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2020/2021  BA-BHAAI1083U  Financial Accounting

English Title
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 100
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Sven Bislev - Department of Management, Society and Communication (MSC)
For academic questions related to the course, please contact instructor Professor Peter Clarke, Emeritus professor: Smurfit Business School, Dublin. E-mail: peter.clarke@ucd.ie
For other academic questions, please contact Sven Bislev at sb.msc@cbs.dk
Main academic disciplines
  • Finance
  • Accounting
  • Economics
Teaching methods
  • Online teaching
Last updated on 18/01/2021

Relevant links

Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors:
  • Explain the role of Financial Accounting in relation to various forms of business
  • Describe the main elements that comprise the financial statements of commercial entities
  • Describe the three principal financial statements and their usefulness
  • Argue the decision relevance of published financial statements
  • Use accounting ratios and other relationships to analyse and interpret financial performance and financial position of a business.
Course prerequisites
Financial Accounting:
Exam ECTS 7.5
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Please see text below
4 hour home assignment. No requirement for maximum number of pages.
Assignment type Written assignment
Duration Written product to be submitted on specified date and time.
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Summer, Ordinary exam: 4 hour home assignment in the period of 26–30 July 2021
Retake exam: 4 hour home assignment in the period of 20-24 September 2021
3rd attempt (2nd retake) exam: 72-hour home assignment- 22-25 November 2021 – for all ISUP courses simultaneously

Exam schedules available on https:/​/​www.cbs.dk/​uddannelse/​international-summer-university-programme-isup/​courses-and-exams
Make-up exam/re-exam
Same examination form as the ordinary exam
Retake exam: 4 hour home assignment, new exam question
Exam form for 3rd attempt (2nd retake): 72-hour home project assignment, max. 10 pages.
Course content, structure and pedagogical approach
Course content:
Accounting information relates to the “financial consequences” associated with transactions and events entered into by a (commercial) enterprise.  There are three main aspects, namely, (i) the recording function, which is routinely done on a daily basis, (ii) the reporting process, which is done at the end of the accounting period, and (iii) the analysis and interpretation of these year-end statements.  There are three principal financial statements, namely (a) the Statement of Cash Flows, (b) the Income Statement, and (c) the Statement of Financial Position at the end of the accounting period.

This course adopts a “user” rather than a “preparer” focus.  A “user” focus involves understanding and using financial information which is contained in the financial statements.  A “user” focus involves understanding and analyzing the year-end financial statements. 


Course structure:

Preliminary assignment:: Identifying key financial information and its interpretation from the published financial statements in the FIFA case, provided on Canvas 

Class 1:  Introduction to Financial Accounting and its usefulness
Class 2:  The Statement of Financial Position: Liquidity, Leverage and Solvency
Class 3:  The Income Statement: Revenues and Expenses.  VAT
Class 4:  Workshop session
Class 5:  Advances issues in Financial Accounting (Valuation of Inventory)
Class 6: Advances issues – Opening balances and relevance


Feedback activity:


Class 7:  Advanced issues – Statement of Changes in Equity (SoCE) and year-
                                                  end adjustments
Class 8:  Workshop session
Class 9: The cash basis of accounting
Class 10: The Statement of Cash Flows: Operating, Investing and Financing
Class 11:  The relevance of accounting ratios

Description of the teaching methods
This year all courses are taught digitally over the Internet. Instructors will apply direct/live teaching through a link (like Skype, Team, Zoom). In some courses, pre-recorded material will also be used.
Feedback during the teaching period
There will be an in-class assignment in Session 6 in the format of a Multiple Choice Questionnaire. Negative marks will be deducted for excessive incorrect answers.
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 in March 2021.



Expected literature

Mandatory readings:

Financial Accounting: An Introduction (2nd edition) 2006
By  Peter Clarke and Eugene McDermott
Published by:  Gill and Macmillan Ltd
Golden bridge Industrial Estate
Dublin 8


Additional relevant readings:

Handouts may be provided


Note:  (Ordinary) calculators are essential during class time



Last updated on 18/01/2021