FINANCIAL ACCOUNTING AND FINANCIAL STATEMENTS
- Overview
- Assessment methods
- Learning objectives
- Contents
- Full programme
- Bibliography
- Teaching methods
- Contacts/Info
To take the exam of "Contabilità e bilancio" the student must have passed the first-year block and the exam of "Management".
Exam methods and exam program are the same for attending and non-attending students.
Written examination. (1 hour and 45 minutes)
Form I: multiple choice test
Form II: Recording entries in the general journal OR recording adjusting and closing entries (starting from a trial balance)
Forms III and IV: questions and practical exercises
Two partial written exams are contemplated: a first partial exam in the half-semester (on Part I and Part II of the syllabus) and a second partial test at the end of the course (on Part III and Part IV of the syllabus).
Each partial test lasts 1 hour and 15 minutes
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.
The course’s partition in sessions is pointed out in the course's detailed syllabus published on the e-learning
platform. In the detailed syllabus, the student also finds learning materials and bibliographic references
related to each session.
The Course contents are the following:
- Introductory notions on accounting process;
- Financial accounting: The double entry book-keeping process; recording entries in the general journal of
a set of typical transactions; recording adjusting entries; recording closing entries; recording opening
entries;
- The preparation of financial statements in accordance with Italian generally accepted accounting
principles: general principles; asset recognition and measurement criteria; liability recognition and
measurement criteria;
- Financial analysis.
FORMS I AND II - FINANCIAL ACCOUNTING (38 hours)
• 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
FORM III) THE PREPARATION OF FINANCIAL STATEMENTS IN ACCORDANCE WITH ITALIAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (25 hours)
• 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:
o going concern principle
o prudence principle
o prevalence of the substance over from principle
o realization principle
o matching principle
o separate valuation of assets and liabilities items
o consistency principle
• Balance sheet form and contents
• Income statement form and contents
• Statement of cash flows (refer to form IV)
• The function and the minimum contents of the notes (in brief)
• Financial Statements in the abridge version (in brief)
• Assets and liabilities recognition and measurement:
o inventories
o Trade and other receivables
o trade payables, loans, provisions and employees severance indemnities
o income taxes (taxes payable and deferred income taxes)
o fixed assets
o foreign currency transactions
FORM IV - FINANCIAL ANALYSIS (17 hours)
• Basic elements of financial analysis and performance valuation by the means of:
o balance sheet and income statement reclassification
o calculation of the main financial ratios
o preparation of the Statement of cash flows
Civil Code, art. 2423 - 2435ter
Slides and exercises prepared by the teacher and published on the e-learning platform
- Textbook for Parts I, II and IV
Lombardi Stocchetti G. (a cura di), Basic Financial Accounting 2020, Guerini editore
- Textbook for Parts III
G. Lombardi Stocchetti (a cura di), Valutazioni di bilancio, Pearson Education, 2018
The mandatory parts of the textbooks are listed in the course's detailed syllabus published on the elearning page.
The course is articulated in 80 lesson hours. During the lesson hours will be both analyzed the theoretical aspects of different topics and the practical implications by means of exercises and numerical examples.
Office hours and any variations are published weekly on “HOME PAGE DOCENTE”, in the section "Didattica"
http://www4.uninsubria.it/on-line/home/rubrica/home-page-docente.html
Teacher's address: anna.pistoni@uninsubria.it