Business Quantitative Methods and Calculations (International Accounting)

Prof. Alberto Giussani; Prof. Andrea Alessandri

COURSE AIMS

The Business Quantitative Methods and Calculations – (International accounting) course has two main objectives:

–to ensure that students acquire the fundamental principles at the basis of drawing up financial statements in accordance with international accounting principles;

–to ensure that students complete and consolidate their understanding of the logic of drawing up consolidated financial statements and the practical method of drawing up these statements.

COURSE CONTENT

Module I: International accounting (Prof. Alberto Giussani)

The first part of the course is mainly concerned with presenting the historical procedure that led to the adoption of international principles, together with a broad overview of the bodies and authorities responsible for compiling and interpreting these principles. The course then studies the framework of the IFRS, which is responsible for supplying the rules set out for drawing up financial statements that form the backbone of current international regulations. An in-depth study is then made of the elements that characterise current individual standards, with particular emphasis paid to their differences from Italian regulations. The lessons concentrate in particular on the presentation of financial statements, itemising fixed assets and intangible assets and loss of value, inventories, reserves, leasing, revenue recognition criteria, communicating information in the sector, calculating taxes and analysing financial instruments, while special attention is also given to an analysis of IFRS 1 and an overview of the first application of international principles.

Module II: consolidated financial statements (Prof. Andrea Alessandri)

The second part of the course is concerned with an in-depth study of the theory of group consolidated financial statements and of the implications for groups of IAS 22. The lessons contain a large number of practical exercises where all the accounting rules and conventions for drawing up consolidated statements are developed and studied. After a close examination of the organisation and collection of information, the course offers students the opportunity to study infra-group dealings and dividends, and the translation of financial statements into foreign currencies included in the consolidation area. Particular emphasis is also placed on share elision and acquisition accounting (including a study of the criteria used for calculating current values to be attributed to the assets and liabilities of subsidiaries at their time of purchase and for their movements in subsequent years), as well as on deferred taxes and third-party assets.

READING LIST

A. Giussani, Introduzione ai principi contabili internazionali, ed. Giuffrè.

Required erading

PricewaterhouseCoopers, Principi contabili internazionali e nazionali - Interpretazioni e confronti, IPSOA, Milan, 2004, 3rd ed.

Consiglio Nazionale dei Dottori Commercialisti e Consiglio Nazionale dei Ragionieri, Principio contabile n° 17 - Il bilancio consolidato, Giuffré, Milan, 1996.

TEACHING METHOD

The teaching method used in this course is largely based on lessons aimed at providing students with a knowledge of how financial statements are drawn up in accordance with international accounting principles, the most important aspects of individual principles and the main differences compared with Italian accounting principles.

The second part of the course first of all deals with studying the theory of group consolidated financial statements and business combination accounting, before moving on to introducing practical exercises based on the main principles connected with consolidated statements. This approach makes it possible to complete the learning cycle that includes the theory connected to double-entry bookkeeping and how to draw up and interprete consolidated financial statements.

ASSESSMENT METHOD

The Business Quantitative Methods and Calculations (International Accounting) exam takes the form of a written paper designed to:

–test knowledge of international accounting principles and of the theory connected to group consolidated financial statements (theoretical part);

–test practical knowledge of drawing up group consolidated financial statements and the relative consolidated book entries (practical part).

In order for students to pass the exam they must demonstrate that they:

–understand the international accounting principles system, the essential aspects of the various international principles studied during the course and their relative differences compared with Italian accounting principles;

–understand the theory and logic of group consolidated financial statements and know how to apply them in the consolidated accounting calculations outlined in the lessons.

In order to pass the exam students must show that they have understood the material contained in both parts of the course. The questions will be based exclusively on the material covered during the course and will be designed to test the students’ understanding and comprehension of this material.

Students may elect to take a supplementary oral exam, in which case the final exam mark will be based on an average of the written and oral exams.

NOTES

Further information can be found on the lecturer's webpage at or on the Faculty notice board.