5204 - ADVANCED ACCOUNTING AND FINANCE

The purpose of this course is twofold.
First, it aims at examining financial accounting and finance topics particularly relevant for multinational corporations (international transactions, financial decisions in multinational corporations, business combinations, multinational group accounts, foreign investments and acquisition decisions and other special issues). The point of view is mostly that of the user of financial statements for investing and financing decisions. The parts related to accounting and to finance are alternated during the course, in order to give the students different perspectives over the same topic and allow them to use an integrated approach.
Second, it aims at introducing the basic concepts and tools of management accounting, mainly from a decision making standpoint.
This course is designed primarily for students who expect to be users of financial statements and management accounting reports as part of their professional responsibilities, in particular for those aiming at operating in international companies and financial institutions.

1. Review of accounting and finance basic principles and tools

• Financial accounting principles and tools.
• Financial statements contents and objectives.
• Valuation principles.

2. Accounting and financial issues for multinational corporations

• Recording for foreign currency transactions and translation of foreign financial statements.
• Segment reporting in multinational corporations.
• Exchange rate exposures.
• Global financing.
• International capital budgeting.

3. Business combinations and intangibles

• Accounting for business combinations: purchase vs. pooling of interest method.
• Accounting for intangibles: recent trends in international accounting standards.
• Measuring the value of goodwill and other intangibles.
• Consolidated financial statements in multinational groups. 

4. Special issues

• Accounting for leasing.
• EPS and assessment of the quality of earnings.

5. Introduction to the management accuonting

• Accounting information and managerial decisions.
• The production process and product costing.
• Cost behavior and decision making: cost, volume, profit analysis.
• Accounting information, relevant costs and decision making.
• The use of budgets in planning and decision making.
• The use of budget for cost control and performance evaluation.

Textbooks and other teaching material will be indicated by the instructors at the beginning of the course.

The exam consists of a final written test.