Intermediate Accounting Volume One - Notes

Conrado T. Valix, Jose F. Peralta, and Christian Aris M. Valix are the authors of "Intermediate Accounting Volume One."
The book is aligned with the Commission on Higher Education's syllabus for Intermediate Accounting I.
It extensively discusses and illustrates various Philippine Accounting Standards (PAS) and Philippine Financial Reporting Standards (PFRS), including PAS 2, PAS 28, PAS 32, PAS 40, PFRS 6, PFRS 7, PFRS 9, and PFRS 13.

Contents Overview

Chapter 1: Cash and Cash Equivalents
- Definition of cash
- Definition of cash equivalents
- Time deposit, money market, and treasury bill investments
- Imprest system
- Petty cash fund (imprest and fluctuating funds)
Chapter 2: Bank Reconciliation
- Bank deposits
- Book reconciling items (credit memo, debit memo)
- Bank reconciling items (deposits in transit, outstanding checks)
- Adjusted balance, book to bank, and bank to book reconciliation
Chapter 3: Proof of Cash
- Two-date bank reconciliation
- Computation of deposits in transit
- Computation of outstanding checks
Chapter 4: Accounts Receivable
- Initial measurement of accounts receivable
- Subsequent measurement of accounts receivable
- Gross method and net method of recording credit sales
- Allowance method and direct write-off method
Chapter 5: Estimation of Doubtful Accounts
- Aging of accounts receivable
- Percentage of accounts receivable
- Percentage of sales
Chapter 6: Notes Receivable
- Definition of notes receivable
- Initial measurement of notes receivable
- Subsequent measurement of notes receivable
- Interest-bearing note
- Noninterest-bearing note
Chapter 7: Loan Receivable
- Initial measurement of loan receivable
- Subsequent measurement of loan receivable
- Impairment of loan
- Measurement of impairment
- Three-stage impairment approach
Chapter 8: Receivable Financing
- Pledge, assignment, and factoring
Chapter 9: Receivable Financing
- Discounting of note receivable
- Discounting of note receivable without recourse
- Discounting of note receivable with recourse
Chapter 10: Inventories
- Definition of inventories
- Freight collect and freight prepaid
- FOB destination and FOB shipping point
- Periodic and perpetual system
- Gross method and net method of recording purchases
- Cost of purchase, cost of conversion, and other costs
Chapter 11: Inventory Cost Flow
- FIFO (First-In, First-Out)
- Average method
- Specific identification
Chapter 12: Lower of Cost and Net Realizable Value
- Measurement at lower of cost and NRV
- Inventory writedown and reversal of writedown
- Purchase commitments
Chapter 13: Gross Profit Method
- Basic formula for gross profit method
- Gross profit rate based on sales
- Gross profit rate based on cost
Chapter 14: Retail Inventory Method
- Conventional or conservative or LCNRV approach
- Average cost approach
- FIFO approach
Chapter 15: Financial Asset at Fair Value
- Definition of financial asset
- Equity and debt security
- Initial measurement of financial asset
- Subsequent measurement of financial asset
- Financial asset at FVPL (Fair Value Through Profit or Loss)
- Financial asset held for trading
- Equity investment at FVOCI (Fair Value Through Other Comprehensive Income)
- Debt investment at amortized cost
- Debt investment at FVOCI
- Impairment of financial asset at fair value
- Impairment of financial asset at amortized cost
Chapter 16: Investment in Equity Securities
- Dividends, share split, and share right
- Cash dividend, property dividend, liquidating dividend, share dividend
- Shares received in lieu of cash dividend
- Cash received in lieu of share dividend
- Share split, special assessment, redemption of shares
- Share right
Chapter 17: Investment in Associate
- Basic principles
- Significant influence
- Equity method
- Excess cost over carrying amount
- Excess fair value
- Investee with heavy losses
- Investee with preference shares
- Other changes in equity
Chapter 18: Investment in Associate - Other Accounting Issues
- Upstream and downstream transactions
- Discontinuance of equity method
- Equity method not applicable
- Investment of less than 20%
- Investment in associate achieved in stages
- Change from cost method to equity method
- Change from fair value method to equity method
Chapter 19: Financial Asset at Amortized Cost
- Bond investment
- Definition of bond
- Initial and subsequent measurement of bond investment
- Amortization of bond discount and bond premium
- Straight line method of amortization
- Bond outstanding method of amortization
Chapter 20: Effective Interest Method
- Amortized cost, FVOCI, and FVPL
- Effective interest method of amortization
- Bond investment at FVOCI
- Fair value option
- Market price of bonds
Chapter 21: Reclassification of Financial Asset
- Requirement for reclassification
- Exemptions from reclassification
Chapter 22: Investment Property
- Definition of investment property
- Definition of owner-occupied property
- Partly investment and partly owner-occupied
- Property leased to affiliate
- Recognition and measurement of investment property
- Transfers of investment property between categories
- Cash surrender value
- Cash surrender value of life insurance
Chapter 23: Property, Plant, and Equipment
- Definition of property, plant, and equipment
- Recognition and measurement of property, plant, and equipment
- Acquisition of property, plant, and equipment
Chapter 24: Government Grant
- Definition of government grant
- Recognition and measurement
- Repayment of government grant
- Classifications of government grant
- Government assistance
Chapter 25: Borrowing Costs
- Definition of borrowing cost
- Qualifying asset
- Accounting for borrowing cost
- Asset financed by specific and general borrowing
Chapter 26: Land and Building
- Land classification, costs, land improvement, special assessment, real property tax
- Building costs when purchased and constructed
- Sidewalks, pavement, parking lot, driveways
- Building fixtures
- Ventilating system, lighting system and elevator
- PIC Interpretation on land and building
Chapter 27: Machinery
- Cost of machinery acquired by purchase
- Capital expenditure and revenue expenditure
- Additions, improvements or betterments, replacements, repairs, rearrangement cost
Chapter 28: Depreciation
- Concept of depreciation
- Physical and functional depreciation
- Straight line depreciation
- Composite and group method
- Working hours method
- Output or production method
Chapter 29: Depreciation - Accelerated Methods
- Sum of years' digits
- Declining balance and double declining balance
- Inventory, retirement and replacement method
- Change in useful life and depreciation method
Chapter 30: Depletion
- Exploration and evaluation of mineral resources
- Exploration and evaluation asset
- Wasting asset
- Acquisition cost, exploration cost, development cost and restoration cost
- Depletion and depletion method
- Depreciation of mining property
Chapter 31: Revaluation
- Frequency and basis of revaluation
- Fair value and depreciated replacement cost
- Revaluation surplus
Chapter 32: Impairment of Assets
- Definition of impairment
- Fair value less cost of disposal
- Value in use
- Recognition and reversal of impairment loss
- Cash generating unit
- Impairment of cash generating unit
- Corporate assets
Chapter 33: Intangible Assets
- Goodwill
- Definition of intangible asset
- Initial and subsequent measurement of intangible asset
- Internally generated intangible asset
- Identifiable and unidentifiable intangible asset
- Amortization of intangible asset
- Recognition and measurement of goodwill
Chapter 34: Identifiable Intangible Assets
-Patent
-Trademark
-Copyright
-Franchise
-Customer list
-Organization cost and start-up cost
Chapter 35: Research and Development Cost
- Computer software
- Definition of research
- Definition of development
- Accounting for research cost
- Accounting for development cost
- Internally developed computer software
- Classification of computer software