PRINCIPLES OF MANAGEMENT AND INTERNATIONAL ACCOUNTING - 2

The course contributes to the educational objectives of the Bachelor's Degree Programme, which aims to provide complete training in the management disciplines, as it gives 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 (IAS-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. Upon 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 the 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's transactions and events;
- the method of double-entry bookkeeping in accounting;
- the accounting records of daily transactions and their effects on the 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 (IAS-IFRS) in the financial report 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 by 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, and 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 (IAS-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 (IAS-IFRS).

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

The course focuses on the production of financial information for external communication and its regulation in a global context.
Topics covered are:
- Fundamentals of financial accounting
- Double-entry bookkeeping system
- International accounting regulation
- Transaction recording, adjustments, content and preparation of financial statements (balance sheet and income statement)
- Financial reporting issues: Inventories: Tangible and intangible fixed assets; Intangible fixed assets; Financial assets; Liabilities and equity

"Financial Accounting. An International Introduction", by Alexander D. and Nobes C., 7th Edition, FT Prentice Hall, Pearson Education Limited, United Kingdom, 2020.
Chapters and paragraphs to be studied (to be confirmed at the beginning of the course):

Part 1
Chapter 1
Chapter 2
Chapter 3
Chapter 4 (excluded 4.3, 4.4 and 4.5)
Chapter 5 (excluded 5.2)
Chapter 6 (excluded 6.7 and 6.8)

Part 2
Chapter 9 (excluded 9.4)
Chapter 10 (excluded 10.5)
Chapter 11 (excluded 11.6 and 11.7)
Appendix A “Double-entry bookkeeping”

The grade of the two modules "Principles of Management" and "International Accounting" at every official exam date is based on an overall written examination concerning the two modules simultaneously.
The written exam of PMIA-2 lasts 45 minutes.
The final evaluation, relating to 12 credits, consists 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 is closed book and notes.

The following grading scale will be used, regardless of attending or non-attending mode:
A. Scores in the range of 18-22 will be assigned when:
- Adequate knowledge and applied understanding in reference to the curriculum are demonstrated.
- Limited ability to collect and/or interpret data and formulate independent judgments.
- Sufficient communication skills, especially regarding the use of specific language related to the economic functioning of public services.
B. Scores in the range of 23-26 will be assigned when:
- Good knowledge and applied understanding in reference to the curriculum are demonstrated.
- Fair ability to collect and/or interpret data and formulate independent judgments.
- Adequate communication skills, especially regarding the use of specific language related to the economic functioning of public services.
C. Scores in the range of 27-30 will be assigned when:
- Good or excellent knowledge and applied understanding in reference to the curriculum are demonstrated.
- Reasonable or excellent ability to collect and/or interpret data and formulate independent judgments.
- Fully appropriate communication skills, especially regarding the use of specific language related to the economic functioning of public services.
D. Honors will be granted when there is excellent knowledge and applied understanding in reference to the curriculum, exceptional judgment, and communication skills.

Classes are a mixture of theoretical input and problem-based discussions. They are interactive classes; thus, the active participation of students is strongly recommended. Regular classes will be supplemented by weekly tutorials dealing with the more technical dimensions of financial accounting and consisting mainly of assisted solutions to problems and exercises.

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

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