The teaching is organized as follows:

Learning outcomes

Course Objectives
The aim of this course is to let the students achieve and deeply understand the accounting methodology with reference to the basic assumptions, the criteria, the classifying mechanisms and the evaluation techniques typical of financial statements.
In particular, a conscious determination of balance sheet and profit and loss account, according both to national and to international accounting standards, requires an articulated economic reasoning on firm’s management, in order to catch its complex dynamic equilibrium.

Program

Program
1. Financial statement theory.
1.1. The financial statement as an economic and financial model of the company management – 1.2. Financial statement’s object and functions – 1.3. The plurality theory and the uniqueness theory of the financial statement – 1.4. Financial statements, different financial statement and extraordinary financial statements.
2. Financial statement in Italy
2.1. References for the drawing-up: the “dual system” – 2.2. Financial statement according the italian law (D. Lgs. 127/1991) – 2.3. Financial statement according the international accounting stardards (Ias/Ifrs) – 2.4. Financial statement reports
3. Financial statement structure and content
3.1 General principles of classification – 3.2. Balance sheet structure and content – 3.3. Income statement structure and content– 3.4. Cash flow statement structure and content – 3.5. Other financial statement reports
4. General principles of the financial statement
4.1 Accounting principles – 4.2. Accounting values – 4.3. Value systems linked at the cost – 4.4. Value systems linked at the fair value – 4.5. Determination of the income
5. Assets evaluation
5.1 Tangibles and intangibles assets; real estate investments – 5.2. Financial assets – 5.3 Stocks - 5.4. Financial and trading loans – 5.5. Financial instruments – 5.6. Advanced income taxes – 5.7. Other assets
6. Liabilities evaluation
6.1 Equity and share based payments – 6.2. Potential liabilities – 6.3. Deferred income taxes – 6.4. Financial and trading liabilities – 6.5. Other liabilities
7. Fields of usefulness of the financial statements: interpreting analysis.
7.1 Fields of usefulness of the financial statements – 7.2 The aims of the financial statements analysis – 7.3. Reclassification methodology of income statement and balance sheet – 7.4. The ratios: liquidity, profitability and development – 7.5. Cash flow analysis
8. Consolidated financial statements basics.
8.1 Groups of companies and consolidated financial statement – 8.2. Basics of entities consolidation 8.3. Consolidation theories and consolidation method – 8.4 Informative content.

Examination Methods

Description of Assessment Methods
The exam is in written form. The student has the faculty to ask for an oral exam, which is an integration of the written test. The case studied analyzed during the course is definitely part of written and oral evaluation.