29l
l0.l Tronslotion from the Funclionol Currency to the Presentolion Curency
(Closing/ Current Rote Method)
10.2 Remeosurement from o Foreign Currency to the Funciiorlol Cunency
{Temporol Method)
10.3 Reslotement of finonciol stotements (Functionol currency is the
currency of o hyperinflotionory economy)
I 1.0 Not - for - profit orgonizolions
l.l Voluntory heolth ond welfore orgonizotions (VHWO)
1.2 Hospitols ond other heolih core orgonizotions
1.3 Colleges ond Universities
L4 Other not - for - profit orgonizotions such os churches, museums,
froternity ossociotion, etc.
I2.0 Government Accounting - Generol Fund
l2.l Journol entries - Books of ogency
Note: Books of COA ond Bureou of Treosury (BTr) should be excluded.
13.0 Other speciol Topics
l3.l Accounting for insuronce controcts by insurers {PFRS 4)
13.2 Accounting for build - operole - tronsfer
14.0 Cost Accounling
l4.l System of cosi Accurnulotion or Cosling System
l4.l.l Comporison between Acluol Costing, Normol Costing ond
Stondord Costing
14.2 Job - order cosling system
14.2.1 Cost occumulotion procedures - moieriols, lobor ond
overheod
14.2.2 Journqlentries
14.2.3 Preporoiion of stotement of goods monufoclured ond sold
14.2.4 Accounting for scrop, woste. spoiloge ond rework
14.3 Process costing system
14.3.1 Cost dccumulotion procedures - moteriols, lobor ond
overheod
14.3.2 Journolentries
14.3.3 Preporotion of cost of production reporl

* in, firsi *oul {FIFO) method


4.3.3.2 Averoge method
14.3.4 Accounling for lost units - inspeciion - point
14.3.3.1 First
1

- end of process

onlY

14.3.4.1 Normol lost units (Discrete loss)


14.3.4.2 Abnormol lost unii (Continuous or discrete loss)
14.4 Bockflush costing system (JlT system)

14.4.1 Cosl Accumulotion procedures - moteriols, lobor ond


overheod
14.4.2 Journolentries
14.5 Operolion Cosling/ Blended Method/ Ftybrid
14.5.1 Cosl occumulotion procedures - moteriols, lobor onQ
overheod
14.5.2 Journolentries
14.5 Service Cost Allocolion
14.6.1 Direct melhod
14.6.2 Step - down
14.6.3 Reciprocolmetlrod
14.7 Activity - bosed costing syslem {ABC costing)
14.7.1 Allocoiion of costs: Troditionol Costing versus ABC Cosling
14.7.2 Determinotion of Totol Product Costs: Troditionol Costing
versus ABC costing
'14.8
Accounting for joint ond by - products
l4.B.l Methods of ollocoting joint cost to products
l4.B.l .l Morket {soles) volue method:
'14.E.1.'l.l Morket volue ot split off point opprooch
14 8 1 1 2
:

ffi?ffJ:?:y"li:l "-i:iiB?i'i,'i,#
Volue

Approoch or Net Reolizoble


Method
Nofe: Avoid giving dolo such os "disposo/ or
seporole cosls ol splif - off", so os nof fo
confuse lhe term Nef Reoliz oble Volue
Method with Approximoled Nef Reolizoble
Volue Method
14.8.1.2 Averoge unit (production output) :method
14.8.1.3 Weighled overoge method
14.8.2 Methods of ollocoting Joint Cost to By - products
14.8.2.1 No joint cost ollocoted to by - product
. 14.8.2.2 With joint costs ollocoted to by - producl
14.8.2.3 Treotment of by - producis
**end of syllobus***