College of St. John - Roxas: Member: Association of LASSSAI Accredited Superschools (ALAS)

College of St.
John – Roxas
Member: Association of LASSSAI Accredited Superschools (ALAS)
Course Syllabus in
ACCT201: Accounting for Special Transactions
I. Course Code: ACCT201
II. Course Title: Accounting for Special Transactions
III. Credit Units: 3 Units
IV. Prerequisites:
V. Course Description:
This course provides the learners comprehensive discussion and application of appropriate revenue
recognition principles based on their product lines and special revenue-producing transactions. The
course explores the requirements of the financial reporting standards relating to long-term
construction contracts, commercial franchise operations, consignment arrangements, provisions of
product warranties and guarantees, special customer-financing transactions, service contracts and
subscriptions and other ancillary transactions relating to revenue generation as well as transactions
involving foreign currencies. Transactions between home office and branch are likewise recorded
and reflected in the financial statements.
Learners are expected to prepare the necessary journal entries to recognize the above special
transactions and present their effects in the entity’s financial statements.
VI. General Objectives:
Upon completion of the course, the students will be able to:
A. Cognitive
1. State the peculiar accounts used in a partnership and identify the transactions that affect
these accounts;
2. Understand the effects in partner’s capital in four special events, namely – formation,
division of profits and losses, dissolution and liquidation
3. Describe the accounting for non-going concern entities
4. Prepare statement of affairs and statement of realization and liquidation;
5. Define joint arrangement and state its characteristics;
6. Differentiate between a joint operation and a joint venture
7. Understand the core principles embodied in PFRS 15 Revenue from Contracts with
Customers
8. Assess the conditions relating to the revenue recognition in franchise contracts;
9. State the applicability of the installment sales method of recognizing revenue
10. Distinguish branch from agency and reconcile interoffice accounts;
11. Prepare individual and combined financial statements of the home office and its
branches;
12. State the scope and applicability of PFRS 17 Insurance Contracts;
13. Define a “build-operate transfer” (BOT) arrangement that is within the scope of IFRIC
Interpretation 12 and SIC Interpretation 29
B. Psychomotor
1. Account for the initial investments of the partners to the partnership;

2. Compute for the share of a partner in the partnership’s profit or loss;
3. Account for the effects of partnership dissolution on the partnership equity;
4. Account the liquidation of partnership following the safe payments schedule and cash
priority program;
5. Account for joint operations using management accounts and interest in joint operations
accounts
6. Account for variable considerations, contract modifications, and changes in transaction
price of a construction contract and in instances wherein collectability of contract revenue
is uncertain or doubtful;
7. Compute for the franchise revenue following the accounting procedures set forth by
PFRS 15 Revenue from Contracts with Customers;
8. Account for BOT arrangements and compute the revenue recognized by the “operator”;
C. Affective
1. Develop high analytical skills in evaluating and assessing the conditions in specialized
business transactions;
2. Comply with the Philippine Financial Reporting Standards and similar generally-accepted
accounting principles in dealing with revenue recognition; and
3. Display a character of acting in sufficient expertise to resolve accounting issues relating
to the earlier mentioned specialized transactions.
VII. Course Outline:
Week 1. Partnership Formation

1 1.1 Characteristics of Partnership
1.2 Accounting for Partnership Formation
1.2a Total Capital Contribution and Total Agreed Capitalization Distinguished
1.2a Bonus Method, Net Investment Method, and Goodwill Method
Week 2. Division of Profits and Losses to Partners

1 2.1 Provisions on New Civil Code of the Philippines for Allocation of Profits and
Losses of Partners
2.2 Salaries, Interest on Capital, and Bonus to Partners
Week 3. Partnership Dissolution

2 3.1 General Causes of Partnership Dissolution
3.2 Accounting for Partnership Dissolution
3.2a Admission of a New Partner
3.2b Withdrawal and Retirement of a Partner
3.2c Incorporation of a Partnership
Week 4. Partnership Liquidation

3 4.1 Insolvency of Partnership and Liquidation Activities Involved
4.2 Measurement of Assets and Liabilities of a Liquidating Partnership
4.3 Accounting for Partnership Liquidation
4.3a Safe Payments Schedule and Cash Priority Program
Week 5. Corporate Liquidation and Reorganization

4 5.1 Measurement Basis for Assets and Liabilities for Non-going Concern Entities
5.2 Financial Reports of Liquidating Entities
5.2a Statement of Affairs
5.2b Statement of Realization and Liquidation
5.3 Corporate Reorganization
5.3a Types of Corporate Reorganization
Week 6. Joint Arrangements

5 6.1 Definition of Joint Arrangement
6.2 Types of Joint Arrangement
6.3 Accounting for Joint Operation Transactions
6.3a No separate records maintained
6.3b Separate books are maintained
6.4 Accounting for Joint Ventures
6.4a Presentation in Financial Statements
6.5b Required disclosures of transactions between a venturer and a joint venture
Week 7. Long-term Construction Contracts

6 7.1 Definition of Construction Contract
7.2 Revenue Recognition of Construction Contracts (PFRS 15)
7.2a Input Method
7.2b Output Method
7.3 Variable Considerations, Contract Modifications, Changes in Transaction Price
Week 8. Accounting for Franchise Operations – Franchisor

7 8.1 Licensing and Franchise
8.2 Revenue Recognition of Franchise Contracts (PFRS15)
8.3 Uncertainty in the Collectability of Contract Revenue
Week 9. Consignment Sales and Installment Sales

8 9.1 Consignment Arrangements
9.2 Applicability of Installment Sales Method
9.3 Installment Sales Method
9.3a Trade-Ins
9.3b Repossessions
9.4 Cost Recovery Method
Week 10. Home Office, Branch and Agency Transactions

9 10.1 Branch and Agency Distinguished
10.2 Accounting for Branch Operations
10.2a Inter-office or Intra-company transactions
10.3 Individual and Combined Financial Statements Presentation
Week 11. Insurance Contracts and BOT Arrangements

10 11.1 Essential Elements of Insurance Contracts
11.3 Recognition, Initial Measurement and Subsequent Measurement
11.4 Features of BOT Arrangements
11.5 Accounting for Service Concession Arrangements
VIII. Grading System:
Periodicals* 40%
Quizzes/ Recitations 30%
Assignments 20%
Attendance 10%
100%
*Periodicals include midterm and final examinations.
Every grading shall always include the above components.
IX. Required Textbook:
 Millan, Zeus Vernon B., Accounting for Special Transactions, 2020 Edition, Bandolin
Enterprise
References:
 Title IX, Partnership, Civil Code of the Philippines

 Conceptual Framework for Financial Reporting
 PFRS 11 Joint Arrangements
 PAS 28 Investment in Associate and Joint Ventures
 PFRS 15 Revenue from Contracts with Customers
 PFRS 17 Insurance Contracts
 IFRIC Interpretation 12 Service Concession Arrangements
 SIC Interpretation 29 Service Concession Arrangements: Disclosures
 Dayag, Antonio J., Advanced Financial Accounting and Reporting (CPA Examination
Review), 2019, GIC Enterprises & Co.
 Punzalan, A.R., Laco, R.L, Ferrer, R.C., Advanced Financial Accounting and Reporting
(A Comprehensive and Procedural Approach), 2020 Edition, GIC Enterprises & Co.
Prepared by: Approved: Noted:
Miles Nicko M. Santos Roselyn B. Bulan Clarence M. Fungot

Instructor BSA Chairperson Dean, CASBTE

College of St. John - Roxas: Member: Association of LASSSAI Accredited Superschools (ALAS)

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College of St.

I. Course Code: ACCT201

II. Course Title: Accounting for Special Transactions

III. Credit Units: 3 Units

VI. General Objectives:

Upon completion of the course, the students will be able to:

1. Account for the initial investments of the partners to the partnership;

VII. Course Outline:

Week 1. Partnership Formation

Week 2. Division of Profits and Losses to Partners

Week 3. Partnership Dissolution

Week 4. Partnership Liquidation

Week 5. Corporate Liquidation and Reorganization

Week 6. Joint Arrangements

Week 7. Long-term Construction Contracts

Week 8. Accounting for Franchise Operations – Franchisor

Week 9. Consignment Sales and Installment Sales

Week 10. Home Office, Branch and Agency Transactions

Week 11. Insurance Contracts and BOT Arrangements

VIII. Grading System:

*Periodicals include midterm and final examinations.

Every grading shall always include the above components.

IX. Required Textbook:

 Title IX, Partnership, Civil Code of the Philippines

Prepared by: Approved: Noted:

Miles Nicko M. Santos Roselyn B. Bulan Clarence M. Fungot

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