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.

Assessment may take place in one of the following ways: a single comprehensive written exam; a group project work and a “complementary” exam. Comprehensive written exam This consists of a single written test with no subsequent oral exam. Group PROJECT WORK (40%) and “complementary” exam (60%) The project work is a group assignment designed to test students’ ability to apply their knowledge to the correct recording of accounting entries and to the preparation and understanding of annual financial statements. It will be assigned in the second part of the course. The final grade will be composed as follows: 40% project work and 60% complementary exam. If the second test is not passed or the final grade is rejected, the student must sit the comprehensive written exam in one of the subsequent sessions. The PW grade can be used only in the first exam session (December and January sittings).

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