ACCOUNTABILITY, GOVERNANCE AND REGULATION - 2

The course contributes to the educational objectives of the Master's Degree Programme in Global Accounting and Finance, which aims to provide knowledge and ability in the accounting and finance disciplines, as it provides to students necessary competences to aggregate and interpret individual financial statements and the consequent preparation of consolidated financial reports according to the European and International regulation.

The course offers a sound understanding of theoretical and practical approaches to the preparation of group financial statements and to solve specific problems arising in the consolidation process.
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 in Global Accounting and Finance 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 Master degree program in Global Accounting and Finance 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).

Basic accounting concepts and techniques are required. The course represents the second part of "Accountability, Governance and Regulation" (12 credits)

These are the objectives of the course in group accounting and consolidation:
1. Develop the theoretical understanding related to the different interpretations of the group concept (Proprietary theory vs Entity theory) and their implication on the group perimeter and the consolidation process
2. Develop the ability to aggregate individual financial statements to prepare the consolidation financial statement
3. Improve the ability to interpret and use financial statements describing the financial condition and operating result of business entities
4. Develop a thorough understanding of different European and International accounting regulations concerning group accounting

Leuz C., Different Approaches to Corporate Reporting Regulation: How Jurisdictions Differ and Why, Accounting and Business Research, vol. 4, 3, 2010 (the complete article)
Gallimberti C., Marra A., Prencipe A., Consolidation. Preparing and understanding consolidated financial statements under IFRS, McGrawHill, 2013 (Chapters 2, 3, 4, 5, 6 and related exercises in the appendix)
Directive 2013/34/EU (Chapter 6 - Consolidated Financial Statements and Reports) http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013L0034&from=IT

Exam
The grade of the two module "Accountability, Governance and Regulation 1" and "Accountability, Governance and Regulation 2" 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 "Accountability, Governance and Regulation 2" examination
The exam "Accountability, Governance and Regulation 2" consists of:
-consolidation exercises that require the application of consolidation theories
-consolidation exercises that require the application of European and International regulation
-questions and short exercises on the course program
(an exam example is upload on the moodle page)

Classes will comprise a mixture of theoretical and practical input and problem-based discussions; corporate and profession representatives will partecipate. Classes will be interactive and students will be required to actively participate.

English

Lecture, cases solved during classes and the textbook are the primary sources of preparation for the final examination.

written