Understanding and using companies’ accounting reports
Study Board of Market and Management Anthropology, Economics, Mathematics-Economics, Environmental and Resource Management
Teaching language: English
EKA: B540031102
Censorship: Second examiner: None
Grading: 7-point grading scale
Offered in: Odense
Offered in: Summer school (autumn)
Level: Bachelor
Course ID: B540031101
ECTS value: 5
Date of Approval: 24-03-2020
Duration: Intensive course
Course ID
Course Title
Teaching language
ECTS value
Responsible study board
Study Board of Market and Management Anthropology, Economics, Mathematics-Economics, Environmental and Resource Management
Date of Approval
Course Responsible
Offered in
Level
Offered in
Duration
Mandatory prerequisites
A student who has passed part 1 or part 2 of the courses “Regnskab” or “Accounting” and cannot substitute for (replace) the course “Budget and Management Accounting”. Also, a student, who has completed “Regnskab”, “Accounting” or “Budget and Management Accounting” cannot take this course.
Recommended prerequisites
The course is intended for students focusing on nonbusiness programs, so no particular prerequisites are required. However, a certain level of understanding on business management is appreciated.
Aim and purpose
The course will provide a basic understanding of accounting, the language of business, with an emphasis on the use of accounting information in a business setting. The course covers accounting knowledge that are fundamental for any managerial position. The course will focus on how companies’ accounting reports are prepared for internal and external users and students will learn how to interpret and analyze accounting information from a user’s perspective. The course is intended for students without any accounting background but with interests in business related subjects.
Content
The course covers both financial and managerial accounting. The main emphasis will be: what accounting information is, how it is developed, how it is used and what does it mean. The key themes include:
- Fundamental accounting concepts and principles
- Interpretation of financial statements such as the income statement, the balance sheet and the cash flow statement
- Basics of financial statement analysis
- Cost Accounting and reporting
- Planning and control
- Costs for decision making
Description of outcome - Knowledge
Demonstrate a basic knowledge about the course’s focus areas enabling the students to:
- List and describe fundamental accounting concepts and terms.
- Relate the purposes and basic concepts of accounting to the methods and procedures used in an accounting system.
- Explain the nature and role of financial statements such as income statements, balance sheets, cash flow statements and stockholder equity statements.
- Explain and relate the use of accounting information to specific management decision-making process.
- Describe and evaluate the role of budgets for planning and control in organizations.
Description of outcome - Skills
Demonstrate skills, such that the students are able to:
- Identify and explain how the accounting information is reported in key accounts of the financial statements (e.g., account receivable, inventory, short and long-term debt and so on).
- Analyze certain transactions and determine the effects of the transactions on the financial statements.
- Illustrate and discuss the effects of different methods used to prepare certain financial statements (e.g., direct or indirect method of presenting cash flows from operating activities).
- Calculate and analyze different financial ratios based on the information reported in financial statements.
- Analyze and explain the use of cost related information for the internal management of the firm (e.g., planning and controlling costs, and monitoring performance).
- Analyze relevant costs for various decision makings of management.
Description of outcome - Competences
Demonstrate competences, such that the students are able to:
- Develop an awareness and understanding of the accounting process and fundamental accounting principles that underpin the development of financial statements.
- Read and interpret the basic components of financial statements from a user’s perspective (i.e., the Income Statement, the Statement of Financial Position and the Statement of Cash Flows).
- Utilize basic financial analysis to assess the financial performance and position of a company.
- Understand and apply accounting concepts to analyze common business management decisions such as pricing and outsourcing decisions from a financial perspective.
- Understand how business decisions affect accounting statements and utilize accounting information to evaluate business related projects.
Literature
Examples:
- Marshall, David; Wayne McManus and Daniel Viele: Accounting: What the Numbers Mean, 12th edition, McGraw-Hill (ISBN10: 1259969525; ISBN13: 9781259969522).
Teaching Method
To enable students to achieve the learning goals, the course will be organized as follows:
- In class lectures will support the student’s knowledge of main subjects from the course.
- In class exercise sessions will facilitate the student’s understanding of the principles and methods and test their skills in using them in problem solving.
- Students are expected to prepare solutions to exercise or minor cases for evaluation of level of learning during the course.
Workload
Scheduled classes:
3 hours of lectures and 1 hour of exercise per day (4x5 in total) for 2 consecutive weeks.
Each 4-hour teaching session mixes the lecture and in-class exercises.
Workload:
The students' workload is expected to be distributed as follows:
- Lectures and exercises: 40 hours
- Preparation for lectures and exercises: 72 hours
- Preparation for exam: 20 hours
- Exam: 3 hours
- Total: 135 hours
Examination regulations
Exam
Name
Exam
Timing
Exam: August
Reexam: September
Tests
Exam
Name
Exam
Form of examination
Written examination on premises
Censorship
Second examiner: None
Grading
7-point grading scale
Identification
Student Identification Card - Exam number
Language
English
Duration
3 hours
Length
No limitations
Examination aids
All exam aids allowed except for the use of the internet. The internet may only be used to access the Digital exam upon submission.
Assignment handover
In the examination room
Assignment handin
Digital exam
ECTS value
5
Additional information
-
EKA
B540031102
External comment
NOTE - This course is new.
Used examination attempts in the former identical course will be transferred.
Courses that are identical with former courses that are passed according to applied rules cannot be retaken.