FINANCIAL ACCOUNTING AND FINANCIAL STATEMENTS

Degree course: 
Corso di First cycle degree in ECONOMICS AND MANAGEMENT
Academyc year when starting the degree: 
2015/2016
Year: 
2
Academyc year when helding the course: 
2016/2017
Course type: 
Compulsory subjects, characteristic of the class
Language: 
Italian
Credits: 
12
Period: 
First Semester
Standard lectures hours: 
98
Detail of lecture’s hours: 
Lesson (80 hours), Exercise (18 hours)
Requirements: 

none

Final Examination: 
Scritto
Assessment: 
Voto Finale

The course major educational goal is to develop student's skills in recording business transactions (double entry book-keeping process) and in preparing financial statements in according to domestic accounting standards (Italian Civil Code and Italian Accounting Standards by the Italian Standard Setter “Organismo Italiano di Contabilità” - OIC). The course also provides the basic elements of financial analysis to help students in understanding the events that generated the accounting values and to assess the company performance.

I-II) FINANCIAL ACCOUNTING
•the accrual basis of accounting
•the double entry book-keeping process
•the rules of debit and credit
•recording entries in the general journal of a set of typical transactions (purchases, sales, receipts and payments, lending and borrowing, etc.) for manufacturing, commercial and services companies.
•posting to the general ledger
•the preparation of a trial balance
•recording adjusting entries
•recording closing entries
•the preparation of financial statements

III) THE PREPARATION OF FINANCIAL STATEMENTS IN ACCORDANCE WITH ITALIAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (ITA GAAP)
•the accounting regulation: the rules of the Italian Civil Code (Articles from 2423 to 2435bis) and the Accounting Standards issue by the Italian Standards Setter “Organismo Italiano di Contabilità (OIC)”
•the scope of financial statements: the “true and fair view” of company’s assets, liabilities, financial position and profit or loss
•the general principles:
othe going concern principle
othe prudence principle
othe prevalence of the substance over from principle
othe realization principle
othe matching principle
othe separate valuation of assets and liabilities items
othe consistency principle
•balance sheet form and contents
•income statement form and contents
•Cash flow statement
•assets recognition and measurement:
otangible assets
ointangible assets
oinvestments in subsidiaries and associates
ofinancial instruments
oinventories
otrade and other receivables
•liabilities recognition and measurement:
otrade and other payables
oloans
oprovisions
•the function and the minimum contents of the notes
•an introduction to International Financial Reporting Standards (IAS/IFRS)

IV) FINANCIAL ANALYSIS
•basic elements of financial analysis and performance valuation by means of balance sheet and income statement reclassification, financial ratios analysis and cash flow analysis

Assessment:
written examination

Slides downlodable from the e-learning page of the course
Reference books:
Forms I, II, III):
CERBIONI, CINQUINI, SOSTERO, Contabilità e Bilancio, McGraw-Hill, 5th edition (2016)
Form IV):
G. Lombardi Stocchetti (a cura di), Valutazioni e analisi di bilancio, Pearson, 3rd edition (2015), chapters 11 and 12.