Introduction to Financial Accounting

2020/2021

Academic Year

ENG

Instruction in English

2

ECTS credits

Delivered at:

Department of Finance

Course type:

Bridging course

When:

1 year, 1 module

Instructor

Leevik, Yulia

Course Syllabus

Abstract

This is an introductory course serves as a pre-requisite for Financial Accounting and Financial Analysis course. Students will learn about accounting as an information and communication function that supports the management planning, control and decision-making processes integral to achieving organizational objectives.

Learning Objectives

• The aim of the course is to provide students with the basic theoretical knowledge and practical skills in financial accounting and analysis.

Expected Learning Outcomes

• Have an idea about the place and the role of financial accounting in the system of management of the economic entity.
• Understand the conceptual framework of accounting and the purpose, structure and content of the financial reporting in the modern market economy.
• Understand the essence of accounting terms and to use them properly.
• Have basic practical skills in financial accounting and analysis.
• Use analytical skills and apply them to solve practical problems.
• Demonstrate an innovative, open and ethical mindset.

Course Contents

• Topic 1. What is accounting and it's role in business
  1. Definition of accounting 2. Users of accounting information 3. Types of accounting 4. How Has Accounting Developed?
• Topic 2. Financial Statements and Accounting Principles
  1. Balance sheet 2. Income statement 3. Statement of changes in owner’s equity 4. Cash flow statement 5. Financial statement relationships 6. Accounting principles 7. Limitations of Financial Statements
• Topic 3. The bookkeeping process and transaction analysis
  1. The accounting equation – a mechanical key 2. How transactions impact the accounting equation 3. Bookkeeping procedures 4. Transaction Analysis Methodology
• Topic 4. Fundamental interpretations made from financial statement data
  1. Return on investment 2. Return on equity 3. Working capital and measures of liquidity 4. Illustration of trend analysis

Assessment Elements

• Final exam test
  Individual, in-class, closed book
• In-class activities
  Questions and exercises; individual or in small groups, open book

Interim Assessment

• Interim assessment (1 module)
  0.6 * Final exam test + 0.4 * In-class activities

Bibliography

Recommended Core Bibliography

• Financial accounting, Libby, R., 2016
• Weygandt, J. J., Kieso, D. E., & Kimmel, P. D. (2017). Financial Accounting (Vol. Tenth edition). Hoboken, NJ: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1639274

Recommended Additional Bibliography

• BPP LEARNING MEDIA. (2017). FIA FOUNDATIONS OF FINANCIAL ACCOUNTING FFA (ACCA F3) : Passcards. BPP Learning Media.