PRINCIPLES OF MANAGEMENT AND INTERNATIONAL ACCOUNTING - 2

The course contributes to the educational objectives of the Bachelor's Degree Programme, which aims to provide comprehensive training in management disciplines. It provides students with the basic knowledge to identify the economic and financial effects of an entity’s transactions and events, record them using the double-entry bookkeeping system, and prepare the financial report in accordance with international accounting standards (IAS-IFRS).

The course introduces the theory and practice of financial accounting, adopting an international perspective. The course provides the essential conceptual and contextual background for preparing financial reports useful for decision-making. It considers the detailed issues and problems of international financial reporting, both generally and through the specific regulatory requirements of the European Union and the International Accounting Standards Board. Upon completing the course, students should be able to record firm transactions using the double-entry system, prepare financial statements, apply specific accounting principles and rules, understand the reasons and consequences of different national accounting systems, and discuss the arguments for and against global accounting convergence.

1 KNOWLEDGE AND UNDERSTANDING
The students of the Bachelor's Degree Program in Business Administration and Management will gain knowledge and understanding of the operating environment of companies, financial statements, and other financial tools for decision-making, with an international perspective. At the end of this course, students will know and understand:
- the economic and financial nature of an entity's transactions and events;
- the method of double-entry bookkeeping in accounting;
- the accounting records of daily transactions and their effects on the financial report;
- the adjustment process at the end of the period aimed at rectifying and integrating values to determine the net profit and the equity;
- the national accounting alternatives and causes and consequences arising from diversities in the various domestic accounting systems;
- arguments for and against global accounting convergence;
- the International Accounting Regulation (IAS-IFRS) in the financial report measurement and disclosure.

2 APPLYING KNOWLEDGE AND UNDERSTANDING
Students of the Bachelor's Degree Program in Business Administration and Management must be able to contextualise their knowledge by applying it to the production of accounting information for decision-making. At the end of the course, students will be able to:
- record the main transactions using double-entry bookkeeping, adjust values, and prepare financial statements;
- draw up the income statement and the final balance sheet, considering the accounting data available from the opening balance sheet, the description of transactions taking place during the accounting period, and information about final adjustments;
- apply the principal international accounting standards (IAS-IFRS) in preparing financial reports;
- critically evaluate the different accounting options in measuring and disclosing financial items and understand the international regulations (IAS-IFRS) choices.

This course has no formal prerequisites. It is the second part of the “Principles of Management and Inter-national Accounting” course (12 credits).

The course focuses on the production of financial information for external communication and its regula-tion in a global context.
Topics covered are:
- Fundamentals of Financial Accounting;
- Double-entry bookkeeping system;
- Transaction recording, adjustments, and financial report preparation;
- International accounting differences and global convergence;
- International accounting regulation (IAS-IFRS): European vs. International rules;
- International Financial Reporting Standards: conceptual framework; IAS 1 - the content of financial statements; IAS 2 - inventories; IAS 16 - tangible assets; IAS 38 - intangible assets; IAS 37 - provisions, contingent assets, and liabilities.

"Financial Accounting. An International Introduction", by Alexander D. and Nobes C., 7th Edition, FT Pren-tice Hall, Pearson Education Limited, United Kingdom, 2020.
Chapters and paragraphs to be studied:
Part 1
Chapter 1: all paragraphs
Chapter 2: all paragraphs
Chapter 3: all paragraphs
Chapter 4: par. 4.1, 4.2, 4.4
Chapter 5: par. 5.1, 5.3, 5.4, 5.5
Chapter 6: par. 6.1, 6.2, 6.3, 6.4, 6.5, 6.6, 6.7
Chapter 7: par. 7.1, 7.2, 7.4.3, 7.4.4, 7.4.5, 7.5
Part 2
Chapter 8: par. 8.1, 8.2, 8.3
Chapter 9: par. 9.1, 9.2, 9.3, 9.5 (subpar. 9.5.2 excluded), 9.6, 9.7, 9.8, 9.9
Chapter 10: par. 10.1, 10.2, 10.3, 10.4, 10.6, 10.7
Chapter 11: par. 11.1, 11.2, 11.3, 11.4, 11.5
Appendix A: “Double-entry bookkeeping”

On every official exam date, the examination consists of a single, simultaneous written test covering the two modules: "Principles of Management" (Module 1) and "International Accounting” (Module 2). The exam lasts 60 minutes in total.
The exam is written and administered via the Moodle platform. It consists of 35 multiple-choice ques-tions, divided into two parts: 15 on Module 1 (with a grade range from 0 to 30) and 20 on Module 2 (with a grade range from 0 to 30). The final grade is the average of the two parts' grades, rounded up. To pass the exam, a minimum grade of 18/30 is required for each module. The use of books or notes is not permitted. Students who answer all questions correctly are awarded with the laude.

written

The following grading scale will be used, regardless of attending or non-attending mode:
A. Scores in the range of 18-22 will be assigned when: - Adequate knowledge and applied understanding in reference to the curriculum are demonstrated; - Limited ability to interpret national contexts and supranational convergence processes by formulating independent judgements; - Sufficient competence in accounting and preparing financial statements in accordance with international accounting standards;
B. Scores in the range of 23-26 will be assigned when: - Good knowledge and applied understanding in reference to the curriculum are demonstrated; - Fair ability to interpret national contexts and supranational convergence processes by formulating independent judgements; - Adequate competence in accounting and preparing financial statements in accordance with international accounting standards;
C. Scores in the range of 27-30 will be assigned when: - Good or excellent knowledge and applied understanding in reference to the curriculum are demonstrated; - Reasonable or excellent ability to interpret national contexts and supranational convergence processes by formulating independent judgements; - Fully appropriate competence in accounting and preparing financial statements in accordance with international accounting standards.
D. Honors will be granted when there is excellent knowledge and applied understanding in reference to the curriculum, and exceptional judgment and communication skills.

Classes are a mixture of theoretical input and problem-based discussions. They are interactive classes; therefore, active student participation is strongly recommended. Weekly exercise sessions will supple-ment regular classes on the more technical aspects of financial accounting, consisting mainly of assisted solutions to problems and exercises.

The textbook and classes are the primary sources of preparation for the final examination.

This subject deals with topics related to the macro-area "Circular economy, innovation, work" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development