Financial Accounting

Course overview and objectives
The objective of the course is to introduce students to financial accounting. It is primarily intended for students with no previous exposure to accounting at all.Accounting can be considered the system of measurement of economic activity. The course takes both the preparer and the decision-maker perspective of accounting, emphasizing the relation between accounting data and the underlying economic events that generated them. This course is designed to teach students how to prepare, interpret and analyze financial reports from a critical perspective. Participants will gain a clear notion of how accounting information can be used to guide business strategic decisions. In that context, students are required to develop a financial analysis project based on a real listed company. In completing this course students should:
• Understand the financial vocabulary, concepts, principles and techniques;
• Know how to prepare financial statements;
• Determine the impact of different accounting regulations on the recognition and measurement of operations;
• Determine the impact of management choices on the financial statements;
• Use financial reporting and ratio analysis as a basis for investing and financing decisions;
• Analyze companies’ financial reports and statements and interpret the data for decision making.

Course Content:
Weeks 1, 2, 3, 4
1. Accounting the Language of Business
2. International Accounting Regulation 
3. The financial statements
4. Accrual Accounting and Financial Statements
Weeks 5, 6
5. Assessing corporate financial strength, efficiency, and profitability
MIDTERM EXAM
Weeks 7
6. Statement of Cash Flows
Weeks 8, 9, 10
7. Long-lived Assets: measurement criteria
8. Intangible assets: recognition and measurement criteria
9. Inventories: measurement criteria
10. Equity & Liabilities: accounting value versus market value
11. Accounting for Sales

ENDTERM / FINAL EXAM
Prior preparation of every session is expected from every student. It is of utmost importance that students keep up with the course work. In this course, new materials always build on prior concepts, so it is critical to keep a consistent study routine in order to deliver good results. It is expected that 8 hours per week of your study time will be spent on class preparation and assigned case studies and exercises.

Grading
Final average grades calculated as follows:
o Midterm exam: 30%
o Endterm exam: 40%
o Group work: 20%
o Individual participation: 10%
Students with a final average grade of 7 (or below) fail the course.
Students with a final average grade of 10 pass the course and waive the final exam, as long asthe average of two written exams is above 9.5

Students for whom the final exam is compulsory:
▪ Final average grade of 8 or 9
▪ Average of the two written exams below 9.5
Note that the mark achieved in the final exam, replaces the marks previously achieved in the midterm and endterm exams.

Bibliography
Textbook: Financial Accounting – International Financial Reporting Standards. Harrison, 
Horngren, Thomas, Tietz, and Suwardy. 11e: Global Edition