TABLE OT CONTENTS

Acquisition

Pogent

vil

Chopler

ChopterChopierChcpterChopterChopterChopterChopterChopter

ChopierChopter

Chopter

Chopter

ChopterChopterChopter

ClropterChopterChopterChopter

I

499l

117r53l892s3DOn7321331349

12:

13:

405428443508

579615615

635683

725

7798ll

14;

l5:16:

Bt7

BB5963

I 0091055

\)u

THE PROPOSED CPA LICENSURE EXAMINATION SYTIABUSPRACTICAL ACCOUNTlNG PROBTEMS II

l_echnique ond melhodology io problems likely tb'Oe eicounte,redTn proclle.Condidotes should know ond understond problems involving occoitnting-oispeciol ironsoctions ond their effecis ond presenlotion in the finoniiolslotements.The exominotion wjll contoin fifty (50) multipte choice problems, equitoblyollocoted to ihe different subject oreos os indicoted below.1.0 PortnershipAccountingl.l Formolion

1.2 Operotions1.3 Dissolution / chonges in ownership interest

1.3.1 Admission of o new portnerl.3.l.l Bypurchose of interestL3.1.2 By investment1.3.1.3 Withdrowol, retiremenf or deoth of o portner

ffi J',? [JZ,;'"L] ; 3;SIi ^3 ;*' :, #[,H Ji ,,qff gy#be used.

Nole 2: ForTopic3 Quesfion shou/d be indicoted whetherspecific/ portiol odjusfment or totot adjustment(troceoble o the entire entity"

1.3.1.4 lncorpoiotion of o portnership1.4 Liquidotion1.4.1 Lump

- sum method

1.4.2 lnstollment melhod2.0 Corporole Liquidotion2.1 Slotement of Affoirs2.2 Stotement of reolizolion ond Liquidotion3.0 Joint Arrongements (PFRS i l)3.1 Joint Operolion3.2 Joint Venture (Equity method)3.3 Accounting forSME4.0 RevenueRecognilion4.1 tnstollment Soles

4- l .l Recognition of gross profit -

regulor soles versus instollment soles4.1.2 Defoult ond Repossession ondlrode

- in merchondise:

Nofe l: Fair markef volue should be given insfeod of EsfimofedSelling priceNote 2: euestions os fo gain on repossession shourd bedislingurshed os fo:

4.1 .3 Finonciol Stolement presenlotion

4.2 Long -

term Conslruction Controcls (PAS 1 l)4.2.1 Journol entries ond determinotion of revenue, costs ond gross

profit4.2.1.1 Percenloge of completion

4.2.1.1.1 lnput Meosures - cost to cost method ondefforts

- expended method

4.2.1.1.2 Ouiput Meosures -

proportionol ond ociuol

4.2.1 .2 cosr necoi:* ff$'.x"4.2.2Compuiotion of gross omount due from / lo customers4.2.3.Fino nciql Slolement Presentotion4.2.4 Accounting for SME

4.3 Fronchise Operotions -

Fronchisor's point of view (PAS 1B)4.3.1 Journol enlries ond determinotion or revenue. costs ond gross

profit4.3.1.1 lniliol Fronchise Fee (use of occruol melhod, instollment

soles method ond cost recovery melhod)4.3.1.2 Continuing Fronchise Fee, Borgoin Purchose (Option), ond

Commingled Revenue4.3.1.3 Repossessed Fronchise4.3.1,.4 Option to Purchose the Fronchise Ouilet

4.3.2 Finonciol Stotemenl Presentotion4.3.3 Accounting for SME

4.4 Consignment Soles4.4.1 Computotion of Remitionce4.4.2 Delerminolion of Profit

5.0 Accounting for Home Office, Bronch ond AgencyTronsoctions5.1 Tronsoctiorrs on the books of the home officu= ond the bronch5.2 Reconciliotion of reciprocol cccounls5.3 Preporotion of individuoi ond combined firronciol stolements5.4 Speciol procedures in home office ond bronch tronsocfions (inter

-

bronch lronsfer of cosh cncl merchondise of cost or of billed price)5.5 Agency trqnsoCtions ond determinotion of net income

6.0 Accounting for Business Combinotion (PFRS 3)6.1 Acquisition of ossets ond liobilities (ocquisition method)

6.1 .l Determinolion of Considerotion Tronsferred6.1.2 Recognition of Acquired Assets ond Liobilities6.l.3Recognition ond Meosurembnt of Goodwill ond Goin from o

Borgoin Purchose6.1.4 Journol Enlries

6.2 Finonciol Stotement Presentotion6.3 Accounting for SME

7.0

8.0

Seporote Finonciol Stoternenl (PAS 2l)1.1 Accounting for lnvestmenl in Subsidiory (cost model)7.2 Accovniing for SMEConsolidoted Finonciol Stotements (PFRS l0)B.l Consolidoied Finonciolstolement inSubsidiory

8..1.1 Dote of ocquisilion8.1.2 Subsequent to dote of ocquisition

B.l.2.l Net income, diVidends, omortizotion ond impoirment ofgoodwill

8.1.2.2 With intercompony tronsoctions (irrventories, lond onddeprecioble ossels)

8.1.3 Determinotion of:B.l.3.l Net income

8.'l.3.1.1 Atlributoble to Equity Holders of Porenl/B r .3. r 2 S:ll:1'llp.frl5il?J,.'.:rnteresrB.l .3.1 .3 Consolidoted/ Group

8.1.3.2 Totol Comprehensive lncome8.1.3.2.1 Attributoble lo Equity Holders of Porent/

Controlling or Porent's lnterest8.1.3.2.2 Non

- controlling lnieresl

8.1.3.2.3 Consotidoted/ Group8.1.3.3 Equity

8.1.3'.3.1 Attributoble to Equity Holders of Porent/B r 3 3 2 s3l':'Ji3":!,H','i]::Jnreresr8.1.3.3.3 Consolidoted / Group

-8.1.3.4 Retoined Eornings/ Common stock / Dividends8.1.3.4.1 Attribuioble to Equity Holders of Porent /

Controlling or Porent's lntereslB 1 3 4 2

I.ffiJ,.':# l.fi3ii'^1,:,3 "if,,'!", iui,iJHo/ders of Porent

8.2 AccountingforSME9.0 Foreign Currency Tronsoctions

9.1 Wilhout hedging octivities (import, export, lending, ond bonowingtronsoctions)

9.2 Hedging Activities: Hedging For:eign Cunency Exposures9.2.1 Foreign Cpnency Forword Contocts

e'2'1 ' [?xffi#?"%?Jt?*e occountins is Not Required

e.2.l.l.l F:ffi:?.

Asset {lmpori} or Licbility (Export}9.2.1.1.2 Speculotion

9.2.\.2 Hedge thot requirs o Hedge Accounfing:9 2.1 .2.1 Foir volue hedge

.9.2.1.2.1.1 fledge of q- Firm Commiimenl(Purchose or Sole Tronsoction)e'2'1'2'2 ff:lill ir""ffi. or o Firrn commitmenr

. (Purchose or Sole Tronsoction)9.2.1.2.2.2 Hedge of o Forecosted tronsoctiorr

(PurChose or Sole Tronsoction)9.2.1.2.3 Hedge of o net investmenl in foreign entiiy

9.3 Accounting for SMENofe: Commodity Hedging ond Swops (f oreign currency, commodity ondinterest/ should be exc/uded

10.0 Tronslotion of Foreign Currency Finonciol Stotemenls (PAS 21lPAS29ll0.l Tronslotion from the Funclionol Currency to the Presentolion Curency

(Closing/ Current Rote Method)10.2 Remeosurement from o Foreign Currency to the Funciiorlol Cunency

{Temporol Method)10.3 Reslotement of finonciol stotements (Functionol currency is the

currency of o hyperinflotionory economy)I 1.0 Not

- for

- profit orgonizolionsl.l Voluntory heolth ond welfore orgonizotions (VHWO)

1.2 Hospitols ond other heolih core orgonizotions1.3 Colleges ond UniversitiesL4 Other not

- for

- profit orgonizotions such os churches, museums,

froternity ossociotion, etc.I2.0 Government Accounting

- Generol Fundl2.l Journol entries

- Books of ogency

Note: Books of COA ond Bureou of Treosury (BTr) should be excluded.13.0 Other speciol Topics

l3.l Accounting for insuronce controcts by insurers {PFRS 4)13.2 Accounting for build

- operole

- tronsfer

14.0 Cost Accounlingl4.l System of cosi Accurnulotion or Cosling Systeml4.l.l Comporison between Acluol Costing, Normol Costing ond

Stondord Costing14.2 Job

- order cosling system

14.2.1 Cost occumulotion procedures -

moieriols, lobor ondoverheod

14.2.2 Journqlentries14.2.3 Preporoiion of stotement of goods monufoclured ond sold14.2.4 Accounting for scrop, woste. spoiloge ond rework

14.3 Process costing system14.3.1 Cost dccumulotion procedures

- moteriols, lobor ond

overheod14.3.2 Journolentries14.3.3 Preporotion of cost of production reporl

14.3.3.1 First * in, firsi *oul {FIFO) method1 4.3.3.2 Averoge method

14.3.4 Accounling for lost units -

inspeciion -

point -

end of processonlY14.3.4.1 Normol lost units (Discrete loss)14.3.4.2 Abnormol lost unii (Continuous or discrete loss)

14.4 Bockflush costing system (JlT system)14.4.1 Cosl Accumulotion procedures - moteriols, lobor ond

overheod14.4.2 Journolentries

14.5 Operolion Cosling/ Blended Method/ Ftybrid14.5.1 Cosl occumulotion procedures

- moteriols, lobor onQ

overheod14.5.2 Journolentries

14.5 Service Cost Allocolion14.6.1 Direct melhod14.6.2 Step

- down

14.6.3 Reciprocolmetlrod :14.7 Activity

- bosed costing syslem {ABC costing)

14.7.1 Allocoiion of costs: Troditionol Costing versus ABC Cosling14.7.2 Determinotion of Totol Product Costs: Troditionol Costing

versus ABC costing'14.8 Accounting for joint ond by

- products

l4.B.l Methods of ollocoting joint cost to productsl4.B.l .l Morket {soles) volue method:

'14.E.1.'l.l Morket volue ot split -

off point opprooch1 4 8 1 1 2 ffi?ffJ:?:y"li:l "-i:iiB?i'i,'i,#I Approoch or Net Reolizoble Volue Method

Nofe: Avoid giving dolo such os "disposo/ orseporole cosls ol splif

- off", so os nof fo

confuse lhe term Nef Reoliz oble VolueMethod with Approximoled Nef ReolizobleVolue Method

14.8.1.2 Averoge unit (production output) :method14.8.1.3 Weighled overoge method

14.8.2 Methods of ollocoting Joint Cost to By -

products14.8.2.1 No joint cost ollocoted to by

- product

. 14.8.2.2 With joint costs ollocoted to by - producl14.8.2.3 Treotment of by - producis

**end of syllobus***