This document is a syllabus for an Advanced Financial Accounting course. It provides information on the course objectives, topics, materials, assessment, and schedule. The course aims to discuss financial accounting for business combinations, investments in other entities, and consolidated financial reporting. Specific topics include various acquisition accounting methods, equity method of accounting for investments, consolidated financial statement preparation, and issues related to subsidiaries, intercompany transactions, and multinational accounting. Students will be assessed through assignments, quizzes, exams, and group work. The syllabus outlines the lecture topics, readings, and assessment breakdown and policies.

1. UNIVERSITAS INDONESIA
FACULTY OF ECONOMICS AND BUSINESS
International Undergraduate Program
SYLLABUS
[ACCT 11301] ADVANCED FINANCIAL ACCOUNTING I
Odd Semester 2014/2015
Credit: 3
Prerequisite: ACCT 11203 Intermediate Financial Accounting II
Lecturers:
Indah Melati, M.Sc. [coordinator]
International Undergraduate Program
indah.melati@gmail.com
081804975408 (mobile), (021)7272425 ext.151 (office)
Tutor:
Arfah Habib Saragih, MS.Ak.
arfah.habib.saragih@gmail.com, 085782082758
Advanced Financial Accounting I_OS 2014-2015 1

2. SUBJECT DESCRIPTION
This subject aims to discuss financial accounting aspects in particular circumstances in a
company. Specific topics covered are: business combination, accounting for acquisition and
investment in other entities, accounting for consolidation, the impact of intercompany
transaction on the process of consolidated reporting, , changes in parent company ownership,
complex ownership structure, consolidated earnings per share (EPS), income tax in
consolidated financial statement, and cash flow statement.
SUBJECT OBJECTIVES
On successful completion of this subject, student should be able to:
1. Understand types, form, definition and concept of accounting in intercorporate acquisitions
and investments in other entities
2. Understand purchase methods in in intercorporate acquisitions in other entities
3. Understand accounting methods used to report investments in other entities, namely cost
method and equity method
4. Understand accounting methods used to prepare consolidated financial reporting if
investment is recognized using equity method
5. Understand procedures of consolidated reporting for intercompany inventory, transfers of
services and noncurrent assets and indebtedness transactions
6. Understand procedures of consolidated reporting if investment is recognized using fuy
equity method and cost method.
7. Understand and analyze some Consolidation Reporting Issues such as :
 Acquisition incurred in interm periods
 Changes in Parent Company Ownership due to purchase or sale of shares of
subsidiaries
 Changes in Parent Company Ownership due to stock dividend or stock split
 Complex Ownership Structure
 Subsidiary has preferred stock outstanding, convertible bonds and options
8. Understand calculation, recording and reporting consolidated earning per share
9. Report and analyze foreign currency transaction
10. Understand procedures of multinational accounting : translation of foreign entity statement
11. Prepare and analyze segment and interim reporting.
12. Understand accounting for branches
13. Understand accounting for corporations in financial difficulty
In addition, the students will improve the following generic skills:
Generic Skills to be Developed Intensity Level
Low Moderate High
Evaluation of ideas, views, and evidence X
Synthesis of ideas, views, and evidence X
Strategic thinking X
Critical thinking X
Application of theory to financial policy and business decision
X
making
Assessing available information and other information X
Summarize and interpretation of information X
Application of office software X
Statistical reason X
Problem solving skills X
Collaborative learning and teamwork X
Negotiation and bargaining -
Written communication X
Oral communication X
Case analysis X
Advanced Financial Accounting I_OS 2014-2015 2

3. SUBJECT MATERIALS
Required readings
1. Baker, R.E., et.al., Advanced Financial Accounting , 10th ed., McGraw Hill, 2011
(BAKER)
2. Baker, R.E., T.E. Christensen, D.M. Cottrell, K.I. Rais, W. Astono & E.R. Wulandari,
Advanced Financial Accounting (An Indonesian Perspective), 2nd ed., McGraw
Hill & Salemba Empat , 2012 (BAKER IND)
3. Tan, Pearl & P. Lee, Advanced Financial Accounting: An IAS and IFRS
Approach, McGraw Hill, 2009. (TAN & LEE)
4. Ikatan Akuntan Indonesia, Standar Akuntansi Keuangan, Jakarta: Salemba Empat,
2009 (PSAK)
5. International Financial Reporting Standards (IFRS)
Recommended References
1. Beams, F.A., Z.A. Brozovsky & C.D. Shoulders, Advanced Accounting, 9th ed.,
New Jersey: Prentice Hall, 2006 (BEAMS)
2. Mirza, Abbas Ali, Graham J. Holt dan Magnus Orrell, IFRS International Financial
Reporting Standards, Workbook and Guide, John Wiley, 2006. (MHO)
3. Undang-undang No. 40/2007 mengenai Perseroan Terbatas (UUPT), terutama
pasal-pasal tentang modal dan saham dan tentang penggabungan, peleburan dan
pengambilalihan.
ASSESSMENT
Description
Assignment, Quiz, Tutorial
Case assignment (CL) and Participation
Mid Term Exam
Final Exam
Total
Weight (%)
10%
20%
35%
35%
100%
CLASSROOM ORGANIZATION
 Tutorial sessions are part of student’s learning process. Therefore, tutors should
coordinate with lecturers by improving communication, coordinating the exam and
grade, and having sit in lectures for minimum 2x (1x before the mid-test and after the
mid-test)
 To deepen student’s understanding about theories explained in the lectures, the
tutorials address the problem discussion/exercise both from the textbook and mid-test
and final-test materials from the previous years
 Tutors should give homework and quiz to the students and provide the score to the
lecturers before the exam starts
 Parallel quiz should be given in the tutorial session before and after the mid-test (2x).
Tutor coordinator must coordinate the questions. Besides, tutor also can give non-parallel
quiz in each class.
There are 4 study methods used:
1. Lecturing in lectures and tutorials. This method is used in some sessions or combined
with other methods in some other sessions
Advanced Financial Accounting I_OS 2014-2015 3

4. 2. Student-Centered Learning (SCL). This method is applied in most sessions using
Collaborative Learning
3. Tutorials
4. Individual and group assignment
Lecturing is always combined with discussion, Q&A, and mini case discussion obtained from
the textbook. In lecturing, lecturers can raise some real cases to provide clearer description to
students regarding accounting practices in a company.
Sessions with Student-Centered Learning divide the class into groups consisting of 5 students,
which will be assigned some cases using the collaborative learning approach-Simple Jigsaw
(session 4 and 9)
Tutorials will cover problem discussion which is given as students’ homework in the previous
session. Problems cover high level of difficulty.
Students form groups in which individuals should discuss some materials and present them in
front of the class as individual assignment. Discussion material made by the group is
considered as group score.
Teaching Method consists of:
Lecture yes
Class discussion yes
Individual project & paper no
Group project & paper yes
Presentation yes
Case analysis yes
Tutorial yes
Laboratory – in class experience exercise no
Computer lab no
Cooperative learning yes
ASSIGNMENT POLICY
Assignment should be handed-in no later than the due date. Any late work will be assessed a
penalty of 5 point a day (max 2 days). Work handed-in later than three days will be marked as 0.
CLASS TIMETABLE
Lectures
Session Topic Reading material
1
Intercorporate Acquisition and Investment in Other
Entities
 The development of complex business structures
 Creating business entities
 Business combinations
 Accounting for business combinations
Baker Ch.1 Tan & Lee
Ch. 2
Beams Ch.1
MHO Ch 36 PSAK 22,
PSAK 38
2
Reporting Intercorporate Investments
 Accounting for investments in common stock
using cost method
 Accounting for investments in common stock
using equity method
Baker Ch.2
Tan & Lee Ch. 2, 5
Beams Ch.2
MHO Ch 21
PSAK 15 (revisi 2009)
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5.  Comparison of the cost and equity methods
 Appdx 2A: Other issues regarding equity method
 Appdx 2B: Consolidation and equity method
The Reporting Entity and Consolidated Financial
Statements
 The usefulness of consolidated financial
statements
 Subsidiary financial statements
 Consolidated financial statements: concepts and
standards
 Non-controlling interest
 Consolidation subsequent to acquisition-80%
ownership acquired at book value
 APPdx 3B: other approaches to consolidation
Baker Ch. 3
Tan & Lee Ch. 3
Beams Ch 3 &
Beams Ch. 11
MHO Ch 20
PSAK 4 (rev 2009).
3
Consolidation of Wholly Owned Subsidiaries Acquired at
More than Book Value
 Differential
 Consolidation procedures for wholly owned
subsidiaries acquired at more than book value
 Consolidated financial statements-100 percent
ownership acquired at more than book value
 Intercompany receivables and payables
Baker Ch.4
Tan & Lee Ch. 3
Beams Ch.4
MHO Ch 20
PSAK 4 (rev 2009),
PSAK 19 (revisi 2009),
PSAK 48 (revisi 2009)
4
CL
Consolidation of less-than wholly owned subsidiaries
Acquired at More Than Book Value
 A Noncontrolling interest in conjunction with a
differential
 Consolidated financial statements with a majority
owned subsidiary
 Discontinuance of consolidation
 Treatment of other comprehensive income
 Appdx 5A: additional consideration
Baker Ch.5
Baker Ch.5 -Apendix 5A
Tan & Lee Ch. 3
MHO Ch 20
Beams Ch.4
PSAK 4 (rev 2009),
PSAK 19 (revisi 2009),
PSAK 48 (revisi 2009)
5
Intercompany Inventory Transaction
 Overview of the consolidated entity and
intercompany transactions
 Inventory transactions
 Downstream sale of inventory
 Upstream sale of inventory
 Appdx 6A: Intercompany inventory transactions-cost
method
Baker Ch.7
Tan & Lee Ch. 4
Beams Ch.5
PSAK 4 (rev 2009)
6
Intercompany Transfers of Services and Noncurrent
Assets
 Intercompany long-term asset transfers
 Intercompany transfers of services
 Intercompany land transfers
 Intercompany transfers of depreciable assets
 Intercompany transfers of amortizable assets
 Appdz 7A: intercompany noncurrent asset
transactions: cost method
Baker Ch.6
Baker Ch.6 – Apendix
6A
Tan & Lee Ch. 4
Beams Ch.6
PSAK 4 (rev 2009)
7
Intercompany Indebtedness
 Consolidation overview
 Bond sale directly to an Affiliate
 Bond of Affiliate purchased from a Nonaffiliate
 Appdx 8A: intercompany indebtness-cost method
Baker Ch.8
Tan & Lee Ch. 4
Beams Ch.7
PSAK 4 (rev 2009)
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6. MID TERM EXAM
8
Segment and Interim Reporting
 Segment reporting
 Interim Financial Reporting
Accounting for Branch
o Types of Branch
o Accounting System for Branch
o Accounting for Operation of Branch
o Bransaction amongs branch
o Unrealized Income of branch’s inventory
Baker Ch. 13
Tan & Lee Ch. 6
Beams Ch.8
PSAK 4 (rev 2009),
PSAK 40
UUPT
9
CL
Additional Consolidation Reporting Issues
 Subsidiary preferred stock outstanding
 Changes in parent company ownership
 Complex ownership structures
Baker Ch.9
Tan & Lee Ch. 6 & 11
Beams Ch.9, 10
PSAK 2 (revisi 2009),
PSAK 4 (revisi 2009),
PSAK 56
10
Additional Consolidation Reporting Issues
 Consolidated statements of cash flows
 Consolidation following an interim acquisition
 Consolidated earning per share
 Consolidated income tax issues
Baker Ch 10
Tan & Lee Ch. 7 & 9
PSAK 10 (revisi 2010),
PSAK 50 & 55,
ED ISAK 13
11
Multinational Accounting: Foreign Currency Transactions
and Financial Instruments
 The accounting issues
 Foreign currency exchange rates
 Foreign currency transactions
 Managing international currency risk with foreign
currency forward exchange financial instruments
 Forward exchange transaction report
Baker Ch 11
Tan & Lee Ch. 7 & 9
PSAK 10,
PSAK 50 & 55,
ISAK 13
12
Multinational Accounting: Issues in Financial Reporting
and Translation of Foreign Entity Statements
 Determining the functional currency
 Translation vs remeasurement of foreign financial
statements
 Translation
 Remeasurement (overview)
Baker Ch 12
Tan & Lee Ch. 7
PSAK 4 (revisi 2009),
PSAK 10 (revisi 2010)
14
Accounting for Jointly Controlled Operations and Assets
 Joint venture forms
 Jointly controlled operations
 Jointly controlled assets
PSAK 12
ISAK 12
14
Corporations in Financial Difficulty
 Creditors Accounting for Impaired Loans
 Restructurization for nonperformaning loans
Baker Ch. 17 Tan &
Lee Ch. 8
PSAK 50, PSAK 55
(revisi 2006)
FINAL EXAM
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7. ATTENDANCE
Referring to the faculty regulation, the Program requires students to fulfill a minimum
attendance of 80% to be eligible for the final exam. Thus, students should attend a minimum 11
out of 14 lecturing sessions and 10 out of 12 tutorial sessions.
EXAMINATION REGULATION
1. Students may use non-programmable calculators only.
2. Students may use the dictionary provided by the program only. Students should notify
their exam supervisor(s) if they need it.
3. Students should not conduct any act of cheating during the examination. Students will
automatically be graded E for the subject if they are caught cheating during the
examination of the respective subject. In addition, students will be graded E for
all other subjects taken during the particular semester, whose examinations
have taken place prior to the cheated examination.
4. Deferred examination is only applicable if it is requested in written by the Program.
ORIGINALITY
Students should maintain originality and respect intellectual property rights. Therefore, students
should avoid conducting any act of plagiarism when doing written assignments (if any), which
may take a form of short individual / group paper and / or summary.
The followings are acts of plagiarism:
 Copying paragraphs, sentences, a single sentence, or even a significant part of a
sentence directly without enclosing them in quotation marks and appropriately
footnoted;
 Using and / or developing other’s ideas found in printed materials or film elsewhere
without explicitly referencing them to the respective author or the source of the idea.
Plagiarism is a serious infringement of intellectual property rights. Any assignment that
contains presumed plagiarism will be marked 0 (zero).
Since students are required to write group papers, students should sign a Statement of
Authorship and attach it to their papers before paper submission. The form of Statement of
Authorship is available at the Resource Center of the Program. Lecturer(s) and / or tutor(s) will
refuse to mark any paper that has no signed Statement of Authorship attached.
In addition, students should ask for cover sheet from the Resource Center of the Program for
any assignment submitted.
Advanced Financial Accounting I_OS 2014-2015 7