COURSE SYLLABUS IN ACCOUNTING FOR BUSINESS COMBINATION

Republic of the Philippines

Mindanao State University
Fatima, General Santos City

1st Semester, Academic Year 2020-2021

University Vision To be a globally competitive university in the Southern Philippines

University To provide trained and skilled human resources for the development of SOCKSARGEN and Southern Mindanao and help improve the living conditions of
Mission Muslims and other tribal communities

College Goals To strengthen all the degree programs of the CBA&A and to produce graduates that are equipped with all the necessary skills and knowledge to be successful in
their future careers.

Program 1. Resolve business issues and problems, with a global and strategic perspective using knowledge and technical proficiency in the areas of financial
Outcomes accounting and reporting, cost accounting and management, accounting and control, taxation and accounting information systems.
2. Conduct accountancy research through independent studies of relevant literature and appropriate use of accounting theory and methodologies.
3. Employ technology as a business tool in capturing financial and non-financial information, generating reports and making decisions.
4. Apply knowledge and skills that will successfully respond to various types of assessments (including professional licensure and certifications.
5. Confidently maintain a commitment to good corporate citizenship, social responsibility and ethical practice in performing functions as an accountant.

Course Title ACT 131

Course Number Accounting for Business Combinations
Hours/Week 54 hours/9 weeks
Prerequisites ACT 114

Course This course deals mainly with consolidation and mergers, parent-subsidiary relationships and consolidated statements, including foreign subsidiaries. The
Description other topics deal with accounting for the effects of changes in foreign exchange rates and other similar current issues. Also discussed are debt restructuring,
accounting for financially distressed corporations, accounting for the winding up of an enterprise and accounting variations among countries.

COURSE SCOPE AND LEARNING PLAN

TIME FRAME TOPIC OUTLINE TEACHING AND ASSESSMENT TASK

LEARNING ACTIVITIES
Week 1 Business Combinations- Statutory Merger  Nature, Types, Structure of Business MODULE QUIZ
and Subsidiary Consolidation Combination
 Identifying a Business LECTURE DISCUSSION ASSIGNMENT
 Acquisition of assets and liabilities
(Acquisition method)
o Determination of Consideration
Transferred
o Recognition of Acquired Assets
and Liabilities
o Recognition and Measurement
of Goodwill and Gain from a
Bargain Purchase
o Journal Entries
 Use of Provisional Values
 Measurement Period

Week 2 Separate and Consolidated Financial  The Concept of Control MODULE QUIZ
Statement  Step-Acquisition
 Consolidated Financial Statements LECTURE DISCUSSION ASSIGNMENT (Worksheet)
(PFRS 10)
 Separate Financial Statements
 Cost Method
 Equity Method
 Fair Value Method

SUMMATIVE TEST (CH 1-3)

Week 3 Elimination of Unrealized Intercompany A. Sales of Inventory MODULE QUIZ

Profit (CH 4-5)  Upstream and Downstream Sales
 o Determination of Consolidated LECTURE DISCUSSION ASSIGNMENT
Sales. Cost of Sales, and
Inventory Balances
 Cost Method
 Equity Method
o Determination of Intercompany
Profit, Consolidated Net Income
and Retained Earnings

B. Sales of Property and Equipment

 Upstream and Downstream Sales
o Determination of Consolidated
Sales. Cost of Sales, and
Inventory Balances

 Cost Method
o Determination of Consolidated Net
Income and Retained Earnings

Week 4
MIDTERM EXAMINATION
(DEC. 11)

Week 5 Foreign Currency Transactions  How Exchange Rates are Quoted MODULE QUIZ
 Measured versus Denominated
 Factors to Indicate on Entity’s LECTURE DISCUSSION ASSIGNMENT
Functional Currency
 Import/Borrowing
 Export/Lending
 Transaction Exposure

Week 6 Foreign Currency Translations  Translation from the Functional MODULE QUIZ
Currency to the Presentation Currency ASSIGNMENT
(Closing / Current Rate Method) LECTURE DISCUSSION
 Remeasurement from a Foreign
Currency to the Functional Currency
(Temporal Method)
 Restatement of Financial Statements
Week 7 Hedging Foreign Currency Exchange Rate  Derivative Instruments MODULE QUIZ
Risk  Hedging and Hedge Accounting
 Assessing Hedge Effectiveness LECTURE DISCUSSION ASSIGNMENT
 Fair value hedge
o Hedge of a Firm Commitment
(purchase or sale transaction)
 Cash flow hedge
o Hedge of a Firm Commitment
(purchase or sale transaction)
o Hedge of a Forecasted
Transaction (purchase or sale
transaction)
 Hedge of a net investment in foreign
entity
 Accounting for SME

Week 8
FINAL EXAMINATION
(JAN. 15)
(All topics are covered.)

COURSE REQUIREMENTS
To pass the subject, you must be able to attain at least 75% grade.

GRADING SYSTEM

Examination (Midterm, Finals) 50%

Quizzes 35%
 Assignments 15%
TOTAL 100%

REFERENCE
Advanced Financial Accounting (2021) by Antonio J. Dayag

COURSE POLICIES, REGULATIONS AND SPECIAL NEEDS:

A. Student Attendance in Class and Other Academic Activities
1. Start of class: November 16, 2020 ; End of class: January 15, 2020
2. Assessments are given online. There is a time limit when the quiz has started. Major examinations will be taken online. You might be required to turn on your
camera. If there is a difficulty in internet connection, kindly inform your instructor in order to make necessary arrangements.
3. Assignments should be passed before the deadline. Late assignments will be accepted provided there is a justifiable reason.

B. Schedule of Class
1. Since we are adapting modular mode of delivery, there will only be designated dates for online class. Due to the technical difficulty of the topic, attendance via
Google meet is highly encouraged. The tentative schedule for online class will be every Friday 8AM-10AM.
2. Assessments will be given via Google classroom.

C. Student Discipline
1. The student is expected to take all examinations on the date scheduled. Request for excused absences must be discussed with your instructor.
2. Students are expected to study even without the supervision of the instructor.
3. Cheating automatically gives the student failing grade, 5.0. All students are expected to be academically honest.
4. The use of cellphone is strictly prohibited during online discussions, quizzes, and exams.
5. Always wash your hands and practice proper social distancing. Avoid non-essential travels. Stay safe.

Prepared by: Recommended by: Endorsed by: Approved by:

Rosaifa H. Radi, CPA
Instructor Chairperson Dean VCAA

Prepared by: Status: Issue Date: Next review date: Page:

Approved by: Version: 2.0 Effective Date: