COURSE PLAN DURING THE COVID-19 PANDEMIC CA51024

Course Title: ACCOUNTING FOR BUSINESS COMBINATIONS Course Code: CA51024

CA5106
Course &
First Term, AY 2021 to 2022 Prerequisite:
Placement: CA51016

Credit Units: 3

Course Description:

Increasing capabilities, gaining a competitive advantage or larger market share, conquering a new
location for expanded potential markets, diversifying products and services, replacing leadership, and
acquiring synergy are the most common reasons for the popularity of business combination as a
business strategy.

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 financial statements of foreign operations and investment in associates.

Learners are expected to prepare journal entries to record acquisition, prepare consolidated financial
statements, and present the effects of business combination and transactions between the investor
and an associate 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 Intended Learning Outcomes:

After completing this course, learners should be able to:

1. Compute for any goodwill or gain on bargain purchase resulting from the business combination.
2. Apply the valuation principles of the acquisition method.
3. Prepare the journal entries to record the acquisition in the books of the acquirer and acquired
companies.
4. Prepare the statement of financial position of the acquirer immediately after the acquisition.
5. Apply the concepts and techniques of working paper entries, translation of financial statements and
other consolidation procedures.
6. Prepare the consolidated financial statements of the group of companies.
7. Account for the effects of intercompany transactions in the published financial statements.
8. Analyze the impact of an actual business combination and recommend alternative solutions.
COURSE PLAN DURING THE COVID-19 PANDEMIC CA51024

Program Intended Learning Outcomes:

PILO NO. 4: Present financial and other reports, results, analyses and recommended decisions with
the use of communication and information technology.

PILO NO. 5: Recommend solutions to social and business issues and problems using knowledge and
technical proficiency in accounting, financial reporting, taxation, and information technology.

PILO NO. 6: Apply and if applicable, formulate accounting and tax policies in accordance with
financial reporting standards and regulatory frameworks.

Alignment of Learning Outcomes

Course-Level Program-Level Thomasian Graduate Attributes

CILO 1 PILO 6 Analytical and Creative Thinker
CILO 2 PILO 6 Analytical and Creative Thinker
CILO 3 PILO 4 Effective Communicator and Collaborator
CILO 4 PILO 4 Effective Communicator and Collaborator
CILO 5 PILO 5 Analytical and Creative Thinker
CILO 6 PILO 4 Effective Communicator and Collaborator
CILO 7 PILO 5 Analytical and Creative Thinker
CILO 8 PILO 5 Effective Communicator and Collaborator

Week Unit Learning Topics Teaching Learning Assessment

Outcome Activities Tasks
Module 1: BUSINESS
1-3 Identify the nature, COMBINATION: ACQUISITION OF Demonstration Online
types and structure NET ASSETS Cases exercises
of a business
combination Nature of a Business Combination Synchronous
Sessions Discussion
Discuss the Types of Business Combination Board
accounting concept Practice
of business Accounting Concept of Business Exercises
combination Combination
Summary
Describe the The Acquisition Method Notes
acquisition method
Recognition and Measurement of
Account for Assets acquired and Liabilities
different cost assumed
COURSE PLAN DURING THE COVID-19 PANDEMIC CA51024

incurred in
business Measuring and Recognizing
combination Goodwill or Gain from Bargain
Purchase
Solve for the
goodwill or gain Use of Provisional Values and
from bargain Contingent Consideration
purchase resulting
from the Journal Entries
acquisition
Financial Statements Immediately
Record entries in after the Merger
the books of the
acquirer and
acquired
companies

Compute for the

items in the
Statement of
Financial Position
of the acquirer
immediately after
the acquisition

4-7 Module 2: BUSINESS

Determine the COMBINATION: ACQUISITION
difference between OF STOCKS (DATE OF Demonstration Online
acquisition of net ACQUISITION) Cases exercises
assets and
acquisition of Investment in Associate vs. Synchronous Discussion
stocks Investment in Subsidiary Company Sessions Board

Describe the levels The Concept of Control Practice Online Exam

of investment and Exercises 1(Graded)
the concept of Schedule of Determination and
control Allocation of Excess Summary
Notes
Account for the Wholly-Owned vs. Partially-Owned
determination and Subsidiaries
allocation of excess

Compute for the

goodwill or gain
from bargain
purchase resulting Nature and Presentation of the
from the Non-Controlling Interest
COURSE PLAN DURING THE COVID-19 PANDEMIC CA51024

acquisition of
stocks Total Goodwill vs. Partial Goodwill

Account for the Step Acquisition

non-controlling
interest on Consolidation Procedures and
partially-owned Working Paper Entries
subsidiaries
Consolidated Statement of
Prepare the Financial Position
working paper
entries

Prepare the
Consolidated
Statement of
Financial Position
on the date of
acquisition
8 -12 Module 3: SEPARATE &
Identify the various CONSOLIDATED FINANCIAL Online
intercompany STATEMENTS - SUBSEQUENT TO Demonstration exercises
transactions ACQUISITION Cases
Discussion
Account for the Consolidated Financial Statement Synchronous Board
amortization of Subsequent to Acquisition: Sessions
excess and Online Exam 2
impairment of With Wholly-Owned Subsidiary Practice (Graded)
goodwill With Partially-Owned Subsidiary Exercises

Describe the Working Paper Entries and Other Summary

intercompany Consolidation Procedures Notes
transactions and
accounts Amortization of Excess and
Impairment of Goodwill

Non-Controlling Interest in Net

Income/Loss

Discuss the non- Non-Controlling Interest in Net

controlling interest Assets
subsequent to
acquisition Consolidated Assets

Account for the Consolidated Liabilities

COURSE PLAN DURING THE COVID-19 PANDEMIC CA51024

items attributable
to controlling and Consolidated Profit/Loss
non-controlling
interest Consolidated Retained Earnings

Compute for the Consolidated Stockholders’ equity

profit, retained
earnings, equity in
the consolidated
financial
statements

Prepare the
working paper
entries

Prepare the
consolidated
financial
statements
subsequent to
acquisition
10 PRELIMINARY EXAMINATION

13-14 Module 4: INTERCOMPANY

Identify the flow of SALES OF MERCHANDISE Demonstration Online
intercompany sales Cases exercises
of merchandise Downstream and Upstream Sales
Synchronous
Describe the effects Determination of Consolidated Sessions Discussion
of intercompany Sales, Cost of Sales and Inventory Board
sales of Balances Practice
merchandise on Exercises
the determination Determination of the Realized and
of consolidated Unrealized Profit Summary
balances Notes

Account for the

realized and
unrealized
intercompany
profits

Prepare working
paper entries
relating to
intercompany sales
COURSE PLAN DURING THE COVID-19 PANDEMIC CA51024

of merchandise

15-16
Module 5: INTERCOMPANY SALE
Identify the flow of OF FIXED ASSETS Demonstration Online
intercompany sales Cases exercises
of fixed assets Downstream and Upstream Sales
Synchronous Discussion
Describe the effects Determination of Consolidated Sessions Board
of intercompany Fixed Assets, net and Operating
sales of fixed assets Expenses Practice Online Exam 3
on the Exercises (Graded)
determination of Determination of the Realized and
consolidated Unrealized Gains/Losses Summary
balances Notes

Account for the

realized and
unrealized
intercompany
gains/losses

Prepare working
paper entries
relating to
intercompany sales
of fixed assets

17-18 Module 6: FOREIGN CURRENCY

Determine the TRANSLATION Demonstration Online
principles and Cases exercises
procedures in Conversion vs. Translation
translating
financial Synchronous
statements Presentation Currency vs. Sessions Discussion
Functional Currency Board
Describe the Practice
factors that Translation of Financial Exercises Online Exam 4
determine the Statements of Foreign Operations (Graded)
choice of a foreign Summary
operation’s Notes
functional currency

Discuss the
COURSE PLAN DURING THE COVID-19 PANDEMIC CA51024

methods of
translating
financial
statements

Account for the

translation
exposure

19 FINAL EXAMINATION

Textbook:

Dayag, A. J. (2021). Advanced Financial Accounting (A Comprehensive: Conceptual & Procedural

Approach) Manila, Philippines: Good Dreams Publishing

References:

Halsey, Robert F. and Hopkins, Patrick E. Advanced Accounting 4th ed. Cambridge Business
publishers.

Hoyle, Joe B., Schaefer, Thomas F. and Doupnik, Timothy S. Advanced Accounting 14th ed. McGraw Hill

Fischer, Taylor, Cheng. Advanced Accounting 12th ed. Cengage

Floyd Beams. Advanced Accounting 13th ed.

Academic Dishonesty
All learners are expected to be academically honest. Cheating, lying and other forms of immoral and
unethical behavior will not be tolerated. Any learner found guilty of cheating in examinations or
plagiarism in submitted course requirements will (at a minimum) receive a failing grade in the course
requirement or in the course. Plagiarism and cheating refer to the use of unauthorized books, notes or
otherwise securing help in a test; copying tests, assignments, reports or term papers; representing the
work of another person as one’s own; collaborating without authority, with another learner during an
examination or in preparing academic work; signing another learner’s name on an attendance sheet; or
otherwise practicing scholastic dishonesty.

Policy on Absences
COURSE PLAN DURING THE COVID-19 PANDEMIC CA51024

Learners are expected to attend classes and observe punctuality. Learners who will incur absences
beyond the maximum allowable hours of ten (10) hours will be given a grade of “Failure Due to
Absences”.

Excused Absences include:

• Attendance in Official University and College-Wide Activities;
• Representation as official delegate in local and international conferences, seminars, symposia,
competitions.

Excused absences do not exempt the learner from compliance with course requirements.

For the full text of the policy on attendance and absences please refer to the UST-AMV College of
Accountancy Student Handbook.

Course Schedule:

Uploaded Online Lectures and Materials- Module 1

Uploaded Online Lectures and Materials- Module 2
Uploaded Online Lectures and Materials- Module 3
1st Online Exam
Uploaded Online Lectures and Materials- Module 3
2nd Online Exam
Uploaded Online Lectures and Materials- Modules 4
Preliminary Examination
Uploaded Online Lectures and Materials- Module 5
3rd Online Exam
Uploaded Online Lectures and Materials- Module 6
4th Online Exam
Final Examination
Deadline: Encoding of Grades

Listed below is the examination schedule for ACCOUNTING FOR BUSINESS COMBINATIONS:

Exam Date Coverage

● Module 1
Exam 1
● Module 2

Exam 2 ● Module 1 to 3

Prelims Modules 1 to 3

Exam 3
COURSE PLAN DURING THE COVID-19 PANDEMIC CA51024

● Module 1 to 5

● Module 6
Exam 4

Finals Modules 1 to 6

Grading System:

Components Weight
Quiz 1
Average x 40%
Quiz 2

Prelim Exam (Comprehensive from Q1) 40%

Class Participation 20%

Preliminary Period Grade (PPG) 100%
Quiz 3
Average x 40%
Quiz 4

Final Exam (Comprehensive from Q1) 40%

Class Participation 20%

Final Period Grade (FPG) 100%

Final Grade (PPG x 40%) + (FPG x 60%)

Passing Grade: 75% with Equivalent Grade of 3.0

RAW GRADE FINAL GRADE REMARK

75 – 78 3.00 Passed
79 – 81 2.75 Fair
82 – 83 2.50 Fair
84 – 86 2.25 Good
87 – 88 2.00 Good
89 – 91 1.75 Good
92 – 93 1.50 Very Good
 COURSE PLAN DURING THE COVID-19 PANDEMIC CA51024

94 – 95 1.25 Very Good

96 – 100 1.00 Excellent

Prepared by:

Asst. Prof. Christopher I. German

Cluster Head

Endorsed by:

Sgd. - approved via google docs

Mr. Fermin Antonio D.R. Yabut Mr. Albert D. Cruz
Pedagogical Lead Chair, BS Accountancy

Mr. Richmond V. Cruz Mr. Louie Gene G. Marasigan

Chair, BS Management Accounting Chair, Accounting Information System

Recommended for Approval: Approved by:

Asst. Prof. Christine S.M. Alday Prof. Patricia M. Empleo, Ph.D.

Assistant Dean Dean