Teaching code

4S02459

Academic staff

Francesca Rossignoli, Cristina Florio

Coordinator

Francesca Rossignoli

Credits

9

Also offered in courses:

• Financial accounting of the course Bachelor's degree in Economics, Firms and International Markets

Language

Italian

Scientific Disciplinary Sector (SSD)

SECS-P/07 - BUSINESS ADMINISTRATION AND ACCOUNTING STUDIES

Period

Primo semestre L dal Sep 23, 2024 al Jan 10, 2025.

Courses Single

Authorized

Lessons timetable Moodle Seminars 0

Learning objectives

The course aims to develop the knowledge about foundation and interpretation of the financial statements.
The classification and evaluation criteria are studied in the perspective of national legislation and international accounting standards (IAS/IFRS).
During the course basic knowledge about the innovative corporate reporting will be developed.
A business case study will be analyzed during the course with the aim to let students gain the skills necessary to face with practical accounting issues about the financial statement’s preparation, analysis and interpretation.
At the end of the course the student must demonstrate: i) the capability to take the main classification and evaluation choices as starting point to draft a financial statement according to both the national legislation and international accounting standards; ii) the ability to carry out a financial statement analysis (financial statement reclassification, indexes calculation and flows calculation); and iii) the capability to read, understand and interpret the analyzed financial statement.

Prerequisites and basic notions

Knowledge of the main corporate transactions and their double-entry keeping is required.

Program

Part I - Financial statement theory and the financial statement frameworks
• Financial statement functions
• Financial statement discipline in accordance with national law
• General principles of the financial statement
• Financial statement structure and contents in accordance with national law
• Innovative forms of corporate reporting - Towards Integrated Reporting
Part II – Areas of employment of the financial statements: the financial statement analysis
• Aims, potentialities and limits of the financial statement analysis
• Areas of employment and techniques for the financial statement analysis
• Reclassification technique
• The indexes calculation technique
• Flow calculation technique
Part III – Evaluations on the financial statement contents in accordance with national law
• Assets evaluation
• Property, plant and equipment
• Intangible assets; the recognition and representation of innovations output
• Financial long-term assets, equity investments and other financial instruments
• Evaluation of current assets
• Inventories
• Work in progress
• Credits
• Other assets
• Evaluation of liabilities
Part IV - Introduction to the consolidated financial statement

Bibliography

Didactic methods

The activities carried out will be provided face-to-face.
The teaching methods consist of: i) lectures accompanied by cases and examples and ii) exercises useful for learning the application parts.
During the course, reference will be made to a business case whose financial statements will be discussed and interpreted.
A collective and individual tutoring service is available by a student enrolled in CdLM according to a calendar that will be made available on the Moodle platform. This service is aimed at supporting the performance of the exercises taken from the exercise book.

Learning assessment procedures

The written test consists of two parts: Part I, which consists of 16 closed-ended questions, of which: a) 11 multiple-choice questions (1 point each); b) 5 quantitative and/or qualitative questions (2 points each); Part II, which consists of an open-ended question (10 points). With regard to the multiple-choice questions (Part Ia), the student obtains one point for each correct answer, 0 points for each omitted answer and loses 0.25 points for each incorrect answer. There are no penalties for the questions in Part Ib and for the open-ended question (Part II). The student passes the exam when all three of the following conditions occur: i. obtaining a score of at least 10 points (out of 21) in Part I; ii. obtaining a score of at least 5 points (out of 10) in Part II; iii. the sum of the overall scores achieved in the two parts is at least 18/31. The exam methods are not differentiated between attending and non-attending students.

Evaluation criteria

The multiple choice questions are designed to verify the knowledge of the part of the program covered by the question as well as the understanding of the technical language and economic calculation skills in the preparation of the balance sheet and its analysis. The quantitative and/or qualitative questions are designed to verify the methodological application of the knowledge acquired, in order to ascertain the student's specific knowledge and skills on the various operational aspects relating to the preparation and analysis of the balance sheet. The open question is designed to verify the knowledge of the part of the program covered by the question as well as the ability to express the concepts acquired with appropriate technical language. The written test awards a maximum total of 31 points (31 thirty-firsts are equivalent to 30 with honors). The student passes the written test if he/she obtains a total score of at least 18 thirty-firsts, with the constraint of having obtained: i) at least 10 thirty-firsts in the multiple choice questions (compared to the 21/31 made available); ii) at least 5 thirty-firsts in the financial year (compared to the remaining 10/31 made available).

Criteria for the composition of the final grade

The multiple choice test awards up to 21 points. The open question awards up to 10 points. The final grade is obtained by adding the two scores indicated above.

Exam language

Italiano

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