BØK 3531 Financial Accounting and Financial Statement Analysis - RE-SIT EXAMINIATION

APPLIES TO ACADEMIC YEAR 2013/2014

BØK 3531 Financial Accounting and Financial Statement Analysis - RE-SIT EXAMINIATION


Responsible for the course
John Christian Langli

Department
Department of Accounting - Auditing and Law

Term
According to study plan

ECTS Credits
7,5

Language of instruction
Norwegian

Introduction
All limited companies and many other enterprises must annually prepare financial statements, which give all interested parties an insight into how the economic situation has developed. In this course students learn how financial statements are prepared and how they can be used.

Financial statements must be organized in a specific manner. The legislation for this area is extensive and regulates the entire production process: from bookkeeping of the enterprise’s transactions to the type of information that has to be disclosed in the publicly available annual report.

The first part of the course covers techniques and methods used for an enterprise to record all its transactions in the course of a year. It’s not sufficient to consecutively book the transactions that take place. The financial statements must be set up at the end of the fiscal year, which means that the enterprises must value their assets and debts and calculate how much that has been lost or gained. The second part of the course covers this process and addresses what the financial statements shall include of information and the rules that govern valuation of assets and liabilities and recognition of revenues and expenses.

Financial statements are publicly available and vital information on every Norwegian company can be accessed by just pressing a key, since the main figures are freely available on the Internet. The third part of the course covers how financial statements can be used.

Learning outcome
Acquired knowledge
After having completed the course the students shall be able to:

  • Record ordinary transactions and incorporate frequent closing provisions (including calculation of the annual tax cost and allocation of net income) in accordance with the principle of double-entry book-keeping, and draw up the final income statement and balance sheet.
  • Describe the main book-keeping rules, the structure of the accounting act, and describe which reactions the authorities may implement if violations or suspicions of violations of the accounting and book-keeping regulations are revealed.

Acquired skills
After having completed the course the students shall be able to:
  • Analyse and comment on a company’s financial development over time and relative to other companies.
  • Value assets and debts and apply the accruals principle on revenues and costs in accordance with the main rules of the accounting act. The rules and principles may be applicable to the asset and debt items and the income and cost elements that are customary in small and medium-sized enterprises.
  • Draw up a cash flow statement and consolidated accounts when conditions are simple and easily understood.

Reflection
  • After having completed the course the students shall be able to read a financial statement with sound scepticism and be able to reflect on the possibilities that the producers of the accounts have to provide good or poor information to users of the accounts.

Prerequisites
BØK 34111 Finance and Managerial Accounting I, BØK 1113 Managerial Accounting or similar.

Compulsory reading
Books:
Kristoffersen, Trond. 2012. Årsregnskapet : en grunnleggende innføring. 3. utg. Fagbokforlaget

Articles:
Langli, John Christian. 2007. Konsekvenser av bevisst og ubevisst rot med bokføringen i fortid og fremtid. Magma. nr. 6. 32-48. http://www.econa.no/konsekvenser-av-bevisst-og-ubevisst-rot-med-bokfoeringen-i-fortid-og-fremtid

Other:
Langli, John Christian. 2011. Undervisningsmateriell til BØK 3531 blir lagt ut på Its learning (blant annet litteratur om regnskapsføring i eiendomsmeglerforetak)


Recommended reading
Books:
Kristoffersen, Trond. 2012. Årsregnskapet : en grunnleggende innføring : Oppgavesamling med løsninger. 3. utg. Fagbokforlaget

Course outline
  • What are accounts and accounting?
  • Transactions and the balance sheet equation
  • Transactions and the accounting system (the principle of double-entry bookkeeping)
  • Closing of accounts: from the list of ledger balances to the income statement and the balance sheet
  • Basic accounting principles
  • Measurement of assets and debts
  • The cash flow statement
  • The connection between accounts and taxation
  • The accounts as a source of information
  • Time series analyses and cross section analyses of profitability, cash flow, solidity and financing.

    Computer-based tools
    Students are expected to have access to a spread sheet program (Excel) and the Internet.

    Learning process and workload
    The course duration is 40 teaching hours which include lectures and review of assignments. It’s important to do assignments to grasp the content of the course, and review of the assignments is integrated with the lectures.

    Required work
    To give students feedback about their progress in the course, 8 tests will be distributed via it’s learning. Each test can be taken in the course of a designated week. An evaluation guideline for each test will be made available at the end of the test period. Some of the tests may be more time-consuming than others. Each assignment states the requirement that has to be meet in order to get the the assignment approved. Students must pass 5 out of 8 tests to be able to sit for the exam.

    Recommended workload for students
    Activity
    Time use
    Lectures with review of assignments
    40
    Work on curriculum, assignments and preparations for lectures/review of assignments, either alone or together with others
    140
    Exam preparations
    20
    Recommended total workload
    200

    E-learning
    The e-learning platform It’s learning is used by the e-learning centre to administrate the mandatory exercises, and make students able to communicate with each other ant the Lecturer. Module sessions are carried out at the beginning of the semester and before exams. The e-learning students are also offered a study guide which is an educational guide to the syllabus.

    Recommended workload for students
    Activity
    Time use
    Lectures with review of assignments
    8
    Preparations for lectures
    40
    Work on curriculum, assignments and preparations for
    lectures/review of assignments
    132
    Exam preparations
    20
    Recommended total workload
    200

      Coursework requirements
      In order to be able to sit for the final exam students are required as a minimum to get approved 5 out of 8 tests, see the Learning process and workload section.

      Examination
      A three-hour individual written exam concludes the course.

      Examination code(s)
      BØK 35311 - written exam which accounts for 100% of the grade in BØK 3531, 7.5 ECTS.

      Examination support materials
      BI-defined exam calculator TEXAS INSTRUMENTS BA II Plus TM
      Examination support materials are specified under examination information in our web-based Student Handbook. Please note the use of calculator and dictionary. http://www.bi.edu/studenthandbook/examaids


      Re-sit examination
      The course was lectured for the last time the academic year 2012-2013. Re-sit examiniation in BØK 35311 is offered fall 2013 and last time in spring 2014. The course is replaced by BØK 3532 Financial Accounting and Financial Statement Analysis as from 2013-2014.

      For candidates who have passed the course work requirements and entitled to take the exam, re-sit is arranged BØK 35311, written exam 3 hours, autumn 2013 and last time spring 2014. Other candidates must take the exam in BØK 35321 - see course description BØK 3532 Financial Accounting and Financial Statement Analysis.


      Additional information