Insegnamento a.a. 2024-2025

50279 - MANAGEMENT AND ACCOUNTING - MODULE 2 (ACCOUNTING AND FINANCIAL STATEMENT ANALYSIS)

Department of Accounting

Course taught in English
Go to class group/s: 19 - 20
CLMG (6 credits - II sem. - OB  |  SECS-P/07)
Course Director:
ANNALISA PRENCIPE

Classes: 19 (II sem.) - 20 (II sem.)
Instructors:
Class 19: ANNALISA PRENCIPE, Class 20: PATRIZIA TETTAMANZI


Suggested background knowledge

Students are expected to be familiar with the basic notions and terminology of business administration and management. No background knowledge about accounting and financial statement analysis is needed to successfully complete the course.

Mission & Content Summary

MISSION

Accounting is the language of business, and serves many purposes. In this course the focus will be on financial accounting, which is the basis on which financial statements are prepared. Financial statements are used to inform external stakeholders, such as investors and lenders. Moreover, they are employed in contracting between owners/shareholders, managers, creditors, and other parties. Financial statements are also used to evaluate the ‘health’ of the firm and its survival chances. For professionals within the legal arena (such as lawyers, legal consultants, judges, etc.), financial statements represent a very useful tool and must be well understood. The course aims at introducing the main issues related to accounting and financial statements, providing students with the basic knowledge needed to understand and interpret financial reports. Contents span from double-entry bookkeeping to financial statement analysis, and are designed primarily for those who expect to be external users of financial statements as part of their professional responsibilities.

CONTENT SUMMARY

The course content can be summarized as follows:

 

  1. Introduction to the accounting methodology: the "accounting equation" (A = L + SE) and the double-entry accounting system.
  2. Recording basic transactions using the double-entry system
  3. Main accounting principles and accounting standards
  4. Adjusting entries and valuation of main assets and liabilities
  5. Preparation of financial statements
  6. Financial statement analysis:
  • Income Statement and Balance Sheet reformulations
  • Ratio analysis
  • Cash-flow analysis

7. Disclosure of non-financial information: recent developments

 

The course refers, where necessary, to International Financial Reporting Standards (IAS/IFRS).


Intended Learning Outcomes (ILO)

KNOWLEDGE AND UNDERSTANDING

At the end of the course student will be able to...

At the end of the course, students will be able to:

 

  • Understand the techniques used to prepare financial statements.
  • Understand the rules underlying the double-entry accounting system
  • Understand accrual accounting and its implications on financial statements
  • Be familiar with the main accounting principles and regulation that guide the preparation of financial statements
  • Understand the contents of public financial statements
  • Be familiar with the basic financial statement analysis tools
  • Be familiar with recent developments on sustainability reporting regulations

APPLYING KNOWLEDGE AND UNDERSTANDING

At the end of the course student will be able to...

At the end of the course students will be able to:

 

  • Use the "accounting equation" and apply the double-entry accounting system
  • Record accounting entries for basic transactions
  • Apply the accrual accounting and make the adjusting entries related to main transactions
  • Prepare a full set of financial statements
  • Analyze financial statements using financial statement analysis tools (reformulations, ratio analysis, cash-flow analysis)

Teaching methods

  • Lectures
  • Practical Exercises

DETAILS

Throughout the course, the instructors will alternate face-to-face lectures – aimed at introducing the basic concepts, methods and tools – to applied sessions consisting of exercises and case-studies discussions, aimed at acquiring practical skills in recording transactions, understanding and analyzing financial statements.


Assessment methods

  Continuous assessment Partial exams General exam
  • Written individual exam (traditional/online)
   x x

ATTENDING STUDENTS

Attendance is not compulsory, although strongly recommended. The attending status is based on the general university rules, and attendance will be recorded through the class attendance system.

Students attending the course will have the chance to sit two partial written exams. In order to pass the exam, students must get a minimum grade of 18/30 on both partial exams. The final grade will be calculated as a rounded average of both partial exams, equally weighted.

Alternatively, attending students can sit the final written general exam. Such general exam will be the same for both attending and non-attending students.


NOT ATTENDING STUDENTS

The evaluation of non-attending students is based the final written general exam. Non-attending students cannot take partial exams.


Teaching materials


ATTENDING AND NOT ATTENDING STUDENTS

The teaching materials consist of:

 

- A textbook on financial accounting (to be defined and communicated at the start of the course)

- Teaching notes and slides

- Exercises and case-studies

 

The teaching materials (beside the textbook) will be provided through the course website at: https://blackboard.unibocconi.it

Last change 19/05/2024 15:11