BACHELOR OF SCIENCE IN ACCOUNTANCY

COURSE TITLE : Intermediate Accounting 2

COURSE CODE : ACCINTAC2
NUMBER OFUNITS : 3 Units
PRE-REQUISITE SUBJECT : Intermediate Accounting 1

Course Description:

This course is designed to provide the students with understanding on accounting

standards known as the Philippine Accounting Standards (PAS) and Philippine Financial
Reporting Standards (PFRS), numbered as counterpart in International Accounting Standards
(IAS) and International Financial Reporting Standards (IFRS), that are relevant to the recognition,
measurement, statement presentation and disclosure requirements of liabilities and equity as its
focus.

This course is also in conformity with the new undergraduate syllabus by the Commission
on higher Education for the degree of Bachelor of Science in Accountancy to update discussions
in adherence to the reformed subjects included in the CPA Licensure Examinations.

Course Learning Outcomes:

Upon completion of the course the students will be able to:

A. Cognitive
1. Identify how to recognize and measure liabilities and equity in financial statements
2. Analyze the finances of the firm in terms of performance and capital requirements
3. Application of the theoretical information in various accounting problems

B. Psychomotor
1. Apply the different techniques in financial accounting in evaluating problems
2. Select the appropriate financial information from a variety of sources to be used in
assessing the firm

C. Affective
1. Acknowledge the standards relevant in preparation of financial statements

Textbooks and References:

1. Intermediate Accounting Volume 2 ; 2019 Edition; Valix, Peralta, Valix, 2019, GIC
Enterprises & Co., Inc.

Requirements:

1. Class Participation
2. Quizzes/Recitation/Assignments/Seatwork/Outputs
3. Major Examinations
DETAILED COURSE OUTLINE

Strategies/ Assessment of
Wk Hrs Topic Learning Outcomes
Activities Learning Outcomes

1 3 Classroom Policies and introduction  Identify and comply with the requirements of the course in Sharing of
Conceptual Financial Management to maximize learning expectations
Discussion on the course Syllabus  Explain the importance of the course, and the relationship from the teacher
between Financial Accounting and Reporting (FAR) and to the students
Introduction to Liabilities Intermediate Accounting
 Differentiate Current and Non-Current Liabilities
 Definition of Liabilities  Articulate the different current and non-current liabilities and
 Measurement of Current and Non-Current know how to recognize each
Liabilities  Explain the accounting treatment for refinancing and breach Lecture/Class Students to answer
 Long-term debt falling due within the year and of covenants Discussion exercises and problems
Refinancing  Discuss the presentation of Current and Non-Current related to the topic.
 Covenants and Breach of Covenants Liabilities in Financial Statements Board Work
 Presentation of Current and Non-Current  Discuss the accounting recognition and measurement for Recitation
Liabilities Deferred Revenue, Gift Certificates and Bonuses Case Studies
 Quiz
Deferred Revenue, Gift Certificates and Bonuses  Discuss the accounting recognition and measurement for
Cash Rebate Program, Cash Discount Program and
Customer Loyalty Awards

2 3
Premium Liability  Discuss the accounting recognition and measurement for Lecture/Class Students to answer
Cash Rebate Program, Cash Discount Program and Discussion exercises and problems
 Premiums Customer Loyalty Awards related to the topic.
 Cash Rebate Program  Discuss the accounting recognition and measurement for Exercises /
 Cash Discount Program Warranty Liabilities Quizzes At least 75% of the
 Customer Loyalty Awards  Explain the relevance of PAS 37 in the discussion students must get at
least 85% grade in the
Warranty Liability quiz/exercise

 Recognition of warranty provision

 Accrual expense for warranty
 Expense as incurred approach for warranty
 Sale of warranty
 Strategies/ Assessment of
Wk Hrs Topic Learning Outcomes
Activities Learning Outcomes

3 Provision Lecture/Class
Discussion
 Definition of Provision  Discuss the accounting recognition and measurement for
 Recognition, Measurement and considerations of Provisions Exercises /
Provision  Explain the relevance of PAS 37 in the discussion Quizzes
 Definition of Restructuring provisions  To know the conditions and requirements in recognizing
 Definition and Treatment for Contingent assets contingent liability and contingent assets
and Liabilities
 Definition and Treatment for Decommissioning
Liabilities

Bonds Payable  Understand the nature and purpose of the bonds

 Know the measurement and types of bonds payable
 Definition, features and types of Bonds  Understand the concept of bond premium and bond discount
 Issuance of Bonds in a Premium or Discount  Apply the methods of amortizing bonds premium and
 Initial and subsequent measurement of bonds discount
payable  Apply fair value option of measuring bonds payable
 Recording interest on bonds payable
 Bond issue costs
 Bond Retirement on maturity date
 Treasury bonds
 Bond Refunding
 Straight line and bond outstanding method
Fair value option of measuring bonds payable

4 3
Effective Interest Method  Understand the effective interest method of amortizing bond Lecture/Class Students to answer
premium and bond discount Discussion exercises and problems
 Nominal Interest Rates  Distinguish the effective rate from the nominal rate of interest related to the topic.
 Effective Interest Rates  Know the computation of the market price or the issue price Exercises /
 Effective Amortization of Discount of the bonds payable Quizzes At least 75% of the
 Effective Amortization of Premium  Record transactions for notes payable: issuance and interest students must get at
 Market Price of Bonds Payable expense. least 85% grade in the
 Computation of effective interest rates quiz/exercise
 Strategies/ Assessment of
Wk Hrs Topic Learning Outcomes
Activities Learning Outcomes

Compound Financial Instrument

 Describe the financial liability and equity instrument
 Definition of financial instrument  Understand the nature and the recognition of a compound
 Financial Liability financial instrument
 Equity instrument
 Compound Financial Instrument
 Accounting for Financial Instrument
 Bonds Payable issued with share warrants
 Convertible Bonds Payable
 Original Issuance of Convertible Bonds Payable
 Conversion of convertible bonds payable
 Payment of convertible bonds payable before and
at maturity

5 3 Notes Payable
 Define promissory note and notes payable Lecture/Class Students to answer
 Initial measurement of notes payable  Understand the initial measurement of notes payable and Discussion exercises and problems
 Subsequent measurement of notes payable subsequent measurement of notes payable related to the topic.
 Amortized cost of notes payable  Understand the fair value option of measuring payables Exercises /
 Note payable issued solely for cash  Know the accounting for notes payable issued solely for Quizzes At least 75% of the
 Interest-bearing note payable issued for property cash, interest-bearing notes payable and non-interest notes students must get at
 Non-interest bearing note payable issued for payable issued for property. least 85% grade in the
property quiz/exercise
 Fair value option of measuring note payable

Debt Restructuring  Understand the nature and purpose of debt restructuring

 Identify the type of restructuring and know the accounting for
 Definition of Debt Restructuring asset swap, equity swap and modification of terms with the
 Asset Swap old liability
 Dacion en Pago
 Equity Swap
 Modification of terms
 Substantial modification of terms
 Non-substantial modification of terms
 Strategies/ Assessment of
Wk Hrs Topic Learning Outcomes
Activities Learning Outcomes
6 3 Accounting for Income Tax
 Know the distinction between accounting income and taxable Lecture/Class Students to answer
 Accounting Income income Discussion exercises and problems
 Taxable Income  Distinguish permanent differences and temporary differences related to the topic.
 Permanent and Temporary Differences between accounting income and taxable income Exercises /
 Tax Base  Know the recognition and measurement of deferred tax asset Quizzes At least 75% of the
 Deferred Tax Liability and deferred tax liability students must get at
 Accounting Income higher than taxable income  Know the recognition and measurement of current tax asset least 85% grade in the
 Operating Loss Carry Forward and current tax liability Board Work quiz/exercise
 Method of Accounting Income Tax  Distinguish interperiod and intraperiod tax allocations
Students to answer
 Net deferred tax expense or benefit
exercises and problems
 Current Tax Liability related to the topic.
 Presentation and measurement of tax asset and
tax liability
 Intraperiod and Interperiod Tax allocation
Disclosures related to income tax

7 3 Post-Employment Benefits
 Understand different types of post-employment benefits Lecture/Class Students to answer
 Definition of Employee Benefits  Compare defined contribution plans from defined benefit Discussion exercises and problems
 Funded and unfunded plan, Contributory and plans related to the topic.
noncontributory plan  Identify the components of the defined benefit costs and Exercises /
 Definition and Accounting for Defined Contribution apply the projected unit credit method in computing the Quizzes At least 75% of the
Plan projected benefit obligations students must get at
 Definition and Accounting for Defined Benefit Plan least 85% grade in the
 Components of Defined Benefit Plan quiz/exercise
 Multiemployer plan
 Insured benefits
 Qualifying Insurance Policy
 Remeasurement of Projected Benefit Obligations

Defined Benefit Plan

 Basic Accounting considerations

 Prepaid/Accrued Benefit Cost
 Strategies/ Assessment of
Wk Hrs Topic Learning Outcomes
Activities Learning Outcomes
 Settlement of Plan  Recognize the current service cost , past service cost, net
 Asset Ceiling interest, defined plan assets, return on plan assets, actuarial
 Disclosures gains and losses
 Transitional provision of Revised PAS 19
 Accounting and reporting by retirement benefit
plan
 Report of Defined Contribution Plan
 Report of Defined Benefit Plan

8 3
Other Employee Benefits Lecture/Class
 Identify the short term employee benefits, its recognition and Discussion At least 75% of the
 Recognition and measurement of Short-term measurements students must get at
Employee Benefits  Identify the other long term employee benefits, its recognition Exercises / least 85% grade in the
 Short-term paid absences and measurements Quizzes quiz/exercise
 Profit Sharing and Bonus Plan  Distinguish the recognition and measurement of termination
 Recognition and measurement of Other Long- benefits Take Home Output for students
term Employee Benefits Exam/Long (20% of CS grade)
 Termination Benefits Problem
 Recognition and measurement of Retirement
Benefits

9 3 MIDTERM
 Strategies/ Assessment of
Wk Hrs Topic Learning Outcomes
Activities Learning Outcomes
10 3
Lessee Accounting Lecture/Class Students to answer
Discussion exercises and problems
 Definition of Lease  Define a lease under new lease standard IFRS 16 related to the topic.
 Finance Lease model - Lessee  Know the optional application of operating lease on the part Exercises /
 Operating Lease model - Lessee of the lessee Quizzes At least 75% of the
 Measurement of right of use asset  Recognize the right of use in a finance lease students must get at
 Measurement of lease liability  Understand the measurement of a right of use asset least 85% grade in the
 Components of lease payments  Recognize the lease liability in a finance lease quiz/exercise
 Implicit interest rates  Understand the measurement of a lease liability in a finance
 Incremental borrowing rates lease
 Actual Purchase of underlying assets
 Disclosures – Lessee

Other Accounting Issues

 Extension options
 Variable payments
 Lease modification
- Separate lease
- Extension of term
- Decrease in scope
- Change in rental
 Strategies/ Assessment of
Wk Hrs Topic Learning Outcomes
Activities Learning Outcomes
11 3
Operating Lease – Lessor  Understand lessor accounting in contrast to lessee Lecture/Class Students to answer
accounting under IFRS 16 Discussion exercises and problems
 Definition of Operating Lease  Define on operating lease and finance lease related to the topic.
 Definition of Finance Lease  Identify the criteria on determining a finance lease on the part Exercises /
 Criteria of Finance Lease of the lessor Quizzes At least 75% of the
 Accounting for Operating Lease  Recognition of the operating lease on the part of the lessor students must get at
least 85% grade in the
quiz/exercise

Direct Financing Lease – Lessor

 Finance Lease Classification of Lessor
 Gross investment in the lease
 Net investment in the lease
 Direct Finance Lease with
- Initial Direct Cost
- Residual value guarantee residual value
- Unguaranteed residual value
- Transfer of Title to Lessee
 Know the finance lease classification on the part of the lessor
 Define direct finance lease and distinguish direct finance
lease from a sales type lease
 Understand gross investment and net investment in a direct
finance lease
 Recognize interest income in a direct financing lease using
effective interest method
 Strategies/ Assessment of
Wk Hrs Topic Learning Outcomes
Activities Learning Outcomes
12 3
Sales Type Lease – Lessor  Understand sales type lease on the part of the lessor Lecture/Class Students to answer
 Define gross investment and net investment in a sales type Discussion exercises and problems
 Gross Investment in the lease lease related to the topic.
 Net investment in the lease  Recognize profit on sale and interest income in a sales type Exercises /
 Sales and Cost of Goods sold lease Quizzes At least 75% of the
 Sales type lease with students must get at
- Residual Value least 85% grade in the
- Initial Direct Cost quiz/exercise
- Bargain Purchase Option
 Actual Sale of underlying asset
 Disclosures for Finance Lease – Lessor

Sale and Lease Back

 Definition of Sale and Lease Back  Recognize a sale and leaseback on the part of the lessee
 Sale Price at:  Recognize a sale and leaseback on the part of the lessor
- Fair value  Know the recognition of a transfer of asset that is not a sale
- Above fair value
- Below Fair value
- Measurement of lease liability
- Measurement of Right of Use Asset
- Gain or Loss on Right to Transferred

13 3 Shareholder’s Equity  Identify the elements of shareholder’s equity and the Lecture/Class Students to answer
equivalent IFRS term Discussion exercises and problems
 Concept and components of Corporation  Distinguish ordinary share from preferred share capital related to the topic.
 Organization of Corporation  Identify and describe the different classes of stock and Exercises /
 Article of Incorporation and By-Laws explain the rights afforded each class of stock. Quizzes At least 75% of the
 Pre-incorporation and subscription agreement  Describe the difference between cash dividends, stock students must get at
 Organization Cost dividends and stock splits, and the impact on the financial least 85% grade in the
 Elements of Shareholder’s Equity statements. quiz/exercise
 Issuance of share capital for noncash  Record stock transactions: contributions by owners,
consideration and services corporate distributions (dividends), and the reacquisition of
 Share Issuance Costs company stock.
 Strategies/ Assessment of
Wk Hrs Topic Learning Outcomes
Activities Learning Outcomes
 Costs of public offering shares  Define delinquent subscription and its measurement
 Share issued at a discount
 Watered Share and Secret Reserve
 Delinquent Subscription
 Preference Shares

14 3
Treasury Shares, Rights issue, Share Split  Know how to recognize and measure treasury shares Lecture/Class Students to answer
 Acquisition, reissuance and retirement of  Understand the legal limitation in the acquisition of treasury Discussion exercises and problems
Treasury Shares shares related to the topic.
 Donated Shares  Identify the typical recapitalizations Exercises /
 Assessment on Shareholders  Understand the recognition of the rights issue Quizzes At least 75% of the
 Recapitalization  Measure the issuance of preferred shares with share students must get at
 Rights Issue warrants least 85% grade in the
 Preference shares issued with share warrants quiz/exercise

15 3 Retained Earnings  Identify and measure retained earnings Lecture/Class Students to answer
 Understand the legal limitation in the declaration of dividends Discussion exercises and problems
 Unappropriated Retained Earnings  Identify and recognize dividends out of earnings, cash related to the topic.
 Appropriated Retained Earnings dividends, property dividends, and share dividends Exercises /
 Dividends  Understand the purpose of appropriation of retained earnings Quizzes At least 75% of the
- Cash Dividend  Know the conditions in applying quasi-reorganization students must get at
- Property Dividend least 85% grade in the
- Share Dividend quiz/exercise
- Liquidating Dividend
 Dividend as an expense
 Appropriated and Quasi-reorganization
 Statements of Retained Earnings and Changes in
Equity
 Components of Comprehensive and Other
Income
 Quasi-reorganization
 Strategies/ Assessment of
Wk Hrs Topic Learning Outcomes
Activities Learning Outcomes

17 3 Share-Based Compensations  Define the share-based compensation plan Lecture/Class Students to answer
 Understand the recognition and measurement of share Discussion exercises and problems
 Share Options options related to the topic.
o Share based compensation plan  Distinguish the fair value method and the intrinsic value Exercises /
o Equity settled share-based compensation method of measuring share options Quizzes At least 75% of the
o Cash settled share-based compensation  Know the recognition of an acceleration of vesting students must get at
o Recognition and Measurement of Share Options  Know the accounting treatment of modification of vesting least 85% grade in the
o Fair Value of Share Options conditions of share options and share-appreciation rights quiz/exercise
o Intrinsic Value of Share Options  Know how to account share-based transactions with cash
o Acceleration of vesting alternative and share alternative Take Home Output for students
o Subsidiary employees granted rights to the  Know how to account modification from cash-settled share- Exam/ Long (20% of CS grade)
equity instrument of parent based payment to equity-settled share-based payment. Problem

 Share Appreciation Rights

o Cash settled share-based compensation
o Share Appreciation Rights

 Recognition and Measurement of Compensation

 Cash and Share alternative

18 FINAL EXAM
EXPECTATIONS FROM STUDENTS:

1. The student is responsible to come to each class prepared.

2. The student expected to take all examinations on the date scheduled.
3. The student should read the assigned chapter/s and solve exercises/problems prior to class.
4. The student is expected to attended each class and participate actively in the discussions.
5. The student is expected to do the seatwork/exercises that will be assigned by the instructor
inside the classroom.

ACADEMIC DISHONESTY:

All students are expected to be honest. Cheating, lying, and other forms of unethical
behavior will not be tolerated. Consistent with the University rules and regulations, the following
are considered major offenses and will be subject to disciplinary action:

 Cheating during examination, quiz or test; plagiarism

o Unauthorized possession of notes or materials relative to examination, whether
the students use of them or not
o Copying from of allowing another to copy from one's examination paper, report,
term paper, etc.
o Having somebody else take the examination in place of another student. Both
students shall be liable
o Talking to another student without permission during the examination
o Submitting as one's work, assigned report, term paper, case analysis, reaction
paper, etc, copied from others

POLICY on ABSENCES:

 A student is expected to attend all his/her classes promptly and regularly from the first day
of classes onwards.
 A student will be marked late if s/he arrived within the 15-minutes grace period.
 A student will be considered absent if s/he arrives beyond the grace period
 Three instances of tardiness will be equivalent to one (1) absence
 The maximum number of absences is 20% of the total hours allotted for a subject in a
semester or equivalent to 7 absences. A student who incurs more than 7 absences shall
be considered Unofficially Dropped.

GRADING SYSTEM:

Midterm Grade (MG) Pre-Final Grade (PFG)

Midterm Exam 40% Final Exam 40%
Class Standing 60% Class Standing 60%
Quizzes 15% Quizzes 15%
Recitation 10% Recitation 10%
Assignment 5% Assignment 5%
Seatwork 10% Seatwork 10%
Output 20% Output 20%
Total 100% Total 100%

Final Grade (FG)= (MG + PFG) / 2

 POINT POINT
GRADE REMARKS GRADE REMARKS
Equivalent Equivalent

98-100 1.00 Excellent 77-79 2.75 Satisfactory

95-97 1.25 Excellent 75-76 3.00 Passed

92-94 1.50 Very Good Below 75 5.00 Fail

89-91 1.75 Very Good INC Incomplete

86-88 2.00 Good OD Officially Dropped

83-85 2.25 Good UD Unofficially Dropped

80-82 2.50 Satisfactory

Prepared by: Approved by: Noted by:

Jennifer R. Laluan, CPA,

Faculty Member Chairperson Vice-President for
Academic Affairs

I have read the course syllabus and I understand that I have to comply with the requirements of the
course and the expectations from me as a student of ______________ during the First Semester
of _________. I am fully aware of the consequences of non-compliance with the abovementioned
requirements and expectations.

________________________________
Printed name and signature of student

________________________________
Date
 FINANCIAL MANAGEMENT SYLLABUS
(ACCFINM)

COURSE OUTLINE

Week Hours Topic

Introduction to Financial Management

1 3 Relationship of Financial Objectives to Organizational Strategy and Objectives

2 3 Financial Statement Analysis

Cash Flow Analysis

3 3
Operating and Financial Leverage

4 3 Financial Forecasting, Planning and Control

5 3 Working Capital Management

6 3 Understanding the Role of Financial Markets and Institutions

7 3 Financial Risk Management

8 3 Estimating Risks and Return on Assets

9 3 MIDTERM

10 3 Capital Asset Pricing Model and Modern Portfolio Theory

11 3 Assessing Long Term Debt, Equity and Capital Structure

12 3 Sharing Firm Wealth: Dividends, Share Repurchases and Other Payouts

13 3 Calculating the Cost of Capital

14 3 Capital Budgeting

15-16 6 Screening and Selecting Capital Investment

17 3 Risk Management and Derivatives

18 3 FINAL EXAM

54