Finacc Outline

DE LA SALLE LIPA College of Business, Economics, Accountancy and Management Accountancy Department 1st Semester AY 2013-2014 FINANCIAL ACCOUNTING (FINACC) COURSE OUTLINE PREREQUISITE: COURSE CREDIT: COURSE DESCRIPTION:

Basiacc Three (3) units This course introduces the discipline of financial accounting. It enables students to learn about accounting as an information development and communication function that supports economic decision-making. The emphasis is on understandability of financial statements. This includes the basic discussions on the elements (assets, liabilities and shareholders’ equity) of the financial statements. Also integrated in the course are business ethics and the professional concepts of the business community.

GENERAL OBJECTIVES:

At the end of this course, students are expected to: Cognitive: 1. Develop basic skills in recognition, valuation and presentation in the financial statements, of assets, liabilities and shareholders’ equity accounts. 2. Understand financial statements, their purposes and uses. 3. Learn the basic concepts (formation, capitalization, equity accounts) for partnerships and corporations. Psychomotor: 1. Apply the basic accounting principles, theories and concepts to specific asset, liability and shareholders’ equity accounts. 2. Apply the skills in computation of valuation problems. Affective: 1. Appreciate the need for the fair and reliable reporting of assets, liabilities, shareholders’ equity, revenue and expenses, as they affect the economic decision of financial statement users. 2. Appreciate the significance of accounting in his/her personal life.

Time Frame

Week 1

Weeks 2-3

Contents I. Introduction to Financial Accounting 1. Definition of financial accounting 2. Review of underlying assumptions of accounting 3. Review of users of financial statements 4. Objectives of financial reporting 5. Review qualitative characteristics of financial accounting information 6. Samples of financial statements

Sources Robles & Empleo, Intermediate Accounting, Vol. 1, 2012. Valix, Peralta & Valix, Financial Accounting, Volume 1, 2011.

II. Analyzing and summarizing business transactions 1. Definition of business transactions and source documents

Warren, Reeve and Duchac, Accounting, 2009.

Week 4

2. Summary of business activities (financing, investing, operating) 3. The accounting equation 4. Analyzing and accounting for business transactions 5. Presentation of results of routine transactions by preparing the Basic Income Statement, Owners’ equity statement, Balance sheet, and Statement of cash flows) 6. Relationship among the financial statements III. Cash 1. Definition of cash 2. Special cases 3. Bank reconciliation

Robles & Empleo, Intermediate Accounting, Vol. 1, 2012.

Week 5

IV. Receivables 1. Definition of receivables 2. Classification 3. Accounts receivable 4. Notes receivable 5. Accounting for uncollectible accounts 6. Receivable financing

Robles & Empleo, Intermediate Accounting, Vol. 1, 2012.

Week 6

V. Inventories 1. Definition of inventories 2. Special cases 3. Inventory accounting systems 4. Accounting methods for inventories

Robles & Empleo, Intermediate Accounting, Vol. 1, 2012.

Week 7

VI. Property, Plant and Equipment (PPE) 1. Definition and nature of PPE 2. Measurement at initial recognition 3. Specific items of PPE 4. Depreciation and depletion

Robles & Empleo, Intermediate Accounting, Vol. 1, 2012.

Week 8

VII. Intangible Assets 1. Nature of Intangible Assets 2. Characteristics of intangible assets 3. Valuation of intangibles 4. Amortization of intangibles 5. Marketing-related intangibles 6. Customer-related intangibles 7. Artistic-related intangibles 8. Contract-related intangibles 9. Technology-related intangibles 10. Goodwill 11. Research and development costs

Robles & Empleo, Intermediate Accounting, Vol. 1, 2012.

Week 9

VIII. Investments in Equity/Debt Securities 1. Nature and definition of investments 2. Investments in equity securities 3. Classification of investments in equity securities 4. Share split 5. Dividends 6. Stock Rights 7. Investment in Debt Securities

Robles & Empleo, Intermediate Accounting, Vol. 1, 2012.

Week 10 Week 11

Week 12

MID TERM EXAMINATION IX. Investment Property, Other Non-Current Financial Assets and Assets Held for Sale 1. Definition and examples of investment property 2. Assets not classified as investment property 3. Other non-current financial assets X. Biological Assets 1. Nature of biological assets and agricultural produce 2. Preparing the Worksheet

Week 13

XI.

Current Liabilities, Provisions and Contingencies 1. Definition and nature of liabilities 2. Diagram of status of a liability 3. Classification of liabilities

Week 14

XII. 1. 2. 3.

Non-Current Liabilities Definition and nature of bonds Bond premium/discount amortization Long-term notes

Robles & Empleo, Intermediate Accounting, Vol. 1, 2012.

Robles & Empleo, Intermediate Accounting, Vol. 1, 2012.

Robles & Empleo, Intermediate Accounting, Vol. 2, 2012.

Robles & Empleo, Intermediate Accounting, Vol. 2, 2012.

Week 15

XIII. SHAREHOLDERS’ EQUITY 1. Nature of shareholders’ equity 2. Ordinary and preference shares 3. Retained earnings

Robles & Empleo, Intermediate Accounting, Vol. 2, 2012.

Week 16

XIV. Review of Income Statement 1. Uses of an income statement Concept: acctg. period cycle Concept: adequate disclosure 2. Analyzing an income statement 3. Acceptable component percentages

Gilbertson, Lehman & Ross. Fundamentals of Accounting, 2010.

Week 17

XV. Review of Balance Sheet 1. Balance Sheet a. Concept: accounting period cycle b. Assets c. Liabilities d. Stockholders’ Equity 2. Analyzing a Balance Sheet a. Working capital b. Current ratio

Gilbertson, Lehman & Ross. Fundamentals of Accounting, 2010.

FINAL EXAMINATION

Textbook and References :

1. 2. 3.

Intermediate Accounting, Robles & Empleo, vol. 1, 2012. (Textbook) Intermediate Accounting, Robles & Empleo, vol. 2, 2012. (Textbook) Fundamentals of Accounting, Gilbertson, Lehman & Ross,

4. 5. Course Requirements:

2010. Financial Accounting, Valix, Peralta & Valix, Vol. 1, 2011. Accounting, Warren, Reeve and Duchac, 2009. 1. Class standing comprises homework, seat work, recitation, board work, attendance and behavior. 2. A minimum of four (4) quizzes for each term (midterm and final term). 3. Each student is required to submit two (2) journal article reviews during the term. 4. Strict compliance with the student manual/school policies will be observed.

Grading System: Midterm Quizzes Class Standing • Assignments • Seatwork • Recitation/Graded Participation • Report/Project/Written Requirements Midterm Examination

1/3 1/3

1/3

Finals Quizzes Class Standing • Assignments • Seatwork • Recitation/Graded Participation • Report/Project/Written Requirements Final Examination

1/3 1/3

Final Grading System (Final Course Grade) Midterm

1/3

Final

2/3

1/3

Prepared by:

Noted by :

Approved by:

________________________ IAN JERRICK B. INANDAN, CPA Accounting Instructor

_________________________ RENILLYN FALCESO, CPA, MBA Department Chair

__________________________ LANI R. GARACHICO, CPA, MBA Dean - CBEAM