30380 - International Accounting

Learning outcomes

The course focuses on understanding financial reporting issues such as the acquisition of tangible and intangible assets, impairment and disposal of assets, etc. At the end of this module, students should have the comprehensive knowledge and understanding of financial reporting necessary to act as professional consultants or financial managers. Specifically, students will be able: (1) to understand the requirements of specific international accounting standards, (2) to understand how firms should apply the accounting standards’ requirements, and (3) to understand the effects of financial and non-financial reporting on the behaviour of managers, investors, and other stakeholders of multinational organizations.

Course contents

The INTERNATIONAL ACCOUNTING MODULE (30380) focuses on understanding financial reporting issues such as the acquisition of tangible and intangible assets, impairment and disposal of assets, etc. At the end of this module, students should have the comprehensive knowledge and understanding of financial reporting necessary to act as professional consultants or financial managers. Specifically, students will be able: (1) to understand the requirements of specific international accounting standards, (2) to understand how firms should apply the accounting standards’ requirements, and (3) to understand the effects of financial and non-financial reporting on the behaviour of managers, investors, and other stakeholders of multinational organizations.

This course is relevant for students who want to pursue careers in the financial industry, consulting firms, investment banking (particularly in equity research), private equity funds, or corporate finance. At the end of the course, you will be able to: (1) search for and find the regulatory and economic information necessary to make informed decisions, (2) analyze complex transactions based on data available, and (3) communicate effectively technical and quantitative matters to the various financial market participants.

 

Structure of the course:

1 Financial reporting, accounting standards and conceptual framework

2 Financial Statements and related information

3 Paper(s) Discussion – Session 1

4 Valuation of Inventories + Paper(s) Discussion – Session 2

5 Tangible Assets

6 Intangible Assets

7 Paper(s) Discussion – Session 3

8 Accounting for Leases + Paper(s) Discussion – Session 4

9 Project discussion (Session 1)

10 Project discussion (Session 2)

 

 

Readings/Bibliography

Required Readings:

• Kieso, Weygandt, Warfield. Intermediate Accounting IFRS, 4th Ed, 2020.

Supplementary Readings (Optional):

• Alexander, Jorissen, Hoogendoorn, Mourik & Kirwan. International Financial Reporting and Analysis, Cengage Learning EMEA; 8th Revised edition (2020).
  
• Stolowy, Ding & Paugam. Financial Accounting and Reporting: A Global Perspective, 6th Edition, Cengage, 2020.
  

Teaching methods

The main instructional approaches used in the course are:

- Lectures

- Group Work

Assessment methods

Course evaluation will be different depending on the non-compulsory participation in team-work assignment, as detailed in the following:

Students participating in team-work assignments:

Component Weight (%)

• Group project 30
• Paper Discussion 20
• Final Exam 50

 

Students who do not participate in team-work assignments:

• Component Weight (%)
• Final Exam 100

 

- Final exam and group project structure:

The exam comprises 16 multiple-choice questions based on theory and exercises. The exam, 45 minutes, is performed at the University site. The exam is a closed-book exam. Students cannot bring notes/books/slides during the examination.

The group project aims to produce a presentation detailing an analysis of the strategy and the choices of accounting policies at the latest fiscal year of a company IFRS compliant.

In this project, you have to perform the following tasks:

1. Introduce the company, the business activities and the strategy. Identify one direct peer (IFRS adopter) and compare the performance between the firms (focus on the income statement). Which company did better in the last 2 years? (6 points).
2. Describe the policies adopted by the company under analysis in preparing the management commentaries and compare it with the direct competitor (e.g., do the companies have a similar management report structure? Do they have similar content? Do they focus on different risk factors? Do they present ESG nature? Do they identify who are the main stakeholders? Do they have different tones in content? etc.) (6 points).
3. Describe the policies adopted by your firm in drafting the consolidated financial statements and compare with the direct peer (e.g., Did the firms present a single statement of comprehensive income or two separate statements? Did they classify the operating expenses by nature or by function in the income statement? Are there any specific inputs that vary across the firms in measuring PPE, Inventory, Impairment of assets, etc.?) (6 points).
4. Describe the most salient events (both positive and negative) that happened during the fiscal year and the impact on accounting figures (e.g., Did the company provide enough detail on how these events impacted the firm? Did the events impact accounting policy choices? Did the events impact on the values of Assets/Liabilities?) (6 points).

The evaluation criteria for the project work are the following:

1. Exhaustivity of the presentation;
2. Ability to address the topic correctly;
3. Presentation skills;
4. Respect of the allotted time

The evaluation criteria for the final exam are the following:

1. Ability to answer correctly the questions;
2. Quality of response/length of the response ratio

- Exam policy:

Registration on AlmaEsami is mandatory for written exam sessions.

Students can decline the grade obtained only once during the entire course.

• Grading scale: This is the assessment grid: (a) <18 insufficient; (b) 18-23 sufficient; (c) 24-27 average/good; (d) 28-30 very good; (e) 30 cum laude excellent/outstanding.

Students with disability or specific learning disabilities (DSA) are required to make their condition known to find the best possibile accommodation to their needs.

 

Teaching tools

Tools, platforms, or resources used during the course:

- Learning platform: Virtuale (virtuale.unibo.it) contains the slides and the team-work assignments

- Presentation software: PowerPoint

- Communication tools: Email; Teams; Forum on Virtuale

Office hours

See the website of Lorenzo Dal Maso