Year Level Term Subject Topics

1st year 1st term Integrated Accounting Topic 1: Service

Fundamentals Topic 2: Manufacturing
Topic 3: Merchandising

2nd term Financial Accounting and Topic 1: Partnership

Reporting
Nature and Formation of Partnership
Partnership Operations
Partnership Dissolution
Change in capital structure by withdrawal, retirement, death or incapacity of a partner
Partnership Liquidation (Lump-sum)

Topic 2: Corporation
Organization and formation of corporation
Operations, Dividends, Book Value per share and earnings per share
Share capital transactions subsequent to Original issuance

CFAs
3rd Term Integrated Accounting 1  Topic 1: Cash and Cash Equivalents
1.      Nature of Financial assets
2.      Recognition of Financial Assets
3.      Cash as a Financial Asset
4.      Nature and Composition of Cash Equivalents.
5.      Presentation and Measurement of Cash in the Statement of Financial Position
6.      Cash Management
7.      Petty Cash Fund
8.      Cash Short and Over
9.      Imprest system and fluctuating fund system
Topic 2: Bank Reconciliation
a.      Book and bank reconciling items
b.      Adjusted balanced method
c.      Bank to book and book to bank method
Topic 3: Proof of Cash
1.      Determination of deposit in transit and outstanding checks
2.      Adjusted balance method
3.      Book to bank and bank to book methods
Topic 4: Receivables
1.      Nature of receivables
2.      Different classification of receivables
3.      Initial recognition
4.      Recording of receivables
a. Trade and cash discounts
b. Gross, net and allowance method
5.      Credit card transactions
6.      Estimating bad debts
a. Aging of receivables
b. Percentage of sales
c. Percentage of accounts receivable
d. Direct writeoff and allowance method
Topic 5: Notes and Loans Receivables
1.      Notes receivable
a.      Recognition and measurement
b.      Recording notes receivable
c.      Presentation
2.      Loans Receivable
a.      Indirect and direct origination costs
b.      Recognition and measurement
c.      Recording loans receivable
Topic 6: Receivables Financing
1.      Assignment of receivables
2.      Pledging
3.      Factoring of receivables
a. With recourse
b. Without recourse
4.      Discounting of receivables
Topic 7: Inventories
1.      Nature and classification of inventories.
2.      Items included in inventory
a. Inventory cut off
b. Inventory on consignment
3.      Recording of inventories
a. Gross and net method
b. Periodic and perpetual system
4.      Inventory cost flow
a. FIFO and weighted average (periodic)
b. Moving average
Topic 8: Inventory Cost Flow
1.      First in first out method (FIFO)
2.      Weighted average periodic method
3.      Moving average method (weighted average perpetual)
Topic 9: Valuation of Inventories
1.      Lower of cost or net realizable value method
a. Methods of applying LCNRV
b. Allowance for inventory decline
c. Evaluation of lower of cost rule
Topic 10: Gross Profit and Retail Inventory Method
1.      Gross profit method of estimating inventory
a. Gross profit percentage
b. Evaluation of gross profit method
2.      Retail Inventory Method
a. Retail method concepts
b. Retail inventory with markup, markdown and cancellation
c. Evaluation of retail inventory method
Topic 11: Biological Assets (PAS 41)
1.      Biological asset and agricultural produce
2.      Agricultural activity.
3.      Recognition and measurement.
4.      Bearer plants and animals.
5.      Animal-related recreational activities
Topic 12: Non-current Assets Held for Sale (PFRS 5)
1.      Definition under PFRS 5
2.      Conditions
3.      Measurement
4. Presentation and disclosure
Integrated Accounting 2 Topic 1: Financial Assets at Fair value
1.      Fair value through profit and loss
2.      Fair value through other comprehensive income
3.      Financial assets at amortized costs
4.      Recording FA though profit and loss.
Topic 2: Investment in Equity Securities
a.      Nature and classification of equity securities
b.      Initial recognition
c.      Share splits, dividends, and share rights
d.      Investment in unquoted equity securities
e.      Impairment
f.        Presentation and disclosure
Topic 3: Investment in Associates
1.      Nature of investment in associate
2.      Meaning of significant influence
3.      Equity method of recording investment
4.      Impairment
5.      Discontinuance of equity method
Topic 4: Financial assets at amortized cost
1. Nature of investment in bonds
2.      Measurement at amortized cost
3.      Amortization using effective interest method
4.      Presentation and disclosure
Topic 5: Fund and Other investments
3.      Sinking Fund
4.      Plant Expansion fund
5.      Preference share redemption fund
6.      Contingency and insurance fund
7. Cash surrender value
Topic 6: Basic Financial Derivatives
5.      Nature and purpose of derivatives
6.      Common types of derivatives
7.      Measurement of derivatives
8.      Recording transactions
9. Presentation and disclosure
Topic 7: Property, Plant and Equipment
5.      Definition and nature of property, plant and equipment.
6.      Acquisition of PPE
a. Land
b. Buildings
c. Equipment
7.      Recording of PPE acquisition
a. Net method
b. Issuance of equity securities
c. Donation
d. Self-constructed asset
Topic 8: Borrowing Cost and Government Grant
4.      Borrowing cost
a. Capitalizable interest and qualifying asset
b. Specific and general borrowing
c. Presentation and disclosures
5.      Government grant
a. Recognition and measurement
b. Grant related to asset
c. Grant related to income
d. Disclosures related to government grant
Topic 9: Depreciation and Depletion
2.      Concept of depreciation and depreciable amount
3.      Depreciation methods
a. Straight line
b. Composite
c. Units of production
d. Declining balance
e. Sum of the years’ digits
4.      Depletion
a. Mineral resource property
b. Exploration costs
c. Depletion rate
Topic 10: Revaluation and Impairment of Assets
3.      Revaluation model
a. Cost model and revaluation model
b. Revaluation surplus
c. Reversal
4.      Impairment of assets
a. Indication of impairment
b. Recoverable amount
c. Fair value less cost of disposal
d. Reversal of impairment loss
e. Cash generating unit
Topic 11: Intangible Assets
6.      Recognition and measurement
7.      Types of intangible assets.
8.      Amortization of intangible assets.
9.      Impairment of intangible assets.
10.   Research and development costs
Topic 12: Investment Property
4.      Investment property and owner occupied property
5.      Recognition
6.      Measurement
7.      Fair value of investment property
8. Derecognition of investment property
2nd year 1st term Cost Accounting and Control  Cost Accounting Fundamentals & Cost Terms, Concepts and Classifications

1.       Cost Accounting Fundamentals

a.       Introduction
b.       Cost Accounting: Information for Decision Making
c.       Accounting and Value Chain
d.       Accounting Systems
e.       Comparison of Financial Accounting and Management Accounting
f.        Relationship of Cost Accounting to other Fields of Study
g.       Scope of Modern Cost Accounting
h.       Cost Management Framework
i.        Organizational Environment
j.        Ethical Issues and Guidelines
2.       Cost Terms, Concepts and Classifications
a.       Introduction
b.       Nature of Cost, Cost Pools, Cost Objects and Cost Drivers
c.       Classification of Costs
Cost Behavior and Accounting for Cost Flows
1.       Cost Behavior: Analysis and Use
g.       Defintion of Cost Behavior
h.       Importance of Understanding Cost Behavior
i.        Types of Cost Behavior Patterns
j.        Cost Estimation
1)      The Analysis of Mixed Costs
2)      Account Analysis Method
3)      Industrial Engineering Method
4)      Conference Method
5)      The High-Low Method
6)      Regression Analysis Method
k.       Strengths and Weakness of Cost Estimation Methods
l.        The Learning Curve Theory
2.       Accounting for Cost Flows
a.       Introduction
b.       Application of Cost Accounting to the Various Business Sectors of the Economy

1)      Merchandising –sector Companies

2)      Manufacturing-sector Companies
3)      Service-sector Companies
c.       Production, Marketing and Administrative Costs
d.       Inventory Accounts
e.       Flow of Costs in a Merchandising Company
f.        Flow of Costs in a Manufacturing Company
g.       Cost Accounting Model for a Manufacturing Company
h.       Flow of Costs in a Service Organization
Systems Design: Job-Order Costing
1.       Introduction
2.       Systems-Choice: Job-Order Vs. Process Costing
3.       Cost Measurement: Actual, Normal or Standard Costing
4.       Comparison of Job-Order Costing against Process Costing
5.       Overhead Assignment Under Normal Costing: Volume-Based or Activity Based

6.       Job-Order Costing System

a.       Concept and Application
b.       Flows of Costs in Job-Order Costing System in a Manufacturing Firm

c.       Flow of Documents in a Job-Order Costing Systems in a Manufacturing Firm

7.       Summary of Accounting Procedures using Job-Order Costing in a Manufacturing

Company
8.       Application of Job-Order Cost Accounting Procedures
a.       Accounting for Materials
b.       Accounting for Labor
c.       Accounting for Overhead
1)      Factory Overhead Application
2)      Disposition of Over- or Underapplied Factory Overhead
Systems Design: Process Costing System (Part 1); Basic Concepts
1.       Concept and Application
2.       A Cost-Benefit Comparison of Job-Order Costing and Process Costing

3.       Steps in Process Costing

4.       Process Costing Methods (Weighted-Average and FIFO)
5.       Illustration of Process Costing
Systems Design: Process Costing System (Part 2); Cost Allocation
1.       Cost Allocation
2.       Accounting for Joint Products Costs and By-Products
3.       Methods for Allocating Joint Costs to Joint Products
4.       Accounting for By-Products
Operation Costing, Just-in-Time System and Backflush Costing
7.       Introduction
8.       Hybrid Costing System
9.       Operation Costing
10.    Just-in-Time System and Backflush Costing
11.    Financial Benefits of JIT
12.    Major Features of JIT Production System
Activity-Based Costing and Management
6.       Activity-Based Costing
7.       Advantages and Limitations of ABC System
8.       Design of an Activity-Based Costing System
9.       Steps in Designing an ABC System
a.       Process Value Analysis
b.       Identifying the Activity Centers
c.       Assigning Costs to Activity Centers
d.       Selecting Costs Drivers
10.    Application of Activity-Based Costing (Manufacturing and Merchandising)

11.    Activity-Based Management

a.       Categories of ABM Application (Operational and Strategic ABM)
12.    Opportunity Costing Concepts
Standard Costs and Operating Performance Measures
9.       Rationale of Standards Costs
10.    Uses of Standard Costs
11.    Benefits of Standard Costs
12.    Limitations of Standard Cost
13.    How Standards are Set
14.    Setting Direct Material Standards
15.    Setting Labor Standards
16.    Setting Overhead Standards
17.    Standard Cost Flows
18.    Treatment of Variances
19.    Operating Performance Evaluation
20.    Factory Overhead Variance Analysis
Intermediate Accounting 3 Topic 1: Liabilities
1. Definition of Liabilities
2. Current and non-current liabilities
3. Measurement of current liabilities
4. Measurement of non-current liabilities
5. Long term debt falling due within year
6. Refinancing of financial liability
7. Covenants
8. Breach of covenants
9. Presentation of current liabilities
10. Presentation of non-current liabilities
11. Deferred revenue
12. Gift certificates
13. Bonus computation
Topic 2: Premium Liability
1. Premiums
2. Cash rebate program
3. Cash discount coupon program
4. Customer loyalty program

Topic 3: warranty liability

1. Recognition of warranty provision
2. Accrual approach of warranty
3. Expense as incurred approach for warranty
4. Sale of warranty
Topic 4: Provision and Contingent Liability
1. Definition of Provision
2. Recognition of provision
3. Measurement of provision
4. Other measurement considerations
5. Restructuring provision
6. Definition of contingent liability
7. Treatment of contingent liability
8. Definition of decommissioning liability
9. Recognition of decommissioning liability
Topic 5: Bonds Payable
1. Definition of Bond
2. Features of a bond issue
3. Types of bonds
4. Issuance of bonds at a premium or discount
5. Initial and subsequent measurement of bonds payable
6. Recording interest on bonds payable
7. Bond issue cost
8. Bond retirement on maturity date
9. Bond retirement prior to maturity date
10. Treasury bonds
11. Bond refunding
12. Straight line and bond outstanding method
13. Fair value option of measuring bonds payable

Topic 6: effective interest method

1. Nominal interest rate
2. Effective interest rate
3. Effective amortization of discount
4. Effective amortization of premium
5. Market price of bonds payable
6. Computation of effective interest rate

Topic: 7: compound financial instrument

1. Definition of financial instruments
2. Financial liability
3. Equity instrument
4. Compound financial instrument
5. Accounting for compound financial instrument
6. Bonds payable issued with share warrants
7. Convertible bonds payable
8. Original issuance of convertible bonds payable
9. Conversion of convertible bonds payable
10. Payment of convertible bonds payable at maturity
11. Payment of convertible bonds payable before maturity
Topic 8: note payable
1. Initial measurement of note payable
2. Subsequent measurement of note payable
3. Amortized cost of note payable
4. Note payable issued solely for cash
5. Interest bearing note payable issued for property
6. Non-interest bearing note payable issued for property
7. Fair value option of measuring note payable

Topic 9: debt restructuring

1. Definition of debt restructure
2. Asset swap
3. Dacion en pago
4. Equity swap
5. Modification of terms
6. Substantial modification of terms
7. Non-substantial modification of terms
Topic 10: lease accounting (basic principles)
1. Definition of lease
2. Finance lease model-lessee
3. Operating lease model-lessee
4. Measurement of right of use asset
5. Measurement of lease liability
6. Components of lease payments
7. Implicit interest rate
8. Incremental borrowing rate
9. Actual purchase of underlying asset
10. Disclosures-lessee

Topic 11: lease accounting (other accounting issues)

1. Extension option
2. Variable payments
3. Lease modification
i. -separate lease
ii. -Extension of term
iii. -decrease in scope
iv. -change in rental
Topic 12: operating lease-lessor
5. Definition of operating lease
6. Definition of finance lease
7. Criteria for finance lease
8. Accounting for operating lease-lessor
Topic 13: direct financing lease-lessor
1. Finance lease classification of lessor
2. Gross investment in the lease
3. Net investment in the lease
4. Direct financing lease with initial direct cost
5. Direct financing lease with residual value guarantee
6. Direct financing lease with unguaranteed residual value
7. Direct financing lease with transfer of title to lessee

Topic 14: sales type lease-lessor

1. Gross investment in the lease
2. Net investment in the lease
3. Sales and cost of goods sold
4. Sales type lease with residual value
5. Sales type lease with initial direct cost
6. Sales type lease with bargain purchase option
7. Actual sale of underlying asset
8. Disclosures of finance lease-lessor

Topic 15: sale and leaseback

1. Definition of sale and leaseback
2. Sale price at fair value
3. Sale price at above fair value
4. Sale price at below fair value
5. Measurement of lease liability
6. Measurement of right of use of asset
7. Gain or loss on right transferred
Topic 16: accounting for income tax
1. Accounting income
2. Taxable income
3. Permanent and temporary differences
4. Tax base
5. Deferred tax liability
6. Accounting income higher than taxable income
7. Deferred tax asset
8. Taxable income higher than accounting income
9. Operating loss carry forward
10. Method of accounting for income tax-income statement approach and statement of financial
position approach
11. Net deferred tax expense or benefit
12. Current tax liability and current tax asset
13. Presentation of deferred tax asset and liability
14. Measurement of deferred tax asset and liability
15. Intra-period and inter-period tax allocation
16. Disclosures related to income tax
Topic 17: post-employment benefits
1. Definition of employee benefits
2. Post-employment benefits
3. Contributory and non-contributory plan
4. Funded and unfunded plan
5. Defined contribution plan
6. Defined benefit plan
7. Multiemployer plan
8. Post-employment benefit under law
9. Insured benefits
10. Accounting for defined contribution plan
11. Disclosures-defined contribution plan
12. Accounting for defined benefit plan
13. Components of defined benefit cost
14. Actuarial valuation method
15. Current service cost
16. Net interest
17. Past service cost
18. Plan assets
19. Qualifying insurance policy
20. Measurement of plan assets
21. Re-measurement plan assets
22. Fair value of plan assets
23. Projected benefit obligation
24. Actuarial gains and losses
25. Actuarial assumptions
26. Re-measurement of projected benefit obligation
Topic 18: defined benefit plan (accounting procedures)
1. Basic accounting consideration- FVPA and PBO
2. Prepaid/accrued benefit cost
3. Settlement of plan
4. FVPA more than PBO-surplus
5. Asset ceiling
6. Disclosures- defined benefit plan
7. Transitional provision of revised PAS 19
8. Accounting and reporting by retirement benefit plan
9. Report of defined contribution plan
10. Report of defined benefit plan

Topic 19: other employee benefits

1. Short term employee benefits
2. Recognition and measurement of short term employee benefits
3. Short term paid absences
4. Profit sharing and bonus plans
5. Recognition and measurement of profit sharing and bonus plan
6. Other long term employee benefits
7. Recognition and measurement of other long term employee benefits
8. Termination of benefits
9. Recognition and measurement of termination of benefits
Topic 20: shareholders’ equity
1. Concept of corporation
2. Organization of a corporation
3. Articles of incorporation and by laws
4. Pre incorporation subscription agreement
5. Components of corporation
6. Organization costs
7. Elements of shareholders’ equity
8. Share capital- ordinary and preference shares
9. Legal capital
10. Trust fund doctrine
11. Accounting for share capital
12. Issuance of share capital for non-cash consideration
13. Issuance of share capital for services
14. Share issuance costs
15. Cost of public offering of shares
16. Share issued at discount
17. Watered share and secret reserve
18. Delinquent subscription
19. Preference share-callable, redeemable, and convertible
Topic 21: shareholders’ equity (treasury shares, rights issue, and share split)
1. Acquisition, reissuance and retirement of treasury shares
2. Donated shares
3. Assessments on shareholders
4. Recapitalization
5. Rights issue 6. Preference shares issued with share warrants
Topic 22: retained earnings (dividends)
1. Unappropriated retained earnings
2. Appropriated retained earnings
3. Cash dividend
4. Property dividend
5. Share dividend
6. Liquidating dividend
7. Dividend as an expense
Topic 23: retained earnings (appropriation and quasi-reorganization)
1. Statement of retained earnings
2. Statement of changes in equity
3. Components of comprehensive income
4. Other comprehensive income
5. Quasi-reorganizaton

Topic 24: share based compensation (share options)

1. Share based compensation plan
2. Equity settled share based compensation
3. Cash settled share based compensation
4. Share options
5. Measurement of share options
6. Fair value of share option
7. Intrinsic value of share option
8. Recognition of compensation expense
9. Acceleration of vesting
10. Subsidiary employees granted rights to the equity instrument of parent

Topic 25: share based compensation (share appreciation right)

1. Cash settled share based payment transaction
2. Share appreciation right
3. Measurement of compensation
4. Recognition of compensation
5. Cash and share alternative
2nd Term Income Tax

Law on Oblicon  Topic 1: Introduction to law

1. Division of law 2. Characteristics of law 3. Judicial system in the Philippines 4. Interpretation
of laws.
Topic 2: Nature and source of obligations
1. Sources of obligations 2. Elements and prestations in an obligation
Topic 3: Classifications of obligations
1. Civil, natural and moral 2. Real and personal 3. Positive and negative 4. Unilateral and
bilateral
Topic 4: Circumstances affecting obligations
1. Duties of obligor (debtor) and oblige (creditor) 2. Fraud, negligence, delay, breach of
obligations, fortuitous events 3. Remedies in case of breach of obligations

Topic 5: Kinds of Obligations

1.      Pure and conditional obligations a. Suspensive and resolutory obligation 2. Obligations
with a period 3. Alternative and facultative obligations

Topic 6: Kinds of Obligations

1.      Joint and Solidary Obligations 2. Divisible and Indivisible Obligations 3. Obligations with a
Penal Clause

Topic 7: Extinguishment of Obligation

1.      Payment or performance a. General provisions b. Application of payments c. Dation in
payment d. Payment by cession e. Tender of payment and consignation 2. Loss of thing due

Topic 8: Extinguishment of Obligation

3. Condonation 4. Confusion and merger of rights 5. Compensation 6. Novation
Topic 9: Elements of contract and general principles
1.      Essential elements of a contract. 2. General principles a. Mutuality b. Autonomy c.
Relativity d. Consensuality e. Obligatory force 3. Classifications of a contract

Topic 10: Essential elements of a contract

1.      Stage of a contract 2. Consent a. Meeting of offer and acceptance b. Vices of consent 3.
Object a. The thing must be licit 4. Cause or consideration

Topic 11: Formalities of a Contract

1.      Formalities 2. Interpretation and reformation
Topic 12: Kinds of Defective Contracts
1.      Rescissible Contracts 2. Voidable Contracts 3. Unenforceable Contracts a. Statue of
Frauds 4. Void Contract a. Principle of in pari delicto

Topic 13: Natural Obligations

1. Concept of Natural Obligations 2. Performance after civil obligation has prescribed. 3.
Reimbursement of third person for debt that has prescribed. 4.

Topic 14: Special Contracts: Sales

1.      Definition and essential requisites 2. Parties to a contract of sale. 3. Obligations of the
seller. 4. Subject matter.
Strategic Cost Mgt. Topic 1: Management Accounting and Business Environment
-        Objectives, role and scope of management accounting.
-        Basic management functions and concepts.
-        Distinction among management accounting, cost accounting and financial accounting.

-        Role and activities of controller and treasurer

-        Process management
-        Lean Production / Just in Time production system
-        Theory of Constraints
-        Six Sigma
-        Technology in business
-        E-commerce
-        Enterprise System
-        The importance of Ethics in business.
-        Corporate Governance
-        Enterprise Risk Management
-        International certifications in management accounting

Topic 2: Cost terms, concepts and behavior

1.                    Nature and classification of costs
2.                    Product cost versus Period Cost
3.                    Cost classifications on financial statements
4.                    Product Cost Flows
5.                    Cost classifications for predicting cost behavior
6.                    Cost classifications for assigning costs to cost objects
7.                    Cost classifications for decision making
8.                    Further Classifications for labor costs
9.                    Cost of Quality
10.                Types of Cost Behavior patterns
11.                Analysis of cost behavior (variable, fixed, semi-variable/mixed, step-cost)
12.                Splitting mixed cost (high-low, scatter graph, least-squares regressions)
13.                The contribution format income statement
Topic 3: Cost-volume-profit (CVP) analysis
1.     The Basics of Cost-Volume-Profit Analysis.
a.     Uses, assumptions and limitations of CVP analysis.
b.     Factors affecting profit
c.     CVP relationships in graphic form
d.     Contribution margin ratio
2.     Break-even Analysis.
a.     Break-even point in unit sales and peso sales
b.     Required selling price, unit sales and peso sales to achieve a target profit.
c.     Sensitivity analysis (including indifference point in unit sales and peso sales)
d.     Concept of margin of safety
3.     Concept of operating leverage
4.     Use of sales mix in multi-product companies
Topic 4: Variable costing and absorption costing
1.     Overview of Absorption Costing and Variable Costing
a.     Nature and treatment of fixed factory overhead costs
b.     Distinction between product cost and period costs.
c.     Inventory costs between variable costing and absorption costing.
2.     Income comparison of absorption and variable costing
3.     Reconciliation of operating income under variable costing and absorption costing
Topic 5: Financial Planning and Budgets
1.     Definition and coverage of the budgeting process
2.     Types of budgets (static, flexible, zero-based, continuous)
3.     Master budget and its components (operating and financial budgets)
a.     Sales budget
b.     Production budget
c.     Direct materials budget
d.     Direct labor budget
e.     Manufacturing overhead budget
f.       Ending finished goods inventory budget
g.     Selling and administrative expense budget
h.     Cash budget
i.       Budgeted income statement
j.       Budgeted balance sheet
k.     Budget variance analysis (static and flexible)
Topic 6: Capital Budgeting Part 1

1.     Definition, characteristics, categories and elements in capital budgeting decisions

a.     Net investment
b.     Cost of capital
c.     Cash and accrual net returns.
2.     Net investments for decision making and operating cash flows
3.     Non-discounted capital budgeting techniques
- payback period
- payback reciprocal
- payback bailout
- accounting rate of return (ARR) on original and average investment
Topic 7: Capital Budgeting Part 2
1.     Discounted capital budgeting techniques
- net present value
- profitability index
- equivalent annual annuity
- fisher rate/NPV point of difference
- discounted payback period
- internal rate of return (IRR)
- modified rate of return (MIRR)
2.     Preference decisions (mutually-exclusive projects)
3.     Project Screening decisions
4.     Project Ranking
5.     Capital rationing
- independent and mutually exclusive capital investment project
6.     Scenario analysis
7.     Sensitivity analysis
- effects of changes in project cash flow, tax rates and other assumptions
8.     Simulation analysis
Topic 8: Strategic cost management
1.     Total quality management
2.     Just-in-time production system
3.     Continuous improvement
4.     Business process reengineering
5.     Kaizen costing
6.     Product life cycle costing
Topic 9: Responsibility Accounting, Performance Measures and Balanced Scorecards

1.     Concepts of decentralization and segment reporting

2.     Goal congruence and motivation
3.     Types of Responsibility Centers (Cost, Revenue, Profit and Investment Centers)
4.     Controllable and non-controllable costs, direct and common costs
5.     Performance margin / Segment margin (manager vs. segment performance)
6.     Preparation of ‘segmented’ income statement
7.     Return on investment (RoI), residual income and economic value added (EVA)
8.     Balanced scorecard
a.     Common characteristics of balanced scorecards
b.     Nature and perspectives of balanced scorecard
c.     Financial and non-financial measures.
Topic 10: Transfer Pricing and Pricing Decisions
1.     Rational and need for transfer price
2.     Transfer pricing schemes (minimum transfer price, market-based transfer price, cost-based
transfer price and negotiated price)
3.     Multinational transfer pricing
4.     Service Department Charges
a.     Charging cost by behavior
b.     Cautions in allocating service department costs.
Topic 11: Relevant costing and differential analysis
1.     Definition and identification of relevant costs
2.     Concept of opportunity costs
3.     Approaches in analyzing alternatives in non-routing decisions (total and differential)
4.     Types of business decisions
a.     continue or drop/shutdown,
b.     make or buy,
c.     accept or reject special order,
d.     best product combination,
e.     sell or process further,
3rd Term Accounting for Business  Topic 1: Business Combinations (PFRS 3)
Combination 1.      Classifications of business combination
2.      Defenses and basic procedures in business combination
3.      Purchase method of business combination
4.      Measuring goodwill or gain from bargain purchase
5. Contingent consideration and remeasurements
Topic 2: Business Combinations (PFRS 3)
a.      Purchase method of business combinations
b.      Measuring goodwill or gain from bargain purchase
c.      Recording acquisition by the acquirer
d.      Intangible assets
e.      Contingent consideration and remeasurements
Topic 3: Consolidated Financial Statements at the Date of Acquistion (100% Ownership)

1.      Introduction to intercompany investment (comparison of investment in subsidiary and other

investments)
2.      Accounting for investment in subsidiary under cost method
3.      Consolidation working paper and elimination entries
4.      Preparation consolidated balance sheet
5.      Equity method in comparison to cost method
Topic 4: Consolidated Financial Statements at the Date of Acquistion (Less than 100%
Ownership)
1.      Presence of Non-Controlling Interest (NCI)
2.      Fair value and Proportionate Approach (Allocation of goodwill)
3.      Consolidation procedures and elimination entries
4.      Equity method in comparison to cost method
Topic 5: Consolidated Financial Statements subsequent to the date of acquisition

1.      Consolidation procedures and working paper elimination entries

2.      Preparation of consolidated financial statements
3.      Balance of NCI in subsequent years
4.      Step acquisition and deconsolidation
5.      Push down accounting
6.      Comparison with PFRS for SME’s
Topic 6: Consolidated Financial Statements: Intra Asset Transactions
1. Sales and purchases
2. Unrealized gross profit in inventory
3. Downstream sales and upstream sales
4. Effect of NCI valuation
5. Land transfers
6. Depreciable assets
7. Consolidated balances
Transactions
1. Sales and purchases
2. Unrealized gross profit in inventory
3. Downstream sales and upstream sales
4. Effect of NCI valuation
5. Land transfers
6. Depreciable assets
7. Consolidated balances
Topic 8: Joint Operations
1.      Joint control
2.      Accounting for joint operations
a. Partnership in nature
b. Unincorporated entity
3.      Accounting for joint venture
4.      PFRS for SME’s
Topic 9: Home Office and Branch (General Procedures)
1. Accounting for Agency
2. Accounting for branches
3. Reconciliation of home office and branch accounts
4. Preparation of separate and combined financial statements
Topic 10: Home Office and Branch (Special Procedures)
1.      Shipments of merchandise at billed price
2.      Determination of branch income
3.      Interbranch transfers
Topic 11: Variable Interest Entities, Cash flows and Other Issues
1. Variable Interest Entities (VIE)
2. Consolidation of VIE.
3. Intracompany debt transactions.
4. Cash flows
5. Subsidiary’s preferred stock
6. EPS reporting
Topic 12: Full Disclosure in Financial Reporting
1. Statement of Financial Position
2. Statement of Comprehensive Income
3. Statement of Changes in Equity
4. Notes to the Financial Statements
5. Related parties and events after reporting period
6. Interim reporting
7. Segment reporting
8. Discontinued operation and Non-current assets held for sale
Accounting for Special Topic 1: Partnership Formation
Transactions 1. Nature and classification of partnership
2. Fair value/Agreed amount of non-cash assets
3. Bonus and revaluation (goodwill) approach in partnership formation
4. Financial statements of partnership5.
Topic 2: Partnership Operations
1. Rules in distribution of profits and losses
2. Different distribution schemes as agreed upon by partners (salaries, interest, bonus, etc)

3. Statement of changes in partners’ equity

Topic 3: Partnership Dissolution
1. Admission by purchase of interest (bonus and revaluation/goodwill approach)
2. Admission by direct investment (bonus and revaluation/goodwill approach)
3. Withdrawal/Retirement of a partner
4. Incorporation of a partnership
Topic 4: Partnership Liquidation
1. Lump sum liquidations
2. Installment liquidation (schedule of liquidation)
3. Safe payment schedule
4. Cash priority program
Topic 5: Corporate Liquidation
1. Classification of assets and liabilities under liquidating concern
2. Statement of affairs
3. Percentage recovery and estimated deficiency
4. Statement of realization and liquidation
Topic 6: Revenue from contracts with customers (PFRS 15)
1. The five-step model of revenue recognition
2. Recognition at the point in time and over time
3. Contract asset and contract liability
Topic 7: Revenue from contracts with customers (PFRS 15)
1. Other issues
2. Installment sales
a. Recording of deferred gross profit and realized gross profit
b. Gain or loss on repossession
c. Financial statement presentation
Topic 8: Long-Term Construction Contracts
1. Introduction to construction accounting
2. Contract revenues, costs and gross profit
3. Percentage of completion method
4. Cost recovery method
5. Financial statement presentation
Topic 9: Franchise and Consignment Accounting
1. Franchise accounting
a. Contract asset and liability
b. Initial franchise fee
c. Continuing franchise fee
2. Consignment accounting
a. Account sales
b. Consignment profit
c. Inventory on consignment
Topic 10: Foreign Currency Transactions
1. Import and export transactions
2. Foreign borrowing and lending
3. Foreign currency transaction gain or loss
4. Introduction to derivatives
Topic 11: Hedge accounting and forward contracts
1. Import and export transactions with forward contract
2. Criteria for hedge accounting.
3. Measurement of effectiveness of hedge.
4. Fair value hedge
5. Cash flow hedge
6. Options
Topic 12: Translation of Financial Statements
1. Functional vs presentation currency
2. Monetary and non-monetary assets and liabilities
3. Current method
4. Temporal method
5. Translation of foreign subsidiary
Financial Mgt. Topic 1: Objectives and Scope of Financial Management
1. Nature, purpose and scope of financial management
2. Functions of Financial Management
a. Role of financial managers in investment, operating and financing decision
3. Forms of Business Organizations
4. Governance and Agency
5. Business Ethics
Topic 2: Financial Statement Analysis
2. Vertical analysis (common-size financial statements)
3. Horizontal analysis (trend percentages and index analysis)
4. Financial ratios
i. Liquidity,
ii. Solvency,
iii. Activity,
iv. Profitability,
v. Growth and other ratios;
vi. Du Pont model
5. Cautions About Using Ratio Analysis
6. Cash flow analysis
i. Significant noncash activities
ii. Developing the Statement of Cash Flows, Direct and Indirect Method
iii. Free Cash Flow
iv. Interpretation of cash flows including free cash flow concept
Topic 3: Gross profit variance analysis (price, cost and volume factors)
1. Objectives of Gross Profit Variation Analysis.
2. Factors causing the Gross Profit Variation.
3. Techniques in Analyzing Gross Profit Variation.
4. Calculate and analyze the change in gross profit of a company with:
» Single product
A. the six-factor analysis for
Change in sales due to
a. volume factor or variance
b. price factor
c. volume- price factor
Change in cost of sales due to
a. volume
b. cost variance
c. volume- cost variance
B. the four-factor analysis
Change in sales due to
a. volume factor or variance
b. price factor
Change in cost of sales due to
a. volume variance
b. cost variance
C. the three-factor analysis
a. volume factor or variance
b. price factor
c. cost variance
» Multiple products
Change in gross profit due to
a. volume factor or variance
b. price factor
c. cost variance
d. sales mix factor
Topic 4: Financial Forecasting, Planning and Control
1. Financial Forecasting for strategic growth.
2. The Financial Planning Process:
a. Long-Term (Strategic) Financial Plans
b. Short-Term (Operating) Financial Plans
i. Sales Forecast
ii. Cash Planning: Cash Budgets
iii. Profit Planning: Pro Forma Statements
3. Financial forecasting using additional funds needed (AFN)
Topic 5: Working capital finance
1. Concepts and significance of working capital management
2. Trade-Off between Profitability and Risk
3. Working capital investment and financing policies (conservative vs. aggressive)
Topic 6: Cash and marketable securities management
1. Cash conversion cycle
2. Optimal cash balance
3. Collection and disbursement float
4. Cash management system
i. Speeding Up Collection
ii. Slowing Down Payments
Topic 7: Receivables management
1. Monitoring the Receivables Position
2. Credit Selection and Standards
3. Credit Terms
4. Credit Monitoring
5. Average balance of and investment in accounts receivable,
6. Incremental analysis and
7. Evaluation of discount, collection and credit policies
Topic 8: Inventory management
1. Differing Viewpoints about Inventory Level
2. Common Techniques for Managing Inventory
3. International concerns about Inventory
4. Inventory Costs: Carrying, Ordering, Stock-out cost
5. Inventory control system including EOQ model, safety stock, reorder point
Topic 9: Sources of short-term funds / Current Liabilities Management
1. Spontaneous Liabilities
a. Trade credit,
b. Accruals
2. Unsecured Sources of Short-Term Loans:
a. Bank Loan
b. Commercial Paper
c. International Loans
3. Secured Sources of Short-Term Loans
4. Characteristics of Secured Short-Term Loans
5. Use of Accounts Receivable as Collateral
a. Receivable Factoring
6. Estimating cost of short-term funds (annual cost of trade credit, effective and nominal annual
rate of short-term funds)
3rd Year 1st term Auditing and Assurance Topic 1: Fundamentals of Audit and Assurance Services
Principles 1. Assurance Engagements: Nature, Scope and Objective
2. Other Assurance Services
3. Non-Assurance Services
A. Agreed Upon Procedures
B. Compilation
C. Other Non-Assurance Services
4. Elements of an Assurance Service

Topic 2: Introduction to Audit

1. Nature, Purpose and Scopes of Audit
2. The Need for External Audits
3. Major Types of Audits
a. Financial Statement Audit
b. Operation Audit
c. Compliance Audit
d. Other Audits
4. Different types of Auditors

Topic 3: The Professional Standards

1. Generally Accepted Auditing Standards
2. Philippine Standards in Auditing
3. Quality Control System

Topic 4: CPA’s Professional Responsibilities

1. Auditor’s Legal Liabilities
2. Consideration for Fraud within the Client’s Organization
3. Consideration for Errors in the Clients Preparation of Financial Statements
4. Consideration for Compliance to Government Regulations and its impact to their Financial Statement
5. Communication of matters to those Charged with Governance
6. Minimizing Exposure to Legal Liability
4. Consideration for Compliance to Government Regulations and its impact to their Financial Statement
5. Communication of matters to those Charged with Governance
6. Minimizing Exposure to Legal Liability

Topic 5: Framework of Financial Statement Audits

1. Purpose of Audit Planning (PSA 300)
2. Understanding the Client (PSA 310)
3. Understanding the Client’s Internal Control System (PSA 400)
4. Assessment of Risk and Materiality (PSA 320)
5. Application of Analytical Procedures (PSA 520)
6. Other Critical Matters in Engagement Planning and Assessment of Client’s ability to continue as a going concern
(PSA 570)
7. Identification of Related Parties (PSA 550)
8. Special Consideration in the audit of small entities (PAPS 1005)
9. Consideration of Environmental Matters (PAPS 1010)
10. Risk Based Approach

Topic 6: Audit Planning

1. Understanding the Client’s business and Industry
2. Materiality
3. Audit Risk
4. Analytical Procedures
5. Planning Documentation
6. Audit Documentation (PSA230)

Topic 7:Consideration of Internal Controls

1. Nature of Internal Control
2. Components of Internal Control
3. Consideration of Internal Control
4. Communication of Internal Control Weakness

Topic 8: Gathering and Evaluating Evidence

1. Audit Procedures (PSA 505, 510,) PAPS (1001)
2. Audit Evidence (PSA500)
3. Relationships of Evidences
4. Accounting Estimates (PSA540)
5. Evidence for Related Party Transaction (PSA 550)
6. Documentation of Audit Working Paper (PSA 230)
7. Considering the Work of Internal Auditors
8. Test of Details
6. Documentation of Audit Working Paper (PSA 230)
7. Considering the Work of Internal Auditors
8. Test of Details

Topic 9: Audit Sampling

1. Purpose of Sampling
2. Sampling Risk
3. Sample Selection Methods
4. Audit Sampling in Test of Controls
5. Audit Sampling in Substantive Test
6. Steps in performing Audit Sampling
7. Documentation

Topic 10: Completing the Audit

1. Subsequent Events
2. Litigations, Claims and Assessments
3. Management Representation Letter
4. Going Concern
5. Wrap-Up Procedures

Topic 11: Audit Reports on the Financial Statement

1. Auditor’s Report on the financial Statements (PSA 700)
2. Modification of the Report
3. Report on Consolidated Financial Statements
4. Comparative Reports
5. Special Purpose Audit Engagement

Topic 12: Assurance Related Services

1. Review of the Financial Statements
2. Agreed-upon Procedures Engagement
3. Compilation of Financial Statements
4. Assurance Engagements

Topic 13: The Code of Ethics and R.A 9298

1. Code of Ethics of Professional Accounts
2. RA9298 or the Philippine Act of 2004
Financial Markets
Topic 1: Overview of Financial Markets and investment products

1. Functions and participants of the Financial Markets

2. Overview of the operations of financial intermediaries and financial institution such as banks, investment
houses, insurance companies and others.
3. Role and function of the Central Bank
4. Types of Banks and other financial intermediaries
5. Types of investment products and their characteristics.
6. The stock markets
7. The market for common stocks
8. Stock market returns and stock market efficiency.

Topic 2: Interest rates

1. The cost of money

2. Interest rates levels
3. The determinants of market interest rates
4. Term structure of interest rates
5. Using the yield curve to estimate future interest rates
6. Macroeconomic factors that influence interest rate levels

Topic 3: Risk, Required Rate of Return and Cost of Capital

1. Risk and Return Fundamentals
2. Types of risks (business/operating, financing)
3. Risk of a Single Asset, assessment, and measurement
4. Measures of risks (Coefficient of variation and standard deviation)
5. Risk of a Portfolio
6. Portfolio Return and Standard Deviation
7. Capital Asset Pricing Model
8. Cost of Capital
a. Cost of Long-Term Debt
b. Cost of Preferred Stock
c. Cost of Equity
d. Weighted Average Cost of Capital
e. Margin Cost of Capital

Topic 4: The Firm’s Capital Structure and degree of leverage

1. Types of Capital
2. External Assessment of Capital Structure
3. Capital Structure Theory
4. Optimal Capital Structure
5. EBIT–EPS Approach to Capital Structure
6. Considering Risk in EBIT–EPS Analysis
7. Basic Shortcoming of EBIT–EPS Analysis
8. Choosing the Optimal Capital Structure
9. Financial Leverage
10. Total Leverage
11. Relationship of Operating, Financial, and Total Leverage
1. Types of Capital
2. External Assessment of Capital Structure
3. Capital Structure Theory
4. Optimal Capital Structure
5. EBIT–EPS Approach to Capital Structure
6. Considering Risk in EBIT–EPS Analysis
7. Basic Shortcoming of EBIT–EPS Analysis
8. Choosing the Optimal Capital Structure
9. Financial Leverage
10. Total Leverage
11. Relationship of Operating, Financial, and Total Leverage

Topic 5: Bonds and their valuation

1. Key characteristics of bonds

2. Bond Yields, Prices, Ratings
3. Valuation Fundamentals
4. Bond Valuation
5. Changes in bond values over time
6. Bonds with semiannual coupons
7. Assessing a bond’s riskiness
8. Default risk
9. Bond markets

Topic 6: Stock valuation

1. Differences between Debt and Equity

2. Legal rights and privileges of common stockholders
3. Common and Preferred
4. Common Stock Valuation
5. Changes in Expected Dividend and Dividend
6. Constant growth stocks
7. Expected rate of return on a constant
8. Valuing the entire corporation
9. Stock market equilibrium

Topic 7: Derivatives and Risk Management

1. Risk management
2. Reasons to manage risk
3. Overview of derivatives
4. Options
5. Introduction to Option pricing models
• The Black-Scholes Option Pricing Model
6. Forwards and futures contracts
7. Other types of derivatives
8. Using derivatives to reduce risks

Topic 8: Currency Markets

1. International Monetary System

Topic 7: Derivatives and Risk Management

1. Risk management
2. Reasons to manage risk
3. Overview of derivatives
4. Options
5. Introduction to Option pricing models
• The Black-Scholes Option Pricing Model
6. Forwards and futures contracts
7. Other types of derivatives
8. Using derivatives to reduce risks

Topic 8: Currency Markets

1. International Monetary System

2. Foreign Exchange Rate Quotations
3. Trading in Foreign Exchange
4. International money and capital markets