BOOKKEEPING AND FINANCIAL STATEMENTS

The course aims to develop an integrated understanding of the annual financial statements system as a tool for the economic and financial representation and communication of the firm. In particular, the course aims to: provide the technical skills needed for accounting records using the double-entry method; develop the ability to prepare annual financial statements in accordance with national accounting standards (OIC); understand the economic and financial meaning of the main items in the financial statements; interpret the financial statements as a tool for analysing a company’s performance and solvency.

Basic principles of business economics are assumed to have already been acquired.

At the end of the course, students will be able to: Knowledge and understanding describe the structure of the annual financial statements and the relevant regulatory framework (Italian Civil Code and OIC); understand the logic of double-entry bookkeeping and the accounting cycle. Applying knowledge and understanding record operating transactions and year-end adjustments using double-entry bookkeeping; prepare the Statement of Financial Position and the Income Statement starting from accounting entries; apply the valuation criteria for the main items in the financial statements. Making judgements interpret the main economic and financial figures in a set of financial statements; understand the relationship between profit or loss and cash flows. Autonomy of judgement critically assess the impact of accounting choices on the representation of corporate performance. Communication skills clearly present and comment on the main items in the financial statements. Learning skills use the OIC accounting standards as a reference for the analysis of business cases.

The course analyses the process that leads from accounting records to the preparation and interpretation of the annual financial statements. After an introduction to the financial statements as an information tool for stakeholders, the following topics are covered: the accounting system and double-entry bookkeeping; the complete accounting cycle (operating transactions, year-end adjustments, closing entries); the principles for preparing financial statements under the Italian Civil Code and OIC; valuation criteria for the main items (fixed assets, inventories, receivables, payables, provisions, financial assets, equity); accounting treatment of income taxes; the statement of cash flows and its relationship with the income statement; introductory elements of financial statement analysis.

Teaching material prepared by the lecturer

Teaching methods include lectures, online classes and classroom exercises. Face-to-face teaching will focus on the topics listed in the course content, with constant reference to real cases, also through exercises and group work. Please note that attendance at lectures is mandatory. Attendance is recorded via a new automated system using beacons installed in the classrooms. Students who, at the end of the course, are found to have been absent from more than 70% of the lectures will not be allowed to take the first exam session.

Learning assessment can be carried out by taking, alternatively: 1. a single “complete” written exam that yields a final grade; 2. a Midterm test plus a “complementary” exam. *** 1. “Complete” written exam (single attempt) This consists of a single written test with no subsequent oral exam. Students may withdraw at any time during the exam. If the exam paper is handed in, the grade obtained cannot be refused by the student under any circumstances. The withdrawal or the assigned grade will be recorded on the Web Self Service portal. The “complete” written exam is structured in three sections, for a total of 33 points out of 33, and includes both multiple-choice and open-ended questions. A full score allows the student to obtain the grade of “30 e lode” (highest honour). * 2. MIDTERM (30%) and “complementary” exam (70%) During the teaching suspension week, students may take a MIDTERM TEST. The midterm is not mandatory: students who do not take it will sit directly for the “complete” exam. Students may refuse the midterm grade within 3 days of the results being published. In the event of refusal of the midterm grade, or if the midterm is not taken, students will be assessed in the scheduled exam sessions by means of a single “complete” individual exam, which will count for 100% of the final grade. The midterm exempts students from the topics covered in the test (which will be communicated by the lecturer) and accounts for 30% of the final grade. The midterm grade is valid for the entire academic year, and students may take the second “complementary” written exam in any of the scheduled sessions during the academic year (unless they are classified as non-attending and therefore must skip the first exam session). The complementary exam may be retaken in case of withdrawal. The final grade will be composed of 30% from the MIDTERM assessment and 70% from the “complementary” exam. The final grade obtained cannot be refused by the student under any circumstances and will be recorded on the Web Self Service portal. Only the topics and materials published in the Course Materials, including those from the practical classes, will be examined. The use of any electronic device (e.g., mobile phone, smartwatch, tablet) is not permitted, not even as a substitute for a basic calculator.

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