EBBA 102 – FINANCIAL ACCOUNTING I & II (10 ECTS)

Overview

Examines the development of financial statements, the objectives and purpose of financial statements, including the underlying methods, concepts, principles and measurement theories. Emphasises the preparation, analysis and use of these statements to make operating, financial and investment decisions.
Topics include understanding the operating cycle, receivables, inventories, plant and equipment,
intangibles assets, liabilities, bonds, ownership and stockholders’ equity. Special topics include the
mathematics of present value theory, calculations and applications.

Course Objectives

This course provides an introduction to financial accounting as the “language of business.” It
emphasizes the analysis and evaluation of accounting information from the perspective of both
investors and managers in the processes of planning, decision-making, and control. The objective
of the course is to provide an overview of financial accounting and external reporting, including the
basic accounting concepts and principles, as well as the structure of the income statement, balance
sheet, and statement of cash flows. The course covers the accounting for and the analysis of the
most common and significant business transactions of a firm, such as credit sales, delivery of
products and services, manufacturing processes and procurement, creation of operating
infrastructure, including production facilities, intellectual property, and goodwill, debt and equity
financing, as well as other (potential) obligations towards customers, suppliers, or tax authorities.

Learning outcomes

At the completion of the course, the student will be able to:

1. Explain the purpose of accounting by mastering the language of business and accounting terminology.
   Understand the objectives and goals of accounting information systems and the role of financial
   statements.
2. Explain and differentiate between the methods of accounting and the accounting for merchandising
   companies and inventories.
3. Prepare the multistep income statement, explain the objectives and purposes of this statement and the
   articulation of this statement with the other components of the financial statements.
4. Prepare the statement of financial position (the balance sheet), explain the objectives and purposes of
   this statement and the articulation of this statement with the other components of the financial statements.
5. Identify and explain all of the fundamental accounts that comprise revenue, assets, liabilities and
   stockholders’ equity.
6. Prepare the statement of cash flows, explain the objectives and purposes of this statement and the
   articulation of this statement with the other components of the financial statements.

Assessment

55% – Classwork (review questions, homework, essay, and other related activities)
5% – Merits
40% – Final Exam

Bibliography

• Jones, M. (2011) Creative accounting, fraud and international accounting scandals. • Wiley . Mallin, C.
  (2010) Corporate Governance, 2nd edition. OUP.
• Gray, R., & Bebbington, J. (2001) Accounting for the Environment.
• Sage Griffiths, I. (1995) New Creative Accounting: how to make to profits what you want them to be. •
  Perks, R. (1995) Accounting and Society.