VIRATA SCHOOL OF BUSINESS

University of the Philippines, Diliman

BA 114.1- Intermediate Accounting I

Course Outline
First Semester, AY 2019-2020

Instructors Kristina Paola Frias Alloysius Paril Raniel Jude Pamatmat

Email kristina.frias@gmail.com alloy.paril@gmail.com rpamatma.upcba@gmail.com
Office Rm 201 E
Consultation TTh 1PM - 3 PM T 3PM - 5 PM WF 11AM - 12NN;
hours WF 1PM - 2PM

Instructors Dani Rose Salazar Kevin John Dela Cruz

Email dcsalazar@up.edu.ph kjddelacruz@gmail.com
Office Rm 201 D Rm 201 D
Consultation hours TTh 9AM - 11AM TTh 10AM - 12NN

Introduction.
BA 114 is equivalent to one subject in the CPA Board Examination - Financial Accounting and
Reporting. It is a critical course demanding determination, dedication, and hard work from the
students. Without a strong foundation in accounting concepts and principles, one cannot fully
grasp more complex topics. Students are encouraged to develop the habit of independently
solving problems and exercises to enhance the understanding of accounting principles and
their applications to varying business situations.

Course Description.
The course will cover fundamental accounting concepts and generally accepted accounting
principles applicable to accounting and financial reporting.

Course Credit. 4.5 units

Course Objectives. After the course, the student is expected to be able to:
1. Perform the functions of analyzing, recording, classifying, summarizing and reporting
business transactions in accordance with generally accepted accounting principles;
2. Understand, analyze, and solve accounting problems and cases;
3. Understand the conceptual framework of accounting which provides the basis or rationale
for the development of new standards or the revision of previously issued standards;
4. Recognize, analyze and justify the need for new or revised standards to appropriately
address changes in the business environment and in the requirements of users of financial
information which may involve harmonizing pure theory and economic reality; and
5. Appreciate accountancy as a field and profession.

Prerequisites. BA 99.1 and BA 99.2

Text:
Philippine (International) Financial Reporting Standards (PFRS)/(IFRS)

Grading Scheme:
Module Exams 70%
Finals 20%
Quizzes and Assignments 10%
Total 100%

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Schedule:
Module 1 Exam 8 Sep 2019, Sun
Module 2 Exam 6 Oct 2019, Sun
Module 3 Exam 27 Oct 2019, Sun
Module 4 Exam 1 Dec 2019, Sun
Finals 10 Dec 2019, Tue
Last day for dropping 30 Oct 2019, Wed
Last day for LOA 18 Nov 2019, Mon
Submission of Grades 21 Dec 2019, Sat

Grading Scale.
97-100 1.00 73-76 2.50
93-96 1.25 69-72 2.75
89-92 1.50 65-68 3.00
85-88 1.75 60-64 4.00
81-84 2.00 Below 60 5.00
77-80 2.25

CLASSROOM – Administrative Policies.

1. Students are expected to bring pen, paper, calculator, notebook and IFRS to class.
Scientific calculators are not allowed in class and examinations. No borrowing of
these things will be allowed during quizzes and/or other graded class activities.
2. Electronic devices. Use of electronic devices in the classroom can be disruptive to the
user, other students and the Instructor. Students may use electronic devices for following
slide presentations, taking notes and doing in-class exercises. Students should silence
and put away phones and use other electronic devices coincident only with in-class
instruction.
3. Audio and video recording of class lectures are strictly prohibited. If caught, the
student will be instructed to delete files and step out of class. Taking pictures of the lecture
on the white board is allowed only after notifying the professor and permission is expressly
given.
4. All assigned work should be written in yellow sheets. All assigned work should be
hand-written on yellow sheets. The instructor may select exercises to be submitted.
Students should turnover these selected exercises on or before the announced due date.
Late exercises will not be accepted.
5. There shall be no make-up quizzes. The student gets a score of zero.
6. There shall be no make-up examinations for both module and final examination.
a. Students shall not be allowed to take make-up exams. He/she shall receive a score of
zero for the missed module exam unless the absence is for health or fortuitous reason.
If a student fails to take a long exam for health or fortuitous reason, he/she receives
70% of his or her lowest exam.
b. A student may miss only one of the 4 long exams given for the course, whether his/her
reasons are valid or not.
c. If a student misses two or more exams without valid reasons, he/she will be given a
grade of 5.0 for the course. If a student misses two or more exams with valid reasons,
he/she will be given a grade of ‘INC’ for the course.
d. It is the obligation of the student to submit the necessary documents (i.e. medical
certificate from the University Health Service, police report, etc) to his/her instructor

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 within 2 days of the scheduled missed exam. The instructor’s decision about the
validity of the student’s justification for missing an exam is final.
e. Students are not allowed to take a make-up final examination, except when the
absence is due to health or fortuitous reason. After showing proof of sickness or any
relevant documentation (Refer to 6d), the student will be allowed to take the removal
exam in lieu of the final examination. Otherwise, a missed final examination will receive
a grade of zero.
f. Except for 6e, only students with a grade of 4.00 are eligible to take the removal
examination.
7. There will be NO incentives for any activities outside BA 114.1 (e.g. attendance in
BACBACAN, seminars, lectures, etc.)
8. Grade Solicitation. University rule on grade solicitation shall be enforced.
Article 194.
PROHIBITION AGAINST GRADE SOLICITATION
“No student of the UNIVERSITY shall SOLICIT directly or indirectly (ask any person to
recommend him to his professor or professors) any grade FROM AN INSTRUCTOR (in
his record, examination paper or final report of grades). Any student violating this rule
shall lose credit in the subject or subjects regarding which such (recommendation)
SOLICITATION is made (the fact that a student is thus recommended shall be prima facie
evidence that the recommendation is made at the request of the student concerned),
WITHOUT PREJUDUCE TO THE FILING OF A CASE FOR DISCIPLINARY ACTION.”
9. Code of Student Conduct. Every student is expected to be honest in all academic work.
The following acts of misconduct are punishable by:
 For the first violation, suspension for a minimum of two (2) months, to expulsion;
 For the second violation, expulsion.
a. Cheating; giving, receiving, taking assistance, or making unauthorized use of
information from written material, another person, his or her paper, or from any
other source (except as explicitly allowed by the instructor) before or during an
examination or other written exercise.
b. Copying; providing the means or accessing the means to copy exam answers,
homework, projects, laboratory experiments, term papers, etc.;
c. Manipulating or altering a corrected exam paper; removing, hiding, or altering
library materials or stealing another person’s materials
d. Impersonation, or allowing another person to take an examination in one’s name,
and/or impersonating another student or allowing someone to impersonate oneself
in an academic activity;
10. Prior to encoding of the final grades to CRS, students shall be given a grace period to
bring errors in grade recording and/or computation to the attention of the instructor. Upon
the expiration of said period, the tentative grades shall be considered final.

11. Students who are in AWOL shall be given a grade of 5.00 for the course.

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COURSE OUTLINE
Module 1: Working capital accounts
Number of sessions: 8

Topic Cash
Readings Readings
 Definition of cash and cash equivalents
 Composition of cash (Different kinds of cash account: cash on hand, cash in bank, petty cash)
 Accounting for petty cash
 Bank reconciliation
 Proof of cash or 4-column bank reconciliation

Topic Receivables
Readings IFRS 9– Financial Instruments
Other Readings
 Definition of receivable
 Different kinds of receivable (trade and non-trade, current and non-current)
 Allowance for doubtful accounts and bad debts expense
 Accounts receivable denominated in foreign currency
 Accounts receivable financing (pledging, assignment, sale with and without recourse)

Topic Inventory
Readings IAS 2 – Inventory
IAS 41 – Agriculture
 Definition of inventory
 Inventoriable costs
 Recording of inventory transactions (gross versus net, periodic versus perpetual)
 Inventory cost flow assumptions – FIFO, weighted average and specific identification
 Inventory cost estimation (gross profit method or retail method )
 Inventory impairment
 Agricultural produce harvested from biological assets

Topic Current liabilities

Readings IAS 37 − Provisions, Contingent Liabilities and Contingent Assets
 Provisions
 Contingent liabilities

Module 2: Long term assets used in operations

Number of sessions: 8

Topic Property, plant and equipment

Readings IAS 16 – Property, Plant and Equipment
IAS 23 – Borrowing costs
 Definition of PPE
 Capitalizable cost of PPE
o Various ways of acquiring PPE – through LT liabilities, exchange of assets, exchange for equity,
government grants
o Other cost necessary to bring the asset to its intended use
o Capitalizable cost of wasting assets PPE, including provision for rehabilitation of land.
 Depreciation  rational allocation of capitalized cost of the asset.
 Derecognition of PPE

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 Topic Intangible Assets
Readings IAS 38 – Intangible Assets
SIC 32 – Intangible Assets: Web Sites Costs
IFRS 6 – Exploration for and Evaluation of Mineral Resources
 Definition of Intangible Assets
 Capitalizable cost of intangible assets
 Amortization – Finite vs Indefinite Lives
 Research and development costs
 Exploration assets
 Determination of goodwill
 Amortization (economic life, and salvage value)

Topic Impairment of long term assets

Readings IAS 36 – Impairment of Assets
 Definition of recoverable amount, value in use and net realizable value
 Recognition and reversal of impairment
 Impairment of cash generating units

Topic Revaluation approach for PPE and intangible assets

Readings IAS 16 – Property, Plant and Equipment
IAS 38 – Intangible Assets
 Definition of terminologies used in revaluation
 Recognition and reversal of revaluation surplus and revaluation loss

Module 3: Special cases of long term assets used in operations

Number of sessions: 6

Topic Biological assets

Readings IAS 41 – Biological Assets
 Consumable biological assets versus breeders.
 Valuation of biological assets and bearer plants
 Price change versus physical change

Topic Investment Property

Readings IAS 40 – Investment Property
 Criteria for classifying assets under Investment Property
 Valuation and disclosures
 Effect of change in classification or nature.

Topic Non-Current Assets Held for Sale

Readings IFRS 5 – Non-Current Assets Held for Sale
 Criteria for classifying assets under NCAHFS
 Valuation and disclosures
 Effect of change in classification or nature.

Module 4: Leases
Number of sessions: 8

Topic Leases – Lessor Accounting

Readings IFRS 16 - Leases
 Definition of a lease contract
 Who is the lessor?
 Operating lease
 Financing lease
 Special case of lessor manufacturer or dealer (sales-type lease)

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 Topic Leases – Lessee Accounting
Readings IFRS 16 - Leases
 Who is the lessee?
 Right of use asset and lease liability
 Exemption to IFRS 16 lessee accounting - short term lease

Topic Sale – leaseback

Readings IFRS 16 - Leases
 Seller-lessee
 Buyer-lessor
 Recording the sale and the lease contract