Financial Accounting 2600-DSMdz2RF

1. Category, subject, object and basic concepts of accounting. Accounting standards. Balance sheet as the basic account in an entity. Ways of data ordering within a balance sheet. Detailed characteristics of balance sheet information structure (long-term and short-term assets, owners’ equity, liabilities, accrued revenues and prepaid expenses, net assets and working capital
2. Economic events (transactions) and their classification in accounting. Dual aspect of accounting records and T-account. Basic rules of recording within T-accounts. Balance, temporary and out-balance T-accounts. Synthetic and analytic (auxiliary) T-accounts. Double entry and one-side repeated T-account recording. Accounting documents and correction of accounting errors.
3. Performance measurement in accounting - theoretical aspects (theory of streams). Accrual approach to performance measurement and profit and loss account (P&LA). P&LA and balance sheet – mutual relations. Categories of revenues and costs in accounting. P&LA information structure. Segmentation of P&LA, different levels of income and ways of their calculation.
4. Basic ways of costs classification: costs by nature and costs by function. Costs by nature and their detailed characteristics. Comparative version of P&LA. Product and period costs. Calculation of unit product cost (general characteristics). Costs in time: prepaid and accrued expenses.
5. Cash approach to performance measurement in accounting – cash-flow statement (CFS). Money assets and money equivalents. CFS information structure (operating, investing and financing). Direct and indirect methods of CFS preparation.
6. Current assets divided into “liquid” assets and working capital. Assets valuation basic rules (purchase price, production cost, fair value). Money assets and cash turnover. Money in bank and non-cash turnover: basic rules, documents, typical decrees. Money equivalents: cheques, bills, short-term capital and debt instruments: their valuation, accounting decrees and disclosure in financial statement.
7. Receivables and liabilities: categories, basic accounting classification, valuation rules, ways of impairment, disclosure in financial statement. Detailed characteristics of trade, public and employees receivables and payables.
8. Inventories and their classification. Ways of valuation during purchase or production. Purchase price and selling price. Inventories purchase and its settlement. VAT for purchase - its calculation and documentation. Fixed prices and invoice prices for inventories valuation – typical decrees. Inventories spending (usage) and methods of its valuation: FIFO, LIFO and AVCO methods. Invoicing and valuation of inventories sales. VAT for selling - its calculation and documentation.
9. Long-lived assets and their classification. Valuation of assets during purchase, production, lease, capital contribution, donation etc. Two models of assets valuation and the end of accounting period: cost value vs re-assessed value. Tangible and intangible assets – their basic characteristics. Reproduction value, residual value, depreciation and cumulated depreciation. Depreciation (amortization) methods: straight-line, digressive, natural etc. Accounting approach to long-live assets: typical decrees and their disclosure. lease: capital and operating one, accounting approach to lease transactions.
10. Long-term investments: financial and investment properties. Investments valuation documentation and disclosure in financial statement. Capital investments as the base for creation of capital groups (holdings). Significant influence and control as typical relations between companies. Consolidated statement – its structure and basic rules of preparation. Consolidation methods.
11. Owners’ equities – basic categories, and application. Typical equities in joint-stock and limited companies. Provisions and reserves in accounting: creation, valuation and disclosure.