COLLEGE OF ST.

JOHN - ROXAS
Member: Association of LASSAI- Accredited Superschools (ALAS)
Gov. Atila Balgos Ave.. Banica, Roxas City

Flexible Learning Plan Course Syllabus

A.Y 2020- 2021

ACCOUNTING FOR BUSINESS

Course Title COOMBINATIONS
Year Level 2nd Year Level Term Second Semester

Instructor Miles Nicko Santos Phone Number 09063369187 Email Address [email protected]
This course provides learners a comprehensive understanding of and application of the accounting principles relating to mergers and
acquisition, preparation of consolidated financial statements, including translation of foreign operations, accounting for forward, futures and net
investment hedges.

Course Description Learners are expected to prepare journal entries to record acquisition, prepare consolidated financial statements, and present the effects of
business combination, in both the separate and consolidated financial statements of the acquirer/investor.

Learners shall apply the applicable reporting requirements for the translation of foreign operations in the consolidated financial statements of
the reporting entity.
Course Learning outcomes Upon completion of the course, the students will be able to:

A. Cognitive

1. Define the elements of a business combination and explain briefly the accounting requirements for a business combination;
2. Explain the acquisition method and the measurement period discussed in PFRS3 Business Combination;
3. Apply the methods of estimating goodwill before the actual business combination takes place;
4. State the elements of control defined in PFRS10 Consolidation;
5. Identify intercompany transactions and assess their effects to consolidated financial statements;
6. Determine the effects of changes in ownership interests that result in loss of control and does not result in control;
7. Prepare consolidation working papers;
8. Prepare consolidated financial statements of both basic and complex structure of combining entities;
 9. Define the stable monetary assumption;
10. Identify monetary and nonmonetary assumptions;
11. Restate the financial statements under hyperinflationary economies;
12. Define an entity’s functional currency;
13. Translate the financial statements of a foreign operation;
14. Identify the characteristics of a derivative and the purposes of acquiring derivatives;
15. Differentiate fair value hedge from cash flow hedge;

B. Psychomotor

1. Compute for either goodwill or gain on bargain purchase resulting from business combinations;
2. Compute for the non-controlling interest’s initial measurement;
3. Account for reverse acquisitions and combinations of mutual entities;
4. Account for the effect of impairment of goodwill on the consolidated financial statements;
5. Compute for the gain or loss on net monetary positions;
6. Account for foreign currency transactions;
7. Compute for the gain or loss on foreign translations;
8. Compute for the gain or loss on forward, futures contracts and firm commitments;

C. Affective

1. Develop high analytical skills in evaluating and assessing the conditions in business combinations;
2. Comply with the Philippine Financial Reporting Standards and similar generally-accepted accounting principles in dealing with
consolidation, foreign currency translation and other monetary changes brought by hyperinflationary transactions; and
3. Display a character of acting in sufficient expertise to resolve accounting issues relating to the earlier mentioned business
transactions and arrangements.
3 Prerequisite Instructional Delivery 36 hours Number of 10
Credits
Duration Topics

Week TOPIC OBJECTIVES Delivery of Requirements/ Resources Learning

Number instruction outputs/ (Links/Supplementary Strategies
 Assessments reading materials
1 1. PFRS 3 Business Combination,  Define business Comprehensiv Practical PFRS 3 Business Visual
part 1 combination and other e and exercises/Quizze Combinations lectures,
1.1 Definition of Key Terminologies key terminologies used in procedural s demonstration
in Business Combinations PFRS 3; approach of /Recitation of accounting
1.2 Determining Whether a  State the acquisition accounting techniques,
Transaction is a Business Combination method in accounting for techniques with recitation, and
1.3 The 4 Steps of Acquisition business combination; clear concept-
Method of Business Combination  State the accounting instructional mapping
1.3a Identifying of an acquirer equation of computing objectives and
1.3b Acquisition date goodwill; sequencing
1.3c Acquired assets and  Identify the two choices thru Google
liabilities recognition and measurement for NCI measurements; Slides, Meet
1.3d Computation of goodwill  Explain the accounting for
1.4 Choice in the measurement of investments into
non-controlling interest (NCI) achieving control in
1.5 Business Combination Achieved
business combination
in Stages
achieved in stages
2 2. PFRS 3 Business Combination,  Define the measurement Comprehensiv Practical PFRS 3 Business Visual
part 2 period prescribed by e and exercises/Quizze Combinations lectures,
2.1 Measurement Period PFRS 3; procedural s demonstration
2.1a Restatement of goodwill  Identify the events which approach of /Recitation of accounting
2.1b Reassessing of conditions call for restatement of accounting techniques,
to recognize gain on bargain purchase goodwill or recognizing techniques with recitation, and
2.1c Exceptions in the changes to profit or loss; clear concept-
measurement period  Describe the accounting instructional mapping
2.2 Related Transactions and treatment in business objectives and
Subsequent Accounting combination of intangible sequencing
2.2a General principles assets, indemnification of thru Google
2.2b Contingent consideration assets, contingent Slides, Meet
2.2c Acquisition costs liabilities, and contingent
2.2d Pre-existing relationship payment to shareholders
and reacquired rights
2.2e Contingent liabilities
2.2f Contingent payments to
shareholders
2.2g Indemnification of assets
 2.3 Required Disclosures
3 3. Application of Business  Compute for the goodwill Comprehensiv Practical Chapter 1-2, Accounting Visual
Combination using the 3-Step e and exercises/Quizze for Business Combination, lectures,
3.1 A 3-Step Accounting approach; procedural s Millan, Z.B., 2020 demonstration
Computation for Goodwill  Identify the items which approach of /Recitation of accounting
3.1a Determining the total fair compose the aggregate accounting techniques,
value of the consideration transferred value of consideration techniques with recitation, and
3.1a.i Cash consideration transferred; clear concept-
paid  Account for the fair value instructional mapping
3.1a.ii Contingent of identifiable assets of objectives and
consideration the acquiree; sequencing
3.1a.iii Non-controlling interest  Journalize the appropriate thru Google
(either at FV or proportionate share) entries on the acquirer’s Slides, Meet
3.1a.iv Bonds issued and books on the date of
shares exchanged business combination
3.1b Determining the total fair
value of the net identifiable assets
3.1b.i Intangible assets and
contingent liabilities of the acquiree
3.1c Computation of goodwill
3.1c.i Control premiums
3.1c.ii Attributable to parent
and subsidiary
3.2 Journalizing the Business
Combination In The Acquirer’s Books

4 4. Post-Acquisition Date Changes  Journalize the necessary Comprehensiv Practical Chapter 3, Accounting for Visual
and Consolidation at the Acquisition adjustments pertaining to e and exercises/Quizze Business Combination, lectures,
Date restatement of goodwill procedural s Millan, Z.B., 2020 demonstration
4.1 Restatement of Goodwill and reassessing for gain approach of /Recitation of accounting
4.1a Within and beyond on bargain purchase; accounting techniques,
measurement period  Prepare pre-consolidation techniques with recitation, and
4.1b Exceptions to restatement working papers on the clear concept-
of goodwill within measurement period date of acquisition; and instructional mapping
4.2 Consolidation Process at  Journalize the appropriate objectives and
Acquisition Date consolidation entry sequencing
4.2a Preparation of consolidation thru Google
working papers Slides, Meet
 4.2b Journalizing the
consolidation entry

5 5. PFRS 10 Consolidation  State the elements of Comprehensiv Practical PFRS 10 Consolidation Visual
5.1 Definition of Key Terminologies control; e and exercises/Quizze lectures,
in Consolidation  Identify the entities who procedural s demonstration
5.2 Elements of Control are exempt in the approach of /Recitation of accounting
5.3 Accounting Requirements preparation of accounting techniques,
5.3a Preparation of consolidated consolidated financial techniques with recitation, and
financial statements statements; clear concept-
5.3b Parent exempt from  Explain the consolidation instructional mapping
consolidation procedures; objectives and
5.3c Consolidation procedures  Explain the consolidation sequencing
5.3d NCI presentation at financial in investment entities thru Google
statements Slides, Meet
5.3e Changes in ownership
interests
5.4 Investment Entities
Consolidation Exemption
5.5 PFRS 12 Disclosure of Interests
in Other Entities

6 MIDTERM ASSESSMENT
7 6. Consolidation Procedures  Prepare consolidation Comprehensiv Practical Chapter 4-7, Accounting Visual
6.1 Preparation of consolidated working papers; e and exercises/Quizze for Business Combination, lectures,
statement of comprehensive income  Journalize the appropriate procedural s Millan, Z.B., 2020 demonstration
6.1a Effects of fair value consolidation entries; approach of /Recitation of accounting
adjustments in assets and liabilities of  Prepare a consolidated accounting techniques,
the subsidiary profit or loss statement; techniques with recitation, and
6.1b Elimination of intercompany  Prepare the consolidated clear concept-
transactions statement of financial instructional mapping
6.1c Allocation of impairment loss position; objectives and
in goodwill  Prepare the consolidated sequencing
6.1d Elimination of dividends paid statement of cash flows thru Google
to subsidiary Slides, Meet
6.2 Preparation of consolidated
statement of financial position
6.2a Elimination of investment in
 subsidiary account
6.2b Recognizing the carrying
amount of goodwill attributable to
parent
6.2c Line by line combination of
similar accounts net of fair value
adjustments
6.3 Preparation of consolidated cash
flow statement

8 7. Separate Financial Statements  Describe the applicability Comprehensiv Practical Chapter 8, Accounting for Visual
7.1 Applicability of PAS 24 Separate of PAS 27; e and exercises/Quizze Business Combination, lectures,
Financial Statements  Describe the procedural s Millan, Z.B., 2020, PAS 27 demonstration
7.2 Preparation of Separate measurement bases approach of /Recitation Separate Financial of accounting
Financial Statements allowed under PAS 27 accounting Statements techniques,
7.2a Cost method techniques with recitation, and
7.2b Fair value method clear concept-
7.2c Equity method instructional mapping
7.3 Dividends on investments objectives and
7.4 Separate financial statements sequencing
and consolidated financial statements thru Google
Slides, Meet
9 8. Financial Reporting in  Define the stable Comprehensiv Practical Chapter 8, Accounting for Visual
Hyperinflationary Economies monetary unit e and exercises/Quizze Business Combination, lectures,
8.1 Identifying Hyperinflation assumption; procedural s Millan, Z.B., 2020, PAS 29 demonstration
8.2 Restatement of Financial  State the core principle approach of /Recitation Financial Reporting in of accounting
Statements under PAS 29; accounting Hyperinflationary techniques,
8.2a Historical cost to constant  Restate a statement of techniques with Economies recitation, and
peso financial position and an clear concept-
8.2b Current cost to constant income statement in instructional mapping
peso accordance with PAS 29 objectives and
8.3 Effects to Current and Deferred sequencing
Taxes thru Google
Slides, Meet
10 9. Effects of Changes in Foreign  Define an entity’s Comprehensiv Practical Chapter 10, Accounting Visual
Exchange Rates functional currency; e and exercises/Quizze for Business Combination, lectures,
9.1 Functional Currency, defined  Account for foreign procedural s Millan, Z.B., 2020, PAS 21 demonstration
9.2 Foreign Currency Transactions currency transactions; approach of /Recitation The Effects of Changes in of accounting
 9.2a Spot exchange rate v.  Translate the financial accounting Foreign Exchange Rates techniques,
closing rate statements of a foreign techniques with recitation, and
9.2b Direct v. indirect quotation operation clear concept-
9.2c Exchange differences instructional mapping
9.3 Translation of Financial objectives and
Statements to Functional Currency sequencing
9.4 Foreign Operations thru Google
Slides, Meet
11 10. Accounting for Derivatives and  Identify the characteristics Comprehensiv Practical Chapter 11-12, Visual
Hedging Transactions of a derivative; e and exercises/Quizze Accounting for Business lectures,
10.1 Purpose, Definition and  State the purpose of procedural s Combination, Millan, Z.B., demonstration
Measurement of Derivatives acquiring derivatives; approach of /Recitation 2020, PFRS 9 Financial of accounting
10.2 Hedging  Enumerate the qualifying accounting Instruments, PAS 39 techniques,
10.2a Hedging Instruments, hedged items; techniques with Financial Instruments: recitation, and
Hedged Items and Hedge Accounting  Differentiate fair value clear Recognition and concept-
10.3 Accounting for Forward hedge from cash flow instructional Measurement, PAS 32 mapping
Contracts hedge objectives and Financial Instruments:
10.4 Accounting for Futures sequencing Presentation, PFRS7
Contracts thru Google Financial Instruments:
10.5 Accounting for Net Investment Slides, Meet Disclosures
Hedges
13 FINAL ASSESSMENT

GRADING:

Periodicals* 40%
Quizzes/ Recitations 30%
Assignments 20%
Attendance 10%
100%

*Periodicals include midterm and final examinations.

Every grading period shall always include the above components.

TEXTBOOK:
 Millan, Zeus Vernon B., Accounting for Special Transactions, 2020 Edition, Bandolin Enterprise

REFERENCES:
 PFRS 3 Business Combination
 PFRS 10 Consolidation
 PAS 29 Financial Reporting in Hyperinflationary Economies
 PAS 27 Separate Financial Statements
 PAS 21 The Effects of Changes in Foreign Exchange Rates
 PFRS 9 Financial Instruments
 PAS 39 Financial Instruments: Recognition and Measurement
 PAS 32 Financial Instruments: Presentation
 PFRS7 Financial Instruments: 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.