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HAI.1FA - Financial Accounting* Q4 CLOSED FOR FURTHER ENROLEMENT

Faculty
TBA
Course Coordinator
TBA
Course content, structure and teaching
  • Accounting as a form of communication
  • Financial statements and Annual Reports
  • Double-entry bookkeeping
  • Cash basis and accrual basis of accounting
  • Inventories and Cost of Goods Sold
  • Cash, receivables and short term investments
  • Fixed Assets (Tangible & Intangible)
  • Current Liabilities, Present Value, and Long-term liabilities
  • Shareholders’ Equity
  • Cash Flow Statements
  • Financial Statement Analysis
  • A Case Study in Financial Accounting
  • Practical Application of Theory
Students learn to develop their understanding of financial accounting via reference to the Annual Report of a Danish listed company. Bang & Olufsen A/S Annual Report 2007/08 is being used in the 2009 class sessions. Reference is made to the Annual Report throughout the teaching sessions and in class discussions. Towards the end of the course, a second case company is introduced, in order that the students may analyze and interpret accounting information of an unfamiliar company.
  • Relation to a Business or an Institutional Setting
Class discussion is focused around multinational companies – both European and US companies. The course textbook has many good examples from US business life, which are contrasted against their European peers. Guest speakers from the Senior Management of the case company are invited to present to the class. In 2009, the CEO of Bang & Olufsen A/S has agreed to present.
  • Relation to International Business or Economics
The core theme of the course is the financial accounting within multinational corporations. The relationships between parent company and subsidiaries are emphasized in Group accounting and the consolidation process.
  • Research Based Teaching
The curriculum includes academic articles relevant to financial accounting, which are posted into the Sitescape system for students to read in advance of later classes.
14 class sessions of 3 class hours each, comprising lectures and class discussion. Class discussion includes the analysis of the Annual Report of an international Company (Bang & Olufen A/S). Exercises are set for class homework. A case study is included, whereby students analyse and interpret the accounts of a newly introduced company.
Learning Objectives
After having completed the course the students should be able to:
  • Fully describe the conceptual framework underlying financial accounting.
  • Compare the cash basis and accrual basis of accounting.
  • Make journals and T-accounts of various transactions and make adjusting entries.
  • Prepare financial statements (P&L account, Balance Sheet and Cashflow) from the source data by means of a Trial Balance.
  • Read and understand a financial statement (annual report).
  • Analyze financial information regarding profitability, liquidity and solvency
Type of examination, exam aids and assessment
Written 4 hour open book exam, graded by internal examiner on the 7-point scale. The make-up and re-examination takes place according to the same rules as the regular examination.
Students are allowed to bring textbooks, lecture notes and dictionaries. Electronic devices (Laptop and Personal Computers etc.) are not allowed except for non-programmable calculators.
Recommended literature
Introduction to Financial Accounting (International Student Edition) 2nd Edition
By Gary A Porter & Curtis L Norton (CENGAGE Learning 2009)
ISBN number 978-0-324-65874-3
Annual Report of Bang & Olufsen Group, as used in our class discussions:
http://www.bang-olufsen.com/investors/annual-reports

Last updated by The electives office 16/12/2009