Vision: Truth and Goodness in Man and for Mission: Produce through a responsive curriculum

all others through Education. Tomas Del Rosario College morally upright, committed and competent
Capitol Drive, San Jose, Balanga City graduates capable of meeting the growing
Tel No: (047) 237-3115; Tel No: (047) 791-6082 human resources needs in the profession,
government, business, industry and home.

Department: ACCOUNTANCY
Second Semester AY: 2021-2022

I. Course Code: II. Course Title:

PrE 7 Accounting for Business Combinations
III. Course Credit: IV. Prerequisite:
3 UNITS Intermediate Accounting 2
V. Course Description:
Accounting for Business Combinations
Program Educational Objectives:
A graduate of BS Accountancy should be able to:
1. Resolve business issues and problems, with a global and strategic perspective using knowledge and technical proficiency in the
areas of financial accounting and reporting, cost accounting and management, accounting and control, taxation, and accounting
information systems;
2. Conduct accountancy research through independent studies of relevant literature and appropriate use of accounting theory
methodologies;
3. Employ technology as a business tool in capturing financial and non-financial information, generating reports and making
decisions,
4. Apply knowledge and skills to successfully respond to various types of assessments; and (including professional licensure and
certifications); and
5. Confidently maintain a commitment to good corporate citizenship, social responsibility and ethical practice in performing functions
as an accountant.
Student Learning Outcomes/Objectives:
By the time of graduation, BSA students will be able to:
1. Understand the ethical and regulatory environment for accountants and the role accountants play in society to provide and ensure the integrity
of financial, managerial and other information.
2. Apply the critical thinking and analytical skills that support professional skepticism, assessment, and assurance of accounting information.
 Vision: Truth and Goodness in Man and for
all others through Education. Tomas Del Rosario College
Capitol Drive, San Jose, Balanga City
Tel No: (047) 237-3115; Tel No: (047) 791-6082
Mission: Produce through a responsive curriculum
morally upright, committed and competent
graduates capable of meeting the growing
human resources needs in the profession,
government, business, industry and home.

3. Develop communication skills that will allow them to effectively communicate financial and non-financial results.
4. Record, analyze, and interpret historical and prospective financial and non-financial information.
5. Use technology as appropriate to analyze financial and non-financial information.
6. Demonstrate an understanding of tax policy, strategy and compliance.
7. Understand international accounting issues and practices, including roles and responsibilities played by accountants within a global context.
Course General Objectives:
At the end of this course, students are expected to:
1. Account for Home Office and Branch Transactions
2. Be able to account for Business Combinations
3. Prepare Consolidated Financial Statements
4. Account for the Effects of Changes in Foreign Exchange Rates
5. Prepare restated financial statements of entities operating under Hyperinflationary Economies
6. Account for Derivatives and Hedging Transactions.

IV. Course Content

Outcome-Based
Assessment of Learning
Teaching and
Time Desired Learning Outcomes (DLO) Course Content/Subject Matter Outcomes (ALO)
Learning (OBTL)
Frame (Intended Learning Outcomes) (Topics) (Assessment
(Teacher-Learner
Methods/Tasks)
Activities)
Prelim Period
1ST
 School Mission & Vision  Vision, Mission, Goals and Core Values  Lecture  Discussion/Oral
Session (3  Program outcomes  Course Overview  Teacher led- recitation of the
hours)  Program Core Values  Rules and Policies class discussion vision, mission,
 Class Introduction  Concept Introduction  Illustrative and goals of the
 Sales Agency  Accounting System for Sales Agency Problems institution
 Home Office and Branch  Accounting for Branch Transactions  Individual  Getting students’
 Vision: Truth and Goodness in Man and for
all others through Education. Tomas Del Rosario College
Capitol Drive, San Jose, Balanga City
Tel No: (047) 237-3115; Tel No: (047) 791-6082
Mission: Produce through a responsive curriculum
morally upright, committed and competent
graduates capable of meeting the growing
human resources needs in the profession,
government, business, industry and home.

 Separate Financial Statements

 Combined Financial Statements expectations
 Reconciliation of Reciprocal Accounts sharing and  Discussion
Accounting
 Shipments to Branch at Billed Price discussion  Oral recitation
 Interbranch Transfers of Cash  Quiz
 Interbranch Transfers of Merchandise
 Introduction to Business  Introduction to Business
Combination Combinations
 Separate Financial Statements at  Acquisition of Control
the Date of Acquisition  Acquisition Method
 Consolidated Financial
 Acquisition of Net Assets  Lecture
Statements at the Date of
Acquisition  Computation of Goodwill or Gain on  Teacher led-
2nd  Discussion
Bargain Purchase class discussion
Session (3  Oral recitation
hours)  Minimum Fair Value of Non-  Illustrative
 Quiz
Controlling Interest Problems
 Changes in Provisional Values
 Acquisition of Stock
 Parent and NCI Allocation of Goodwill
and Excess of Fair Value over Book
Value
3rd – 6th  Intercompany Inventory  Accounting Procedure for Consolidation  Lecture  Discussion
Session (12 Transactions  Definition of Control  Teacher led-  Oral recitation
hours)  Intercompany Fixed Asset  Accounting for Consolidated class discussion  Quiz
Transactions Comprehensive Income  Illustrative
 Separate Financial Statements  Parent Company Approach Problems
Subsequent to the Date of  Entity Approach
Acquisition  Accounting for Investment in Subsidiary
 Consolidated Financial  Equity Method
Statements Subsequent to the  Step Acquisition
 Vision: Truth and Goodness in Man and for
all others through Education. Tomas Del Rosario College
Capitol Drive, San Jose, Balanga City
Tel No: (047) 237-3115; Tel No: (047) 791-6082
Mission: Produce through a responsive curriculum
morally upright, committed and competent
graduates capable of meeting the growing
human resources needs in the profession,
government, business, industry and home.

Date of Acquisition  Deconsolidation

 Review of Business
Combination Topics
 Introduction to Business
Combination
 Separate Financial Statements
at the Date of Acquisition
 Consolidated Financial
Statements at the Date of
Acquisition
7th Session  Intercompany Inventory
Transactions
 Intercompany Fixed Asset
Transactions
 Separate Financial Statements
Subsequent to the Date of
Acquisition
 Consolidated Financial
Statements Subsequent to the
Date of Acquisition
 Upstream and Downstream Transactions
 Deferral of Unrealized Profit and
Gain/Loss on Sale
 Amortization of Unrealized Profit and
Gain/Loss on Sale
 Cost and Equity Method Comparison
 Perpetual and Periodic Inventory System
Comparison
 Inventory Written Down to LCNRV
Prelim Exam – 6th Session
Midterm Period
 Accounting Procedure for Consolidation  Lecture
 Definition of Control  Teacher led-
 Accounting for Consolidated class discussion
Comprehensive Income  Illustrative
 Parent Company Approach Problems
 Entity Approach
 Accounting for Investment in Subsidiary
 Equity Method
 Step Acquisition
 Deconsolidation  Reporting
 Upstream and Downstream Transactions  Oral recitation
 Deferral of Unrealized Profit and
Gain/Loss on Sale
 Amortization of Unrealized Profit and
Gain/Loss on Sale
 Cost and Equity Method Comparison
 Perpetual and Periodic Inventory System
Comparison
 Inventory Written Down to LCNRV
 Vision: Truth and Goodness in Man and for
all others through Education. Tomas Del Rosario College
Capitol Drive, San Jose, Balanga City
Tel No: (047) 237-3115; Tel No: (047) 791-6082
Mission: Produce through a responsive curriculum
morally upright, committed and competent
graduates capable of meeting the growing
human resources needs in the profession,
government, business, industry and home.

 Hyperinflation  Lecture
 Restatement of financial statements  Teacher led-
 Financial Reporting in  Functional currency class discussion
 Discussion
8th – 9th Hyperinflationary Economies  Foreign currency transactions  Illustrative
 Oral recitation
Session  The Effects of Changes in  Translation of financial statements Problems
 Quiz
Foreign Exchange Rates  Foreign operation
 Relevant provisions of the PFRS for
SMEs
Midterm Exam – 10th Session
Final Period
 Derivatives
 Measurement
 Hedging transactions
 Relevant provisions of the PFRS for
 Lecture
SMEs
 ACCOUNTING FOR  Teacher led-  Discussion
11th – 12th  Forward contracts
DERIVATIVES & HEDGING class discussion  Oral recitation
Session  Formal hedge documentation
TRANSACTIONS  Illustrative  Quiz
 Futures contracts
Problems
 Options
 Swaps
 Hedges of net investment
 Embedded derivatives
Final Exam – 13th Session

V. Course Requirement/Course Assessment (Grading System)

1. Quizzes – 65% of Class Standing
2. Recitation – 25% of Class Standing
3. Attendance – 10% of Class Standing
Vision: Truth and Goodness in Man and for
all others through Education. Tomas Del Rosario College
Capitol Drive, San Jose, Balanga City
Tel No: (047) 237-3115; Tel No: (047) 791-6082
Mission: Produce through a responsive curriculum
morally upright, committed and competent
graduates capable of meeting the growing
human resources needs in the profession,
government, business, industry and home.

4. Long Exams computed as follows:

A. PRELIMS AVERAGE: D. FINAL GRADE

CSx2+Examination Rating PA+MA+FA
3 3

B. MID-TERM AVERAGE
CSx2+Examination Rating
3

C. FINAL AVERAGE
CSx2+Examination Rating
3

VI. References

Prepared by: Reviewed by: Recommending Approval:

RACHELLE ANNE C. REYES, CPA JEFFERSON L. TRIGUERO, MBA LUISA M. ISIDRO, Ph. D.
Instructor Department Chair College Dean (OIC)

Approved:
 Vision: Truth and Goodness in Man and for
all others through Education. Tomas Del Rosario College
Capitol Drive, San Jose, Balanga City
Tel No: (047) 237-3115; Tel No: (047) 791-6082
Mission: Produce through a responsive curriculum
morally upright, committed and competent
graduates capable of meeting the growing
human resources needs in the profession,
government, business, industry and home.

MERCEDES G. SANCHEZ, Ed. D.

Vice President for Academics, Student Affairs and Extension Services