International Financial Accounting (in English)

Course Description
The course aims to provide students with the knowledge required for a general understanding of
Financial Accounting Statements, comparing International Financial Reporting Standards (IFRS)
and Generally Accepted Accounting Principles (GAAP) currently used in the United States.
Financial accounting is, broadly considered, the communication of information about a business
or other type of organization so that individuals or other users of the information can make the
right decisions. There are different reasons why students should enroll in an Accounting Course.
Accounting is often calling the “language of businesses,” and deals with the interpretation of a
firm’s operations and finances, being a guiding force to makings sound management decisions,
helping business grow and succeed by allowing business to make sound decision-making
financial strategies.

Accounting is not only important for business. An accounting background is important as it can
be applied in all professional settings. Moreover, people use accounting in their daily lives:
When studying financial statements to make investment decisions, assess interest rates to repay
their degree loans, or calculate rates for car payments. As a student graduate, this information
may prove useful in determining which companies have a brighter future.
Success in both business and life is usually a result of choosing wisely. Personal and economic
choices depend on the ability to understand and make proper use of financial information. You
must be familiar with it, since today’s world is ruled by numbers.

Course Goals and Methodology
The main goal of this course is to understand how the information provided by financial reports,
prepared using International Financial Reporting Standards (IFRS) or US Generally Accepted
Accounting Principles (GAAP), affects the decision making of users such as investors, creditors,
or managers. International Financial Accounting will cover the basic concepts underlying
financial statements. For this purpose, a general introduction to accounting principles will be
provided. The IFRS, used in many countries around the world, will be compared with the GAAP,
currently used in the United States. From a practical approach, current economic, business, and
global events will be linked to accounting issues. Competencies such as teamwork and ethical
behavior will be developed within this course. At the completion of this course, students will
have basic knowledge of accounting terminology, being able to understand how the information
provided by financial reports affects the decision making of users such as investors, creditors,
and managers at an international scale.

The methodology of the course will be based on several different tools. Some sessions are
devoted to introducing basic concepts, fostering the participation of students, and solving basic
practical exercises on the concepts introduced. In some other sessions, assignments previously
prepared, individually or in groups, will be solved and/or discussed, either by the instructor or by
the students. Students will focus on the development of small cases that may need to apply the
knowledge and techniques learned autonomously. Students are encouraged to use Blackboard,
where the instructor will post slides, lecture notes, journal articles, assignment instructions,
announcements, and additional resources.

Learning Objectives
On completion of this course, students should be able to:
• Master accounting and financial language and terminology.
• Comprehend basic accounting and information disclosure characteristics.
• Describe business disclosure practices.
• Interpret financial information.
• Use Information Technologies to access and review financial accounts and other
corporate reports, as well as the information disclosed from several institutions and
regulatory and standardization bodies.
• Have acquired basic skills for developing and preparing financial statements and
other business disclosure tools.
• Demonstrate ethical, oral communication and team working skills.

Course Requirements and Grading
A previous Financial Accounting course is recommended (not mandatory).
To ensure efficient learning and participation in the course, it is advised to have a basic
knowledge of accounting standards and review the recommended bibliography.
During office hours, students may check homework solutions, ask questions, and discuss any
other aspect of the course with the instructor. Please take advantage of this resource. If these
hours conflict with your schedule, arrange to meet with the instructor at a time that is more
convenient.

Regular attendance and class participation are expected of all students. Because the course
covers a great deal of material, attending every class session is very important to ensure
successful class completion. In addition, students are expected to make a meaningful
contribution to the class, whether by asking questions, responding to questions, or contributing
in other ways to class discussion.

Please find more information about class timetable, tutorials, and class materials (slides,
exercises, documentation, etc.) on the Virtual Classroom. Students are expected to use the
course’s Virtual Classroom (Blackboard Learn) on a regular basis.

Your final grade will be calculated according to the following system:
30% Tests Tests after each module to assess understanding of concepts (5% each quiz, total 6
quizzes)
20% Final Exam Final exam covering the course content from all modules
30% Final Project Group project to analyze and prepare financial statements for international companies
20% Class
participation and extra
assignments
Participation in class discussions and engagement in group activities, to include case
studies and practical exercises to apply IFRS principles to real-world scenarios

Final Project
Students will work in groups to prepare two case studies (details below). These will be
presented in class.
The main goal is to bring students involved in the learning process of the competences and
knowledge of international financial reporting, helping them learn the main skills included in the
course syllabus.
Target aptitudes to be developed by the student include:
• Acquire the ability to reason critically.
• Teamwork.
• Develop participatory habits.
• Develop written and oral communication skills.
• Build IT skills.
Students will be split into several groups. The two-three students making up each group will be
chosen at random by the instructor and announced in the Virtual Classroom. The case study
scenarios will be different for each group.
Each group will:
1. Prepare two case studies with financial reports, one for each presentation. The instructor
will announce in the Virtual Classroom the groups’ composition as well as the topic of the
article.
2. Have freedom to organize their work, as they want, the only restriction being a limited time of
8 hours of individual work by each member for each case study. It is then advisable to
carefully schedule all the activities to be done.
3. Prepare a job blog, detailing all activities undergone by the group (Such as group
meetings, task assignment, group organization and fulfilment of individual activities).
Students will use Blogger and make the link and a QR code available at the end of the
presentations.
4. Search for additional information or resources (besides the materials provided by the
instructor) and engage in any activities needed in order to properly prepare the case study
and financial reports.
5. Prepare the final presentations, which will take place at the final sessions of the course.
6. Each student will also prepare a short essay (not more than 300 words) reflecting on what
they have learned in this group project.
The submission’s schedule will be available after the third week of the course.

Course Content
Unit 1: Communicating Accounting Information
• Understand the importance of effective communication in international accounting.
• Explain the role of accounting standards and regulations in ensuring transparent financial
reporting.
• Compare the International Financial Reporting Standards (IFRS) and Generally Accepted
Accounting Principles (GAAP)
• Understand the role of the International Accounting Standards Board (IASB)
• Analyze the ethical considerations in financial reporting and disclosure.
Unit 2: Balance Sheet
• Define and describe the components of a balance sheet under both GAAP and IFRS.
• Differentiate between GAAP and IFRS treatment of assets, liabilities, and equity.
• Analyze a balance sheet prepared under GAAP and IFRS to assess a company's financial
position.
• Presentation and disclosure requirements under IFRS
• Comprehensive case studies on financial statement preparation
Unit 3: Income Statement
• Explain the purpose and structure of an income statement under both GAAP and IFRS.
• Identify and classify various types of income and expenses under GAAP and IFRS.
• Compare and contrast income statements prepared under GAAP and IFRS and analyze their
implications.
• Presentation and disclosure requirements under IFRS
• Comprehensive case studies on financial statement preparation
Unit 4: Cash Flow Statement
• Understand the objectives of a cash flow statement under both GAAP and IFRS.
• Analyze the three sections of a cash flow statement: operating, investing, and financing
activities, under both standards.
• Evaluate a company's liquidity and cash management through cash flow analysis under
GAAP and IFRS.
• Presentation and disclosure requirements under IFRS
• Comprehensive case studies on financial statement preparation
Unit 5: Statement of Changes in Equity
• Describe the components of the statement of changes in equity under both GAAP and IFRS.
• Explain the effects of various transactions on shareholders' equity under both standards.
• Analyze changes in equity over time under GAAP and IFRS and their implications for
investors.
• Presentation and disclosure requirements under IFRS
• Comprehensive case studies on financial statement preparation
Unit 6: Other Statements
• Explore other financial statements and reports used in international accounting, such as
consolidation of financial statements, joint arrangements and foreign currency translation.
• Understand the similarities and differences in the treatment of these statements under GAAP
and IFRS.
• Discuss the ongoing convergence efforts between GAAP and IFRS and their impact on
financial reporting.