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2010/2011  BA-HAI_101  Financial Accounting

English Title
Financial Accounting

Course Information

Language English
Point 7,5 ECTS (225 SAT)
Type Mandatory
Level Bachelor
Duration One Quarter
Course Period Fourth Quarter
Time Table Please see course schedule at e-Campus
Study Board
Study Board for BSc in International Business
Course Coordinator
Edward Vali
Main Category of the Course
  • Finance
Last updated on 29 maj 2012
Learning Objectives
After having completed the course students should be able to:

Fully describe the conceptual framework underlying financial accounting.
Compare the cash basis and accrual basis of accounting.
Make journals and T-accounts of various transactions and make adjusting entries.
Prepare financial statements (P&L account, Balance Sheet, and Cash flow) from the source data by means of a Trial Balance.
Read, understand and comprehend a financial statement (annual report).
Develop financial measures for a company, such as profitability and solvency ratios, and analyze the information content of these to make sound business decisions.

Practical application of theory: Students learn to develop their understanding of financial accounting via reference to the annual report of a Danish listed company - Bang & Olufsen Group. Reference is made to the annual report throughout the teaching sessions and in class discussions. Towards the end of the course, a second case company is introduced, in order that the students may analyze and interpret accounting information of an unfamiliar company.
Relation to a Business or an Institutional Setting: Class discussions are focused around multinational companies in different industries – both European and US. The course textbook has many good examples from US business life, which will be contrasted against their European peers. Furthermore, to mirror the theoretical discussions into real life matters, a financial analyst as guest speaker will be invited to present applied analytical views of financial analysis for the class.

Relation to International Business or Economics: The core theme of the course is the financial accounting within multinational corporations. The relationships between parent company and subsidiaries are emphasized in group accounting and through the consolidation process.

Research Based Teaching: The curriculum includes few academic articles relevant to financial accounting. These references are mainly based on critical review of methods used for analysis of a firm’s financial health.
Financial Accounting
Financial Accounting:
Assessment Written Exam
Marking Scale 7-step scale
Censorship Internal examiners
Exam Period Summer Term and Summer Term
Aids Open Book, Written Aid is permitted
Duration 4 Hours
Prerequisites for Attending the Exam
Course Content

Accounting as a form of communication
Financial statements and Annual Reports
Double-entry bookkeeping
Cash basis and accrual basis of accounting
Inventories and Cost of Goods Sold
Cash, receivables and short term investments
Fixed Assets (Tangible & Intangible)
Current Liabilities, Present Value, and Long-term liabilities
Shareholders’ Equity
Statement of Cash Flows
Financial Statement Analysis
A Case Study in Financial Accounting

Teaching Methods
14 sessions of 3 class hours each, comprising lectures and class discussions. Problems and exercises are set for homework and to be included as a part of class discussions. Case studies are as well considered, whereby students are expected to analyze and interpret the accounts of a company.

Attendance and participation: Although being present in class is optional, complete attendance at sessions is highly recommended for this course. Sessions will contain lectures, exercises and discussions which for some are above and beyond the textbook. Hence, the final exam will be based on content of sessions, the text book and the course material.
Preparation for sessions is very essential for acquiring necessary knowledge of the subject. And active participation in class discussions generally enforces this matter where it pays off through greater learning and higher scores in the final exam.

Introduction to Financial Accounting (International Student Edition) latest Edition, by Gary A Porter & Curtis L Norton (CENGAGE Learning)

Annual report of Bang & Olufsen Group 2009/10 - to be used in class discussions:
 HYPERLINK "http://www.bang-olufsen.com/investors/annual-reports" http://www.bang-olufsen.com/investors/annual-reports

Various academic articles and reading materials - will be handed out / uploaded for further reading during the course.

Please note, minor changes may occur. The teacher will uploade the final reading list to sitescape/learn two weeks before the course starts.