COLLEGE OF BUSINESS MANAGEMENT AND ACCOUNTANCY

Rawis, Legazpi City

Course Syllabus
Advanced Financial Accounting & Reporting, Part I
Vision and Mission
Aquinas University of Legazpi, a nurturing community of Dominican learningtransforming and perfecting,
under the patronage of St. Thomas Aquinas, commits itself to the pursuit of academic excellence through dedicated
study, the strengthening of ones moral integrity through fervent prayer and witnessing, the sharing with others of
the fruit of ones endeavor through loving service, the enhancement of ones emotional maturity towards a more
Christian community, and the promotion of cultural advocacy for a genuine appreciation of Catholic, Filipino, and
Bicol identity.
AIM
The CBMA aims to provide and deliver quality education through responsive instruction, research,
extension, production and other services for the total development of its human capital.
CBMA Objectives
1. Provide necessary opportunities, tools and support services to its faculty, students, staff and support
personnel;
2. Establish strong linkages with the feeder sector and the industry to ensure sustained services to its
graduates with the alumni involvement;
3. Balance the interests of all stakeholders with that of the university to ensure mutual growth, development
and sustainability.
Course Title:

Advanced Financial Accounting & Reporting, Part I

Subject Code:
Credit:

Three (3) units

Subject Description:
This course deals with specialized accounting problems likely to be encountered by accountants. The
study of the various topics in this course is based upon fundamental valuation accounting and accounting theory
as applied to special income and expense recognition methods and expanded business operations. This course
includes specialized problems in partnership accounting; accounting for joint ventures and associated enterprises
(including International Accounting Standards Statements Nos. 24, 28, and 31); accounting for domestic
branches; accounting for installment sales; accounting for long-term construction contracts; fire insurance
accounting; and other special issues such as build-operate-transfer (BOT) and similar schemes.
Prerequisite:

Financial Accounting and Reporting I

Course Outline:
1.

Partnership
1.1
Nature, definition, characteristics
1.2
Formation
1.3
Operation
1.4
Financial statement preparation

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AQUINAS UNIVERSITY
Course Syllabus Advanced Financial Accounting & Reporting, Part I
2.

Partnership Dissolution
2.1
Admission of new partner
2.2
Retirement or withdrawal of a partner
2.3
Death, incapacity, bankruptcy of a partner
2.4
Incorporation of a partnership

3.

Partnership Liquidation
3.1
Dissolution with liquidation
3.2
Liquidation types- lump sum and installment
3.3
Procedures in liquidation
3.4
Journal entries and preparation of statement of liquidation

4.

Joint Venture Enterprises (PAS 31)

4.1
Nature, forms and structure
4.2
Journal entries and report preparation

5.

Consignment Sales
5.1
Definition, nature, characteristics
5.2
Accounting for consignment sales

6.

Installment Sales
6.1
Definition, nature and characteristics
6.2
Installment sales method - real estate and merchandise
6.3
Procedures of calculating realized gross profit
6.4
Financial statement preparation with allocation of cost of goods sold
6.5
Special problems in installment sales (Defaults and repossessions, Tradeins, Interest on unpaid
balance)
6.6
Installment sales of real estate dealers

7.

Accounting for Long-Term Construction Contracts

7.1
Nature of construction business
7.2
Definition of terms and accounts used
7.3
Percentage of completion method / Cost recovery method
7.4
Journal entries and preparation of financial statements

8.

Accounting for Franchise Fee

8.1
Nature and definition
8.2
Methods of accounting for initial franchise fee and related cost of franchise
revenue [Prior to substantial performance of services, Upon substantial performance of services
(accrual & installment sales method]

9.

Accounting for Branches and Agencies

9.1
Nature and definition of agency/branch
9.2
Accounting for agencies and branches
9.3
Preparation of combined statements
9.4
Reconciliation of reciprocal accounts
9.5
Special problems in branch accounting (Inter-branch cash & merchandise transfers,
Shipments/returns of merchandise above cost)

10.

Accounting for Fire Insurance

10.1
Definition and types of contracts
10.2
Determination of amount recoverable from insurance company
10.3
Journal entries to record fire loss
10.4
Presentation of fire loss in income statement

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AQUINAS UNIVERSITY
Course Syllabus Advanced Financial Accounting & Reporting, Part I

11.

Other Special Topics

11.1
Build-Operate-and-Transfer Schemes and its Variants

Course Routine
The class should accord themselves in active participation in order for them not only expose themselves to
the theoretical concepts of the course but to understand and experience the processes in financial statements
accounting and reporting. The professor shall motivate and require the students to study in advance the textbook
chapters and other reading materials so that the class shall be knowledgeably armed during the graded recitations
and board works. Questions from the class should be encouraged in case there are certain topics wherein the
students are confused and in need of clarifications. Theories surrounding the accounting practice shall be discussed
in a manner where practical examples shall be offered making it easier for the students to grasp the application of
those accounting principles.
Grading Standards
Grade computation is based on the following measures:
Midterm/Final Examinations
Quizzes
Home works and other requirements
Total

30%
50%
20%
100%

Course grades will be likewise interpreted based on a traditional 99-100% = 1.0, 98%=1.1, 97%=1.2, 96%=1.3,
95% 1.4, 94%=1.5, 93%=1.6, 92%=1.7, 91%=1.8, 90%=1.9, 89%=2.0, 88%=2.1, 87%=2.2, 86%=2.3,
85%=2.4, 84%=2.5, 82-83%=2.6, 80-81%=2.7, 78-79%=2.8, 76-77%=2.9, 75%=3.0, and below 75%=5.0.
Examinations
There will be two major examinations, Midterm and Finals. The Midterm and Finals comprise a set of
comprehensive examination that includes review questions. There will be no remedial examinations.
Quizzes:
Quizzes will be given over the course of the semester. When the student is absent during a quiz, he/she is allowed
to be given a special test only if a letter request signed by the parent (with medical certificate attached in case of
sickness is submitted to the professor immediately upon returning back to class).
Class Protocol:
If for some reason the students are already late, they should not skip class. All they have to do is to come in
quietly and take a seat at the side or in the rear of the classroom. However, to encourage students not to be late
all the time, three times tardy is considered one day absent.
If students must leave the classroom early, they should ask permission from the instructor before the class starts.
If they are going to the comfort room or elsewhere, they have to ask permission first. Students are expected to
observe proper decorum inside the classroom.
Class Strategy and Methodology:
The class will employ of oral problem solving work, written activities, visual presentation, case problem, question
and answer and group discussion.
COURSE RESOURCES AND MATERIALS:
1.

Prepared by:

BIENVENIDO O. OROPEZA III

Instructor

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AQUINAS UNIVERSITY
Course Syllabus Advanced Financial Accounting & Reporting, Part I

Recommending Approval:

JON CELSO K. APUYAN

Program Chairperson

Approved by:

CELESTE YANZON
Dean

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