ADVANCED FINANCIAL ACCOUNTING AND REPORTING

TOPICS/SUBTOPICS TAKEN UP? EXPLANATION

YES contract of partnership 2 or more persons bind themselves to

When the partnership is formed, each partners closes their books as sole proprietor then journalize
YES
their investments in the partnership
1.2 Formation

1.3 Operations YES Division of P & L to the partners

1.4 Dissolution / changes in ownership interest YES Any changes in partnership member (whether admission, retirement or death) will result to dissolution

YES Admission of new partner can either be purchase of all or part of the interest of one or more of the
1.4.1 Admission of a new partner existing partners; or investment in assets in the partnership by the incoming partner.
1.4.1.1 By purchase of interest YES Either all or portion of interest in all or some partners
1.4.1.2 By investment YES Investment of assets by the incoming partner
1.4.2 Withdrawal, retirement or death of a partner YES Computing for new capital balances of the partners after retirement of an old one
1.4.3 Incorporation of a partnership YES Converting from partnership to Corporation

YES Winding up its business activities characterized by sale of all non-cash assets, settlement of all
1.5 Liquidation liabilities, and distribution of the remaining cash to the partners.

YES All non-cash assets are realized and the related gains or losses distributed and all liabilities are paid
1.5.1 Lump – sum method before a single final cash distribution is made to the partners.

The realization of non-cash assets is accomplished over an extended period of time. When cash is
YES
available, credits may be partially or fully paid. Any excess may be distributed to the partners in
1.5.2 Installment method accordance with a program of safe payments or a cash priority program.
2.0 Corporate Liquidation NO
2.1 Statement of Affairs NO
2.2 Deficiency Statement NO
2.3 Statement of Realization and Liquidation NO
2.4 Determination of the order of priority of claimants of company assets subject to NO
liquidation
3.0 Joint Arrangements (PFRS 11) YES An arrangement of which two or more parties have joint control
Joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and
3.1 Joint Operations YES obligations for the liabilities, relating to the arrangement.
3.2 Joint Venture (Equity Method) A method of accounting YES
by which an equity investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the net assets of the associa
3.3 Accounting for SME NO
4.0 Revenue Recognition NO
4.1 Installment Sales NO
4.1.1 Recognition of gross profit – regular sales versus installment sales NO
4.1.2 Default and Repossession and Trade – in merchandise NO
4.1.3 PAS 18 / PFRS 15 NO
4.1.4 Financial Statement Presentation NO
4.2 Long – term Construction Contracts (PAS 11 / PFRS 15) NO
4.2.1 Journal entries and determination of revenue, costs and gross profit NO
4.2.1.1 Percentage of Completion NO
4.2.1.1.1 The proportion that contract costs incurred for work performed to date bear to
the estimated total contract costs; NO
4.2.1.1.2 Surveys of work performed; or NO
4.2.1.1.3 Completion of a physical proportion of the contract work NO
4.2.1.2 Cost Recovery Method NO
4.2.2 Gross amount due from / to customers NO
4.2.3 Financial Statement Presentation NO
4.2.4 Accounting for SME NO
4.3 Franchise Operations – Franchisor’s point of view (PAS 18 / PFRS 15) NO
4.3.1 Journal entries and determination of revenue, costs and gross profit NO
4.3.1.1 Initial Franchise Fee (use of accrual method, installment sales method and cost
recovery method) NO
4.3.1.2 Continuing Franchise Fee, Bargain Purchase Option, and Commingled Revenue NO
4.3.1.3 Repossessed Franchise NO
4.3.1.4 Option to Purchase the Franchise Outlet NO
4.3.2 Financial Statement Presentation NO
4.3.3 Accounting for SME NO
4.4 Consignment Sales (PAS 18 / PFRS 15) NO
5.0 Accounting for Home Office, Branch and Agency Transactions NO
5.1 Transactions on the books of the home office and the branch NO
5.2 Reconciliation of reciprocal accounts NO
5.3 Preparation of individual and combined financial statements NO
5.4 Special procedures in home office and branch transactions (inter – branch transfer of
cash and merchandise at cost or at billed price) NO
5.5 Accounting for agency transactions NO
6.0 Business Combination (PFRS 3) NO
6.1 Acquisition of assets and liabilities (acquisition method) NO
6.1.1 Determination of Consideration Transferred NO
6.1.2 Recognition of Acquired Assets and Liabilities NO
6.1.3 Recognition and Measurement of Goodwill and Gain from a Bargain Purchase NO
6.1.4 Journal Entries NO
6.2 Financial Statement Presentation NO
6.3 Accounting for SME NO
7.0 Separate Financial Statements (PAS 27) NO
7.1 Accounting for Investment in Subsidiary NO
7.1.1 Cost NO
7.1.2 In accordance with PAS 39 / PFRS 9 NO
7.1.3 Equity Method NO
7.2 Accounting for SME NO
8.0 Consolidated Financial Statements (PFRS 10) NO
8.1 Consolidated Financial Statement in Subsidiary NO
8.1.1 Date of acquisition NO
8.1.2 Subsequent to date of acquisition (At cost, In accordance with PAS 39 / PFRS 9,
and Equity Method) NO
8.1.2.1 Net income, dividends, amortization and impairment of goodwill NO
8.1.2.2 With intercompany transactions (inventories, land and depreciable assets) NO
8.1.3 Determination of: NO
8.1.3.1 Net Income / Total Comprehensive Income / Equity NO
8.1.3.1.1 Attribution to Equity Holders of Parent / Controlling or Parent’s Interest NO
8.1.3.1.2 Non-controlling Interest NO
8.1.3.1.3 Consolidated / Group NO
8.1.3.2 Retained Earnings / Common Share / Dividends NO
8.1.3.2.1 Attributable to Equity Holders of Parent / Controlling or Parent’s NO
Interest / Consolidated / Group NO
8.2 Accounting for SME NO
9.0 Foreign Currency Transactions NO
9.1 Without Hedging Activities (import, export, lending, and borrowing transactions) NO
9.2 Hedging Activities: Hedging Foreign Currency Exposures NO
9.2.1 Foreign Currency Forward Contacts NO
9.2.1.1 Hedges where Hedge Accounting is Not Required (undesignated hedges) NO
9.2.1.1.1 Exposed Asset (import) or Liability (export) Position NO
9.2.1.1.2 Speculation NO
9.2.1.2 Hedges that requires a Hedge Accounting NO
9.2.1.2.1 Fair value hedge NO
9.2.1.2.1.1 Hedge of a Firm Commitment (purchase or sale transaction) NO
9.2.1.2.2 Cash flow hedge NO
9.2.1.2.2.1 Hedge of a Firm Commitment (purchase or sale transaction) NO
9.2.1.2.2.2 Hedge of a Forecasted Transaction (purchase or sale transaction) NO
9.2.1.2.3 Hedge of a net investment in foreign entity NO
9.3 Accounting for SME NO
10.0 Translation of Foreign Currency Financial Statements (PAS 21/ PAS 29) NO
10.1 Translation from the Functional Currency to the Presentation Currency (Closing /
Current Rate Method) 10.2 Remeasurement from a Foreign Currency to the Functional
Currency (Temporal Method) 10.3 Restatement of Financial Statements NO
11.0 Not – for – profit organizations NO
11.1 Voluntary health and welfare organizations (VHWO) NO
11.2 Hospitals and other health care organizations NO
11.3 Colleges and universities NO
11.4 Other not – for – profit organizations such as churches, museums, fraternity
association, etc. NO
12.0 Government Accounting – General Fund NO
12.1 Basic Concepts in Government Accounting NO
12.2 Budget Process NO
12.3 Journal Entries – Books of National Government Agency NO
13.0 Other Special Topics (Basic Knowledge) NO
13.1 Accounting for insurance contracts by insurers (PFRS 4) NO
13.2 Accounting for build, operate & transfer (PFRIC 12) NO
14.0 Cost Accounting YES
14.1 System of cost accumulation or costing system YES
14.1.1 Comparison between actual costing, normal costing and standard costing YES
14.2 Job – order costing system YES
14.2.1 Cost accumulation procedures – materials, labor and overhead YES
14.2.2 Journal entries YES
14.2.3 Preparation of statement of goods manufactured and sold YES
14.2.4 Accounting for scrap, waste, spoilage and rework YES
14.3 Process costing system YES
14.3.1 Cost accumulation procedures – materials, labor and overhead YES
14.3.2 Journal entries YES
14.3.3 Preparation of cost of production report YES
14.3.3.1 First – in, first – out (FIFO) method YES
14.3.3.2 Average method YES
14.3.4 Accounting for lost units NO
14.3.4.1 Normal lost units NO
14.3.4.2 Abnormal lost units NO
14.4 Backflush costing system (JIT system) NO
14.4.1 Cost accumulation procedures – materials, labor and overhead
14.4.2 Journal entries
14.5 Service cost allocation
14.5.1 Direct method
14.5.2 Step – down method
14.5.3 Reciprocal method
14.6 Activity – based costing system (ABC costing) YES Accurately allocate cost to the products.
14.6.1 Allocation of costs: Traditional costing versus ABC costing YES Allocates overhead using a single predetermined rate.
14.6.2 Determination of total product costs: Traditional costing versus ABC costing
14.7 Accounting for joint and by – products YES
14.7.1 Methods of allocating joint cost to products YES Physical measurement allocation, Sales Value, and Split off point
Sales Value Method recognizes the relative ability of each product to
14.7.1.1 Market (sales) value method: YES generate a profit at sale.
assigns joint cost to joint products based
14.7.1.1.1 Market value at split – off point approach YES solely on the relative sales values of the products at the split-off point
It requires that a simulated net realizable
14.7.1.1.2 Hypothetical Market Value Approach or Approximated Net Realizable YES value at the split-off point be calculated

Value Approach or Net Realizable Value Method It requires that the net realizable value of the by-product be treated as a reduction in the joint cost of
YES manufacturing primary products.
14.7.1.1.3 Average unit (production output) method NO
14.7.1.1.4 Weight average method NO
14.7.1.2 Methods of allocating joint cost to by – products NO
14.7.1.2.1 No joint cost allocated to by – product NO
14.7.1.2.2 With joint costs allocated to by – product NO
14.7.1.3 Treatment of by - products NO
14.8 Standard Costing (two-way variance excluding mix and yield variances) NO
14.8.1 Computation of Variances NO
14.8.2 Journal Entries and reporting NO
15.0 Updates on Special Concerns NO
15.1 Globalization NO
15.2 Digital and Information Technology NO
15.3 Governance and Ethics NO
15.4 Regulatory Requirements and Considerations NO
15.5 Effective Business Communication NO

Prepared by:
Darill Lance Gallogo