30336 - ACCOUNTING AND FINANCIAL STATEMENT ANALYSIS

At the beginning of the course, students are not expected to have any knowledge on the double-entry accounting system. Students are expected to be familiar with the notions of a Management course.

Accounting is the language of business, an important means of communication among 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 disclosed in financial statements. This course aims to provide students with an understanding of the double-entry booking system and their applications in main transactions, and the key accounting concepts and principles according to which financial statements are prepared.

• General accounting: the double-entry accounting system.
• Financial accounting transactions and preparation of financial statements (accounting for owner's equity; cash flow statement preparation).

• Identify the critical elements underlying the application of the double-entry accounting system.
• Gain knowledge and skills in respect of preparing and understanding financial statements.
• Understand and replicate an elementary individual financial statement.
• Explain the accounting principles underlying financial statements preparation.

• Understand the basic accounting concepts and measurements that underlie financial statements.
• Apply the double entry system to report accounting transactions.
• Analyze the accounting information presented in financial statements and apply effective analytic skills and tools to make business decisions.

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

• The learning experience is mainly based on face-to-face lectures, which are interactive.

• Case studies are used during teaching to show students “the real world of business and accounts”.

For ALL students

• One final exam representing 80% of the final grade. 

The final exam aims to: assess whether the student is able to identify the critical elements underlying the application of the double-entry accounting system; check whether the student gained knowledge and skills in respect of preparing and understanding financial statements; assess if the student is able to replicate an elementary individual financial statement; and test the student’s ability of explaining the accounting principles underlying financial statements preparation.

The final exam also aims to: evaluate the student’s knowledge on journal entries and financial statements; assess the student’s ability to use the “accounting equation” and double-entry accounting system; check whether the student is able to analyse, calculate and prepare journal entries according to core accounting principles; and test if the student is able to compose financial statements based on basic transactions.

• One individual assignment on ABF annual report analysis, representing 20% of the final grade. 

LIBBY, LIBBY, HODGE, Financial Accounting, McGraw-Hill, International Edition, 2016, 10th edition.