AF: Financial Accounting and Reporting (2235.YR.011214.1)

General information

Type:	OBL	Curs:	1	Period:	S semester
ECTS Credits:	2 ECTS

Teaching Staff:

Group	Teacher	Department	Language
Year 1	Josep Bisbe Viñas	Economía, Finanzas y Contabilidad	ENG

The purpose of this course is to provide MBA students with the key points to understand how financial accounting and reporting are used in business as inputs for decision-making. The concepts and topics covered in the course presume that participants have a thorough understanding of the material covered in Foundations Weeks. The knowledge acquired in foundations weeks about the features of and the interrelationships among the fundamental financial statements will be used in this course to better understand some of the most relevant regarding financial accounting and reporting. As it portrays the financial situation and performance of a company, financial accounting appeals to a wide audience including present and potential investors, creditors, government agencies and management. The course will develop the criteria, procedures and formats used to represent and report some of the most significant components of the financial statements (e.g. revenue recognition, cost of goods sold, operating assets, inter-corporate investments, capital sources), so that students are well equipped to properly interpret the meaning of the reported information and can subsequently engage in financial analysis.

The course aims to develop analytical skills so that participants are well equipped to:
- To analyze some of the most significant individual components of financial statements and the different ways in which they can be presented as well as to gain an appreciation for the impacts different accounting methods may have in this regard. Most of the issues discussed here are valid in most countries and in most sets of accounting standards. In those cases where particular concepts or practices covered here might vary from one country to another, we will take International Accounting Standards / International Financial Reporting Standards (IAS / IFRS) as the reference framework.
- To provide awareness regarding some common financial accounting and reporting misunderstandings and minefields.
- To extend the concepts and tools covered in foundations weeks in order to have an overview of the representation provided by consolidated financial statements (statements at group level), understanding the differences between individual financial statements (i.e. firms) and consolidated financial statements (i.e. corporations or groups).
- To provide a solid grounding for properly engaging in financial analysis (object of the subsequent Finance course)

1. Unit 1. Long-lived assets and depreciation Types of long-lived assets. Valuation of long-lived assets. Depreciation and amortization. Revaluation, impairment and disposal of fixed assets. Intangible assets and goodwill. ,

2. Unit 2. Revenues and Accounts Receivable Revenue recognition. Measurement of revenues. Taxes on sales. Accounts receivable and bad debts.

3. Unit 3. Inventories and Cost of Goods Sold. Merchandising vs. manufacturing inventories. Gross margin, cost of goods sold (COGS) and inventories. Perpetual and periodic inventory systems. Inventory valuation methods. Accounting for VAT

4. Unit 4. Owners' equity Accounting for and reporting contributed capital. Stock issuances, share buybacks and stock compensation plans. Accounting for and reporting retained earnings and earned capital. Key equity transactions. Comprehensive income.

5. Unit 5. Business combinations and consolidated financial statements. Accounting for equity investments. Reporting intercorporate investments: parents, subsidiaries, associates, joint arrangements. Consolidated financial statements. Consolidation methods: full consolidation and equity method.

ASSESSMENT BREAKDOWN

Stolowy, H, Ding, Y. and Paugam, L. (2020). Financial Accounting and Reporting: A Global Perspective (6thd ed.). Cengage.
Weygandt, J.J., Kimmel,,P.D. and Kieso, D.E. (2022). Financial Accounting with International Financial Reporting Standards (5th ed.). Wiley

Group	Teacher	Department
Year 1	Josep Bisbe Viñas	Economía, Finanzas y Contabilidad