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Accounting Methods

In: Business and Management

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ACCOUNTING METHODS

Presentation of the course
Introductory course  4 “intensive” days  Theory, terminology, practical examples  Suggested readings:


 Elliott,

Barry; Elliott, Jamie: "Financial Accounting and Reporting", Prentice Hall 2012, 15th edition.  Horngren, Bhimani, Datar and Foster: "Management and Cost Accounting." Prentice Hall, 2007, 4th edition.

Info
What to expect from this course:  An introduction to the discipline to prepare you for the proceedings of your Master  To learn the “language” of the Business  An overview of the topics in FA, MA and FSA “Course Limitations”

Key questions
What is the role of accounting?  Accounting provides information.  It measures business transactions and operations, “translating” them into numbers, in order to provide information. Why do we need to study accounting? Who are the user of this information?

Why do we study accounting?
To understand the world of business (and its language)  To make better investment choices (resource allocation)  To become advanced users  To become advanced preparers  …


The “users” of accounting information
Primarily “external” oriented

Financial Accounting

Managerial Accounting
Primarily “internal” oriented

Tax Accounting
Primarily “external” oriented

Financial Accounting and Reporting
Generally Accepted Accounting Principles (GAAP), International Accounting Standards (IAS), International Financial Reporting Standards (IFRS)  Financial Statement / Annual Report


 Balance

Sheet / Statement of Financial Position  Income Statement / Statement of Comprehensive Income  Statement of Cash Flows  Statement of Changes in Equity  Notes

Statement of financial position: contents and structure
STATEMENT OF FINANCIAL POSITION (current/non current criteria) Non-current assets Property, plant and...

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