Instructional goals
Provide students with the fundamental quantitative tools for determining income and equity, as well as for assessing the economic performance and value creation.
Prerequisites
None
Intended learning outcomes
Knowledge and understanding: the student will acquire basic knowledge of financial accounting and the preparation of financial statements in accordance with national and international accounting standards. The student will be able to read and understand financial statements. During the course, this knowledge will be assessed through in-class and/or take-home exercises.
Applying knowledge and understanding: the student will be able to correctly record the majority of business transactions occurring in the life of a company. The achievement of these objectives will be assessed through the evaluation of exercises completed in class and/or at home.
Making judgements: the student will develop critical awareness enabling the formulation of independent judgments regarding the accounting treatment of different business transactions. The student will possess the methodological tools useful for the interpretation of financial statement data.
Communication skills: the student will develop the ability to communicate using accounting and business terminology and to express an opinion on financial statements and accounting transactions.
Learning skills: the student will be able to carry out their work by breaking down complex problems into their components and managing appropriate solutions in specific applications, putting into practice the techniques developed during lectures and through continuous individual exercises carried out in class and at home.
Course Contents
The Company's Financial Statements
Business Performance Analysis
Reference Books
G. Fiori - R. Tiscini (2025) Fundamentals of accounting - EGEA
• Slides
Teaching Methods
Lectures, group work, case studies, guest speakers, and article discussions.
Assessment Method
Midterm examination (25% of the final grade); Project work (25% of the final grade); Final examination (50% of the final grade). If the weighted average of the three assessments (midterm examination, project work, and final examination) is lower than the grade obtained in the final examination, the final course grade will coincide with the final examination grade.
Thesis assignment criteria
None
Week 1
The business operations cycle. Financing, investment, production, and sales. The business operations cycle. Economic cycles and financial cycles in business management. The representation of economic and financial cycles.
Week 2
The recording of business transactions. Financing. The acquisition of production factors and the production process. Practical exercise.
Week 3
Operating costs and sales. Practical exercises. The concept of accounting income and the accrual principle.
Week 4
The statement of financial position and the income statement. Adjusting and accrual entries for income measurement and the determination of equity.
Week 5
The accrual principle.
Week 6
Particular business transactions.
Week 7
Adjusting and accrual entries for income measurement and the determination of equity. Accruals and deferrals.
Week 8
Financial statement formats. The statement of financial position and the income statement.
Week 9
Business performance analysis. Analysis of the statement of financial position. The concepts of corporate liquidity and financial soundness.
Week 10
Business performance analysis. Analysis of the income statement. Profitability. Profitability ratios: ROE, ROA, and ROI.
Week 11
Operating leverage, financial leverage, and break-even analysis.
Week 12
Practical exercises, case studies, and mock examination.