Advanced Financial Accounting (2235.YR.001460.1)

General information

Type:	OBL	Curs:	1	Period:	S semester
ECTS Credits:	4 ECTS

Teaching Staff:

To take this course, students must have completed the Introduction to Financial Accounting course (Accounting and Financial Analysis I).

Lectures: 13 sessions
Participatory sessions: 13 sessions
Independent study: 64 hours

The Advanced Financial Accounting course consolidates and expand knowledge students have of corporate financial statements. It is based on the knowledge acquired in the Introduction to Financial Accounting class (Accounting and Financial Analysis I) as well as their knowledge of corporate economic-financial reality. It further explores the complexities that arise and affect corporate financial statements while also exploring companies' internal accounting and cost accounting processes.

The course comprises two subject blocks:

Block I:
The first part focuses on preparing financial statements and registering the different transactions that take place between the company and third parties, transactions which are more complex than those examined in the introductory course. The aim of this first part is to understand how different business transactions reflect into firms' financial statements.


Block II:
The goal of the second part is to provide students with a theoretical and practical cost accounting framework with a special focus on its role for corporate decision-making. By the end of this part, students will understand how costs behave and are structured internally to provide managers with more meaningful information for decision-making.

Upon completing this course students, should be able to:

1. Understand what accrual accounting means and learn about its application.
2. Learn about the long-term financing option, its bookkeeping entries and its impact on annual accounts.
3. Explore the equity concept and learn more about its different components.
4. Understand financial assets: valuation and impact on company's value.
5. Learn to prepare financial statements based on current regulations.
6. Identify different cost behaviours.
7. Prepare and analyse information included in different costing systems.
8. Understand and apply cost-volume-profit analysis techniques
9. Prepare stock valuation information using the FIFO and WAM method

1. Accruals and provisions

2. Financial assets and liabilities

3. Equity: composition and meaning

4. Subsidies/grants. Exchange rate.

5. Cost classification and behaviour

6. Cost-volume-benefits analysis

7. Partial and Full costing. Inventory valuation

8. Activity-based costing

To achieve the learning objectives for this class, lectures will serve to introduce the concepts to students and provide them with material (notes and readings). To assimilate these concepts, students will be required to complete simple exercises every week for which they'll receive feedback in the participatory sessions. Self-assesstment tests are also available to help students to check their progress. At the end of each block, students will complete an exam which covers the material examined in each.

Royal Decree 1/2021, modifying the General Accounting Plan

General Accounting Plan 2008 (revised in 2021)

Alexander, D.; Nobes, Ch. (2007): Financial Accounting: An International Introduction. Harlow: Financial Times; Prentice Hall.

Davila, A.; Oyon, D. (2018): Malea Fashion District. How successful managers use financial information to grow organizations. 3.ª ed.

Drury, C. (2018): Management Accounting for Business. 7.ª ed. Cengage Learning.

Drury, C.; Tayles, M. (2020): Management and Cost Accounting. 11.ª ed. Cengage Learning.