Master 2018/2019

Financial Accounting and Financial Analysis

Category 'Best Course for Career Development'

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

Type: Elective course (Finance)

Area of studies: Finance and Credit

Delivered by: Department of Finance

Where: St.Petersburg School of Economics and Management

When: 1 year, 4 module

Mode of studies: offline

Instructors: Yulia Leevik

Master’s programme: Finance

Language: English

ECTS credits: 4

Contact hours: 48

Course Syllabus

Abstract

The world in which they will pursue their professional careers is a world dominated by global business and investment decisions. As most of these decisions are premised on financial data, knowledge of financial accounting is crucial for achieving proper understanding of international business and financial communications. Accounting amounts may vary substantially according to the principles that govern them. Financial statements and other disclosures are impossible to understand without an awareness of the underlying accounting principles and business culture. It is also very important to be able to analyse and make decisions concerning profitability, operational and financial activity of a company on the base of financial statements.

Learning Objectives

• The core objective of the course is to sensitize students to the international dimensions of accounting, financial reporting and financial analysis.

Expected Learning Outcomes

• Have an idea about the place and the role of financial accounting in the system of management of the economic entity.
• Understand the conceptual framework of accounting and the purpose, structure and content of the financial reporting in the modern market economy.
• Understand the essence of accounting terms and to use them properly.
• Have basic practical skills in financial reporting and interpreting accounting information under International Financial Reporting Standards.
• Use strong analytical skills and apply them to solve practical problems.
• Demonstrate an innovative, open and ethical mindset.

Course Contents

• Topic 1. Financial statements and Business Decisions.
  The accounting system. The Balance Sheet. The Income Statement. Statement of Stockholders’ Equity. Statement of Cash Flows. Relationships among statements. Responsibilities for the accounting communication process.
• Topic 2. Investing and Financing Decisions and the Accounting System.
  Overview of accounting concepts. Nature of business transactions. Accounts. Transaction analysis and accounting entries.
• Topic 3. Operating Decisions and the Accounting System.
  The operating cycle. Accrual accounting. Transaction Analysis Rules.
• Topic 4. Adjustments, Financial Statements, and the Quality of Earnings.
  Accounting cycle. Purpose and types of adjustments. Adjustment process. Preparing financial statements. End of accounting cycle.
• Topic 5. Communicating and Interpreting Accounting Information.
  Players in the accounting communication process. The disclosure process. A closer look at financial statement formats and notes.
• Topic 6. Reporting and Interpreting Sales Revenue, Receivables, and Cash.
  Accounting for net sales revenue. Measuring and reporting receivables. Reporting cash.
• Topic 7. Reporting and Interpreting Cost of Goods Sold and Inventory.
  Nature of inventory and cost of goods sold. Inventory costing methods. Evaluating inventory management. Control of inventory.
• Topic 8. Reporting and Interpreting Property, Plant, and Equipment; Intangibles.
  Acquisition and maintenance of plant and equipment. Use, impairment, and disposal of plant and equipment. Intangible assets.
• Topic 9. Reporting and Interpreting Liabilities.
  Liabilities defined and classified. Short-term liabilities. Long-term liabilities.
• Topic 10. Reporting and Interpreting Owners’ Equity.
  Ownership of a corporation. Common stock transactions. Dividends on common stock. Stock dividends and stock splits. Statement of changes in Stockholders’ Equity. Preferred stock.
• Topic 11. Statement of Cash Flows.
  Classifications of the statement of cash flows. Reporting and interpreting cash flows from operating activities. Reporting and interpreting cash flows from investing activities. Reporting and interpreting cash flows from financing activities. Additional disclosures.

Assessment Elements

• In-class activities
  Individual or in small groups, in-class, open book (questions, discussions, tasks and case studies)
• Midterm test
  Individual, in-class, open book
• Team project
  In small groups, at home with follow-up in-class presentation, open book
• Final exam
  Individual, in-class, closed book

Interim Assessment

• Interim assessment (4 module)
  0.5 * Final exam + 0.15 * In-class activities + 0.15 * Midterm test + 0.2 * Team project

Bibliography

Recommended Core Bibliography

• Financial accounting, Libby, R., 2016

Recommended Additional Bibliography

• BPP Learning Media. (2017). Foundations in Accountancy : F3/FFA Financial Accounting: Interactive Text: for Exams From 1 September 2017 to 31 August 2018 (Vol. Sixth edition). London: BPP Learning Media. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=nlebk&AN=1522342