Course Title: Accounting for Special Transactions

Course Code: Pre 6

Number of Units: 3 units

Week Topics
Week 1 Partnership Formation
• Characteristics of Partnership
• Advantage & Disadvantage of Partnership
• Accounting for partnership
• Valuation if contribution of partners
• Partner’s Ledger account
• Capital & Drawing Accounts
• Receivable from / Payable to a partner
• Bonus on initial investments
• Variations to the bonus methods
Week 2 Partnership Operations
• Division of profits and losses
o Salaries
o Bonus
o Interest on Capital

Week 3 Partnership Dissolution

• Dissolution
• Admission of Partner
• Purchase of assets
• Revaluation of assets
• Investment in the partnership
• Withdrawal, retirement or Death of a
partner
• Incorporation of a partnership

Week 4 PRELIM
Week 5 Partnership Liquidation
• Liquidation
• Methods of Liquidation
• Settlement of claims
• Lump-Sum Liquidation Vs. Installment
Liquidation
• Marshalling of Assets
• Non-Cash Asset used as payment for
claims
• Safe payment schedule
• Cash priority Program
Week 6 - 7 Corporate Liquidation & Reorganization
• Corporate Liquidation
• Measurement Basis
 • Financial Reports
• Statement of affairs
• Statement of realization and liquidation
• Types of Corporate reorganization
Week 7-8 Joint Arrangements
• Types of Joint Arrangement
• Contractual Arrangement
• Joint Operations
• Accounting for Joint Operations
Transaction
• Joint Ventures
• Transactions between a venturer and a
joint venture
• Joint venture - Presentation in statement
of financial position
Week 9 Construction Contracts
• Definitions of Construction contracts
• Methods of measuring progress
• Input Methods
o Cost to Cost
o Efforts expended (labor hour
based) method
• Contract Costs
• Accounting for Construction Contracts
• Output method
• Contract Modifications
Week 10 Midterm
Week 11 Accounting for Franchise operations
• Licensing
• Franchise
• Application of Principles of PFRS 15
• Contract Cost
• Significant Financing Component in a
contract.
Week 12 Consignment Sales
• Consignment Arrangements
• Principal Versus Agent Considerations
Chapter 13 Installment sales method
• Installment Sales Method
• Applicability
• Brief History
• Accounting Procedures
• Repossession
• Trades in
• Allocation of Cost of Goods Sold
• Cost Recovery Method
 Chapter 14 Home Office, Branch and Agency Accounting
• Branch and Agency Distinguish
• Accounting for Agency
• Accounting for Branch Operations
o Transactions between home
office and branch.
o Combined Financial Statements
• Reconciliation of Reciprocal Accounts
Chapter 15 Insurance Contracts
• Meaning of Insurance Contracts
• Essential elements of insurance contracts
• Legal Principles of Insurance
• Types of Insurers
• Type of Insurance Contracts
• Separating components from an
insurance contract.
• Level of Aggregation of insurance
contract.
• Initial Measurement
o Fulfillment cash flows
o Contractual service margin
• Subsequent Measurement
• Onerous contract
Chapter 16 Accounting for Build – operate transfer (BOT)
• Features of BOT arrangements
• Scope of BOT
• Construction or upgrade services
o Financial asset
o Intangible asset
• Operation Services
• Accounting for Service concession
arrangements
Week 17 FINAL EXAM

Reference:

Accounting for Special Transactions (Advance Accounting 1), by Zeus Vernon Millan