Financial Reporting
Full Time// 1st Semester, Course Code: ΜΕΧΡΗ106
Part Time // 1st Semester, Course Code: ΜΕΧΡΗ-Μ106
Credits: 6
Learning Outcomes
The course aims at introducing the students into the key concepts and elements of financial accounting in detail (assets, liabilities and shareholders’ equity), and also help them make decisions as future users of financial statements. The course further covers more specialised topics in accounting, such as topics that relate to the quality of earnings, and the basic elements of financial statements analysis, in addition to the coverage of topics on accounting for depreciation, impairment, uncollectible accounts and provisions, inventory, financial assets and liabilities, and the calculation of cash flows. 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 most important elements of a set of financial statements, and should be able to use this information for financial decision-making. They should also be able to perform basic financial statements analysis into the accounts of a company, and understand the fundamental factors that shape and can deteriorate the quality of earnings, and financial reporting quality more generally.
General Competences
General Abilities
- Search, analysis and synthesis of financial data and relevant information.
- Critical thinking on scientific topics related to the content of the module relevant decision-making.
- Development of analytical and synthetic thinking.
- Working in an international environment, understanding the challenges of applying accounting rules in an international environment.
- Working in a multidisciplinary environment, collaborating with scholars of closely related scientific fields.
- Production of deductive thinking and critical reasoning.
Course Content
- The financial statements, the financial reporting framework under IFRS, introduction to transaction analysis
- Accrual accounting and income, recognition and measurement of revenues and expenses, the statement of other comprehensive income, preparing the full set of financial statements
- Short-term investments and receivables, accounting for uncollectible receivables and their impact on financial statements, classification and measurement of investments in financial assets according to IFRS 9
- Accounting for inventory, valuation and determination of the cost of goods sold
- Plant assets, natural resources, and intangibles: recognition and subsequent measurement, accounting for depreciation, accounting for impairment (IAS 36)
- Long-term investments, long-term financial investments (classification and measurement), introduction to consolidation accounting – investments in subsidiaries, accounting for investments in associates, converting foreign operations into local currency
- Liabilities, short and long-term liabilities, accounting for provisions and contingent liabilities and contingent assets, financing via liabilities vs. equity, introduction to accounting for leases, basic elements of accounting for pensions
- Shareholders’ equity, types of shares, issuing shares at a premium, treasury shares (share buy-backs) and their impact on financial statements, reporting for equity transactions
- Evaluating performance: earnings quality – the income statement, calculation of earnings per share (EPS), changes in accounting estimates and accounting policies and how they affect financial statements, the cash flow statement (presentation and statement preparation, using the indirect and direct method for calculating cash flows from operations)
- 10. Introduction to financial statement analysis, profitability, liquidity and solvency analysis, common-size statements.
Student Performance Evaluation
Compulsory written exam at the end of the semester. This involves providing answers to exercises and problems, using numerical data, and a critical evaluation and discussion of the results, and also possible answers to multiple choice questions and theoretical questions, as well as short cases.
Bibliography
Suggested Bibliography
Module slides and exercises/cases studies covered in class
Main textbook
Financial Accounting, Harrison, Horngren, Thomas, 10E/11E, Pearson, Chapters 1-3, 5-13 (Chapter 13 partly covered)
Recommended readings:
1) Intermediate Accounting-IFRS Edition, Kieso, Weygandt, Warfield, 2E/3E, Wiley.
2) Financial Statement Analysis, Subramanyam, 11E, McGraw-Hill.
3) Business Analysis and Valuation-IFRS Edition, Palepu, Healy, Peek, 5E, Cengage.
Related Academic Journals
Master of Science (M.Sc.) in
«Banking and Finance»
Specialization in
«Banking and Financial Management»