Learning objectives
a. Knowledge and understanding: at the end of the course, the student will be able to orient themselves in reading and understanding company reports (primarily for listed companies), for both accounting information and voluntary disclosure regarding corporate social responsibility and corporate governance.
b. Applying knowledge and understanding: the student will be able to apply rules and standards to prepare the financial statement, with particular reference to large companies that apply IAS/IFRS. Furthermore, the student will be able to carry out a financial statement analysis, as well as the student will be able to choose the best forms of corporate governance system according to the context in which business activity is developed.
c. Making judgments: the student will be able to read and interpret a financial statement, analyze the information in the sustainability reports, and express opinions on the performance and trends of the companies.
d. Communication skills: the student will be able to interact with the chief financial officers of the companies on accounting issues, as well as with investor relations on matters related to financial communications.
e. Learning skills: the student will learn a study method based on the analysis of the documentation provided by the Professor and on the critical interpretation of the knowledge acquired during the lectures. At the same time, the group work developed during the course will enable the student to learn methods to directly analyze companies’ financial documents. The seminars conducted by firms’ managers will improve the empirical knowledge of the student.
Prerequisites
No-one
Course unit content
The course analyses the basic theoretical and practical elements of accounting, considering the relevant implications at international level of the financial communication process towards the financial markets, as well as the role of corporate governance systems.
Those aspects are studied also referring to the environmental and macroeconomic context around the companies, in which those elements are developed.
The course is divided in 2 parts.
The first part gives to students the basic tools to understand the International Financial Reporting Standards (IFRS) with references to the specific European regulation and to their development at international level, with a deep analysis of the role and use of accounting information in the decision making process.
Given the specificity and diversity of the advanced accounting systems, the first part of the course aims to let understand the importance of the internal and external controls on the economic information, as well as to provide knowledge to apply the main financial communication instruments, voluntary or compulsory, typical of the multinational firms.
In the second part of the course, the fundamental principles of financial disclosure and financial statement analysis are explored. After analyzing the information in the financial statements required by the accounting standards, the second module provides the basic tools for assessing the profitability, liquidity, and efficiency of a company through the construction of financial statements ratios.
Full programme
Bibliography
First Part
Alexander D., Nobes C., Financial Accounting. An International Introduction, Prentice Hall, 6th Edition, 2016. Chapter 1, 2, 3, 5, 6, 8, 9, 10, 11, 13, 14
Readings, journal article and other course materials provided by the professor avallabile in Elly website.
Second Part
Alexander D., Nobes C., Financial Accounting. An International Introduction, Prentice Hall, 6th Edition, 2016. Theory Ch.7 pp.123-145 - Exercises Ch.7 pp. 146-153
Kieso, Donald E., Jerry J. Weygandt, and Terry D. Warfield. Intermediate Accounting, Binder Ready Version. John Wiley & Sons, 2016. Theory Ch.24 pp.1-30 - Exercises Ch.24 pp. 44-64 (see material in Elly)
Teaching methods
Oral lesson.
Business cases developed in the class.
Seminars.
Group work.
Assessment methods and criteria
The verification of learning will be done with a written exam, lasting 25 minutes, online using the platform Elly, through which the student will be required to process the knowledge acquired through the answer to “close” questions.
There are 16 “close” questions/exercises, each one having the same weight in the overall evaluation; 8 questions will focus on the topics covered in the first Module (first part of the exam), 4 questions and 4 exercises will focus on the topics covered in the second Module (second part of the exam).
The 12 questions assign 2 points each in case of correct answer, 1 point in case of partially correct answer and 0 points in case of wrong answer; the 4 exercises assign 2 points each in case of correct answer and 0 points in case of wrong answer, for a maximum total of 32 points.
The rating scale is 0-32; the student who reaches the evaluation of 31 and 32 achieves the evaluation of 30 and “lode”.
A sufficient evaluation is needed in both parts of the exam.
This method of verifying learning will make it possible to ascertain the knowledge acquired and the ability to apply this knowledge, as well as the ability to understand and use appropriate technical language and express judgments in an autonomous form on the subjects being assessed.
Moreover, the ability to work in a group will be ascertained through the supervision, by the Professor, of the group work elaborated during the course, with particular reference to what was dealt with in the second part.
The group work will be differently developed in consideration of the number of participating students, but will provide the assignment of 0, 1, 2 or 3 points (depending on the results obtained) to be added to the final evaluation acquired by supporting the final written test.
The student will have to demonstrate that he/she has understood, and be able to apply, the fundamental concepts of each subject dealt with.
The use of texts during the performance of this written test is not permitted. It is allowed the use of calculator. The results will be communicated to the students through the information system used in this regard by the Department of Economics and Management (Esse3 System).
Moreover, the verification of learning can consider the sustaining of two ongoing tests, during the course, concerning the topics of the first Part. In this case, each of the two tests will last 10 minutes, and will consist of 8 closed questions, with the same weight, and the result will be expressed at the end of the two tests in 32. Both the two tests have to be carried out to obtain the final evaluation of the first Part. In this case, the results will be visible within the "elly" portal within two weeks from carrying out of the test in progress.
The score obtained in this way can be averaged to the score obtained in the performance of the only test concerning the second Part (also expressed in 32) to be necessarily carried out in the winter session, and not for more than once.
Otherwise, the proof must be supported in its "whole/full" version as previously described.
The “lode” can be given to students who have obtained a full evaluation in the written exam. At the written evaluation can be added the evaluations obtained through work group and/or case study.
Other information
