BØK 3532 Financial Accounting and Financial Statement Analysis
BØK 3532 Financial Accounting and Financial Statement Analysis
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 is 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.
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 accounting rules for measurement of assets and liabilities.
After having completed the course the students shall be able to:
- 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.
- Analyse and comment on a company's financial development over time and relative to other companies.
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.
- 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
- Fundamental accounting principles
- Measurement of assets and debts
- The cash flow statement
- The accounts as a source of information
- Time series analyses and cross section analyses of profitability, cash flow, solidity and financing.
The course consists of lectures and assignments to be solved individually. Some of the assignments are mandatory and must be handed in through itslearning. At least three mandatory assignments must have received a passing grade in order for the student to sit on the exam. Further details are given at the start of the course.
E-Learning
In course delivery as online courses, lecturer will, in collaboration with the student administration, organize an appropriate course implementation, combining different learning activities and digital elements on the learning platform. The online students are also offered a study guide that will contribute to progression and overview. Total recommended time spent for completing the course also applies here.
As from the academic year 2021/2022, mid-semester evaluation is introduced in the course, counting 30% of the exam grade, and the final exam will count 70%. In addition coursework requirements are taken out.
Re-sit exams in the previous version (BØK 35321) counting 100%, will be offered autumn 2021 and spring 2021. Coursework requirements no longer applies for re-sit.
Higher Education Entrance Qualification
Covid-19
Due to the Covid-19 pandemic, there may be deviations in teaching and learning activities as well as exams, compared with what is described in this course description.
Teaching
Information about what is taught on campus and other digital forms will be presented with the lecture plan before the start of the course each semester.
BØK 3422 Managerial Accounting, BØK 3434 Managerial Accounting and finance, BØK 1113 Managerial Accounting or similar.
| Assessments |
|---|
Exam category: Submission Form of assessment: Structured test Weight: 30 Grouping: Individual Duration: 90 Minute(s) Exam code: BØK35322 Grading scale: ECTS Resit: Examination every semester |
Exam category: Submission Form of assessment: Written submission Invigilation Weight: 70 Grouping: Individual Support materials:
Duration: 3 Hour(s) Exam code: BØK35323 Grading scale: ECTS Resit: Examination every semester |
All exams must be passed to get a grade in this course.
| Activity | Duration | Comment |
|---|---|---|
Teaching | 37 Hour(s) | |
Prepare for teaching | 46 Hour(s) | Working with the textbook. Some videos will also be posted. |
Submission(s) | 30 Hour(s) | Mandatory assignments |
Feedback activities and counselling | 2 Hour(s) | Review of the mid-term evaluation. |
Student's own work with learning resources | 45 Hour(s) | |
Examination | 40 Hour(s) | Preparing for exam |
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 7,5 ECTS credit corresponds to a workload of at least 200 hours.
Some of the lectures will be digital.