Republic of the Philippines

BATANGAS STATE UNIVERSITY

BatStateU Pablo Borbon Main I
Rizal Avenue, Batangas City

COLLEGE OF ACCOUNTANCY, BUSINESS, ECONOMICS AND

INTERNATIONAL HOSPITALITY MANAGEMENT
Accountancy and Management Accounting Department

COURSE SYLLABUS WITH SPECIFICATION

UNIVERSITY VISION
A globally recognized institution of higher learning that develops competent and morally
upright citizens who are active participants in nation building and responsive to the
challenges of the 21st century

UNIVERSITY MISSION
Batangas State University is committed to holistic development of productive citizen by
providing a conducive learning environment for the generation, dissemination and
utilization of knowledge through innovative education, multidisciplinary research
collaborations, and community partnerships that would nurture the spirit of nationhood
help fuel national economy for sustainable development.

COURSE CODE: ACCT 513

COURSE TITLE: ACCOUNTING FOR SPECIALIZED INDUSTRIES

PRE-REQUISITE: ACCT 411

CREDIT UNIT: 3

ACADEMIC YEAR: 2018-2019

REFERENCE CMO: CMO No. 3 Series of 2007

PROGRAM EDUCATIONAL OBJECTIVES

The Bachelor of Science in Accountancy graduates are expected:
1. Have acquired and developed professional competence required in local and off-
shore training and development as staff or supervisor in accounting, auditing,
consulting, tax and other related works both in local and international industry.
2. Have engaged in the practice of the accountancy profession in any of the four
sectors: education, public practice, government and commerce and industry,
3. Conducted himself in a respectable manner that upholds the honor, dignity and
integrity of accountancy profession by adhering to the code of professional ethics,
4. Have actively involved/active involvement in community service towards the
improvement and development of the society.

PHILOSOPHY
This course deals with specialized accounting problems likely to be encountered
by accountants related to consolidation and mergers, parent-subsidiary relationships, and
consolidated statements, including foreign subsidiaries. This also covers accounting for
government and not-for-profit organizations and specialized industries.

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AUDIENCE
This 3-unit course is intended for fifth year BS Accountancy students who have already
passed Advanced Financial Accounting and Reporting.

STUDENT OUTCOMES
Student Outcomes
a. Apply organizational and business knowledge in the performance of their 
job assignments.
b. Apply critical thinking skills in problem solving and decision making. 
c. Demonstrate proficiency in the international financial reporting, auditing 
standards and management accounting.
d. Communicate effectively both oral and written form. 
e. Conduct and apply feasibility study and research. 

INTENDED LEARNING OUTCOMES

1. Explain the different types of business combinations.
2. Explain the accounting treatment for business combination and prepare
accounting entries and consolidated financial statements.
3. Compare and contrast the accounting standards under full PFRS (IFRS) and PFRS
for SMEs.
4. Prepare journal entries related to accounting for foreign currency transactions.
5. Explain the different types of derivatives, distinguish hedge from hedge
accounting and account the transactions in accordance with the applicable
standard/s.
6. Prepare translated Foreign Currency Statements from the functional currency to
the presentation currency, translated foreign financial statements under
hyperinflationary economy and account for hedging of net investment in a foreign
entity.
7. Explain the nature of government accounting and apply accounting procedures
under NGAS.
8. Prepare accounting entries and financial statements for nonprofit organizations.

RELATIONSHIP TO STUDENT OUTCOMES

Mapping of Intended Learning Outcomes vs Student Outcomes

Intended Applicable Student Outcomes
Learning a b c d e
Outcomes
ILO 1 √ √ √ √ √
ILO 2 √ √ √ √ √
ILO 3 √ √ √ √
ILO 4 √ √ √
ILO 5 √ √ √ √ √
ILO 6 √ √ √
ILO 7 √ √ √ √ √
ILO 8 √ √ √

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SPECIFIC OBJECTIVES
Topics ILO1 ILO2 ILO3 ILO4 ILO5 ILO6 ILO7 ILO8
Business Combination
 Describe the nature
of business
combination.
Prepare the  
necessary journal
entries related to
business
combination
Consolidated Financial Statements – Date of Acquisition
 Explain the
accounting treatment
for business
combination.
 
 Prepare entries and
consolidated financial
statements at the date
of acquisition
Consolidated Financial Statements – Subsequent to Date of Acquisition
 Prepare working
paper entries and
consolidated financial
statements subsequent
to date of acquisition
 
(cost and equity
method)
 Determine the
consolidated net
income
Intercompany Profit Transactions – Inventories
 Account downstream
and upstream
transactions
 Prepare working  
paper entries and
consolidated financial
statement
Intercompany Gain Transactions – Fixed Assets
 Account downstream
and upstream
transactions
 Prepare working  
paper entries and
consolidated financial
statement
Accounting for Foreign Currency Transactions
 Distinguish measured
versus denominated
and conversion versus
translation

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  Accounting for
importation and
exportation of goods
 Accounting for loans
payable and loans
receivable
denominated in
foreign currency
 Accounting treatment
for foreign exchange
gains and losses
 Identify the different
types of derivatives
 Accounting for
Derivatives
 Distinguish Hedging
and Hedge
Accounting
 Identify the different
types of hedge  
 Accounting for
Foreign Currency
 Forward Contracts,
Swaps, Options
contracts
 Determine the
required hedging
disclosures
Translation of Foreign Financial Statements
 Prepare Translated
Foreign Currency
Statements from the
Functional Currency
to the Presentation
Currency
 Prepare Translated
Foreign Financial 
Statements under
Hyperinflationary
Economy
 Accounting for
Hedging of Net
Investment in a
Foreign Entity
Government Accounting System for National Government Agencies
 Explain the nature of
government
accounting

 Apply accounting
procedures under
NGAS and prepare
financial statements
Nonprofit Organization
 Elucidate the

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 characteristics of
nonprofit
organizations
 Account the
transactions of 
nonprofit organization
 Prepare financial
statements for
nonprofit
organizations

TEACHING, LEARNING STRATEGIES AND ASSESSMENT STRATEGIES

Teaching and Learning Strategies

Primary teaching methods are conceptual lectures, in-class reviews and discussion
of problems. Homework problems and exams will be used to assess students’
understanding of the subject. Critical thinking and problem-solving skills are enhanced
by the problems assigned in the course. Case studies, demonstration, games, simulation
and brainstorming will be used to enhance and determine the analytical capabilities of
students. Likewise, micro, macro and peer teaching will be utilized to improve
communication and teamwork among the students.

1. Enhanced (Modified) Lecture. Traditional lecture modified to include active

elements including: pausing for discussion among students, including immediate
mastery tests/quizzes over lecture material, using demonstrations, responding to
pre-submitted student-generated questions

2. Questioning and Discussion. Includes questioning students in a way that helps

them evaluate their own thought processes by probing the thinking behind their
statements and questions. Also includes asking students different types of
questions: knowledge questions, comprehension questions, analysis questions,
synthesis questions, evaluation questions

3. Problem Solving. A particularly relevant learning and teaching strategy for

Accounting topics is problem solving. Students can be involved in identifying and
working towards solutions to problems. The classroom, school grounds,
community and home all contain problems, which are appropriate starting points
for investigation by students. The purpose of learning through the application of
problem-solving skills is to link conceptual understandings with practical
experiences. It is important that students be given opportunities to apply problem-
solving techniques to a range of issues.

COURSE REQUIREMENTS
The following requirements should be complied to pass the course:
1. Attendance
2. Homework/Seatwork
3. Quizzes
4. Major Examinations
5. Exercise/Activities
6. Recitation

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Quizzes and Major Examinations
Quizzes will be given before or after discussion of each chapter which consist of
True or False, identification or multiple-choice items which will come both from the
handouts and/or textbooks. This strategy will prevent last-minute cramming of students
during major exams.
There will be four exams (prelims, midterms, semi-finals, and finals). All exams
will be in-class and will be closed books and closed notes. All major exams will be
administered on the dates set by the department unless otherwise specified. The scope of
each periodical exam will include but not limited to those topics given in the class
schedule for the specified period. It may include some related topics given before. You
are not allowed to bring with you anything except pen, eraser and calculator. You are not
permitted to borrow these things from your classmates around you for this may be a
cause of cheating. Exams will commence and end on the scheduled time. Latecomers will
not be given any consideration unless valid reason.
Make-up tests will be given for authorized university activities only if a student
present suitable documentation (evidence) explaining the absence to the instructor. The
instructor/university reserves the right to disapprove any explanations for absences
presented without prior notice and not provide the opportunity for a make-up test.
Students knowing, they will be absent from an announced test because of personal or
business reasons are required to inform the instructor before the absence. A make-up test
may be given early in some cases.

Class Participation
From time to time, a graded recitation will be conducted in order to test whether
the students really understand their lessons. Likewise, the students are expected to
participate actively in the class discussions and are encouraged to share their thoughts
and prove or disprove other’s conviction in proper manner. This way, their thinking and
reasoning will be developed to the fullest. Further, the student’s communication skills
will be improved. The class will be grouped accordingly and will be given specific topics
to research and report inside the class. Group exercises will likewise be given to reinforce
the learning process. Furthermore, the class will be encouraged to attend different
seminars and for related to the subject.

COURSE POLICIES

Grading System
Major Examinations (Prelims, Midterms, Semi-Final, Finals) 80%
Class Standing 20%
Recitation 5%
Assignments/Exercises/Quizzes 10%
Attendance 5% __________
Total 100%

The work of students shall be graded at the end of each item in accordance with
the following system:

Numerical Grade Percentage Equivalent Description

1.00 98-100 Excellent
1.25 94-97 Superior
1.50 90-93 Very Good
1.75 88-89 Good
2.00 85-87 Meritorious

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 2.25 83-84 Very Satisfactory
2.50 80-82 Satisfactory
2.75 78-79 Fairly Satisfactory
3.00 75-77 Passing
5.00 Below 75 Failure
Inc. *Incomplete
Drp Dropped

Students who will get a grade of 70-74 must be given a removal examination. A
grade of “3.0” will be given to those who will pass the removal examination and those
who will fail will be given a grade of “5.0”.
*A grade of “Incomplete” must be complied with by the student within one (1)
semester or one hundred fifty (150) days. A student who fails to complete the
deficiency/deficiencies at the end of the succeeding semester shall automatically obtain a
grade of 5.0 in the course.

Attendance
Prompt and regular attendance of students is required. Total unexcused absences shall
not exceed ten (10) percent of the maximum number of hours required per course per
semester, (or per summer term). A semester has 18 weeks. For example, a semester
subject with
 3 units (3 hrs lec), 10% x 3 x 18 = 5.4 hrs or 6 hrs.
 3 units (2 hrs lec, 3 hrs lab), 10% x 5 x 18 = 9 hrs.
 5 units (3 hrs lec, 6 hrs lab), 10% x 9 x 18 = 16.2 hrs or 16 hrs.
Please refer to the provisions in the Norms of Conduct for the full text of
guidelines for the attendance.

Missed Exams
No special or make-up examination will be given except for those whose absence
is excused. In case of excused absence, a valid written excuse signed by the
parent/guardian and the dean must be presented to the instructor.

Academic Dishonesty
Academic dishonesty includes acts such as cheating during examinations or
plagiarism in connection with any academic work. Such acts are considered major
offenses and will be dealt with according to the University’s Student Norms of Conduct.

Dropping
Dropping must be official by accomplishing dropping form and submitting it at
the Registrar’s office before the midterm examination. Students who officially drop out
of class shall be marked “Dropped” whether he took the preliminary examination or not
and irrespective of their preliminary grades.
A student who unofficially drops out of class shall be given a mark of “5.0” by the
instructor.

Consultation
Students may consult the faculty during his/her consultation hours as indicated in
the schedule.

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Academic Infrastructure

Textbook
1. Advanced Accounting Vol. 2 2017 edition by Guerrero and Peralta

References
1. Advanced Accounting Vol. 1 and 2 2013 edition by Dayag
2. Financial Reporting Theory and Practice Vol. 2,4 and 5 2017 edition by Millan
3. Partnership Accounting 2015 by Ballada
4. Financial Accounting Vol. 1 and 2 2017 edition by Valix
5. Additional readings and cases will be provided throughout the course. From time
to time the aspects of the schedule maybe modified as the students and instructor
learn together what works well for the class. No changes will be made however
without discussion with the class.

TENTATIVE COURSE OUTLINE/CALENDAR

TOPICS Suggested
Week
Strategies/Activities
Orientation (Vision, Mission, Goals and Objectives, Discussion
1 Requirements, Quality Policy, Grading system and
Course outline)
1 1. Business Combination
The Nature and Types of Business Combination Lecture/Problem-solving
Accounting Concept of Business Combination exercises/Discussion
Accounting Procedures for Business Combination
PFRS for SMEs
2. Consolidated Financial Statements – Date of
2
Acquisition
Purchase of Net Assets vs Purchase of Equity Lecture/Problem-solving
The Concept of Control exercises/Discussion
Consolidated Balance Sheet at the Date of
Acquisition
Reverse Acquisition
Push-down Accounting
PFRS for SMEs
3. Consolidated Financial Statement-
3
Subsequent to Date of Acquisition
Consolidated Statements Subsequent to Date of Lecture/Problem-solving
Acquisition – Cost model exercises/Discussion
Wholly-owned and Partially-owned subsidiaries
Consolidated Net income
Consolidated Retained Earnings
Non-controlling Interest
Consolidated Statements Subsequent to Date of
Acquisition – Equity model
4 PRELIMINARY EXAMINATION
4. Intercompany Profit Transactions –
5
Inventories
Effects of Intercompany sales of merchandise on Lecture/Problem-solving
the date of consolidated balances exercises/Discussion
Downstream sales – determination of consolidated
sales, cost of sales and inventory balances – cost
model
Upstream sales – determination of consolidated
sales, cost of sales and inventory balances – cost

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 model
Equity Model
Determination of intercompany profit
5. Intercompany Gain Transactions – Fixed
6
Assets
Intercompany sales of depreciable property Lecture/Problem-solving
Downstream sales – effects on intercompany sale of exercises/Discussion
depreciable property on determination on
consolidated balances – cost model
Upstream sales – effects on intercompany sale of
depreciable property on determination on
consolidated balances – cost model
Consolidated net income
Consolidated retained earnings
Disposal of property and equipment by purchasing
affiliate – cost model
Disposal of property and equipment by purchasing
affiliate – equity model
7 6. Foreign Currency Transactions
Exchange rates Lecture/Problem-solving
Measured vs denominated exercises/Discussion
Types of Foreign Exchange Rate Exposure
Foreign Currency Transactions
Treatment of Transaction Gains and Losses
PFRS for SMEs
8 MIDTERM EXAMINATION
7. Hedging Foreign Currency Exchange Rate
9-10
Risk
Derivative Instruments Lecture/Problem-solving
Distinguishing Hedging and Hedge Accounting exercises/Discussion
The Conditions for Hedge Accounting
Assessing Hedge Effectiveness
Discontinuation of Fair Value Hedge Accounting
Accounting for a Cash Flow Hedge
Forward Contracts
Option Contracts
PFRS for SMEs
10-11 8. Foreign Currency Translations
Translation of Financial Statements of Foreign Lecture/Problem-solving
Operations exercises/Discussion
Conversion vs Translation
Presentation Currency vs Functional Currency
Functional Currency is not Currency of a
Hyperinflationary Economy – current rate method
and temporal method
An Analysis of Foreign Currency Translation
Reserve
Statement of Comprehensive Income and Statement
of Shareholders’ Equity
An Analysis of Translation/Remeasurement Gain or
Loss
Foreign Operations in a Hyperinflationary
Environment
Hedge of Net Investment in a Foreign Operation
PFRS for SMEs
12 SEMI-FINAL EXAMINATION

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 13-14 9. Government Accounting
Government Accounting Lecture/Problem-solving
Objective of NGAS exercises/Discussion
Basic features and policies
The budget processes
Notice of cash allocation (NCA)
The Revenue/Income and Expenses Accounts
Accounting for Obligation
General Procedures for cash collections
Grants and Donations intended for Agency
10. Nonprofit Organizations Lecture/Problem-solving
Conceptual Framework for Not-for-Profit Entities exercises/Discussion
Accounting for Private Not-for-profit Organizations
Fund Accounting
Expenses and Release of Temporarily Restricted
Net Assets
14-15
Statement of Functional Expenses
Accounting for Contributions, Revenues and Gains
Financial Statements of Private Not-for-Profit
colleges and Universities
Accounting for Voluntary Health and Welfare
Organizations
16 FINAL EXAMINATION

Prepared by:

____________________________________
MR. EUGENE C. JALOTJOT, CPA
Instructor I
Date Signed

Reviewed and Approved by:

____________________________________
DR. BENDALYN M. LANDICHO
Dean, CABEIHM
Date Signed

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