PHINMA EDUCATION
COLLEGE OF MANAGEMENT AND ACCOUNTANCY
Subject Code:
Subject Description:
Revision:
Course Objectives
Explain the treatment for
reclassification and
impairment of financial
assets.
Measure and account
dividends.
Classify other long term
investment
Describe the measurement of
cash surrender value.
Illustrate the purpose and
accounting treatment of basic
derivatives.
• Measure the initial cost of a
PPE
• Provide examples of the
common classes of PPE and
state some of the peculiar
costs capitalized for each
class.
• Identify different modes of
acquisition of PPE.
• State the subsequent
measurement of PPE.
Account for the depletion of a
natural resource.
TABLE OF SPECIFICATIONS
ACC 107
Intermediate Accounting 2
FIRST SEM, SY 2022-2023
Easy Moderate Difficult
Remembering & Applying & Evaluating &
Understanding Analyzing Creating
Topics Weight No. of items
30% 40% 30%
Investments - Additional Topics 13% 9
• Regular way of purchase or sale of financial
assets
• Reclassification
• Impairment
6% 4
• Dividends
Other Long-Term Investments 7% 5
• Classifications of other long term investments
Cash Surrender Value 7% 5
• Initial recognition
• Subsequent measurement
• Settlement
Basic Derivatives 14% 10
• Definition of derivatives
• Chracteristics of derivatives
• Common types of derivatives
• Purpose of derivatives
• Measurement of derivatives
Property, Plant and Equipment 31% 22
• Definition, recognition and initial measurement
• Cessation of capitalization of costs
• Classes of PPE
• Lump-sum purchase of items of PPE
• Decommissioning and restoration costs
• Self-constructed assets
• Other modes of acquisition of a PPE
• Subsequent Measurement
• Cost Model
• Kinds and recognition of depreciation
• Depreciation methods
• Capitalization policy
• Leasehold improvements
• Changes in depreciation method, useful life, &
residual value
• Idle, temporarily taken out of use, and abandoned
properties
• Fully depreciated assets
• Costs subsequent to initial recognition
• Major types of subsequent expenditures
• Revaluation model
• Derecognition
21% 15
Depletion of Mineral Resources
• Introduction, initial and subsequent measurement
• Changes in accounting policies
• Classification of exploration and evaluation assets
• Cost of natural resources
• Depletion
• Changes in estimates
• Depreciation of mining equipment
• Accounting for decommissioning and restoration
costs
100% 70