This course introduces the basics of financial accounting and corporate performance reporting. The course explores the principles of the “language of business” and applies them to applications in practice. The measurement of performance – which is what financial accounting is all about – is of crucial importance to the success of any enterprise, including non-profit entities. Students will see where the financial figures come from and how managers use them to make decisions. They will appreciate the significance of accounting as an evolving global language whose mastery will be hugely beneficial to their own career development.
Upon completion of this course, the student will be able to:
- Use accounting terminology and understand the nature and purpose of accounting principles.
- Identify the conventions and mechanics of the double-entry accounting system
- Explain the objective of financial reporting, the elements of the financial statements, and the related key accounting assumptions and principles.
- Recognize the information conveyed in each major item contained in the basic financial statements, i.e. the Balance Sheet, the Income Statement and the Statement of Cash flows.
- Identify the elements that enter the income statements and how the “bottom-line” is arrived at.
- Determine the way accounting information is used by investors, creditors, regulators, and managers.
- Appreciate the convergence of national standards to few global financial reporting standards (IFRS and US GAAP) and the ongoing challenges.