Financial Accounting

Accounting is “the language of business”. It is spoken by investors, financial analysts, internal and external auditors, supervisory boards, management accountants, bankers, and other decision makers with whom managers regularly interact. It is widely agreed that future business leaders need to understand this language in order to be able to interpret and use financial statements and other accounting information for internal management purposes (e. g. planning, directing, controlling) as well as corporate communication purposes (e. g. capital markets, banks, rating agencies). If you want to compete in this arena, acquiring a working knowledge of accounting will be useful, if not essential.

We will introduce you to financial accounting by for-profit entities (including sole proprietorships, partnerships, and corporations) from a user perspective. A user perspective implies that we move beyond the techniques and mechanics of preparing accounts and instead focus on the impact of a company’s business activities – most of them performed by non-accountants – on the financial statements. We introduce basic tools of financial statement analysis that help tease out the story that the financial statements tell. Some emphasis is placed on key recognition and measurement issues under International Financial Reporting Standards (IFRS), as these are increasingly relevant.

We will make you aware of the extent to which investors and other outside stakeholders use the financial statements to assess the business, and also of ways in which discretion in financial accounting can be used strategically to manage how the enterprise presents itself.

This class is specially designed for people with little, if any, background in financial accounting, providing them with an extended basic “working knowledge”. The course consists of lectures, in-class group activities, an individual written homework assignment, and a final exam. 

  • Understand the purpose of financial accounting and know the users of financial statements with their respective information needs;
  • Master the mechanics of financial accounting;
  • Understand the structure, functions, and interrelation of the basic financial statements (balance sheet, income statement, and cash flow statement);
  • Be able to perform a structured fundamental analysis of financial statements in order to assess a firm’s profitability, liquidity, and solvency;
  • Gain understanding of the institutional and conceptual foundations of accounting in Germany and Europe under International Financial Reporting Standards (IFRSs);
  • Be familiar with the IFRS rules governing the recognition and measurement of key activities, events and transactions, including intangible assets, property, plant and equipment, liabilities, and shareholders’ equity; and
  • Identify the discretion and earnings management potential inherent in these rules as well as their effects on the financial statements and key financial ratios.

Floor Hofhuis

Business Development Manager Executive Education

+49-(0)211-44709-175

Short-Facts:

Dates
2017-10-21 / 2017-10-21
2017-10-28 / 2017-10-28
2017-10-29 / 2017-10-29
Place Düsseldorf
Language English
Price 1.500 €