BACHELOR OF SCIENCE IN ACCOUNTANCY

Intermediate Accounting III

Course Description:

This course is the culmination of the Financial Accounting Cluster. It dealswith the preparation
of general purpose Financial Statements in accordancewith the generally accepted Philippine
Standards on financial reporting. Italso covers reconstruction of accounts from incomplete
records, changefrom cash basis to accrual basis of accounting, accounting changes,correction
of errors, discontinued operations and segment reporting.

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.

Credit: 3 Units

Prerequisite: Intermediate Accounting 1& 2

Course Learning Outcomes:

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

A. Cognitive
1. Identify how to recognize and measureasset, liabilities, equity, income and expense
in financial statements
2. Analyze the finances of the firm in terms of performance and profitability
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 standardsrelevant in preparation of financial statements

Required Textbooks and Resources:

1. Intermediate Accounting Volume 3 ; 2019 Edition; Valix, Peralta, Valix, 2019, GIC
Enterprises & Co., Inc.

References:

1. Intermediate Accounting Volume 3 ; 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

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

1 3 Introduction

Virtual Classroom House Sharing of expectations from the

Rules teacher to the students

Financial Statements Financial Statements

 Definition of financial  To identify the components of Lecture

statements financial statements Recitation on the topic.
 General purpose financial  To know the objective of Class Discussion
statements financial statements Students to answer exercises and
 To know the objective of Board Work problems related to the topic.
 Components of financial
statements financial reporting
Case Studies Quiz on the topic.
 Objective of financial  To understand the primary
statements responsibility for the
 Financial reporting preparation of financial
 Objective of financial statements
reporting  To identify the general
 Limitations of financial features in the preparation of
reporting financial statements
 Responsibility for financial
statements
 Accountability of
management
 General features of
financial statements
 Identification of financial
statements
 Statement of Financial Statement of Financial Position
Position
 To now the nature of a
 Definition of statement of statement of financial position
financial position  To understand the current
 Definition of assets and noncurrent classifications
 Current assets of assets and liabilities
 Presentation of current  To understand refinancing of
assets a currently maturing debt
 Noncurrent assets  To identify the components of
 Presentation of noncurrent equity in a corporation
assets  To identify the minimum line
 Definition of liabilities items in a statement of
 Currents liabilities financial position
 Presentation of current  To be able to prepare a
liabilities statement of financial position
 Noncurrent liabilities using Philippine format and
 Estimated liabilities IFRS format
 Contingent liability and
contingent asset
 Elements of shareholders’
equity with IAS term
 Line items in the statement
of financial position
 Forms of statement of
financial position
 Illustrative statement of
financial position

2 3 Notes to Financial Statements Notes to Financial Statements Lecture Recitation on the topic.
 Definition of notes to  To understand the nature of
Class Discussion Students to answer exercises and
financial statements notes to financial statements
 Purpose of notes to  To know the purpose of notes problems related to the topic.
Board Work
financial statements to financial statements
 Order of presenting notes  To know the order of Case Studies Quiz on the topic.
 Compliance with PFRS presenting notes to financial
 Accounting policies statements
 Disclosure of measurement
basis
 Disclosure of accounting
policies
 Disclosure of judgment
 Disclosure of estimation
uncertainty
 Other disclosures
 Examples of notes to
financial statements

Related Parties
Related Parties
 Definition of related party
 To understand the concept of
 Control, significant related parties
influence and joint control
 To identify related parties
 Examples of related parties
 To know the requirement for
 Examples of related party disclosure of related party
transactions relationship
 Disclosure of related party  To know the requirements for
transactions disclosure of party
 Key management transactions
personnel compensation
 Unrelates parties
 Transactions with
government- related entities
 Pricing policies
3 3 Events After the Reporting Events After the Reporting Lecture Recitation on the topic.
Period Period
 Definition  To understand the concept of Class Discussion Students to answer exercises and
 Types of events after the events after the reporting problems related to the topic.
Board Work
reporting period period
 Adjusting events  To know the types of events Quiz on the topic.
Case Studies
 Nonadjusting events after reporting period
 Financial statements  To understand the recognition
authorized for issue of adjusting and nonadjusting
events
 To know the date of
authorization for issue of
financial statements

Statement of Comprehensive Statement of Comprehensive

Income Income
 Definition of comprehensive  To understand the nature and
income usefulness if the income
 Components of statement
comprehensive income  To understand the concept of
 Definition of profit or loss comprehensive income, profit
 Definition of other or loss and other
comprehensive income comprehensive income
 Presentation of other  To identify the components of
comprehensive income other comprehensive income
 Separate income statement  To recognize the
 Line items in the reclassification adjustment
statements of related to other
comprehensive income comprehensive income
 Forms of income statement  To be able to present the
 Single statement of income statement following
comprehensive income the functional and natural
presentation
 Statement of Changes in Statement of Changes in Equity
Equity
 To understand the concept of
equity
 Definition of statement of  To know the preparation of
changes in equity the statement of change in
 Presentation of statement equity
of changes in equity  To identify the components of
 Statement of retained equity
earnings  To identify the items directly
Items directly affecting retained affecting retained earnings
earnings

4 3 Noncurrent Asset Held For Noncurrent Asset Held For Sale Lecture Recitation on the topic.
Sale
 To understand the recognition Class Discussion Students to answer exercises and
 Definition of noncurrent asset held for problems related to the topic.
Board Work
 Conditions for sale
classifications as held for  To know the conditions for Case Studies Quiz on the topic.
sale the classification of a
 Measurement and noncurrent asset held for sale
presentation of asset held  To know the measurement
for sale and presentation of
 Writedown to fair value and noncurrent asset held for sale
reversal of writedown  To know the recognition of a
 Revalued asset classified noncurrent asset that ceases
as held for sale to be classified as held for
 Abandoned noncurrent sale
asset
 Temporarily abandoned
noncurrent asset
 Change in classification of
noncurrent asset held for
sale
  Change in method of
disposal

Discontinued Operation Discontinued Operation

 Definition of discontinued  To understand the concept of

operation a discontinued operation
 Component of an entity  To know the recognition of a
 Component classified as discontinued operation
held for sale  To know the presentation of
 Timing of reporting discontinued operation in the
 Presentation of income statement
discontinued operation  To know he presentation of
Abandoned discontinued discontinued operation in the
operation statement of financial position
 To know the presentation of a
discontinued operation in the
statement of cash flows

Accounting Changes (Change Accounting Changes (Change

5 3 in Accounting Estimate) in Accounting Estimate) Lecture Recitation on the topic.

 Definition of accounting  To identify the categories of Class Discussion Students to answer exercises and
changes accounting change problems related to the topic.
Board Work
 Change in accounting  To understand the concept of
estimate a change in accounting Case Studies Quiz on the topic.
estimate
 To know the recognition and
reporting of change in
accounting estimate
 Accounting Changes Accounting Changes (Changes
(Changes in Accounting in Accounting Policy Prior
Policy Prior Period Errors) Period Errors)

 To understand the concept of

 Definition of accounting a change in accounting policy
policy  To know the recognition and
 Requirement for change in reporting of a change in
accounting policy accounting policy
 Change in reporting entity  To know the guideline when
 Absence of accounting selecting accounting policy in
standard the absence of an accounting
Treatment of prior period errors standard
 To understand the concept of
prior period errors
 To know the recognition and
reporting of prior period errors

6 3 Interim Financial Reporting Interim Financial Reporting Lecture Recitation on the topic.

 Definition of interim  To understand the nature of Class Discussion Students to answer exercises and
financial reporting interim financial reporting problems related to the topic.
Board Work
 Frequency of interim contrast to annual financial
reporting reporting Case Studies Quiz on the topic.
 Two views on interim  To know the basic principle of
financial reporting interim financial reporting
 Components of interim  To identify the components of
financial report an interim financial report
 Selected explanatory notes To be able to prepare and
 Presentation of interim present comparative interim
financial statements financial statements
 Basic principles for interim
financial reporting
Operating Segment
Operating Segment
  Core principle of segment  To know the core principle of
reporting segment reporting
 Definition of operating  To understand the concept of
segment an operating segment
 Chief operating decision  To identify the criteria for the
maker recognition of a reportable
 Management approach of segment
identifying operating  To identify the information
segment required to be disclosed for a
 Reportable operating reportable segment
segment
 Aggregation of operating
segments
 Information to be disclosed
for each segment
 Disclosure about general
information
 Disclosure of profit or loss,
segment assets and
segment liabilities
 Reconciliations of segment
information
 Entity-wide disclosures
 Revenue from products and
services
 Information about
geographical areas
 Information about major
customers

7 3 Single Entry Single Entry Lecture Recitation on the topic.

 Characteristics of single  To understand the concept of Class Discussion Students to answer exercises and
 entry single entry system in Board Work problems related to the topic.
 Single entry method of contrast to double entry
determining net income or system Case Studies Quiz on the topic.
loss  To identify the records kept
Preparation of financial under a single entry system
statements from single entry  To determine net income
records using the single entry method
 To be able to prepare
financial statements based on
a single entry method

Error Correction Error Correction

 Prior period errors  To know the definition of prior

 Treatment of prior period period errors
errors  To understand the accounting
 Statement of financial treatment of prior period
position errors errors
 Income statement errors  To be able to distinguish
 Counterbalancing errors counterbalancing errors and
 Non-counterbalancing non-counter balancing errors
errors  To be able to prepare the
 Worksheet for correction of necessary correcting entries
errors for prior period errors

8 3 Statement of Cash Flows Statement of Cash Flows Recitation on the topic.

Lecture
 Definition of statement of  To understand the nature and Students to answer exercises and
purpose of a statement of Class Discussion
cash flows problems related to the topic.
 Primary purpose of cash flows
Board Work
statement of cash flows  To understand the concept Quiz on the topic.
 Cash and cash equivalents and components of cash and Case Studies
 Operating activities cash equivalents
 Investing activities  To understand the
classifications of cash flows
  Financing activities as operating, investing and
 Noncash transactions financing
 Direct and indirect method  To be able to prepare a
statement of cash flows using
the direct method
 To be able to prepare a
statement of cash flows using
the indirect method

9 MIDTERMS EXAM

10 3 Book Value Per Share Book Value Per Share Lecture Recitation on the topic.
Class Discussion
 Definition of book value per  To define a book value per Students to answer exercises and
share share problems related to the topic.
Board Work
 Liquidation value of  To know the formula in the
preference share computation of book value Case Studies Quiz on the topic.
 Preference as to assets per share
 Preference as to dividends  To understand the
 Cumulative preference noncumulative, cumulative,
share nonparticipating and
 Noncumulative preference participating feature of
share preference share
 Participating preference  To distinguish preference as
share to assets and preference as
 Nonparticipating preference to dividends
share

Basic Earnings Per Share Basic Earnings Per Share

 Definition of earnings per  To define earnings per share

share  To know the proper
 Uses of earnings per share presentation of earnings per
  Presentation of earnings share
per share  To know the formula in
 Ordinary share computing basic earnings per
 Basic earnings per share share
 Average shares  To determine the weighted
outstanding average number of ordinary
 Participating preference shares
share
 Bonus issue
 Rights issue
 Basic loss per share

11 3 Diluted Earnings Per Share Diluted Earnings Per Share Lecture Recitation on the topic.
Class Discussion
 Potential ordinary share  To define diluted earnings per Students to answer exercises and
 Dilution and antidilution share problems related to the topic.
Board Work
 Diluted earnings per share  To identify potential ordinary
 Convertible bond payable shares Case Studies Quiz on the topic.
 Convertible preference  To distinguish dilutive and
share antidilutive securities
 Options and warrants  To know the formula in
 Treasury share method computing diluted earnings
 Diluted loss per share per share to convertible
bonds payable, convertible
preference shares and share
options or warrants


Diluted Earnings Per Share Diluted Earnings Per Share
12 3 (Multiple Potential Ordinary (Multiple Potential Ordinary Lecture Recitation on the topic.
Shares) Shares)
Class Discussion Students to answer exercises and
 Test for dilution  To determine diluted earnings Board Work
problems related to the topic.
  Ranking of potential per share where there is Quiz on the topic.
ordinary shares combination of multiple Case Studies
 Written put options potential ordinary shares
 Contingent ordinary shares  To apply the test for dilution
Convertible bonds payable of potential ordinary shares
settled in shares or cash  To know the accounting
treatment of contingent
ordinary shares in EPS
computation

Current Cost Accounting Current Cost Accounting

 Definition of current cost  To understand current cost

 Unrealized holding gain or accounting in contrast to
loss constant peso accounting
 Realized holding gain or  To know the meaning of
loss current cost
 Preparation of current cost  To determine realized and
income statement unrealized holding gain or
Preparation of current cost loss
statement of financial position  To be able to prepare
financial statements based on
current cost

13 3 SMEs – Definition SMEs – Definition Lecture Recitation on the topic.

 Definition of SMEs  To understand the meaning
Class Discussion Students to answer exercises and
 Public accountability of small and medium-sized
 SME under Philippine entities or SMEs as defined problems related to the topic.
Board Work
jurisdiction by IASB
 Micro-business entities  To determine whether an Case Studies Quiz on the topic.
 Exemptions from PFRS for entity has public
SMEs accountability
 Transition of PFRS for  To know the definition of an
SMEs SME under Philippine
 Date of transition jurisdiction
 To understand the opening
 Opening statement of statement of financial position
financial position of a first time adopter of
PFRS for SMEs

SMEs – Financial Statements

 Definition of financial
statements
 General features of
financial statements
 Components of financial
statements
 Statement of financial
position
 Single statement of income
and retained earnings
 Definition of comprehensive
income
 Profit or loss
 Other comprehensive
income
 Statement of
comprehensive income

Notes to Financial Statements

 Definition of notes to
financial statements
 Structure of notes
 Order of presenting notes

Related Parties

 Related party disclosures

 Definition of related parties
  Definition of unrelated
parties
 Events after the reporting
period

Accounting Changes

 Accounting policies
 Accounting estimate
 Prior period errors
 Reconciliation of PFRS for
SMEs and previous
accounting framework

14- 3 SMEs – Assets SMEs – Assets Lecture Recitation on the topic.

15 (Property, Plant and Equipment,
Government Grant, Borrowing Class Discussion Students to answer exercises and
Inventories Cost, Intangible Asset, problems related to the topic.
Board Work
Impairment of Asset)
 Definition of inventories Case Studies Quiz on the topic.
 Measurement of inventories  To know the initial and
subsequent measurement of
property, plant and equipment
Basic Financial Instruments of an SME
 To understand the recognition
 Definition of basic financial and measurement of
instruments government grant of an SME
 Conditions for basic  To understand the recognition
financial instruments of borrowing cost incurred by
 Financial instruments not an SME
qualifying as basic financial  To know the initial and
instruments subsequent measurement of
 Initial and subsequent intangible asset of an SME
measurement of basic
financial instruments  To understand the general
 principle of recognizing an
impairment loss

Investment in Associate

 Definition of associate
 Measurement of investment
in associate
 Cost model
 Equity method
 Fair value model
 Financial statement
presentation

Investment Property

 Definition of investment
property
 Examples of investment
property
 Initial and subsequent
measurement of investment
property
 Transfer of investment
property

16 3 SMEs – Liabilities SMEs – Liabilities Lecture Recitation on the topic.

(Provisions and Contingencies,
Leases, Employee Benefits, Class Discussion Students to answer exercises and
Provision and Contingencies Income Tax) problems related to the topic.
Board Work

 Definition of provision  To understand the recognition Case Studies Quiz on the topic.
 Recognition of provision of a provision
 Measurement of provision  To understand the recognition
 Contingent liability of a contingent liability and
 Contingent asset contingent asset
 To understand SME lease
accounting on the part of
Leases lessee and on part of lessor
 To define employee benefits
 Definition of lease  To measure a defined
 Leases outside the scope contribution and defined
of PFRS for SMEs benefit plan
 Finance lease and  To know the recognition and
operating lease measurement of declared tax
asset and liability
Employee Benefits 

 Definition of employee
benefits
 Short-term employee
benefits
 Defined contribution plan
 Defined benefit plan
 Other long-term employee
benefits
 Termination benefits

Income Tax

 Definition of income tax

 Current tax asset and
liability
 Deferred tax asset and
liability
 Recognition and
measurement of deferred
tax asset
 Recognition and
 measurement of deferred
tax liability
 Allocation of tax expense
 Offsetting of tax asset and
tax liability

17 3 SMEs – Equity SMEs – Equity Lecture Recitation on the topic.

(Share-based payment,
Class Discussion
 Definition of equity Specialized activities, Students to answer exercises and
 Measurement of equity Hyperinflation) problems related to the topic.
Board Work
shares
 Recognition of original  To know the measurement of Case Studies Quiz on the topic.
issue of shares equity
 To understand the recognition
of original issue of shares
Share-based Payment  To know the measurement of
equity settled share-based
 Share-based payment payment transactions
transaction  To know the measurement of
 Equity settled transaction cash settled share-based
 Cash settled transaction payment transactions
 Share options  To identify the specialized
 Share appreciation right activities of an SME
 Share-based transaction
with cash alternative

18 3 FINALS EXAMINATION
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%
Assignments 10% Assignments 10%
Recitation 10% Recitation 10%
Tests/Quizzes 20% Tests/Quizzes 20%
Output/Seatwork 20% Output/Seatwork 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, Dr. Gerardo Bautista, CPA

Faculty Member Chairperson Dean

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