Bachelor 2023/2024

Financial Reporting

Category 'Best Course for Broadening Horizons and Diversity of Knowledge and Skills'

Category 'Best Course for New Knowledge and Skills'

Type: Elective course

Area of studies: Business Informatics

Delivered by: Department of Business Informatics

Where: Graduate School of Business

When: 4 year, 2, 3 module

Mode of studies: offline

Open to: students of one campus

Instructors: Yulia Leevik

Language: English

ECTS credits: 6

Contact hours: 60

Course Syllabus

Abstract

The course is designed to introduce a number of theoretical approaches to financial accounting and develop background for preparing financial statements of the company under alternative accounting conventions (mainly under International Financial Reporting Standards (IFRSs)). The course describes a number of regulatory issues relating to financial accounting and explores the detailed issues and problems of financial reporting. It provides basic skills in recording and interpretation of financial data and covers basic techniques of financial analysis. The course requires the knowledge of basics of accounting and microeconomics.

Learning Objectives

• The core objective of the course is to sensitize students to the international dimensions of financial reporting and analysis. The course combines theoretical concepts underlying the presentation of financial statements with the practical techniques of accounting analysis.

Expected Learning Outcomes

• Understand how accounting rules are established, and why those management can shape the financial information communicated to outsiders and still be within those rules.
• Prepare a statement of cash flows from comparative balance sheet data, an income statement, and other financial information.
• Determine reportable segments.
• Understand how financial statements are translated under the current and temporal rate methods.
• Apply the equity method and the fair value option.
• Understand how consolidated financial statements are prepared under the acquisition method, and how noncontrolling interests are measured and reported.
• Understand the difference between various inventory cost flow assumptions: weighted average, FIFO and LIFO.
• Understand the matching principle and how it is applied to recognize revenues and expenses under accrual accounting.

Course Contents

• Topic 1. The Economic and Institutional Setting for Financial Reporting
• Topic 2. Accrual Accounting and Income Determination
• Topic 3. Revenue Recognition
• Topic 4. Structure of the Balance Sheet
• Topic 5. Receivables
• Topic 6. Inventories
• Topic 7. Long-Lived Assets
• Topic 8. Income Tax Reporting
• Topic 9. Financial Reporting for Owners’ Equity
• Topic 10. Intercorporate Investments
• Topic 11. Accounting for Foreign Operations and Segment Reporting
• Topic 12. Statement of Cash Flows

Assessment Elements

• In-Class Activity
  Written/Oral/SmartLMS. Individual or in small groups, in-class. Questions, exercises, discussions, presentations, trial tests.
• Team Project
  The team project consists of two parts: video and in-class discussion. 1. Video: every group has to prepare a video about the findings of their analysis. The following requirements must be met: • Content: the video must include a descriptive analysis of any patterns across the companies that you as a team observe comparing and contrasting them according to the list of questions. • Length: 5 mins. • Format: as relevant and creative as it can be. 2. In-class discussion: after each presentation (video), a five-minute discussion session will follow. Each group member will be asked at least one content question to defend his/her contribution to the analysis and to reflect on findings.
• Final Exam Test
  The final exam test is performed in the automatic verification format - SmartLMS. Individual, in-class, closed-book. Duration: 80 min.

Interim Assessment

• 2023/2024 3rd module
  0.5 * Final Exam Test + 0.25 * In-Class Activity + 0.25 * Team Project

Bibliography

Recommended Core Bibliography

• David Alexander, Ann Jorissen, Martin Hoogendoorn, Carien van Mourik, & Collette Kirwan. (2020). International Financial Reporting & Analysis, Edition 8: Vol. Eighth edition. Cengage Learning.
• International financial reporting and analysis, Alexander, D., 2014
• International financial reporting and analysis, Alexander, D., 2017

Recommended Additional Bibliography

• Beyersdorff, M., & Ernst & Young. (2017). International GAAP 2017 : Generally Accepted Accounting Practice Under International Financial Reporting Standards. Chichester, West Sussex, United Kingdom: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1450533
• Financial accounting : international student edition, Libby, R., 2023

Authors

• GLADKOVA MARGARITA ANATOLEVNA
• LEEVIK Iuliia SERGEEVNA