Financial Accounting and Reporting

The aim of this course is to study the main accounting concepts, methods and tools, accounting process, the aim, content and requirements of financial reporting as well as practices of entities. Upon completion of this course students will know the main accounting regulation requirements; will acquire the theoretical knowledge and practical skills on how to identify, measure and record business transactions; will be able to apply regulatory requirements to prepare financial statements, will be able to analyse the content of financial statements and information disclosure on the main accounting categories.

To provide students with theoretical knowledge and practical skills of financial accounting and reporting regulation; accounting and reporting process, main principles and methods, as well as practices of entities.

Fundamentals of Finance

1. Introduction to financial accounting. 2. Accounting and reporting regulation and its development, accounting standards, accounting policies of an entity. 3. Economic position of the company and its presentation in the financial statements. Financial reporting and disclosure. 4. Accounting process and its organization. Record keeping in accounts and register. Trial balance. Adjusting entries. Closing of accounts in the end of a period. Constructing financial statements. 5. Sales and purchase accounting. The rules and methods for revenue and expense accounting. Profit (loss) statement. 6. Balance sheet, its content and types; 7. Accounting for current assets (cash, receivables, inventories, etc.). 8. Accounting for long term assets a (tangible and intangible asset recognition, measurement, depreciation, impairment sale. Accounting for financial assets). 9. Accounting for liabilities. 10. Accounting for shareholders equity. Changes in shareholders equity and distributions of profit. 11. Entity’s cash flows. Cash Flow Statement and its preparation.

1. The student identifies at least half of given purposes, objectives, and peculiarities of financial accounting and reporting. 2. The student explains at least half of given regulations of financial accounting and reporting and is able to identify at least half of given directions and reasons of regulatory changes. 3. The student is able to explain requirements for recognition, measurement, presentation and disclosure of various accounting elements and is able to apply them practically according to at least half of the given questions. 4. The student is able to explain the accounting process, its main phases, steps in accounting, reporting and financial statements preparation according to at least half of given questions. 5. The student is able to fulfil at least half of accounting process phases in practice and is able to prepare at least half of financial statements of a company. 6. The student describes and analyzes the main requirements of financial disclosure, is able to assess disclosed financial information, its characteristics and compliance with financial accounting regulation according to at least half of the given questions. 7. The student prepares and defends a group work in which he/she applies theoretical knowledge of the accounting process along with regulatory requirements for recognition, measurement, presentation and disclosure of separate accounting elements satisfying at least a half of the determined requirements.