PRINCIPLES OF MANAGEMENT AND INTERNATIONAL ACCOUNTING - 2

The course contributes to the educational objectives of the Bachelor's Degree Programme, which aims to provide a complete training in the management disciplines, as it provides to students the basic knowledge to identify the economic and financial effects of an entity’s transactions and events, to record them through the double entry bookkeeping system and to prepare the financial report according to the International regulation (IFRS).

The course offers an introduction to the theory and practice of financial accounting adopting an international perspective. The course provides the essential conceptual and contextual background underlying the preparation of financial reports useful for decision making. It considers the detailed issues and problems of international financial reporting both in general and through the specific regulatory requirements of the European Union and the International Accounting Standards Boards. On completion of the course students should be able to: record firm transactions using the double-entry system, prepare financial statements, apply specific accounting principles and rules, understand reasons and consequences arising from different national accounting systems, discuss the arguments for and against global accounting convergence.
1 KNOWLEDGE AND UNDERSTANDING
The students of the Bachelor's Degree Program Business Administration-curriculum Business Administration and Management will gain knowledge and understanding about operating setting of companies, financial statements and other financial tools for decision processes taking an international perspective. At the end of this course, students will know and understand:
- the economic and financial nature of an entity transactions and events;
- the method of double entry bookkeeping in accounting;
- the accounting records of daily transactions and their effects on financial report;
- the adjustment process at the end of the period aimed at rectifying and integrating values to determine the net profit and the equity;
- the national accounting alternatives and causes and consequences arising from diversities in the various domestic accounting systems;
-arguments for and against global accounting convergence.
-the International accounting regulation (IFRS) in the financial reports measurement and disclosure;
2 APPLYING KNOWLEDGE AND UNDERSTANDING
Students of the Bachelor's Degree Programme Economia Aziendale-Business Administration and Management must be able to contextualize their knowledge applying it to the production of accounting information for decision processes. At the end of the course, students will be able to:
- record the main transactions using double entry bookkeeping, adjust values, prepare financial statements;
- draw up the income statement and the final balance sheet considering the accounting data available from the opening balance sheet, the description of transactions taking place during the accounting period, and information about final adjustments;
- apply the principal international accounting standards (IFRS) in preparing financial reports;
- critically evaluate the different accounting options in measuring and disclosing financial items and understand the choices made by the International regulation (IFRS).

There are no formal prerequisites for this course. It represents the second part of the “Principles of Management and International Accounting” course (12 credits).

The course focuses on the production of economic information for external communication and its regulation in a global context.
Topics covered are:
-Fundamentals of Financial Accounting
-Double-entry bookkeeping system
-Transaction recording, adjustments, financial report preparation
-International accounting differences and global convergence
-International accounting regulation (IFRS): European vs. International rules
-InternationalFinancial Reporting Standards: conceptual framework, IAS 1-content of financial statements, IAS 2-inventories, IAS 16-tangible assets, IAS 38-intangible assets, IAS 37-provisions, contingent assets and liabilities

"Financial Accounting. An International Introduction", by Alexander D. and Nobes C., 6th edition, FT Prentice Hall, Pearson Education Limited, England, 2016.
Chapters and paragraphs to be studied:
Part 1
Ch. 1: all paragraphs
Ch. 2: all paragraphs
Ch. 3: all paragraphs
Ch. 4: par. 4.1, 4.2, 4.4
Ch. 5: par. 5.1, 5.3, 5.4, 5.5
Ch. 6: par. 6.1, 6.2, 6.3, 6.4, 6.5, 6.6, 6.7
Ch. 7: par. 7.1, 7.2, 7.4.3, 7.4.4, 7.4.5, 7.5
Part 2
Ch. 8: par. 8.1, 8.2, 8.3
Ch. 9: par. 9.1, 9.2, 9.3, 9.5 (subpar. 9.5.2 excluded), 9.6, 9.7, 9.8, 9.9
Ch. 10: par. 10.1, 10.2, 10.3, 10.4, 10.6, 10.7
Ch. 11: par. 11.1, 11.2, 11.3, 11.4, 11.5
Appendix A “Double entry bookkeeping”

Exam at the end of the course module
The grade of the module "International Accounting" will be based on an intermediate written examination lasting 1 hour at the end of the course module. Students can attend this module examination only if successful on the first module examination ("Principles of Management"). The final evaluation, relating to 12 credits, will consist of the average of the marks obtained in the two modules rounded up. The examination will be closed book and notes, hand-held calculators may be used for mathematical calculations only.

Exam at the official exam dates
The grade of the two module "Principles of Management" and "International Accounting" at every official exam date will be based on a overall written examination lasting 1.30 hours. The final evaluation, relating to 12 credits, will consist of the average of the marks obtained in the two modules rounded up (a minimum grade of 18/30 per each part is required). The examination will be closed book and notes, hand-held calculators may be used for mathematical calculations only.

Content of the module "International Accounting" examination
The exam about "International Accouting" consists of:
-a double entry bookkeeping exercise (record transactions, adjustments, preparing financial statements)
-questions and short exercises on the course program
(an exam example is upload on the moodle page)

Classes will comprise a mixture of theoretical input and problem-based discussions, they are interactive classes during which students will be required to actively participate. Regular classes will be supplemented by weekly tutorials dealing with the more technical dimensions of financial accounting and consisting mainly in assisted solutions of problems and exercises.

English

Lectures and the textbook are the primary sources of preparation for the final examination.

written