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2018/2019  BA-BHAAI1009U  Principles of Financial Accounting

English Title
Principles of Financial Accounting

Course information

Language English
Course ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration Summer
Start time of the course Summer
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 120
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Course instructor - Dr Maria Italia, Lecturer in Accounting, RMIT University, Melbourne, Australia, maria.italia@rmit.edu.au
    Sven Bislev - Department of Management, Society and Communication (MSC)
In case of any academic questions related to the course, please contact the course instructor or ISUP academic director, Sven Bislev at sb.msc@cbs.dk.
Main academic disciplines
  • Finance
  • Accounting
Teaching methods
  • Face-to-face teaching
Last updated on 17/12/2018

Relevant links

Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors:
  • Demonstrate an understanding of the business environment and the role of accounting
  • Interpret and apply generally accepted accounting conventions and rules underlying the preparation of accounting reports
  • Analyse financial and managerial decision-making and the accounting information that supports the decisions
  • Evaluate, analyse and interpret relevant accounting information
  • Apply financial statement analysis theory and practice to company reports
Course prerequisites
Principles of Financial Accounting:
Exam ECTS 7.5
Examination form Written sit-in exam on CBS' computers
Individual or group exam Individual exam
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period Summer, Ordinary exam: 4 hour written exam in the period of 30 July - 2 August 2019
Retake exam: 4 hour written exams in the period of 1-7 October 2019
3rd attempt (2nd retake) exam: 72-hour home assignment- 25-28 November 2019 – for all ISUP courses simultaneously

Exam schedules available on https:/​/​www.cbs.dk/​uddannelse/​international-summer-university-programme-isup/​courses-and-exams
Aids Limited aids, see the list below:
The student is allowed to bring
  • Any calculator
  • Language dictionaries in paper format
The student will have access to
  • Advanced IT application package
Make-up exam/re-exam
Same examination form as the ordinary exam
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
Retake exam: 4 hour written sit-in exam, new exam question
Exam form for 3rd attempt (2nd retake): 72-hour home project assignment, max. 10 pages.
Course content and structure

This course will provide you with the frameworks and practical tools for preparing and reading financial statements. The course will emphasis the role of accrual accounting in the preparation of the income statement and balance sheet, and the role of cash accounting in the cash flow statement. Revenue and expense recognition, in compliance with the international accounting standards and the matching of revenue and expenses, are key elements in this course. The importance of management of accounts receivables and inventory will be highlighted.
At the end of the course, you will be able to critically review the information in the financial statements and their compliance with international accounting standards. Financial statement analysis will assist you the critical analysis of the liquidity, profitability, and financial stability of the business.
In class we will discuss reporting and analysis concepts and apply them in case studies and practical exercises.
This course should be useful for those planning a career in public accounting, or in the finance industry.


Preliminary assignment: Students will individually complete this assignment before the semester, and it will be discussed in the first class. Students will be required to read chapters of the textbook, review financial statements of a public company and answer questions that will be provided on the course website.

Class 1: Introduction to the income statement and balance sheet.

Class 2: Prepare financial statements.

Class 3: Revenue and expense recognition and the matching process.

Class 4: Cash versus accrual based acounting.

Class 5: Accounting for inventory, using perpetual accounting system.

Class 6: Student presentations

Feedback activity: Analysis of financial statements of a firm

Class 7: Operating assets including inventory and accounts receivables.

Class 8: Cash flow statement. 

Class 9: Non-current assets and intangible assets.

Class 10: Non-current liabilities, and off- balance sheet liabilities.

Class 11: Forecasting financial statements and valuation

Description of the teaching methods
Lectures, student centered tutorials, case studies and exercises.
Feedback during the teaching period
In six, students will present to the class their analysis of the financial statements of a publicly listed company and receive feedback from both the fellow students and the instructor.
Student workload
Preliminary assignment 20 hours
Classroom attendance 33 hours
Preparation 126 hours
Feedback activity 7 hours
Examination 20 hours
Further Information

Preliminary Assignment: To help students get maximum value from ISUP courses, instructors provide a reading or a small number of readings or video clips to be read or viewed before the start of classes with a related task scheduled for class 1 in order to 'jump-start' the learning process.


Course timetable is available on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams


We reserve the right to cancel the course if we do not get enough applications. This will be communicated on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams end February 2019 at the latest.


Expected literature

Mandatory readings:


Class textbook: ACCT2 Financial, 2nd Edition, 2016, Jonathan Tyler, Norman Godwin and C. Wayne Alderman. Cengage Learning, ISBN 9780170350341 


Additional relevant readings:


Academic articles and website references, that will be posed on the course websites.

Last updated on 17/12/2018