This course is an introduction to the fundamentals of financial accounting reporting. At the end of this course, the student will be able to:|
1. discuss the role and importance of financial statement information
2. construct the four main financial statements at the end of business period *
3. demonstrate the links between the four main financial statements
4. apply journal entries and T-accounts to book transactions in the journal and the general ledger during the year **
5. apply different accounting methods for the evaluation of, amongst others, inventory, & cost of goods sold, PPE& depreciation, and intangible assets & amortization (IFRS - US GAAP)
6. make adjusting journal entries and closing journal entries at the end of the business period
7. analyze companies financial performance based on the information reported in financial statements
8. journalize national and international investments in other firms and discuss the consolidation of financial statements
9. discuss the current international evolution of the accounting standards (IASB - FASB)
* the four main financial statements are the balance sheet, the income statement, the statement of changes in shareholders equity, and the cash flow statement
** questions related to this learning goal can deal with topics such as: Sales revenues & Receivables & Cash, PPE, Liabilities, Financial assets, and Other general costs and revenues
It is not possible to use this course as an elective for other programs.
Teaching approach: This course offers you a variety of educational learning methods: lectures, tutorials, web lectures, and web tutorials.
Please note, that all IBA courses are only open to IBA students. It is not possible to use this course as an elective for other programs.
This course provides an introduction to financial accounting dealing with the preparation of the financial statements that are used by external stakeholders (such as stockholders, debtholders, analysts and public bodies) for their decision making. It explains the composition and the purpose of the balance sheet, the income statement, the statement of changes in shareholders' equity, and the cash flow statement and discusses the relationship between these four statements. The course also covers basic accounting rules that govern the preparation of these statements under IFRS and US GAAP (the two most commonly applied sets of accounting standards). Some important differences between IFRS and US GAAP are highlighted to better understand the financial statements produced under these standards. This includes, amongst others, accounting for property plant and equipment, intangible assets, goodwill, and inventories.|
The course also helps students to develop skills for financial statement analysis which is important for stakeholders' decision making. In addition, we will discuss and analyze the effects of accounting choices on the value of the firm and reported profits. Finally, this course introduces students to the quickly evolving international accounting environment, we will discuss different international accounting rules and the corresponding academic research.
(Note: Accounting for managerial use is not the scope of this course. It is taught in the course of management accounting.)
Type of instructions
Lectures, tutorials, web lectures & web tutorials
Type of exams
written mid-term exam (30%) & written final exam (70%)
- Libby,Libby & Hodge, Financial Accounting, McGrawHill Education, 10th edition
- Any additional mandatory readings, such as academic papers, will be posted on Canvas.