Vision: “Truth and Goodness in Man and for all others Mission: Produce, through responsive curriculum, morally

: Produce, through responsive curriculum, morally upright, committed and competent graduates capable
through Education” of meeting the growing human resources needs in the profession, government, business, industry and home.

Tomas del Rosario College

City of Balanga

Curricular Program: Accountancy

Course Code: AE 14

Course Title: CONCEPTUAL FRAMEWORK AND ACCOUNTING STANDARDS

I. Course Description:

This course builds on the principles learnt in introductory financial accounting. An emphasis is placed on the conceptual framework of financial accounting. On the basis of
this conceptual framework, this course also examines the principles and problems of valuation of the individual items of assets, liabilities, and capital. This course then
investigates the impact of the valuation on the determination of revenues and expenses. As a whole, this course will provide students with an understanding of analysis and
interpretation of financial statements. A comparison between Philippine Accounting Standards and International Accounting Standards is also covered.

II. Course Credits: Three (3) units

III. Course General Objectives:

 Define accounting and describe the practice of the accountancy profession.

 Identify the overall objective of accounting.
 Know the nature, describe the purpose and understand the authoritative status of Conceptual Framework.
 Obtain understanding of the concepts that underlie the preparation and presentation of financial statements.
 Identify the components and understand the objective of financial statements.
 Discuss the objectives, scope, recognition, valuation and disclosure requirements of the accounting standards.
 Be familiar with the Conceptual Framework and different accounting standards to have a strong foundation for more advanced accounting subjects.
Vision: “Truth and Goodness in Man and for all others Mission: Produce, through responsive curriculum, morally upright, committed and competent graduates capable
through Education” of meeting the growing human resources needs in the profession, government, business, industry and home.

Tomas del Rosario College

City of Balanga

IV. Course Content

PRELIMINARY PERIOD

Teacher- Assessment
Time
Topics Intended Learning Outcomes Learner Methods/
Frame
Activities Tasks
A. The Accountancy Profession
Week 1 1. Definition of Accounting  Understand the definition of accounting and identify the  Lecture  Recitation
2. Public, Private and Government Accounting overall objective of accounting.  Class  Quiz
3. Limitation of the practice of public accountancy  Describe the practice of the accountancy profession. Discussion
 Understand the CPD in the field of accounting.
4. Accreditation to practice public accountancy
 Know the meaning of generally accepted accounting
5. Continuing Professional Development principles.
6. Generally Accepted Accounting Principles  Identify the standard-setting body in the Philippines.
7. Financial Reporting Standards Council  Describe the creation of the International Accounting
8. Philippine Interpretations Committee Standards Board.
9. International Accounting Standards Committee  Know the meaning of IFRS.
10. International Accounting Standards Board
 Know the nature, describe the purpose and understand the
11. International Financial Reporting Interpretations
authoritative status of Conceptual Framework.
Committee  Understand the objective and limitations of financial reporting.
B. Conceptual Framework  Identify the qualitative characteristics of accounting
1. Definition, purposes and scope of Conceptual information and understand the cost constraint on useful
Framework information.
2. Objective and limitations of financial reporting  Know the general objective of financial statements.
 Define a reporting entity.
3. Qualitative Characteristics
 Explain the assumptions underlying the preparation of
4. Financial Statements and reporting entity financial statements.
5. Underlying Assumptions  Define and understand the concepts of the elements of
6. Definition, recognition and measurement of the financial statements.
elements of financial statements  Explain presentation and disclosure as an effective
7. Presentation and disclosure communication tool.
8. Concepts of Capital  Define the two concepts of capital.
Vision: “Truth and Goodness in Man and for all others Mission: Produce, through responsive curriculum, morally upright, committed and competent graduates capable
through Education” of meeting the growing human resources needs in the profession, government, business, industry and home.

Tomas del Rosario College

City of Balanga

C. PAS 1 – Presentation of Financial  Identify the components and understand the objective of  Lecture  Quiz
Statements financial statements.  Class Discussion
1. Definition, components and objective of  Know the preparation and forms of presenting the financial
financial statements. statements.
2. Frequency of reporting  Identify the line items to be presented in the financial
3. Report form and account form of statement of statements.
financial position
4. Line items in the statement of financial
position
5. Line items in the statement of comprehensive
income
6. Functional and natural presentation of income
statement

Week 2 D. PAS 2 – Inventories  Understand the meaning of inventories.  Lecture  Quiz

1. Definition of inventories  Identify the items included in inventory cost.  Class Discussion
2. Cost of inventories  Identify the cost formulas required by IFRS.  Problem Solving
3. Cost formulas – FIFO and average method  Know the measurement of inventory in the statement of
4. Measurement of inventory at LCNRV financial position.

Week 3 E. PAS 7 – Statement of Cash Flows  Understand the nature and purpose of a statement of cash  Lecture  Quiz
1. Definition of statement of cash flows flows.  Class Discussion
2. Cash and cash equivalents  Understand the concept and components of cash and cash  Problem Solving
3. Operating, investing and financing activities equivalents.
4. Noncash investing and financing activities  Know the classifications of cash flows as operating,
investing and financing.
Vision: “Truth and Goodness in Man and for all others
through Education”
Tomas del Rosario College
Week 4 F. PAS 8 – Accounting Policies, Estimate and
Errors
1. Definition of accounting policy and accounting
estimate
2. Change in accounting policy and accounting
estimate
3. Prior period errors
G. PAS 10 – Events after the reporting period
1. Definition of events after reporting period
2. Adjusting and nonadjusting events
Week 5 H. PAS 16 – Property, Plant and Equipment
1. Definition, recognition, measurement and
derecognition of PPE.
2. Concept of depreciation
3. Methods of depreciation
Week 6 I. PAS 20 – Government Grant
1. Definition and recognition of government grant
2. Classifications of government grant
3. Proper accounting treatment
4. Difference between government grant and
government assistance
J. PAS 23 – Borrowing Costs
1. Concept of qualifying asset
2. Proper accounting treatment
3. Specific borrowing and general borrowing
Mission: Produce, through responsive curriculum, morally upright, committed and competent graduates capable
of meeting the growing human resources needs in the profession, government, business, industry and home.
City of Balanga
 Understand the concept of a change in accounting policy, a  Lecture  Quiz
change in accounting estimate and prior period errors  Class Discussion
 Know the recognition and reporting of a change in
accounting policy, a change in accounting estimate and
prior period errors
 Understand the concept of events after the reporting period.
 Know the types of events after reporting period.
 Understand the recognition of adjusting and nonadjusting
events.
 Know the definition and recognition of PPE  Lecture  Quiz
 Understand the measurement of PPE  Class Discussion
 Identify the methods of depreciating PPE  Problem Solving
 Define a government grant  Lecture  Quiz
 Know the recognition of a government grant  Class Discussion
 Identify the classifications of a government grant  Problem Solving
 Know the proper accounting treatment of government grant
 Distinguish government grant from government assistance
 Discuss the core principle and scope of PAS/IAS 23
 Identify costs eligible for capitalization
 Determine the date of commencement and suspension of
capitalization of borrowing costs
Vision: “Truth and Goodness in Man and for all others Mission: Produce, through responsive curriculum, morally upright, committed and competent graduates capable
through Education” of meeting the growing human resources needs in the profession, government, business, industry and home.

Tomas del Rosario College

City of Balanga

MIDTERM PERIOD

Teacher- Assessment
Time
Topics Intended Learning Outcomes Learner Methods/
Frame
Activities Tasks
A. PAS 28 – Investment in Associates
Week 1  Describe the objective and scope of PAS/IAS 28  Lecture  Quiz
1. Definition of an associate  Discuss the concept of significant influence  Class Discussion
2. Meaning of significant influence  Specify when to use the equity method in accounting  Problem Solving
3. Factors that indicate significant influence investment
4. Equity method  Explain the treatment of impairment loss on investment in
5. Circumstances when an investment in associates
associate is not accounted for under the
equity method

Week 2 B. PAS 34 – Interim Financial Reporting  Discuss the objective and scope of PAS/IAS 34  Lecture  Quiz
1. Basic principles of interim financial reporting  Identify the content of interim financial report  Class Discussion
2. Components of an interim financial report  Specify significant events that need disclosure in interim
3. Comparative interim financial statements financial report
 Describe the restatement of previously reported interim
financial reports

Week 3 C. PAS 36 – Impairment of Assets  Discuss the objective and scope of PAS/IAS 36  Lecture  Quiz
1. Basic principle for the recognition of  Explain the impairment of assets  Class Discussion
impairment  Describe the reversal of impairment loss  Problem Solving
2. Concept of fair value less cost of disposal  State the disclosure requirements of PAS/IAS 36
and value in use
3. Measurement of recoverable amount
4. Recognition of an impairment loss and
reversal of an impairment loss
Vision: “Truth and Goodness in Man and for all others
through Education”
Tomas del Rosario College
D. PAS 38 –Intangible Assets
1. Definition, recognition and measurement
of an intangible asset
2. Research and development
3. Proper treatment of research cost and
development cost
Week 4 E. PAS 40 – Investment Property
1. Nature and purpose of investment property
2. Distinguish investment property and owner-
occupied property
3. Requirements for the recognition of
investment property
4. Initial and subsequent measurement of
investment property
F. PAS 41 – Agriculture
1. Definition of biological asset, agricultural
produce, and agricultural activity
2. Recognition and measurement of
biological asset and agricultural produce
3. Recognition of bearer plants as PPE
4. Recognition of bearer animals
Mission: Produce, through responsive curriculum, morally upright, committed and competent graduates capable
of meeting the growing human resources needs in the profession, government, business, industry and home.
City of Balanga
 Discuss the objective and scope of PAS/IAS 38  Lecture  Quiz
 Explain the recognition principle of intangibles  Class Discussion
 Define the measurement of intangibles  Problem Solving
 Specify the disclosure requirements of intangibles
 Discuss the objective and scope of PAS/IAS 40  Lecture  Quiz
 Differentiate owner-occupied property from investment  Class Discussion
property  Problem Solving
 Describe the recognition for transfer and disposal of
investment property
 Explain the disclosure requirements of investment
property
 Describe the objective and scope of PAS/IAS 41
 Define terms related to agricultural activity
 Measure biological asset and agricultural produce
 Discuss the disclosure requirements of biological assets
and agricultural produce
Vision: “Truth and Goodness in Man and for all others
through Education”
Tomas del Rosario College
Week 5 G. PAS 29 – Reporting in Hyperinflationary
Economy
1. Characteristics that may indicate
hyperinflationary economy
2. Constant peso accounting
3. Distinguish between monetary and
nonmonetary items
4. Procedures for restating historical financial
statements in terms of current price level
H. PAS 37 – Provision, Contingent Liability
and Asset
1. Nature of a provision
2. Conditions for the recognition of a
provision
3. Measurement of a provision
4. Nature of a contingent liability and
contingent asset
Week 6 I. PAS 32 – Financial Instruments
Presentation
1. Definition of financial instrument
2. Financial asset and financial liability
3. Equity instrument
4. Compound financial instrument
J. PFRS 9 – Financial Instruments
1. Initial and subsequent measurement of
financial asset
2. Financial asset at fair value through profit
or loss
3. Financial asset at fair value through other
comprehensive income
4. Debt investment at amortized cost and fair
value through other comprehensive income
Mission: Produce, through responsive curriculum, morally upright, committed and competent graduates capable
of meeting the growing human resources needs in the profession, government, business, industry and home.
City of Balanga
 Know the characteristics that may indicate hyperinflationary  Lecture  Quiz
economy  Class Discussion
 Understand the constant peso accounting  Problem Solving
 Distinguish between monetary and nonmonetary items
 Know the procedures for restating historical financial
statements in terms of current price level
 Discuss the objective and scope of PAS/IAS 37
 Describe the recognition requirement of a provision
 State the measurement of a provision
 Explain the disclosure requirements of PAS/IAS 37
 Discuss the objective and scope of PAS/IAS 32  Lecture  Quiz
 Define financial instrument  Class Discussion
 Discuss the principles in reclassifying equity instruments  Problem Solving
 State the principles in offsetting financial instruments
 Describe the objective and scope of PFRS/IFRS 9
 Define terms related to financial instrument
 Determine the measurement of financial instrument
 Discuss the presentation requirements of financial
instruments
Vision: “Truth and Goodness in Man and for all others Mission: Produce, through responsive curriculum, morally upright, committed and competent graduates capable
through Education” of meeting the growing human resources needs in the profession, government, business, industry and home.

Tomas del Rosario College

City of Balanga

FINAL PERIOD

Teacher- Assessment
Time
Topics Intended Learning Outcomes Learner Methods/
Frame
Activities Tasks

Week 1 A. PAS 12 – Income Taxes  Describe the objective and scope of PAS/IAS 12.  Lecture  Quiz
1. Accounting income and taxable income  Determine the tax base.  Class
2. Permanent and temporary differences  Explain the measurement of deferred tax asset and Discussion
3. Deferred tax liability  Problem
liability.
4. Deferred tax asset Solving
 Discuss the disclosure requirement of PAS/IAS 12.
5. Measurement of deferred tax asset and liability

B. PAS 19 – Employee Benefits  Discuss the objective and scope of PAS/IAS 19.
1. Definition of employee benefits  Differentiate defined contribution plan from defined
2. Recognition and measurement of short-term employee benefit plan.
benefits  Identify the components of defined benefit cost.
3. Post-employment benefits  Explain the disclosure requirements for employee
4. Defined contribution plan benefits.
5. Defined benefit plan
6. Service cost, net interest and remeasurement
7. Fair value of plan assets
8. Projected benefit obligation
9. Other long-term employee benefits
10. Termination benefits
Vision: “Truth and Goodness in Man and for all others Mission: Produce, through responsive curriculum, morally upright, committed and competent graduates capable
through Education” of meeting the growing human resources needs in the profession, government, business, industry and home.

Tomas del Rosario College

City of Balanga

Week 2  Discuss the objective and scope of PAS/IAS 33.  Lecture  Quiz
C. PAS 33 – Earnings per share
 Determine the measurement of basic earnings per share.  Class
1. Basic earnings per share
 Identify the measurement principles of diluted earnings Discussion
2. Basic loss per share
per share.  Problem
3. Diluted earnings per share
 Explain the disclosure requirements of PAS/IAS 33. Solving
4. Diluted loss per share
5. Potential ordinary shares
 Describe the objective and scope of PFRS/IFRS 1.
6. Presentation of earnings per share
 State the specific guideline for the date of transition to
PFRS/IFRS.
D. PFRS 1 – First time adoption of PFRS
 Discuss the exceptions to the retrospective application of
1. First PFRS financial statements
other PFRSs/IFRSs.
2. First time adopter
 Explain the exceptions to business combination.
3. Opening PFRS statement of financial position
 Discuss the objective and scope of PFRS/IFRS 2.
E. PFRS 2 – Share-based payment
 Describe the principles of equity-settled share-based
1. Equity settled and cash settled shard-based payment
payment transactions.
2. Share options
 Explain the principles of cash-settled share-based
3. Recognition and measurement of share options
payment transactions.
4. Recognition and measurement of share appreciation
 State the disclosure requirements of PFRS/IFRS 2.
rights

Week 3 F. PFRS 5 – Noncurrent asset held for sale  Discuss the objective and scope of PFRS/IFRS 5;  Lecture  Quiz
1. Definition of noncurrent asset held for sale  Identify the criteria for classifying a non-current asset held  Class
2. Conditions for classification as held for sale for sale; Discussion
3. Measurement and presentation of noncurrent asset  Describe the measurement of non-current asset held for  Problem
held for sale sale; and Solving
 Explain the presentation and disclosure requirements of
G. PFRS 5 – Discontinued Operation PFRS/IFRS 5.
1. Definition of discontinued operation
2. Presentation in the income statement and statement of
financial position
Vision: “Truth and Goodness in Man and for all others Mission: Produce, through responsive curriculum, morally upright, committed and competent graduates capable
through Education” of meeting the growing human resources needs in the profession, government, business, industry and home.

Tomas del Rosario College

City of Balanga

H. PFRS 6 – Exploration and Evaluation of Mineral  Define exploration and evaluation of mineral
Resources resources.
1. Definition of exploration and evaluation of mineral  Define exploration and evaluation expenditures.
resources  Recognize an exploration and evaluation asset.
2. Exploration and evaluation asset
3. Exploration cost
4. Accounting for exploration cost

Week 4 I. PFRS 8 – Operating Segments  Know the core principle of segment reporting.  Lecture  Quiz
1. Definition of operating segment  Understand the concept of an operating segment.  Class
2. Criteria for a reportable operating segment  Identify the criteria for the recognition of a reportable Discussion
3. Chief operating decision maker segment.  Problem
4. Information to be disclosed for a reportable segment  Identify the criteria for the recognition of a reportable Solving
operating segment.
J. PFRS 13 – Fair Value Measurement  Identify the information required to be disclosed for a
1. Definition of fair value reportable operating segment.
2. Valuation method for measuring fair value
3. Fair value hierarchy  Define terms related to fair value measurement.
 Discuss the measurement procedures using fair value.
K. IFRIC Interpretations  Differentiate the levels of fair value hierarchy.
 Explain present value measurement.

 IFRIC1 – Changes in existing decommissioning,

restoration and similar liabilities
 IFRIC 2 – Members’ shares in cooperative entities and
similar instruments
 IFRIC 17 – Distribution of noncash assets to owners
 IFRIC 19 – Extinguishing financial liabilities with equity
instruments
Vision: “Truth and Goodness in Man and for all others Mission: Produce, through responsive curriculum, morally upright, committed and competent graduates capable
through Education” of meeting the growing human resources needs in the profession, government, business, industry and home.

Tomas del Rosario College

City of Balanga

Week 5 L. PFRS 15 – Revenue From Contracts with  Know the core principle of revenue recognition.  Lecture  Quiz
Customers  Know the five-step model for revenue recognition.  Class
1. Core principle of revenue recognition  Define a contract, performance obligation and transaction Discussion
2. Five-step model for revenue recognition price.  Problem
3. Definition of contract, performance obligation and  Describe the revenue recognition at a point in time or over Solving
transaction price time.
4. Recognition of revenue at a point in time
5. Recognition of revenue over time
6. Sale with a right of return
7. Consignment arrangement
8. Bill and hold arrangement
9. Customer loyalty program

Week 6 M. PFRS 16 – Leases  State the objective and scope of PAS/IAS 17.  Lecture  Quiz
1. Definition of lease  Identify the classification of the lease;  Class
2. Operating lease model for lessee  Differentiate finance lease from operating lease. Discussion
3. Finance lease model for lessee  Discuss the concept of sale and leaseback transactions.  Problem
4. Measurement of right of use asset Solving
5. Measurement of lease liability
6. Operating lease model for lessor
7. Finance lease model for lessor

V. Course Requirements

1. Quizzes
2. Recitation
3. Group activities
4. Long examinations
Vision: “Truth and Goodness in Man and for all others Mission: Produce, through responsive curriculum, morally upright, committed and competent graduates capable
through Education” of meeting the growing human resources needs in the profession, government, business, industry and home.

Tomas del Rosario College

City of Balanga

VI. Textbook and References

1. Zeus Vermon B. Millan, Conceptual Framework and Accounting Standards, Bandolin Enterprises, 2020
2. Valix, Conrado T. , Peralta, Jose F., Valix, Christian Aris M., Conceptual Framework and Accounting Standards, GIC Enterprises & Co., INC., 2020

3. Aduana, Nick L., Conceptual Framework and Accounting Standards, C & E Publishing, Inc., 2019

VII. Grading System

Grades are computed as follows:

(CS x 2) + Preliminary Exam

Preliminary Average = 3 The CS (Class Standing) is the sum of recitation, quizzes, group activities,
reporting and attendance.

(CS x 2) + Mid-term Exam

Mid-term Average = 3 The following formula is used on grade transmutations:

(CS x 2) + Final Exam Raw Score x 50

Final Average = 3 ------------------------------------------------+50
No of Items
Prelim Average + Mid-term Average + Final Average
Final Grade = 3

Prepared by: Recommending approval: Approved:

NICANOR M. BANTOG, CPA JEFFERSON. L. TRIGUERO, CPA, MBA MERCEDES G. SANCHEZ, Ed.D
Instructor Accountancy - Department Chair College Dean
Vice President for Academics,
Student Affairs and Extension
Services