AFAR Suggested Study Guide for May 2022 LECPA

(Designate a specific day of the week devoted for AFAR)

Suggested steps to master AFAR

Read the concept notes in the REO app to gain a bird's eye view of topic coverage and to recall the
1
basics
2 Answer the drills/exercises in your handouts (hardcopy)
3 Watch the recorded lectures simultaneously with the handouts (hardcopy)
4 Answer on-line quizzers to test your proficiency. Also develop your speed, accuracy, and endurance.
Attend bi-monthly consultations to validate learnings and to clarify topics you deem difficult. Make
5
sure you answer the bi-monthly drills before the live session.
6 Feel free to message your reviewer for further concerns.

Note:
ü Before doing
The above the can
steps abovebe steps, watch
modified theon
based Introductory Video
your personal learning styles. You know what will work
ü best for you.
ü Always check "Updates and Corrigenda" under the AFAR Concepts for any updates
ü Always check app notification for any updates or announcements
ü Please refer to AFAR Study Guide - Summary for the total hours that you need to complete AFAR.
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SLOW & FAST PACED

Month Week # Topic
Introduction to AFAR
1
November Partnership Formation
Partnership Operation
2
Partnership Dissolution
Partnership Liquidation
3
Corporate Liquidation
4 Decentralized Operation

December 5 Business Combination

6 Separate and Consolidated FS (1/2)
Separate and Consolidated FS (2/2)
7
Go over all the topics and identify weak areas
8 Relax and enjoy the holidays

January 9 Forex and Hyperinflation

10 Derivatives and Hedge Accounting
11 Joint Arrangements
12 Not-for-Profit Organization

February 13 Government Accounting

14 Service Concession Arrangement & Insurance Contracts
15 Job Order Costing
Process Costing 1/2
16
Catch-up back-log on the topics covered

March 17 First Pre-board

Go over the first pre-board
18
Process Costing 1/2
19 Activity-Based & Standard Costing
20 Backflush and Joint and By-Products Costing

April 21 Revenue Recognition (PFRS 15) 1/2

Revenue Recognition (PFRS 15) 2/2
22 Goods, Services, Franchise and Others (SME)
23 Construction Contracts (SME)
 Franchise Accounting (OLD US GAAP) - optional
24 Installment Sales Method (OLD US GAAP) - optional

Catch-up back-log on the topics covered

May 25 Focus efforts on mastering weak areas
26 Final Pre-board
Pre-week
27 Go over the final pre-board
28
 AFAR STUDY GUIDE - DETAILS

INTRO INTRODUCTION TO AFAR

TOPIC 1: PARTNERSHIP
Subtopic 1:
A.
B.
C.
D.
E.
F.
G.
H.

Subtopic 2:
A.
B.
C.
D.

E.

F.

G.
H.
I.
J.
K.

L.
M.

Subtopic 3:
A.
B.
C.
D.
E.
F.
G.

H.
I.
J.

K.

Subtopic 4:
A.
B.
C.

D.
E.
 F.
G.

H.

TOPIC 2: CORPORATE LIQUIDATION

A.
B.
C.
D.
E.
F.

TOPIC 3: DECENTRALIZED OPERATION

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.

TOPIC 4: BUSINESS COMBINATION

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.

TOPIC 5: SEPARATE & CONSOLIDATED FS

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
 M.
N.
O.
P.
Q.
R.
S.
T.
U.
V.
W.
X.
Y.
Z.
A.
B.
C.

TOPIC 6: FOREX & HYPERINFLATION

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.
O.
P.
Q.
R.
S.
T.
U.

TOPIC 7: DERIVATIVES & HEDGE ACCOUNTING

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.
O.

TOPIC 8: JOINT ARRANGEMENTS

 A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.

TOPIC 9: NOT-FOR-PROFIT ORGANIZATION

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.

TOPIC 10: GOVERNMENT ACCOUNTING

A.
B.
C.
D.
E.
F.
G.
H.

TOPIC 11: SERVICE CONCESSION ARRANGEMENT

A.
B.
C.
D.

TOPIC 12: INSURANCE CONTRACTS

A.
B.
C.
D.

TOPIC 13: COST ACCOUNTING

Subtopic 1:
A.
B.
C.
D.
E.
F.
G.
H.
Subtopic 2:
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.

Subtopic 3:
A.
B.
C.
D.
E.
F.
G.
H.

Subtopic 4:
A.
B.
C.
D.
E.
F.
G.

Subtopic 5:
A.
B.
C.
D.
E.
F.
G.
H.

Subtopic 6:
A.
B.
C.
D.
E.
F.

TOPIC 14: REVENUE RECOGNITION

Subtopic 1:
A.
B.
C.
D.
E.
 F.
G.
H.
I.
J.
K.
L.
M.
N.
O.
P.

Subtopic 2:
A.
B.
C.
D.
E.
F.

Subtopic 3:
A.
B.
C.
D.
E.
F.
G.
H.
I.

Subtopic 4:
A.
B.
C.
D.
E.
F.

Notes:
Watch this only if you have a spare time. Most of the items discussed here is no longer in accord
PFRS 15. However, since a question was asked in the October LECPA, you may want to consider
Accrual method - this is acceptable under PFRS 15 provided the franchise gives the franchisee
use.
Installment method - this is not acceptable under PFRS 15. This can be used by MICRO entitie
opted to use the income tax basis.
Cost recovery method
Deposit method - this is the same as crediting Contract Liability if the entity has yet to satisfy i
performance obligation.
Limited accrual - this can be the same as partially satisfied PO under a franchise agreement tha
classified as right to use.

Subtopic 5:
A.
B.
C.
D.
E.
F.
G.
H.

Notes:
Watch this only if you have a spare time. Most of the items discussed here is no longer in accord
PFRS 15. However, since a question was asked in the October LECPA, you may want to consider
Accrual method
Installment method - this is not acceptable under PFRS 15. This can be used by MICRO entitie
opted to use the income tax basis.
Cost recovery method
 AFAR STUDY GUIDE - DETAILS

In
Minutes Hours
INTRODUCTION TO AFAR 69 1.15

PARTNERSHIP
Partnership Formation
Read concepts in the REO app/website 10 0.17
Watch "Valuation of Contribution Lecture" 30 0.50
Watch "Re-alignment of Capital Lecture" 15 0.25
Answer Exercise 1 in the handout 30 0.50
Watch "Exercise No. 1-Valuation and Re-Alignment" 44 0.73
Answer Exercise 2 in the handout 8 0.13
Watch "Exercise No. 2-Inequity" 4 0.07
Answer Exercise No. 1 in the REO app/website 30 0.50

Partnership Operation
Read concepts in the REO app/website 10 0.17
Watch "Distribution of P&L Lecture" 43 0.72
Watch "Statement of Partners' Capital Lecture" 9 0.15
Answer Exercise 1 to 8 in the handout 60 1.00

Watch "Exercise 1- Distribution Of P And L" 14 0.23

Watch "Exercise 2- Distribution Of P And L" 30 0.50

Watch "Exercise 3 Weighted Average Capital" 12 0.20

Watch "Exercise 4- Computation of Bonus" 5 0.08
Watch "Exercise 5 B.I.S - Expense Vs Not An Expense" 14 0.23
Watch "Exercise 6 Minimum Profit Share" 22 0.37
Watch "Exercise 7- Statement Of Partners' Capital And Order Of Priority" 20 0.33

Watch "Exercise 8 Indifference Point" 10 0.17

Answer Exercise No. 2 in the REO app/website 30 0.50

Partnership Dissolution
Read concepts in the REO app/website 10 0.17
Watch "Admission of a New Partner Lecture" 16 0.27
Answer Exercise 1 and 2 in the handout 20 0.33
Watch "Exercise 1 Admission Of A New Partner" 52 0.87
Watch "Exercise 2 Choice Between Bonus & Goodwill" 12 0.20
Watch "Retirement, Death, Incapacity And Incorporation Concepts" 12 0.20
Answer Exercise 3, 4 and 5 in the handout 40 0.67

Watch "Exercise No. 3: Retirement/Withdrawal of a Partner" 32 0.53

Watch "Exercise 4 Incorporation Of A Partnership" 12 0.20
Watch "Exercise 5 Death Of A Partner" 11 0.18

Answer Exercise No. 3 in the REO app/website 30 0.50

Partnership Liquidation
Read concepts in the REO app/website 10 0.17
Watch "Partnership Liquidation Concepts" 28 0.47
Answer all Exercises in the handout 90 1.50

Watch "Exercise 1 & 2: Lumpsum Liquidation" 16 0.27

Watch "Exercise 3: Installment Liquidatin (CPP)" 48 0.80
Watch "Exercise 3: Installment Liquidation (PLS & SPS)" 30 0.50
Watch "Exercise 4: Integrated Problem" 30 0.50

Answer Exercise No. 4 in the REO app/website 30 0.50

CORPORATE LIQUIDATION
Read concepts in the REO app/website 10 0.17
Watch "Corporate Liquidation Lecture" 37 0.62
Answer all Exercises in the handout 30 0.50
Watch "Exercise 1 & 2: Statement of Affairs" 49 0.82
Watch "Exercise 3 to 5: Statement of Realization and Liquidation" 20 0.33
Answer Exercise No. 1 in the REO app/website 30 0.50

DECENTRALIZED OPERATION
Read concepts in the REO app/website 10 0.17
Answer all Exercises in the handout 90 1.50
Watch "Introduction to Decentralized Operation & Exercise 1: Agency" 20 0.33
Watch "Exercise 2: General Procedures - Shipments Billed at Cost" 27 0.45
Watch "Exercise 3: General Procedures - Shipments Billed at Cost" 46 0.77
Watch "Exercise 4: General Procedures" 7 0.12
Watch "Exercise 5: Special Procedures - Shipments Billed Above Cost" 43 0.72
Watch "Exercise 6: In-transit Shipments" 20 0.33
Watch "Reason for Billing Above Cost" 5 0.08
Watch "Summary of Accounts & Classification" 4 0.07
Watch "Exercise 7: Interbranch transfers" 24 0.40
Watch "Exercise 8: Reconciliation of Reciprocal Accounts" 28 0.47
Watch "Exercise 9: Consignment" 17 0.28
Answer Exercise Nos. 1 & 2 in the REO app/website 120 2.00

BUSINESS COMBINATION
Read concepts in the REO app/website 30 0.50
Watch "Concepts Part 1" 42 0.70
Watch "Concepts Part 2" 42 0.70
Watch "Concepts Part 3" 27 0.45
Answer MCQ - Theoretical in the handout 15 0.25
Watch "Theoretical Q1 to Q 17" 11 0.18
Answer MCQ - Computational in the handout 60 1.00
Watch "Computational Q1 to Q9" 47 0.78
Watch "Computational Q10 to Q11" 23 0.38
Watch "Computational Q12- Contingent Consideration" 25 0.42
Watch "Computational Q13 to Q16" 44 0.73
Watch "Computational Q17- With Tax Rate" 19 0.32
Answer Exercise No. 1 to 3 in the REO app/website 150 2.50

SEPARATE & CONSOLIDATED FS

Read concepts in the REO app/website 30 0.50
Watch "Separate Financial Statement Concepts" 20 0.33
Answer MCQ Theoretical - Nos. 1 to 4 in your handout 2 0.03
Watch "Consolidated Financial Statement Concepts Part I" 44 0.73
Watch "Consolidated Financial Statement Concepts Part II" 12 0.20
Answer MCQ Theoretical - Nos. 5 to 14 in your handout 5 0.08
Answer MCQ Computational - Nos. 1 to 9 in your handout 30 0.50
Watch "Consolidated- Date of Acquisition (100% and less than 100%)" 12 0.20
Watch "Consolidated- Subsequent to Date of Acquisition 1" 61 1.02
Watch "Consolidated- Subsequent to Date of Acquisition 2" 15 0.25
Watch "Consolidated- Subsequent to Date of Acquisition 3" 15 0.25
Watch "Consolidated- Introduction to Intercompany Transactions" 12 0.20
Watch "Consolidated- Intercompany Sale of Inventories Concepts" 21 0.35
Answer MCQ Computational - Nos. 10 to 14 in your handout 15 0.25
Watch "Consolidated- Intercompany Sale of Inventories Application" 27 0.45
Watch "Consolidated- Intercompany Sale of NDA Concepts" 13 0.22
Answer MCQ Computational - No. 15 in your handout 5 0.08
Watch "Consolidated Intercompany Sale of NDA Application" 8 0.13
Watch "Consolidated- Intercompany Sale of DA Concepts" 28 0.47
Answer MCQ Computational - Nos. 16 to 28 in your handout 40 0.67
Watch "Consolidated- Intercompany Sale of DA Application" 23 0.38
Watch "Consolidated- Intercompany Transaction and FVA" 32 0.53
Answer MCQ Theoretical - Nos. 18 to 21 in your handout 3 0.05
Answer MCQ Computational - No. 29 in your handout 6 0.10
Watch "Reverse Acquisition - Concepts and Application" 28 0.47
Answer MCQ Theoretical - Nos. 15 to 17 in your handout 3 0.05
Answer MCQ Computational - Nos. 30 to 33 in your handout 10 0.17
Watch "Change in Ownership - Loss vs No Loss of Control" 41 0.68
Answer Exercise Nos. 1 to 4 in the REO app/website 300 5.00

FOREX & HYPERINFLATION

Read concepts in the REO app/website 20 0.33
Watch "Basics of Foreign Currency" 45 0.75
Watch "Monetary vs Nonmonetary" 22 0.37
Answer Exercise 1 in your handout 10 0.17
Watch "Exercise 1: Monetary vs. Nonmonetary" 8 0.13
Watch "Rules on Forex Transactions" 22 0.37
Answer Exercise 2 to 5 in your handout 30 0.50
Watch "Exercise 2: Forex Transaction - Import vs. Export" 33 0.55
Watch "Exercise 3: Forex Transaction - Import" 7 0.12
Watch "Exercise 4: Forex Transaction" 10 0.17
Watch "Exercise 5: Forex Transaction - Forex & Fair Value" 21 0.35
Watch "IFRIC 22: Forex Transaction and Advance Consideration" 8 0.13
Watch "Foreign Operation FS Translation" 25 0.42
Answer Exercise 6 to 10 in your handout 30 0.50
Watch "Exercise 6, 7 & 8: FS Translation" 11 0.18
Watch "Exercise 9: FS Translation" 25 0.42
Watch "Exercise 10: Disposal of Foreign Operation" 14 0.23
Watch "Rules on Hyperfinlationary Economy" 35 0.58
Answer Exercise 11 in your handout 10 0.17
Watch "Exercise 11: Restatement of FS" 20 0.33
Answer Exercise Nos. 1 to 3 in the REO app/website 90 1.50

DERIVATIVES & HEDGE ACCOUNTING

Read concepts in the REO app/website 20 0.33
Watch "Derivatives Concepts" 35 0.58
Watch "Hedge Accounting Concepts" 38 0.63
Answer MCQ - Theoretical 15 0.25
Watch "Multiple Choice Theoretical" 17 0.28
Answer Exercise 2 to 8 in your handout 40 0.67
Watch "Exercise 1 Basic Concepts Application" 3 0.05
Watch "Exercise 2 Hedge of Exposed Liability" 40 0.67
Watch "Exercise 3 Hedge of Exposed Asset" 23 0.38
Watch "Exercise 4 Hedge of Exposed Liability With Present Value" 17 0.28
Watch "Exercise 5 Speculation" 19 0.32
Watch "Exercise 6 Firm Commitment" 26 0.43
Watch "Exercise 7 Forecast Transaction" 12 0.20
Watch "Exercise 8 Net Investment Hedge" 20 0.33
Answer Exercise No. 1 & 2 in the REO app/website 120 2.00

JOINT ARRANGEMENTS
Read concepts in the REO app/website 20 0.33
Watch "Joint Arrangements Concepts Part 1" 40 0.67
Watch "Joint Arrangements Concepts Part 2" 24 0.40
Answer all Exercises 40 0.67
Watch "Exercise 1 Joint Operations (Traditional)" 35 0.58
Watch "Exercise 2 Joint Operation (PFRS 11)" 8 0.13
Watch "Exercise 3 Joint Venture Using Equity Method" 25 0.42
Watch "Exercise 4 Equity Method With Preference Shares" 19 0.32
Watch "Exercise 5 Equity Method With Intercompany Transactions" 19 0.32
Watch "Exercise 6 & 7 Joint Operation (JCA & JCO)" 11 0.18
Watch "Exercise 8 JCE under PFRS for SMEs" 32 0.53
Answer Exercise No. 1 in the REO app/website 40 0.67

NOT-FOR-PROFIT ORGANIZATION
Read concepts in the REO app/website 30 0.50
Watch "Not-for-Profit Organization-Concepts Part 1" 14 0.23
Answer Review Questions - Nos. 1 to 7 in your handout 4 0.07
Watch "Multiple Choice Question Number 1 to 7" 6 0.10
Watch "Not-for-Profit Organization-Concepts Part 2" 15 0.25
Answer Review Questions - Nos. 8 to 48 in your handout 25 0.42
Watch "Multiple Choice Question Number 8 to 18" 17 0.28
Watch "Contribution of Services And Multiple Choice Question Number 19 to 21" 10 0.17
Watch "Multiple Choice Question 22 to 30 and Hospital Revenue" 23 0.38
Watch "Multiple Choice Question 31 to 48, Schools Revenue and SCF" 26 0.43
Answer Exercise Nos. 1 & 2 in the REO app/website 40 0.67

GOVERNMENT ACCOUNTING
Read concepts in the REO app/website 40 0.67
Watch "Government Accounting Concepts Part 1" 49 0.82
Watch "Government Accounting Concepts Part 2" 35 0.58
Watch "Government Accounting Concepts Part 3" 36 0.60
Answer all Exercises in your handout 40 0.67
Watch "Exercise 1 Accounting Entries" 40 0.67
Watch "Exercise 2 to 6" 28 0.47
Answer Exercise No. 1 in the REO app/website 30 0.50

SERVICE CONCESSION ARRANGEMENT

Read concepts in the REO app/website 10 0.17
Answer all Exercises & Review Question in your handout 10 0.17
Watch "IFRIC 12 Service Concession Arrangement" 36 0.60
Answer Exercise No. 1 in the REO app/website 25 0.42

INSURANCE CONTRACTS
Read concepts in the REO app/website 20 0.33
Answer all Exercises & Review Question in your handout 20 0.33
Watch "Insurance Contracts" 42 0.70
Answer Exercise No. 1 in the REO app/website 15 0.25

COST ACCOUNTING
Job Order Costing
Read concepts in the REO app/website 30 0.50
Watch "Job Order Costing Concepts" 47 0.78
Answer all Exercises in your handout 60 1.00
Watch "Exercise 1 Job Order Costing Basics" 28 0.47
Watch "Exercise 2 Job Order Costing Reconstructive" 16 0.27
Watch "Exercise 3 & 4 Rework and Spoilage" 42 0.70
Watch "Exercise 5 Overtime Premium" 12 0.20
Answer Exercise No. 1 in the REO app/website 40 0.67
Process Costing
Read concepts in the REO app/website 30 0.50
Watch "Process Costing Concepts" 31 0.52
Answer Exercise 1 to 3 in your handout 30 0.50
Watch "Exercise 1 One Department - WAVG vs FIFO" 42 0.70
Watch "Exercise 2 WAVG - Two Departments" 35 0.58
Watch "Exercise 3 FIFO - Two Departments" 42 0.70
Watch "Process Costing Spoilage Concepts" 21 0.35
Answer Exercise 4 to 9 in your handout 60 1.00
Watch "Exercise 4, 5 and 6 Spoilage - Discrete vs Continuous" 63 1.05
Watch "Exercise 7 Discrete - Normal and Abnormal Spoilage" 51 0.85
Watch "Exercise 8 Reconstructive Problem" 32 0.53
Watch "Exercise 9 Operations Costing" 10 0.17
Answer Exercise Nos. 2 & 3 in the REO app/website 150 2.50

Activity-Based Costing
Read concepts in the REO app/website 20 0.33
Watch "FOH Departmentalization Concepts" 20 0.33
Answer Exercise 1 to 2 in your handout 15 0.25
Watch "Exercise 1 & 2 Allocation of Service Department Cost" 32 0.53
Watch "Acvity-Based Costing Concepts" 18 0.30
Answer Exercise 3 to 5 in your handout 15 0.25
Watch "Exercise 3, 4 & 5 Acvity-Based Costing" 32 0.53
Answer Exercise No. 4 in the REO app/website 50 0.83

Standard Costing
Read concepts in the REO app/website 10 0.17
Watch "Standard Costing Concepts" 25 0.42
Answer all Exercises in your handout 30 0.50
Watch "Exercise 1 Direct Materials and Direct Labor" 20 0.33
Watch "Exercise 2 Overhead" 23 0.38
Watch "Exercise 3 DM, DL and FOH" 19 0.32
Answer Exercise No. 5 in the REO app/website 35 0.58

Backflush Costing
Read concepts in the REO app/website 20 0.33
Watch "JIT and Backflush Costing Concepts" 21 0.35
Answer all Exercises in your handout 20 0.33
Watch "Exercise 1 Backflush Costing Entries" 4 0.07
Watch "Exercise 2 Backflush vs. Traditional Costing Entries" 8 0.13
Watch "Exercise 3 Backflush Costing" 4 0.07
Watch "Exercise 4 Backflush Costing" 7 0.12
Answer Exercise No. 6 in the REO app/website 20 0.33

Joint and By-Products

Read concepts in the REO app/website 20 0.33
Watch "Joint and By-Products Concepts" 21 0.35
Answer all Exercises 40 0.67
Watch "Exercise 1 to 5 Joint Cost Allocation" 29 0.48
Watch "Exercise 6 to 8 Joint Cost Allocation with By-Products" 52 0.87
Answer Exercise No. 7 in the REO app/website 40 0.67

REVENUE RECOGNITION
PFRS 15 Revenue Recognition
Read concepts in the REO app/website 60 1.00
Watch "Revenue Recognition Concepts Part 1" 26 0.43
Watch "Revenue Recognition Concepts Part 2" 48 0.80
Watch "Revenue Recognition Concepts Part 3" 41 0.68
Watch "Revenue Recognition Concepts Part 4" 37 0.62
 Watch "Other Revenue Recognition Issues Part 1" 40 0.67
Watch "Other Revenue Recognition Issues Part 2" 28 0.47
Answer all Exercises in your handout 60 1.00
Watch "Exercise 1 to 6" 42 0.70
Watch "Exercise 7 to 12" 41 0.68
Watch "Exercise 13 to 16" 27 0.45
Watch "Exercise 17 to 18 Construction Contracts" 43 0.72
Watch "Exercise 19 and 20 Contract Modification" 22 0.37
Watch "Other Recognition Issues 2" 27 0.45
Watch "Exercise 24 to 28 Other Revenue Recognition Issues" 32 0.53
Answer Exercise 1 and 2 in the REO app/website 60 1.00

Goods, Services, Franchise and Others (SME)

Read concepts in the REO app/website 20 0.33
Watch "Revenue Concepts (SME)" 27 0.45
Answer all Exercises in your handout 60 1.00
Watch "Revenue (SME) Exercise 1 to 6" 29 0.48
Watch "Revenue (SME) Exercise 7 to 11" 29 0.48
Answer Exercise 3 in the REO app/website 30 0.50

Construction Contracts (SME)

Read concepts in the REO app/website 20 0.33
Watch "Construction Contracts Concepts Part I" 39 0.65
Watch "Construction Contracts Concepts Part II" 38 0.63
Answer all Exercises in your handout 30 0.50
Watch "Exercise 1 and 2 Construction Contract - Separate vs Original" 13 0.22
Watch "Exercise 3 Percentage of Completion vs Cost Recovery" 53 0.88
Watch "Exercise 4 to 9 Constructive and Reconstructive Problems" 49 0.82
Watch "Exercise 10, 11 and 12 Reconstructive, Constructive and Expected Loss" 29 0.48
Answer Exercise 4 40 0.67

Franchise Accounting (OLD US GAAP)

Read concepts in the REO app/website 20 0.33
Watch "Franchise Concepts" 16 0.27
Answer all Exercises in your handout 30 0.50
Watch "Exercise 1 to 4" 45 0.75
Watch "Exercise 5 to 7" 30 0.50
Answer Exercise 5 in the REO app/website 30 0.50

Notes:
Watch this only if you have a spare time. Most of the items discussed here is no longer in accordance with
PFRS 15. However, since a question was asked in the October LECPA, you may want to consider studying it.
Accrual method - this is acceptable under PFRS 15 provided the franchise gives the franchisee a right to
use.
Installment method - this is not acceptable under PFRS 15. This can be used by MICRO entities if they
opted to use the income tax basis.
Cost recovery method - this is not acceptable under PFRS 15.
Deposit method - this is the same as crediting Contract Liability if the entity has yet to satisfy its
performance obligation.
Limited accrual - this can be the same as partially satisfied PO under a franchise agreement that is
classified as right to use.

Installment Sales (OLD US GAAP)

Read concepts in the REO app/website 20 0.33
Watch "Installment Sales Concepts" 20 0.33
Answer all Exercises in your handout 50 0.83
Watch "Exercise 1 to 3" 40 0.67
Watch "Exercise 4 and 5" 34 0.57
 Watch "Exercise 6 to 8" 32 0.53
Watch "Exercise 9 and 10" 41 0.68
Answer Quiz 6 30 0.50

Notes:
Watch this only if you have a spare time. Most of the items discussed here is no longer in accordance with
PFRS 15. However, since a question was asked in the October LECPA, you may want to consider studying it.
Accrual method - this is acceptable under PFRS 15 provided the sale is a PO satisfied at a point in time.
Installment method - this is not acceptable under PFRS 15. This can be used by MICRO entities if they
opted to use the income tax basis.
Cost recovery method - this is not acceptable under PFRS 15.

TOTAL 8,072 135

AFAR Study Guide - Summary

No. Topic Description (hours) Answer Ex

0 Introduction to AFAR
1.    Partnership 0.67 4.13
2.    Corporate Liquidation 0.17 0.50
3.    Decentralized Operation 0.17 1.50
4.    Business Combination 0.50 1.25
5.    Separate and Consolidated FS 0.50 1.98
6.    Forex and Hyperinflation 0.33 1.33
7.    Derivatives and Hedge Accounting 0.33 0.92
8.    Joint Arrangements 0.33 0.67
9.    Not-for-Profit Organization 0.50 0.48
10.  Government Accounting 0.67 0.67
11.  Service Concession Arrangement 0.17 0.17
12.  Insurance Contracts 0.33 0.33
13.  Cost Accounting 2.17 4.50
14.  Revenue Recognition (PFRS 15 and SME) 2.33 2.50
RR (Old US GAAP) - Optional 0.67 1.33
Total 9.83 22.27

Updates and Corrigenda

Category 1 and 2

Categories 4 and 5

Category 9
Category 12
Total
(hours) (hours) (hours) (in %) vs. TOS Quizzers
1.15
9.52 2.00 16.32 12.07% 14.29% 65
1.77 0.50 2.93 2.17% 5.71% 16
4.02 2.00 7.68 5.68% 5.71% 35
4.67 2.50 8.92 6.60% 8.57% 40
6.87 5.00 14.35 10.61% 12.85% 50
5.10 1.50 8.27 6.11% 10.00% 35
4.17 2.00 7.42 5.49% 37
3.55 0.67 5.22 3.86% 5.71% 21
1.85 0.67 3.50 2.59% 2.86% 30
3.13 0.50 4.97 3.67% 2.86% 10
0.60 0.42 1.35 1.00% 2.86% 10
0.70 0.25 1.62 1.20% 10
13.45 5.58 25.70 19.01% 14.29% 114
12.67 2.17 19.67 14.55% 14.29% 85
4.30 1.00 7.30 5.40%
77.50 26.75 135.20 100.00% 100.00% 558

0.08

0.60

0.20
0.17
1.05