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Course 2020-2021 a.y.

30404 - ACCOUNTING

BEMACS
Department of Accounting

Course taught in English

Go to class group/s: 25

BEMACS (8 credits - II sem. - OB  |  SECS-P/07)
Course Director:
LUCA SIMONE SCARANI

Classes: 25 (II sem.)
Instructors:
Class 25: LUCA SIMONE SCARANI


Suggested background knowledge

To feel comfortable in this course, students should be familiar with the concepts of a management course. At beginning of the course, no knowledge if the double-entry accounting system is expected.


Mission & Content Summary
MISSION

Accounting is the language of business as it measures economic activity for decision-making. Financial statements are a key product of such measurement process and they play a key role in the communication between the company and business parties. External information users, such as investors, financial analysts and banks, use accounting information disclosed in financial statements to make their decisions and evaluations. Given that, it is important to understand key accounting concepts and principles according to which financial statement are prepared. The mission of this course is to provide the basic skills necessary to understand, prepare and analyze financial statements helping students become informed users of financial statements.

CONTENT SUMMARY

The content of the course can be summarized as follows:

  1. Understand the accounting methodology with reference to data gathering, processing, classification and recording using the "accounting equation" (A = L + SE) and then the double-entry accounting system.
  2. Understand the techniques at the basis of financial reporting preparation (preparation of journal entries on the basis of the accrual principle, going concern principle, etc).
  3. Understand the adjusting entries and identify the areas which are particularly subject to managerial discretion.
  4. Correctly evaluate the main financial statement items, according to law and to accounting principles:
  • Accounting for revenues and receivables.
  • Accounting for inventories.
  • Accounting for non-current tangible and intangible assets.
  • Accounting for liabilities and bonds.
  • Accounting for owners' equity.
  • Accounting for investments in other corporations.

5.Compute and account for income taxes.

6. Prepare a cash flow statement.

7. Analyze F/S with ratios.

 

The course makes reference, where necessary, to International Financial Reporting Standards (IAS/IFRS) and to the main differences compared to US GAAP.


Intended Learning Outcomes (ILO)
KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
  • Understand the techniques at the basis of financial reporting preparation.
  • Describe the accounting methodology with reference to data gathering, processing, classification.
  • Identify the critical elements underlying the application of the double-entry accounting system.
  • Discern whether there is the need to prepare any adjusting entry on an accrual basis, identifying the areas which are particularly subject to managerial discretion.
  • List and explain the general accounting principles underlying the preparation of the set of financial statements (income statement, balance sheet, and cash flow statement).
  • Summarize and illustrate the theoretical tools needed to evaluate the following main financial statement items, according to law and to accounting principles:
  • Revenues and receivables
  • Inventories
  • Non-current tangible and intangible assets
  • Liabilities and bonds
  • Investments.
  • Income taxes
APPLYING KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
  • Use the "accounting equation" and then apply the double-entry accounting system.
  • Prepare the periodical and adjusting entries for basic transactions.
  • Compose a full set of financial statements (income statement, balance sheet, and cash flow statement) on the basis of simple transactions as above listed.
  • Analyze, evaluate, calculate and prepare the journal entries related to the following financial statement items, according to law and to accounting principles:
  • Revenues and receivables
  • Inventories
  • Non-current tangible and intangible assets
  • Liabilities and bonds
  • Owners’ equity
  • Investments
  • Income taxes
  • Understand the techniques at the basis of financial reporting preparation.
  • Describe the accounting methodology with reference to data gathering, processing, classification.

Teaching methods
  • Face-to-face lectures
  • Online lectures
  • Case studies /Incidents (traditional, online)
DETAILS

30404 is a "basic" course, hence the learning experience is mainly based on face-to-face / video lectures.

 

Notwithstanding the above, lessons are interactive, as accounting is a very practical course: real-life cases are presented during teaching, with the goal of linking the explanation to the “real world of business and accounts”.

 

  • After each set of lectures regarding a certain topic, review sessions are discussed in class/in video: the goal of the review session consists in showing students how to approach the preparation of journal entries and all other tasks concerning Accounting.
  • To actively participate in review sessions, students need to use their communication and interpersonal skills.
  • Additional materials (exercises, slides, etc.) useful to get trained for the exam are posted on Bboard.

Assessment methods
  Continuous assessment Partial exams General exam
  • Written individual exam (traditional/online)
  • x x x
  • Individual assignment (report, exercise, presentation, project work etc.)
  • x    
    ATTENDING AND NOT ATTENDING STUDENTS

    During the semester, a number of quizzes via Blackboard and homeworks via eConnect will be provided to students. These quizzes and homeworks will give the student the opportunity to get up to 9 points.   Stated the above, the final grade of the student can be formed according to one of the three options listed below.   1) MID TERM EXAMS Two partial exams will be given. Each partial is on a 11-point basis.  In this scenario, the final grade of the student will be based on the total of (i) first mid-term exam, (ii) second mid-term exam, (iii) points of quizzes and homework.     2) COMPREHENSIVE EXAM "SHORT VERSION" If a student is happy with the grades of the quizzes and homework achieved during the semester, but is unhappy with the mid-term exams, he/she can sit for a comprehensive exam. Albeit the comprehensive exam is on a 31-point basis, if the student is happy with the points scored in the quiz then he/she can skip a number of exercises in the exam which are for a total of 9 points. In this scenario, the final grade of the student will be based on the total of (i) "short-version" exam, (ii) points of quizzes and homework.     3) COMPREHENSIVE EXAM "EXTENDED VERSION" If a student is unhappy with the grades of the quizzes and homework achieved during the semester he/she can sit for a comprehensive exam. The comprehensive exam is on a 31-point basis. In this case the student must make all the exercises of the exam (time available is the same of the "short version" exam).

    In any of the abovementioned options, the closed-ended questions are aimed at assessing the knowledge and understanding of the students, as follows:

     

    • Knowledge of the accounting methodology with reference to data gathering, processing, classification.
    • Ability to identify the critical elements underlying the application of the double-entry accounting system.
    • Ability to identify and describe the criteria needed to prepare any adjusting entry on an accrual basis.
    • Knowledge of the general accounting principles underlying the preparation of the set of financial statements.
    • Ability to summarize and illustrate the theoretical tools needed to evaluate:
    • Revenues and receivables
    • Inventories
    • Noncurrent tangible and intangible assets
    • Liabilities and bonds
    • Owners’ equity
    • Investments
    • Income taxes

     

    Instead the open-ended questions are aimed at assessing the application of the knowledge and understanding of the students, as follows:

     

    • Ability to use the "accounting equation" and to apply the double-entry accounting system.
    • Ability to prepare the periodical and adjusting entries for basic transactions.
    • Ability to compose a full set of financial statements on the basis of simple transactions as listed above.
    • Ability to analyze, evaluate, calculate, and prepare the journal entries related to the following financial statement items, according to law and to accounting principles:
    • Revenues and receivables.
    • Inventories.
    • Noncurrent tangible and intangible assets.
    • Liabilities and bonds
    • Owners’ equity
    • Investments
    • Income taxes

    Teaching materials
    ATTENDING AND NOT ATTENDING STUDENTS
    • The main course material, for both attending and non-attending students, is:
    • Accounting, edition Create, McGraw Hill 2020 - ISBN 9781307523270.
    • Note: This textbook is a customized version of the textbook “Financial Accounting” international edition, Libby, Libby, Hodge. McGraw-Hill, 2018 (10th edition).

     

    In addition to the textbook, slides, teaching handouts and other materials (i.e., academic articles, newspaper articles, exercises and useful links, etc.) are provided during the course. Students need to refer to the Bboard platform.

    Last change 14/12/2020 12:53