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Course 2019-2020 a.y.

30426 - BILANCIO - MODULO 1 / ACCOUNTING AND FINANCIAL STATEMENT ANALYSIS - MODULE 1

Department of Accounting

For the instruction language of the course see class group/s below

Go to class group/s: 21 - 22

BIEF (5 credits - I sem. - OBBC  |  SECS-P/07)
Course Director:
LUCA SIMONE SCARANI

Classes: 21 (I sem.) - 22 (I sem.)
Instructors:
Class 21: MILES BERNARD GIETZMANN, Class 22: PRAJAKTA DESAI

Class group/s taught in English

Suggested background knowledge

To feel comfortable in this course students should be familiar with the notions of a Management course. At beginning of the course, it is not expected any knowledge about the double-entry accounting system. Please, keep in mind that Accounting 1 has no prerequisites, but it is a prerequisite for Accounting 2, so you have to pass Accounting 1 in a precedent, or in the same, exam period ("sessione") to have your Accounting 2 grade registered.


Mission & Content Summary
MISSION

Accounting is the language of business, an important means of communication among various business parties. Among others, financial accounting speaks mainly to external information users, such as investors and financial analysts, who make decisions for many different purposes using the accounting information revealed in financial statements. Accounting 1 (30426) is the first Module of two (Accounting Module 2 is 30427); the aim of this course, overall, is to let students achieve knowledge and skills in respect of financial statements preparation, covering all basic accounting topics. In particular, students learn: - How to read and interpret main business transactions. - How to apply the double – entry bookkeeping techniques. - How to evaluate the main accounting items. - How to prepare a cash flow statement. - How to prepare a set of separate and consolidated financial statements. How to make a F/S reclassification and analysis. That said, the mission of this specific course is to provide to students the basic Accounting skills, focusing on the double-entry bookkeeping techniques and their application in the main transactions involving the accounts of the entities.  At the end of both courses 30426 and 30427, students should be able to manage, at a basic level, all the issues related to Financial Accounting.

CONTENT SUMMARY

The content of the course, overall (30426 and 30427), 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,...). 
  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. Reclassify the F/S items according to different methodologies.
  8. Analyze F/S with ratios.
  9. Prepare consolidated financial statements.

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

  • Accounting Module 1 30426 covers topics under items 1 to 4 of the above list (up to bonds).
  • Accounting Module 2 30427 covers topics under 4 (cont'd from owners'equity) to 9 of the above list.

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.
  • 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.
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 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.

Teaching methods
  • Face-to-face lectures
  • Exercises (exercises, database, software etc.)
  • Case studies /Incidents (traditional, online)
DETAILS

It is a "basic" course, hence the learning experience is mainly based on face-to-face 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: the goal of the review session consists in showing the students how to approach the preparation of journal entries and all other tasks concerning Accounting.
  • To actively participate to review sessions, students need to use their communication and interpersonal skills.
  • Additional materials (exercises, slides, et cetera) 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
  • Active class participation (virtual, attendance)
  • x   x
    ATTENDING STUDENTS

    The final grade of the course, which is registered in the students’career, is determined as the average of the exams 30426 and 30427 grade. Students must register to seat for the exam.

    • All students are graded on a written, comprehensive exam (there are no partial exams), which is based on a mix of open questions, closed questions and exercises, which aims to assess the student’s learning level of the theoretical notions and the main concepts, methods and tools shared in the course. Final grade is rounded.
    • Students are graded according to many different options presented below. In fact, there are two different “bonuses” applicable. Here below bonuses are summarized and a more detailed description will be provided at beginning of the course on Bboard.
    • Written exam. At the end of the term, all students have a written exam, which is graded on a 30,00 points basis. The exam, broadly, may be divided into two sections:
      1. First section: closed-ended questions (MC and “fill in the blank” or other types of closed-ended questions) 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.
          • Non-current tangible and intangible assets.
          • Liabilities and bonds.
      2. Second section: open-ended questions (journal entries or other types of open-ended questions, id est exercises) 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 above listed.
        • 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.
          • Non-current tangible and intangible assets.
          • Liabilities and bonds
    • Bonuses attendance: Attendance of students is assessed through the “Attendance” procedure. To be considered “attending”, students are required to be present on more than 75% of lessons (at least 17 lectures over 22). An attendance registered “late” is not valid. If students attend more than 75% of lessons, they achieve a “bonus attendance”. The “bonus attendance” consists in ADDITIONAL + 1,00 point, which will be added to the points scored in the “written exam”.
    • Bonus quizzes. During the course, 2 "in class" short quizzes are given to the students via Bboard. These tests consist of either (or a combination of) multiple choices and closed-ended questions. They approximately last 15 minutes and their main goal is to foster continuous assessment and participation. The release date of the quizzes is scheduled at the beginning of the following lessons:
      • Quiz 1: final lesson before the break for partial exams.
      • Quiz 2: final lesson of the course.
      • Each of the two tests is graded between 0,00 and 3,50 points. Then points of the two quizzes are added up (if a student is absent on one date of the quiz, points are zero for that single quiz and total points coincide quith points of the single quiz carried out). This way, a student can achieve up to 7,00 points as “bonus quizzes”.
    • Such (up to) 7,00 “bonus points” give the students the following: on the date of the exam, they are allowed TO SKIP one exercise (among a set of exercises included the exam) which is automatically graded with the points scored in the quizzes. In other words, these (up to) 7 points are ALTERNATIVE in respect to an exercise of the exam. Hence, all students who are happy with their result achieved in the “bonus quizzes” have an exam on 23 point basis, as they automatically get “bonus points” in one exercise. In other words, these points are not “in addition to” the grade of the exam, but rather these points are “substitutive” of an exercise in the exam which is weighed 7 points. Otherwise, whether a student is unhappy with the points achieved in the “bonus quizzes”, he/she is allowed to make the exercise in the exam. The grade of the exercise of the exam overrides the points scored in the Bonus Quizzes.
    NOT ATTENDING STUDENTS

    Please refer to the paragraph "attending students" and consider what follows.

    • Not attending students (as above defined) have a written exam, which is the same of attending students, on a 30 points basis. 
    • Moreover, not attending students can get the "bonus quizzes" by attending the whole lectures in which the quiz will be deployed. Nobody can make the quiz at home; any violation is considered as a violation of the "attendance" system.
    • In other words, the only difference between "attending" and "not-attending" students is the "bonus attendance" which cannot be achieved by not attending students.

    Teaching materials
    ATTENDING AND NOT ATTENDING STUDENTS

    The course material is exclusively represented by:

    • LIBBY, LIBBY, HODGE, Financial Accounting, McGraw-Hill, International Edition, 2016, 9th edition. More detailed information on chapters included and excluded are posted on Bboard during course.
    • Slides - provided through Bboard.
    • The course materials (e.g., hands outs and teaching notes) are regularly downloadable from Bboard platform. Teachers make the materials available throughout the course.
    Last change 31/05/2019 11:18