Course detail

Accounting for Enterpreneurs

FP-BAENECompulsoryBachelor's (1st cycle)Acad. year: 2017/2018Summer semester1. year of study4  credits

In the course, students are introduced to the general characteristics of accounting and its methodological tools and accounting legislation. The main attention is paid to the contents of the financial statements. In the balance sheet they are introduced to its items and their valuation method.

Learning outcomes of the course unit

Students acquire theoretical knowledge of issues in balance sheets and results, and should know the rules for the accounting treatment of these transactions in accordance with Czech legislation. Students gain the skills needed for accounting operations connected with the existence of all forms of property in the enterprise, its sources of financing, cost and revenue processes. They acquire skills in the specific accounting operations that provide a true and fair picture of the enterprise. They also practice producing financial statements.
After completing the course students are able to carry out routine accounting operations in a company, propose solutions for specific accounting operations and produce financial statements.

Prerequisites

Basic highschool knowledge of math and budiness economics.

Co-requisites

Not applicable.

Recommended optional programme components

Not applicable.

Recommended or required reading

FLOOD, Joanne M. Wiley GAAP 2013: Interpretation and application of generally accepted accounting principles. 4 ed. Hoboken, N.J.: Wiley, c2013, xvii, 1321 s. ISBN 978-111-8277-256. (EN)
Act No. 563/1991 Coll. on Accountancy (EN)
Accounting standards codification. (2014). Norwalk: Financial Acctg Standards. (EN)
MALBURG, C. R. Accounting for the New Business. Adams Media Corporation Avon, Massachutsetts. ISBN: 1-55850-759-0 (EN)
Hans B. Christensen, Edward Lee, Martin Walker & Cheng Zeng (2015) Incentives or Standards: What Determines Accounting Quality Changes around IFRS Adoption?, European Accounting Review, 24:1, 31-61, DOI: 10.1080/09638180.2015.1009144 (EN)
IFRS for SMEs. Dostupné z: http://www.ifrs.org/ifrs-for-smes/Pages/IFRS-for-SMEs.aspx (EN)

Planned learning activities and teaching methods

Teaching is carried out through lectures and seminars. Lectures consist of interpretations of basic principles, methodology of given discipline, problems and their exemplary solutions. Seminars particularly support practical mastery of subject matter presented in lectures or assigned for individual study with the active participation of students.

Assesment methods and criteria linked to learning outcomes

Evaluation of semestral work.
Written test at the end of the semester.
Sum of the points will be the base for final marking (ECTS label for BTU).

Language of instruction

English

Work placements

Not applicable.

Course curriculum

Content of the lectures:
1. Introduction to Financial Accounting for Enterprenaurs. Functions of accounting, characteristic features and legal aspects of accounting. General accounting principles. IFRS for SMEs.
2. Assets and liabilities, their structure and definition, assets and liabilities classes, their mutual relations. Balance sheet system, impact of economic transactions on balance sheet.
3. Costs and revenues of accounting unit as part of profit and loss statement.
4. Accounting cycle. Methodical parts of accounting, chart of accounts, accounting documents, books and control system.
5. Key valuation principles, valuation base, valuation of assets of same class, financial assets valuation.
6. Financial accounts, their structure and importance, cash, cash in transit, bank accounts.
7. Inventory, its definition and inventory valuation method. Inventory function and basic accounting operations.
8. Classification of long-term assets, basic procedures of of assets acquisition and depiction during their lifetime, methods of long-term assets depreciation.
9. Procedures of accounting of receivables and liabilities of accounting unit (from business relations, to employees and to shareholders).
10. Basic accounting techniques of costs and revenue. Equity and borrowed capital of accounting unit.
11. Other key elements of financial statements – Statements of Cash Flows, Statemenet of Changes in Equity. Commentary and annual reports.
12. Harmonisation of accounting in the world. IFRS and US GAAP.
13. Fundamental elements of simple accounting.

Aims

The main goal of the course is to provide students with basic knowledge for understanding and explaining information of the financial statements and for preparing simple statements for SMEs.

Specification of controlled education, way of implementation and compensation for absences

Participation of students is monitored, and in the case of unexcused absence the student must proceed according to the instructions of the teacher.

Type of course unit

 

Lecture

26 hours, optionally

Teacher / Lecturer