BM2010

Course Syllabus
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nurtures individuals to become competent and responsible Character (IO1): An STIer is a person of character. An STIer takes responsibility for his/her actions, treats people with
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We are an institution committed to provide knowledge through questioning and is unafraid to push for creative ideas.
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We strive to provide optimum value to all our stakeholders - our information read or heard and effectively expresses his/her own emotions when sharing information, may it be spoken
students, our faculty members, our employees, our partners, our or written.
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We will pursue this mission with utmost integrity, dedication, circumstances. An STIer believes in letting go of the old and embracing the new to achieve his/her fullest potential.
transparency, and creativity.
SERIAL NUMBER: BMSH2006 SUBJECT TITLE: ACCOUNTING FOR BUSINESS COMBINATIONS CREDIT: 3 units (3 hours lecture per week)
COURSE DESCRIPTION: This course emphasizes the issues involved in business combinations, including the preparation of consolidated financial statements. Other
topics typically covered include partnerships, interim and segment reporting, international accounting, and foreign currency transactions.
PREREQUISITE: Intermediate Accounting 3
COURSE OUTCOMES: After successful completion of this course, the student should be able to:
CO1. Account the transactions in the formation, operation, dissolution, and liquidation of a partnership properly. (BAP01-PI1; BAP03-PI15;
BAP04-PI16; and BAP05-PI18)
CO2. Present and prepare financial statements when an entity controls, solely or jointly, one (1) or more other entities and when it has foreign
currency transactions and operations. (BAP01-PI1; BAP03-PI15; BAP04-PI16; and BAP05-PI18)
MANDATED BOOK: None
REFERENCES: 1. Binaluyo, J. (2020). Accounting for business combination. n.p.
2. Millan, Z. (2020). Accounting for business combination. Bandolin Enterprise
3. Dayag, A. (2020). Accounting for business combination. Good Dreams Publishing
4. Rante, G. (2020). Practical accounting 2. n.p.
5. Guerrero, P. & Peralta, J. (2017) Advanced accounting principles and applications. GIC Enterprises & Co., Inc
COURSE REQUIREMENTS: • Lecture-Discussion/Class Participation
• Seatwork/Exercises
• Quizzes and Summative Tests
• Assignments
• Group Work
• eLMS Activities
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GRADING SYSTEM: The following percentage distribution shall be followed:
Prelims 20%
Midterms 20%
Pre-finals 20%
Finals 40%
100%

The following are the recommended periodical grade components for this course:

Class Participation (Recitation, Quiz, etc.) 20%

Task Performance 50%
Major Examination 30%
100%
We’d be glad to hear from you. For questions or feedback on this course, feel free to email us through student.feedback@sti.edu
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Course Outline
LEC Teaching and Learning
Learning Objectives (LO) Week TOPICS Assessment Tasks
Hours Activities
1 Determine the proper accounting 1 3 Summary of Partnership Discussion and Recitation Task Performance
treatment for the transactions of Formation Generalization eLMS Activity
the partnership from formation to Operation and Dissolution
liquidation (CO1) Liquidation

2 Assess whether a transaction is a 2-3 9 Business Combination: Initial Recognition Discussion and Recitation Task Performance
business combination (CO2) Business Combination Defined Generalization eLMS Activity
Method of Accounting for Business
Recognize acquired assets and Combination
3 liabilities and compute goodwill or
gain from bargain purchase under
IFRS 3 (CO2)

4 Prepare journal entries when the 4 3 Business Combination: Subsequent Discussion and Recitation Task Performance
business combination is achieved Measurement and Accounting Generalization eLMS Activity
in stages (CO2) Business Combination Achieved in Stages
Contingent Consideration and Related
5 Account changes in acquired Transactions
assets and liabilities including
adjustment for contingent
considerations under IFRS (CO2)

5 1 PRELIMINARY EXAMINATION Pen-and-Paper Test

6 Assess whether an investor 6-7 6 Consolidation: Date of Acquisition Discussion and Recitation Task Performance
obtains control of a business (CO2) Consolidation and Control Defined Generalization eLMS Activity
International FRS 10: Accounting Requirements
7 Consolidate financial statements
in accordance with IFRS 10 (CO2)
8 Consolidate financial statements 8-9 6 Consolidation: Subsequent Date Discussion and Recitation Task Performance
of wholly and partially owned The Consolidation Procedures Generalization eLMS Activity
subsidiaries (CO2) Accounting for Investment in a Subsidiary
Consolidation of Wholly and Partially Owned
Subsidiaries
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LEC Teaching and Learning
Learning Objectives (LO) Week TOPICS Assessment Tasks
Hours Activities

10 1.5 MIDTERM EXAMINATION Pen-and-Paper Test

9 Determine the profit attributable 11 3 Consolidation: Intercompany Transactions Discussion and Recitation Task Performance
to the parent and non-controlling Intercompany Sale of Inventories Generalization eLMS Activity
interest (CO2) Intercompany Sale of Property, Plant, an
Equipment

10 Differentiate financial statement 12-13 6 Special Topics in Business Combination and Discussion and Recitation Task Performance
preparation between full IFRS and Consolidation Generalization eLMS Activity
IFRS for SMEs. (CO2) IFRS for Small-Medium-Enterprises (SMEs)
IFRS for SMEs vs IFRS 3
11 Prepare financial statements Reverse Acquisitions
applying the IFRS for Small-
Medium-Enterprises (SMEs) (CO2)
14 1 PRE-FINAL EXAMINATION Pen-and-Paper Test
12 Prepare financial statements for 15 3 Joint Arrangements Discussion and Recitation Task Performance
Joint Arrangements under IFRS 11 Joint Arrangements Defined Generalization eLMS Activity
(CO2) Joint Operation vs Joint Arrangement

13 Record and report foreign 16-17 6 Effects of Changes in Foreign Exchange Rates Discussion and Recitation Task Performance
currency transactions and Foreign Exchange Defined Generalization eLMS Activity
operations in the financial International Accounting Standard (IAS) 21
statements (CO2) Hedging
Forward Contracts
14 Translate foreign currency
amounts into functional and
presentation currency (CO2)
18 1 FINAL EXAMINATION Pen-and-Paper Test

PREPARED BY: VERIFIED BY: REVIEWED BY: APPROVED BY:

Nestor Tulang Jr. Alyanna R. Tobias, Ed.M., LPT Kristine E. Lu, M.Ed. EL, LPT Aisa Q. Hipolito, M.Ed. EL