Financial Reporting (M.Sc.)

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University of Piraeus, School of Finance and Statistics

Department of Banking and Financial Management

Module: Financial Reporting

MSc in Finance and Banking, Specialization in Banking and Financial Management

Instructor: Assoc. Professor Seraina C. Anagnostopoulou, Ph.D., CFA

Aims and Objectives:

The course is aimed at introducing the students to the key financial accounting concepts and elements (assets, liabilities and shareholders’ equity) in detail, and help them make decisions as users of financial statements. The course further covers more specialised topics in accounting, such as topics relating to earnings management, and the basic elements of financial statements analysis. Financial reporting concepts are presented according to the provisions of the International Financial Reporting Standards (IFRS).

At the end of the course, students will have a hands-on understanding of the elements of the financial statements, and be able to use this information for financial decision making. They should also be able to perform financial statements analysis into the accounts of a company, and understand the basic factors that shape and can deteriorate the quality of earnings and financial reporting more generally.

Main textbook:

Financial Accounting, Harrison, Horngren, Thomas, 10E/11E, Pearson, Chapters 1-3, 5-13 (Chapter 13 partly covered)

Greek translation: ‘Χρηματοοικονομική Λογιστική’ – Harrison, Horngren, Thomas, Broken Hill Publishers

Course Outline

  1. The financial statements according to IFRS, institutional and financial reporting framework according to IFRS, Introduction to transaction analysis, accounting entries and journalising, general ledger and T accounts.
  2. Accrual accounting and income, recognition and measurement of revenues and expenses, Income Statement and Statement of Other Comprehensive Income according to IFRS.
  3. Short-term investments and receivables, accounting for uncollectible receivables, accounting for investments measures at fair value through profit and loss or at fair value through other comprehensive income or at amortized cost.
  4. Inventory valuation and determination of the cost of goods sold, specific identification method, weighted average cost method, FIFO, LIFO.
  5. Plant assets, natural resources, and intangibles: recognition and subsequent measurement, accounting for depreciation, impairment
  6. Long-term investments, long-term financial investment, introduction to consolidation accounting, investments in subsidiaries, investments in associates, application of the equity method, converting foreign operations into local currency.
  7. Liabilities, short-term liabilities, provisions, financing via liabilities vs. equity, leases, off balance sheet financing, introduction to accounting for pensions.
  8. Shareholders’ equity, types of shares, share buy-backs and their impact on financial statements, reporting for equity transactions, earnings per share.
  9. Evaluating performance: earnings quality, the income statement, the cash flow statement and the statement of comprehensive income, preparation of the statement of cash flows.
  10. Introduction to financial statement analysis, profitability, liquidity and solvency analysis, common-size statements.

 

Recommended readings:

  • Intermediate Accounting-IFRS Edition, Kieso, Weygandt, Warfield, 2E/3E, Wiley.
  • Financial Statement Analysis, Subramanyam, 11E, McGraw-Hill
  • Business Analysis and Valuation-IFRS Edition, Palepu, Healy, Peek, 5E, Cengage.