• 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

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

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.

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.