SILLIMAN UNIVERSITY

DUMAGUETE CITY

COLLEGE OF BUSINESS ADMINISTRATION

ACCOUNTANCY DEPARTMENT

COURSE SYLLABUS FOR

BSA 12 C - Intermediate Accounting 1

2nd Semester, SY 2021-22

CLASS DAYS AND CLASS TIME: ROOM:

MTH BSA 12C-A 08:30AM-11:30 AM Virtual - SOUL

BSA 12C-B 01:00PM-04:00 PM Virtual - SOUL
BSA 12C-C 04:00PM-07:00 PM Virtual - SOUL

LECTURER/FACILITATOR:

Asst. Prof. Meliton G. Gabas, CPA, MBA, CFMP

Prepared by:

Asst. Prof. Meliton G. Gabas, CPA, MBA, CFMP Date: February 10, 2022
Professor, Accountancy Department

Reviewed by:

Asst. Prof. Florenda A. Caseres, CPA, MBA, CFMP Date: February 11, 2022
Chairperson, Accountancy Department

Approved by:

Dr. Gloria G. Futalan, LLB, PhD. Date: ____________

Dean, CBA

PLACEMENT : Second Semester

PRE-REQUISITE : BSA11 & BSA13
TOTAL CREDITS : 6 units
SILLIMAN UNIVERSITY VISION STATEMENT

A leading Christian educational institution committed to total human development for the
well-being of society and environment..

SILLIMAN UNIVERSITY MISSION STATEMENT

In this regard, the University will:

1. Infuse into the academic learning the Christian faith anchored on the gospel of
Jesus Christ;
2. Provide an environment where Christian fellowship and relationship can be
nurtured and promoted;
3. Provide opportunities for growth and excellence in every dimension of the
University life in order to strengthen character, competence and faith;
4. Instill in all members of the University community an enlightened social
consciousness and a deep sense of justice and compassion;
5. Promote unity among peoples and contribute to national development.

GOAL OF THE COLLEGE OF BUSINESS ADMINISTRATION

The College of Business Administration aims to inculcate in the students the philosophy
of service to other nurtured by the ideals of the Christian faith as it prepares them for
responsible leadership in agriculture, commerce, industry and government.

PHILOSOPHY OF CBA EDUCATION

“Service to others nurtured by the ideals of Christian Faith.”

GOALS AND OBJECTIVES OF THE ACCOUNTANCY DEPARTMENT

The B.S. Accountancy program is designed to prepare the students to become

competent and qualified accounting practitioners. Technical competence, sound
judgment, independence in mental attitude, honor and integrity are strongly emphasized
in developing a true Christian Certified Public Accountant.

COURSE DESCRIPTION

This course is designed for the BS Accountancy student who has completed basic
accounting studies. This is the first part of the intermediate courses in accounting. It
involves the discussion and appreciation of the financial accounting standards
(PFRS/PAS) set forth by the authoritative bodies of the profession.

It is designed to help students make the connection between accounting principles and
the central activities of business, that is, operating, financing, and investing. These are
activities that attract customers, produce bottom-line results, and mean success or
failure for companies and the people who run them. Concentration on these three
essential activities represents an important step forward from the traditional balance
sheet approach, which focuses on accounting of individual elements without making
explicit links to business processes or functions.

It covers the detailed discussion, appreciation and application of accounting principles

covering the cash and cash equivalents, accounts receivable, notes receivable, loan
receivable, inventories, investments and financial assets accounts. Each major account
will be studied in the light of proper recognition and selection, valuation, statement
presentation and special treatment and consideration necessary for each.

2
GENERAL OBJECTIVES OF THE COURSE

The student should be able to apply knowledge of financial accounting concepts to

problems and situations relating to the recognition and measurements of cash and cash
equivalents, accounts receivable, notes receivable, loan receivable, inventories,
investments and financial assets in accordance with Philippine Financial Reporting
Standards (PFRS)/Philippine accounting Standards (PAS) which are based on
International Financial Reporting Standards (IFRS)/International Accounting Standards
(IAS).

COURSE LEARNING OUTCOMES

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

Cognitive:
1. Explain accounting and its basic purpose, basic concepts applied in the recognition
and measurements of the elements of financial statements in accordance with the
financial reporting standards.
2. Explain the conceptual framework for financial reporting.
3. Obtain knowledge of the scope, applicability, and principles of PAS and PFRS.

Psychomotor:
Apply the provisions of the Philippine Accounting Standards (PAS) and Philippine
Financial Reporting Standards (PFRSs) in the recognition and measurements of the
elements of financial statements and other reporting requirements.

Affective:
Comply with the financial reporting standards in the recognition of the elements of
financial statements and the disclosure requirements.

SPECIFIC OBJECTIVES

At the end of the course, the student is expected to:

1. Make the connection between accounting principles and the central activities of
business – operating, financing, and investing.
2. Work as prime movers or teammates in these functional areas or be advisors to
those who do the job.
3. Prepare accounting journal entries to record business transactions in accordance
with generally accepted accounting principles.
4. Prepare the proper classification and presentation of the cash and cash equivalents,
accounts receivable, notes receivable, loan receivable, inventories, investments
and financial assets accounts in the financial statements in good form and in
accordance with Philippine Financial reporting Standards (PFRS) and Philippine
Accounting Standards (PAS).
5. Discuss the various aspects of ethical issues involved in business transactions.

3
TEXTBOOK:

1. Financial Accounting Vol.1, 2021 Edition by Conrado T. Valix, Jose F. Peralta

and Christian Aris M. Valix, GIC Enterprise & Co, Inc., copyright 2021.

REFERENCES:

1. Philippine Financial Reporting Standards (PFRS) by the Financial Reporting

Standards Council (FRSC) and Philippine Accounting Standards (PAS) by the
Accounting Standards Council of the Philippines (ASC).
2. International Financial Reporting Standards (IFRS) by the International
Accounting Standards Board (IASB) and International Accounting Standards
(IAS) by the International Accounting Standards Council (IASC).
3. Intermediate Accounting Vol.1, 2020 Edition by Conrado T. Valix, Jose F. Peralta
and Christian Aris M. Valix, GIC Enterprise & Co, Inc., copyright 2020.
4. Intermediate Accounting, IFRS Edition 3rd Edition by Kieso, Weygandt and
Warfield, John Wiley & Sons, Inc., copyright 2019.
5. Other texts on Intermediate Accounting.

METHODOLOGY

Lecture/ discussion and problem solving.

BASES OF EVALUATION

1. Long (chapter) exams, mid-term and final exams.

Types of Exams:
a. Theory – identification, true or false, enumeration, discussion, and others.
b. Problem solving – short, long, and comprehensive problems
Coverage of the Mid-term Exam: From the first chapter at the start of the
semester until the last chapter discussed before mid-term exam (at the middle of
the semester).
Coverage of the Final Exam: From the first chapter at the start of the semester
until the last chapter discussed at the end of the semester.

2. Assignments (considered as one long exam).

GRADING SYSTEM:

MID-TERM GRADE computation:

Average of long (chapter) exams (homework considered as one chapter exam) 50%
Mid-term Exam 50%
Total 100%
====

FINAL GRADE computation:

Average of long (chapter) exams (homework considered as one chap exam) 33 1/3%
Mid-term grade 33 1/3%
Final Exam 33 1/3%
Total 100%
====
Note: The passing grade for accountancy students in all accountancy subjects is 1.0,
which is equivalent to 50% of the highest possible score (in all exams). However, in
order to progress to the next level, a cut-off grade of “2.0” is required for BSA12C.

4
 SCHEDULE OF TOPICS/COURSE OUTLINE

Topics Learning Outcomes Strategies / Activities Assessment of

Learning
Outcome
Topic 1: Cash Students to: Teacher and student Oral Participation
Chapter 1: Cash and Cash Equivalents 1. Understand the concept of cash and cash equivalents discussion thru live stream Assignment
Definition of cash 2. Identify items considered cash and cash equivalents or open forum session in Chapter Exam
Cash equivalents 3. Know the accounting of petty cash fund SOUL.
Time Deposit, money market and treasury bill
4. Understand the need for a bank reconciliation.
Imprest system Uploading of prerecorded
Petty cash fund – imprest fund system and fluctuating fund system 5. Know the reconciling items affecting the cash in bank per ppt presentation and other
ledger and per bank statement. materials for student to
Chapter 2: Bank Reconciliation 6. Be able to prepare the bank reconciliation statement. study.
Bank deposits 7. Be able to prepare the necessary adjusting entries to reconcile
Book reconciling items – credit memo, debit memo and errors the cash in bank ledger with the cash in bank per bank Administer chapter (long)
Bank reconciling items – deposit in transit, outstanding checks and statement. exam as well as providing
errors students with discussion of
8. Be able to prepare a two-dated bank reconciliation.
Adjusted balance, book to bank and bank to book answers of items for
9. Know the computation of deposits in transit and outstanding
individual homework.
checks.
Chapter 3: Proof of Cash
10. Know the reconciliation of cash receipts per ledger with cash
Two-date bank reconciliation Answer end-of-chapter
receipts per bank statement.
Computation of deposits in transit Problems 1-16 to 1-28.
11. Know the reconciliation of cash disbursements per ledger with
Computation of outstanding checks Problems 2-12 to 2-21
cash disbursements per bank statement.
Problems 3-9 to 3-15.
12. Understand the nature of proof of cash.
13. Be able to prepare a reconciliation showing proof of cash.
Topic 2: Accounts Receivable Students to: Teacher and student Oral Participation
Chapter 4: Accounts Receivable 1. Know the classification and presentation of receivables. discussion thru live stream Assignment
Initial measurement of accounts receivable 2. Know the initial and subsequent measurement of accounts or open forum session in Chapter Exam
Subsequent measurement of accounts receivable receivable. SOUL.
Gross method and net method of recording credit sales 3. Identify the adjustments necessary in determining the net
Allowance method and direct write-off method realizable value of accounts receivable. Uploading of prerecorded
4. Understand the gross method and net method of recording ppt presentation and other
Chapter 5: Estimation of Doubtful Accounts credit sales. materials for student to
Aging of accounts receivable 5. Know the accounting for doubtful accounts, worthless study.
Percentage of accounts receivable accounts written off and recoveries of accounts written off.
Percentage of sales 6. Identify the methods of estimating doubtful accounts expense. Administer chapter (long)
7. Understand the argument for and against the aging of accounts exam as well as providing
Chapter 6: Notes Receivable receivable method, the percentage of accounts receivable students with discussion of
Definition of notes receivable method and the percentage of sales method. answers of items for
Subsequent measurement 8. Determine the doubtful accounts expense and the allowance individual homework.
Interest bearing note for doubtful accounts under aging, percentage of accounts
Noninterest bearing note receivable and percentage of sales method. Answer end-of-chapter
9. Understand the concept and nature of notes receivable. Problems 4-8 to 4-18.
Chapter 7: Loan Receivable 10. Know the initial and subsequent measurement of notes Problems 5-10 to 5-23.
Initial measurement of loan receivable receivable and loan receivable. Problems 6-7 to 6-18.
Subsequent measurement of loan receivable 11. Know the accounting for interest-bearing and noninterest- Problems 7-9 to 7-15.
Measurement of impairment bearing note receivables. Problems 8-14 to 8-19.
Three-stage impairment approach 12. Recognize the impairment of loan receivable. Problems 9-8 to 9-16.
13. Describe the three-stage approach of loan impairment.
Chapter 8: Receivable Financing 14. Identify the sources of financing through receivables.
Pledge of accounts receivable 15. Know the accounting for pledge and assignment of accounts
Assignment of accounts receivable receivable.
Factoring of accounts receivable 16. Understand factoring of accounts receivable.
17. Know the classification and presentation of pledged, assigned
Chapter 9: Receivable Financing “Discounting of note receivable” and factored accounts receivable.
Discounting of note receivable without recourse 18. Know the concept of discounting of note receivable.
Discounting of note receivable with recourse 19. Distinguish discounting of note receivable with recourse and
without recourse.
20. Understand the discounting of note receivable accounted for
as conditional sale with recognition of contingent liability and
accounted for as a secured borrowing.
Topic 3: Inventories Students to: Teacher and student Oral Participation
Chapter 10: Inventories 1. Define inventories. discussion thru live stream Assignment
Definition of inventories 2. Identify the major classifications of inventory. or open forum session in Chapter Exam
Freight collect and freight prepaid 3. Account for inventory transactions using periodic and SOUL.
FOB destination and FOB shipping point
perpetual inventory system.

6
Periodic and perpetual system 4. Know the gross method and net method of recording Uploading of prerecorded
Gross method and net method of recording purchases purchases. ppt presentation and other
Cost of purchase, cost of conversion and other cost 5. Identify the items to be included in the inventory cost. materials for student to
study.
6. Identify the cost formulas required by PFRS.
Chapter 11: Inventory Cost Flow
FIFO 7. Apply the FIFO, weighted average, moving average cost Administer chapter (long)
Average method formula and specific identification method. exam as well as providing
Specific identification 8. Know the measurement of inventory in the statement of students with discussion of
financial position. answers of items for
Chapter 12: Lower of Cost and Net Realizable Value 9. Explain the lower of cost and net realizable value basis of individual homework.
Measurement at lower of cost and NRV measurement.
Inventory write down and reversal of write down Answer end-of-chapter
10. Account for inventory writedown using allowance method and
Purchase commitments Problems 10-9 to 10-32.
direct method. Problems 11-16 to 11-24.
Chapter 13: Gross Profit Method 11. Know the treatment of purchase commitments in relation to Problems 12-8 to 12-18.
Basic formula for gross profit method lower of cost and net realizable measurement. Problems 13-1 to 13-17.
Gross profit rate based on sales 12. Identify the methods of estimating inventory value. Problems 14-1 to 14-16.
Gross profit rate based on cost 13. Understand the rationale for making an estimate of inventory
value.
Chapter 14: Retail Inventory Method
14. Apply the gross profit method of estimating inventory value.
Conventional or conservative or LCNRV approach
Average cost approach 15. Understand the gross profit rate based on sales and gross
FIFO approach profit rate based on cost.
16. Apply the retail inventory method using the conservative
(conventional) approach, the average cost approach and the
FIFO approach.

Topic 4: Financial Asset Students to: Teacher and student Oral Participation
Chapter 15: Financial Asset at Fair Value 1. Define a financial asset. discussion thru live stream Assignment
Definition and examples of financial asset 2. Know the classification of financial assets based on the or open forum session in Chapter Exam
Equity and debt security business model of managing financial assets. SOUL.
Initial and subsequent measurement of financial asset 3. Know the initial and subsequent measurement of financial
Financial assets at fair value through profit or loss assets. Uploading of prerecorded
Financial asset held for trading 4. Identify the financial assets that can be measured at fair ppt presentation and other

7
Equity investment at fair value through comprehensive income value through profit or loss. materials for student to
Debt investment at amortized cost 5. Understand the measurement of equity investments at fair study.
Debt investment at fair value through other comprehensive income value through other comprehensive income.
Impairment of financial assets at fair value and at amortized cost 6. Understand the measurement of debt investments at Administer chapter (long)
amortized cost. exam as well as providing
Chapter 16: Investment in Equity Securities 7. Understand the measurement of debt investments at fair students with discussion of
Cash dividend, property dividend, liquidating dividend, share value through other comprehensive income. answers of items for
dividend 8. Determine the forms of equity investments. individual homework.
Shares received in lieu of cash dividend 9. Understand the recognition of cash dividend, property
Cash received in lieu of stock dividend dividend and liquidating dividend. Answer end-of-chapter
Share split, special assessment & redemption of shares 10. Understand other issues related to equity investments, such Problems 15-8 to 15-29.
Stock right as share split, special assessment, redemption of shares and Problems 16-10 to 16-20.
share right. Problems 17-8 to 17-18.
Chapter 17: Investment in Associate – Basic Principles 11. Understand intercorporate share investment. Problems 18-7 to 18-11.
Significant influence 12. Know the meaning of significant influence. Problems 19-8.
Equity method 13. Identify the factors that indicate significant influence. Problems 20-13 to 20-23.
Excess cost over carrying amount 14. Understand the equity method of accounting for equity Problems 21-6.
Excess fair value investment.
Investee with heavy losses 15. Know the treatment of upstream and downstream
Investee with preference shares transactions between the investor and associate.
Other changes in equity 16. Know the procedure when the investor ceases to have
significant influence.
Chapter 18: Investment in Associate – Other accounting issue 17. Understand the recognition of an investment in associate
Upstream and downstream transactions achieved in stages.
Discontinuance of equity method 18. Know the accounting for equity investment of less than 20%
Measurement after loss of significant influence under the fair value and cost method.
Equity method not applicable 19. Recognize a change from fair value or cost method to equity
Investment of less than 20% method.
Investment in associate achieved in stages 20. Understand the nature of a bond.
Change from cost method to equity method 21. Know the initial and subsequent measurement of bond
Change from fair value method to equity method investment.
22. Understand the acquisition of bond investment held for
Chapter 19: Financial Asset at Amortized Cost trading,
Definition of bond 23. Understand the measurement of bond investment at

8
Classification of bond investment amortized cost.
Initial measurement of bond investment 24. Apply the straight line method of amortizing bond discount
Subsequent measurement of bond investment and premium.
Amortization of bond discount and bond premium 25. Apply the bond outstanding method of amortizing bond
Straight line method of amortization discount and premium.
Bond outstanding method of amortization 26. Apply the effective interest method of amortizing bond
discount and premium.
Chapter 20: Effective Interest Method – Amortized Cost, FVOCI and 27. Apply the measurement of bond investment at fair value
FVPL through other comprehensive income.
Effective interest method of amortization 28. Apply the fair value option of measuring bond investment.
Bond investment – FVOCI 29. Be able to determine the market price of bonds.
Fair value option 30. Know the requirement for the reclassification of financial
Market price of bonds asset between categories.
31. Be able to recognize the reclassification of financial asset.
Chapter 21: Reclassification of Financial Asset 32. Identify the financial asset that can be reclassified to other
Requirement for reclassification categories.
Exemptions from reclassification 33. Identify the exemptions from reclassification of financial
asset.
Topic 5: Investment Property Students to: Teacher and student
Chapter 22: Investment Property 1. Understand the nature and purpose of investment property. discussion thru live stream
Definition and examples of investment property or open forum session in
2. Distinguish investment property and owner-occupied property.
Definition of owner-occupied property SOUL.
Partly investment and partly owner-occupied 3. Understand the requirement for the recognition of investment
Property leased to affiliate property. Uploading of prerecorded
Recognition of investment property 4. Know the initial and subsequent measurement of investment ppt presentation and other
Measurement of investment property property. materials for student to
Transfer of investment property between categories study.
Cash surrender value of life insurance 5. Know the recognition of transfers between investment
Disclosures related to investment property property and owner-occupied property. Administer chapter (long)
6. Know the meaning and recognition of cash surrender value. exam as well as providing
students with discussion of
answers of items for
individual homework.

9
 Answer end-of-chapter
Problems 22-9 to 22-16.
Topic 6: Property, Plant and Equipment Students to: Teacher and student Oral Participation
Chapter 23: Property, Plant and Equipment 1. Understand the nature and characteristics of property, plant discussion thru live stream Assignment
Definition of property, plant, and equipment or open forum session in Chapter Exam
and equipment.
Recognition and measurement of property, plant, and equipment SOUL.
Acquisition of property, plant, and equipment 2. Identify specific items of property, plant and equipment.
Optional disclosures related to property, plant, and equipment 3. Know and understand the initial recognition and subsequent Uploading of prerecorded
measurement of property, plant and equipment. ppt presentation and other
Chapter 24: Government Grant 4. Understand the nature of a government grant. materials for student to
Definition, recognition, and measurement study.
5. Know the recognition of a government grant.
Classifications of government grant
Accounting for government grant 6. Know the proper accounting treatment of government grant. Administer chapter (long)
Repayment of government grant 7. Know the accounting treatment of repayment of government exam as well as providing
Government assistance grant. students with discussion of
Disclosures related to government grant answers of items for
8. Understand government assistance in contradistinction with
individual homework.
Chapter 25: Borrowing Costs government grant.
Definition of borrowing costs 9. Define borrowing costs. Answer end-of-chapter
Qualifying asset 10. Know the concept of a qualifying asset for purposes of Problems 23-12 to 23-27.
Accounting for borrowing cost Problems 24-9 to 24-13.
capitalization of borrowing costs.
Asset financed by specific borrowing Problems 25-6 to 25-22.
Asset financed by general borrowing 11. Understand the proper accounting treatment of borrowing Problems 26-1 to 26-12.
Asset financed both by specific and general borrowing costs. Problems 27-1 to 27-13.
Disclosures related to borrowing cost 12. Distinguish specific borrowing and general borrowing in Problems 28-5 to 28-17.
relation to capitalization of borrowing costs. Problems 29-1 to 29-16.
Chapter 26: Land and Building Problems 30-7 to 30-19.
Land – classification, costs, land improvements, special assessment, Problems 31-8 to 31-12.
real property tax Problems 32-13 to 32-25.
Building – cost when purchased and constructed
Sidewalks, pavements, parking lot, driveways
Building fixtures
Ventilating system, lighting system, elevator
PIC Interpretation on land and building

10
Chapter 27: Machinery – Capital and Revenue Expenditure
Cost of machinery acquired by purchase
Capital expenditure and revenue expenditure
Recognition of subsequent cost
Additions, improvements or betterments, replacements, repairs,
rearrangement costs
Accounting for major replacement

Chapter 28: Depreciation

Concept of depreciation
Physical and functional depreciation
Straight line
Composite and group method
Working hours method
Output or production method

Chapter 29: Depreciation – Sum of Years’ Digit and Declining Balance

Sum of years’ digits
Declining balance and double declining balance
Inventory, retirement and replacement method
Change in useful life
Change in depreciation method

Chapter 30: Depletion

Exploration and evaluation of mineral resources expenditures
Exploration and evaluation asset
Wasting asset
Acquisition cost, exploration cost and development cost
Estimated restoration cost
Depletion and depletion method
Depreciation of mining property

Chapter 31: Revaluation

11
Frequency and basis of revaluation
Revalued amount
Fair value
Replacement cost
Revaluation surplus
Disclosures related to revaluation

Chapter 32: Impairment of Assets

Definition of impairment
Fair value less cost of disposal
Value in use
Recognition of impairment loss
Reversal of impairment loss
Impairment of cash generating unit
Corporate assets
Topic 7: Intangible Assets Students to: Teacher and student Oral Participation
Chapter 33: Intangible Assets - Goodwill 1. Describe the characteristics of intangible assets. discussion thru live stream Assignment
Definition of intangible asset 2. Identify the costs to include in the initial valuation of or open forum session in Chapter Exam
Initial and subsequent measurement of intangible asset intangible assets. SOUL.
Internally generated intangible asset
3. Explain the procedure for amortizing intangible assets.
Identifiable intangible asset Uploading of prerecorded
4. Describe the types of intangible assets.
Unidentifiable intangible asset ppt presentation and other
Amortization of intangible asset 5. Explain the accounting issues for recording goodwill. materials for student to
Recognition and measurement of goodwill 6. Explain the accounting issues related to intangible asset study.
impairments.
Chapter 34: Identifiable Intangible Asset 7. Identify the conceptual issues related to research and Administer chapter (long)
Definition of patent development costs. exam as well as providing
Amortization and impairment of patent students with discussion of
8. Describe the accounting for research and development and
Definition of trademark answers of items for
Amortization and impairment of trademark similar costs. individual homework.
Definition of copyright 9. Indicate the presentation of intangible assets and related
Amortization and impairment of copyright items. Answer end-of-chapter
Definition of franchise Problems 33-7 to 33-15.
Amortization and impairment of franchise Problems 34-15 to 34-24.

12
Leasehold right Problems 35-1 to 35-18.
Leasehold improvement
Customer list
Organization cost and start-up cost
Web site development cost

Chapter 35: Research and Development Cost – Computer software

Definition of research
Accounting for research cost
Definition of development
Accounting for development cost
Internally developed computer software
Classification of computer software

13