Financial Accounting and Analysis (Advanced)

Financial accounting and analysis (advanced)

Prof. Claudia Mezzabotta

COURSE AIMS

The course aims at providing students with advanced tools of financial accounting, based on IAS/IFRS, to allow them to understand some complex issues related to the preparation of individual and consolidated financial statements. It includes techniques of financial statement analysis, focused on the dynamic interactions among the key amounts included in the B/S, the I/S and the cash flow statement.

Preliminary Knowledge Requirements

A preliminary knowledge of basic financial accounting, at an undergraduate level, is needed to understand the contents of this course.

COURSE CONTENT

1.IFRS: Conceptual Framework; IAS 1 – The Structure of Financial Statements.

2.Introduction to International Accounting and its Regulatory Context.

3.IAS 16 and 38: Tangible and Intangible Assets. Financial Leases (IAS 17). Impairment test (IAS 36).

4.Accounting for Inventories and Long-Term Contracts (IAS 2 and IAS 11).

5.Accounting for Revenues and Provisions (IAS 18 and IAS 37).

6.Accounting for Employee Benefits and Income Tax (IAS 19 and IAS 12).

6.Business Combinations: Rules and Exceptions.

7.Introduction to Financial Instruments (IAS 39).

8.Non-current Assets Held For Sale and Discontinued Operations (IFRS 5).

9.IAS 7 – Cash Flow Statement.

10.Company Groups and Introduction to Consolidated Accounts.

11.Financial Statement Analysis: Reclassification of the B/S and the I/S.

12.Relationships Between the B/S, the Cash Flow Statement and the I/S. The Impacts on Share Value.

READING LIST

A. Melville,International Financial Reporting. A Practical Guide, Pearson, 2014 (ISBN: 978-0-273-78597-2)

Additional reference materials (slides, extra exercises and suggested readings) will be posted on Blackboard.

TEACHING METHOD

Lectures and exercise sessions in class. Some interventions of technical experts may occur.

ASSESSMENT METHOD

The exam is in written form. It consists in some theoretical questions (open questions and/or short essays) and some exercises on the accounting entries, the measurement of assets and liabilities, the implementation of financial analysis tools. No mid-term examination will take place. The specific modalities will also be communicated at the beginning of the course and made available on Blackboard.

NOTES

The course, being “advanced”, takes for granted the knowledge of basic financial accounting techniques (double entry book-keeping, end-of-year closing entries, preparation of B/S and I/S). Such tools will be quickly revised at the beginning of the course in specific sessions.

Further information can be found on the professor's webpage at on Blackboard and on the Faculty notice board.