Instructor: Caterina Pesci
Class hours: 36 (6 ECTS)

Course Objectives

1. Training objectives
The financial statement is the basis of the corporate information system. It highlights wealth production under different profiles: the financial, economic and equity profiles. The values related to the production of wealth derive from a common language: the double entry system. However, different accounting systems give rise to different values.
The course aims are as follows:
1)to provide students with a basic knowledge of the double entry logic in order to understand where the items of the financial statement originate;
2)to analyse some of the main issues of the evaluation in an international comparative key;
3)to provide students with tools to read and understand the financial statement in critical terms, taking into account the differences in the different accounting systems;
4)to enable the student to understand the purposes and limits of the financial statement.
The first part of the course is aimed at recalling the logic of the double entry system; the second part focuses on reading, analysing and understanding the financial statement in critical terms; and the third part of the course is devoted to evaluation issues.

2. Expected learning outcomes
At the end of the course, the student should be able to
1) Understand the logic of the double entry system;
2) Understand how the differences in valuation resulting from different accounting systems affect the results of the financial statements;
3) Understand and be able to analyse and interpret the financial statements of companies of different typology and size;
4) Identify critical accounting issues, and formulate them in a clear and structured manner;
5) Elaborate on and propose, in contribution with the critical reflections of a working group, alternatives to the business information system that are aimed at widening the informative potential of the financial statement beyond the mandatory limits defined by law.

Requirements

Knowledge of the basis of Accounting.

Course contents

The course faces some major accounting issues connected with wealth production under different Generally Accepted Accounting Principles (GAAP).

The main topics covered in the course are the following:

1) Basis of accounting (double entry logic);
2) Evaluation issues under different GAAP;
3) Financial statement analysis and Management Accounting;
4) Critical approach to financial statement analysis and management accounting.

Teaching and learning

The course adopts a number of teaching methods:

• Lectures are divided into thematic modules involving topics presented by the teacher and the active participation of the students. The lectures involve expanding on the content contained in the texts to deepen and stimulate critical reflection on the topics.
• Discussion of cases on specific issues related to specific business realities. Active student participation is a central part of the methodology. Some cases involve quantitative exercises.
• Activity in working groups to stimulate analysis and critical comments.
• One Seminar.

Tests and assessment criteria

Attending students

The maximum final grade for attending students is 30 / 30. Praise is given as a distinguishing element of excellence in the work done.
Verification of learning is divided into two distinct parts: the final written exam (75% of the final score), and participation in discussion of business cases, classroom activities and assignments (25% of the final score).

Written exam:
The evaluation criteria for the written exam include mastery of the content, use of appropriate language and the depth of analysis.
Participation in discussion of business cases and classroom activities:
Participation is evaluated by the teacher on the basis of the quality of interventions, regardless of their number; quality is based on conciseness and appropriateness, creativity, critical spirit, assertiveness and the ability to make connections and guide the debate. Examinations and analysis in small groups can be evaluated.

Non-attending students

The maximum final grade for non-attending students is 30 / 30. Praise is given as a distinguishing element of excellence in the work done.
Non-attending students will be assessed on the written exam, which involves the same criteria as outlined above for the attending students, and an additional application.
Verification methods for attending and non-attending students are carried out in accordance with the rules of conduct and the code of ethics of the University of Trento, standards and principles that the student, with the participation in the assessment tests, declares to know and accept.

Reading materials and bibliography

Alexander D., Nobes C., Financial Accounting. An International Introduction, Prentice Hall, 5th Edition, 2013.

Readings, articles and material provided by the teacher.

Other information

For a more detailed and updated version of the class schedule please visit the course site available on the http://didatticaonline.unitn.it/ portal