Financial accounting focuses on the specific information needs of those decision makers who are outside of a business organization; such as stockholders, suppliers and banks. The course objective is to provide students with an understanding of financial accounting fundamentals and the ability to evaluate the quality of financial information and how accounting information assists in making decisions. For this purpose the lectures describe and discuss the main features of accounting systems (in particular International Financial Reporting Standards (IFRS)).
In the first part of the course, lectures will focus on the basics of financial accounting, such as the nature and objectives of financial accounting, single balance sheet transactions, measuring income to assess performance and the double-entry accounting system. The second part will deal with special issues of financial accounting, e.g. recognition and measurement of fixed assets and depreciation. Several case studies will be used to illustrate these special accounting issues. Finally, the course also aims to teach students to interpret key financial statements, such as balance sheets, income statements and cash flow statements, and to understand various techniques employed to analyze the financial situation of a firm.
Prerequisite course for "Corporate Finance" and "International Accounting" in the summer semester
- Harrison, W., C. Horngren and C. Thomas, 12th ed. (2018) Financial Accounting, Pearson
- Weygandt, J., P. Kimmel and D. Kieso, 10th ed. (2016) Financial Accounting, Wiley
Prof. Dr. Christina Bannier