FINANCIAL ACCOUNTING AND FINANCIAL STATEMENTS
- Overview
- Assessment methods
- Learning objectives
- Contents
- Bibliography
- Teaching methods
- Contacts/Info
The exam of “Management” has to be passed.
Written exam.
It is possible to take the exam also through two partial written texts (respectively at the middle and and the end of the course).
The course major educational goal is to develop student's skills in recording business transactions (double entry book-keeping process) and in preparing financial statements in according to domestic Accounting standards (Italian Civil Code and Italian Accounting Standards by the Italian Standard Setter “Organismo Italiano di Contabilità” - OIC). The course also provides the basic elements of financial analysis to help students in understanding the events that generated the accounting values and to assess the company performance.
PART I AND II - FINANCIAL ACCOUNTING
· The accrual basis of accounting
· The double entry book-keeping process
· The rules of debit and credit
· Recording entries in the general journal of a set of typical transactions (purchases, sales, receipts and payments, lending and borrowing, etc.) for manufacturing, commercial and services companies.
· Posting to the general ledger
· The preparation of a trial balance
· Recording adjusting entries
· Recording closing entries
· The preparation of financial statements
PART III) THE PREPARATION OF FINANCIAL STATEMENTS IN ACCORDANCE WITH ITALIAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (ITA GAAP)
· The accounting regulation: the rules of the Italian Civil Code (Articles from 2423 to 2435bis) and the Accounting Standards issue by the Italian Standards Setter “Organismo Italiano di Contabilità (OIC)”
· The scope of financial statements: the “true and fair view” of company’s assets, liabilities, financial position and profit or loss
· The general principles:
- going concern principle
- prudence principle
- prevalence of the substance over from principle
- realization principle
- matching principle
- separate valuation of assets and liabilities items
- consistency principle
· Balance sheet form and contents
· Income statement form and contents
· Statement of cash flows (refer to form IV)
· The function and the minimum contents of the notes (in brief)
· Financial Statements in the abridge version (in brief)
· Assets and liabilities recognition and measurement:
- inventories
- revenues, trade and other receivables
- trade payables, loans, provisions and employees severance indemnities
- income taxes (taxes payable and deferred income taxes)
- fixed assets
- foreign currency transactions
- investments in subsidiaries and associates
- financial instruments
PART IV - FINANCIAL ANALYSIS
· Basic elements of financial analysis and performance valuation by means of:
- balance sheet and income statement reclassification
- calculation of the main financial ratios
- preparation of the Statement of cash flows
Codice Civile, artt. 2423 – 2435ter
Slides available on the course e-learning platform
- Textbook for the I, II and IV part of the course programme
Lombardi Stocchetti G. (a cura di), Basic Financial Accounting, Guerini, 2017
- Textbook for the III Part of the course programme
G. Lombardi Stocchetti (a cura di), Valutazioni di bilancio, Pearson Education, 2016
The course is articulated in 80 lesson hours. During the lesson hours will be both analyzed the theoretical aspects of different topics and the practical implications by means of exercises and numerical examples.
Office hours: Monday 2 p.m.