Financial Accountability

The purpose of this course is to provide understanding about the aim and requirements of financial accountability preparation, about the methods of errors correction and to develop students' ability to compile financial statements of companies, to interpret financial information, to identify problems and provide solutions. Upon completion of this course students will be able to apply regulatory requirements to prepare financial statements, will be able to analyze the content of financial statements and to disclose information about the elements of the financial statements. The main study methods – interpretation, discussions, question and answer presentation, task interpretation and solution, case analysis.

The aim of this course is to provide understanding about the aim and requirements of financial accountability preparation, about the methods of errors correction and to develop students' ability to compile financial statements of companies, to interpret financial information, to identify problems and provide solutions.

Students should have the knowledge in Microeconomics, Macroeconomics, Accounting Basics, Financial Accounting1, Financial Accounting 2, Fundamentals of Finance, Business Taxes, Management.

1. Final accounting tasks, closure of accounts. 2. Concepts, regulation and contents of financial accountability. 3. Key requirements to financial statements and identification of financial statements. 4. Classification, disclosure and presentation of Balance Statement information of business entities. 5. Classification, disclosure and presentation of Profit (Loss) Statement information of business entities. 6. Classification, disclosure and presentation of information from Statement of Changes in Equity of business entities. 7. Classification, disclosure and presentation of Cash Flow Statement information of business entities. 8. Classification, disclosure and presentation of Explanatory Note and Sustainability Reports information of business entities. 9. Interim financial reporting. 10. Business mergers and groups of companies Types of business mergers. 11. Essence of financial accountability and preparation of consolidated financial statements. 12. Disclosure of segments in financial statements. 13. Amendment of accounting policy and accounting estimates and error correction.

1. Explains the essence and consistency of final accounting tasks, sequence of closure of accounts, describes the function of financial statements and qualitative requirements to their formation, identifies the differences in annual and interim financial statements. 2. Explains the contents of individual financial statements, the relationships between them. 3. Describes the Balance Statement preparation requirements, forms the statement for simple situations, selects appropriate asset and liability valuation methods, adequately interprets the information provided. 4. Describes the Profit (Loss) Statement preparation requirements, forms the statement for simple situations, selects appropriate income and expense recognition criteria, adequately interprets the information provided. 5. Describes the requirements on preparation of Statements of Changes in Equity, prepares the statement for simple situations, recognizes the profit and losses not presented in a profit (loss) statement, adequately interprets the information provided. 6. Describes the requirements on preparation of Cash Flow Statements, prepares the statement for simple situations, identifies the differences in the information of the reports prepared under direct and indirect method, adequately interprets the information provided. 7. Explains the requirements on preparation of consolidated financial statements, prepares the statements for simple situations, adequately interprets the information provided. 8. Explains the essence of the error correction methods, describes the essence of the methods for registration of the results of changes in accounting policy in the accounting and their presentation in the financial statements, recognizes the nature of errors for the situations provided, and selects appropriates error correction methods.