COURSE INFORMATION Course Title: FINANCIAL ACCOUNTING I

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
BUS 231	B	3	4	0	0	4	5

Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature)	NA
Main Course Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	M.Sc. Elvira Meti emeti@epoka.edu.al , Every Friday, 10:00-12:30
Second Course Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	NA
Teaching Assistant(s) and Office Hours:	NA
Language:	English
Compulsory/Elective:	Compulsory
Study program: (the study for which this course is offered)	Bachelor in Economics (3 years)
Classroom and Meeting Time:	Monday E-B32 at 08:45-10:30 and Thursday D-302 at 10:45-12:30
Code of Ethics:	Code of Ethics of EPOKA University Regulation of EPOKA University "On Student Discipline"
Attendance Requirement:	Mandatory requirement to attend 75% of the course.
Course Description:	The aim of this course is to convey knowledge for an adequate interpretation, analysis and use the information provided by financial accounting. By the end of this course, students are expected to be able to prepare and analyze the basic financial statements: balance sheet, income statement, and statement of retained earnings. Explain the components of an annual reports and their significance to the economic decision makers. The role of accounting as a decision making tool is emphasized throughout the course. The complete accounting cycle, preparation of basic financial statements, and accounting for asset items including valuation are discussed in depth. The accounting for assets is discussed in depth are; merchandising activities and cost of goods sold, financial assets, plant assets and intangibles.
Course Objectives:	The aim of this course is to convey knowledge for an adequate interpretation, analysis and use the information provided by financial accounting. By the end of this course, students are expected to be able to prepare and analyze the basic financial statements: balance sheet, income statement, and statement of retained earnings. They should be able to explain the components of annual reports and their significance to the economic decision makers.

BASIC CONCEPTS OF THE COURSE

1	Assets, Liabilities and Owner's Equity
2	Double entry book-keeping
3	The accounting cycle
4	Financial statements
5	Accounting for merchandising activities: Inventory systems: Net sales and C.O.G.S
6	Accrual and Deferrals
7	Plant and intangible assets
8	Financial assets

COURSE OUTLINE

Week	Topics
1	Review of Syllabus, Summary of Topics and Objectives of Financial Accounting Course, Accounting and its role in business.
2	Accounting Cycle: Capturing Economic Events (Chapter 3). The accounting cycle and the role of accounting records (pg 88). The ledger, journal entries, posting and use of accounts (pg 88-95). Increases and decreases in net income, retained earnings and the income statement (pg 98-99). Accounting periods; the realization and matching principles (pg 99-102). The trial balance and its limitations (pg 111-112).
3	Accounting Cycle: Accruals and Deferrals (Chapter 4). Adjusting entries: the need for adjusting entries, types of adjusting entries and timing differences (pg 141-144). Converting assets to expenses and converting liabilities to revenue (pg 145-152). The concept of materiality: materiality and adjusting entries (pg 157-160).
4	Accounting Cycle: Reporting Financial Results (Chapter 5). Preparation of financial statements: the income statement, the statement of retained earnings, the balance sheet (pg 194-198). Drafting the notes that accompany financial statements and what information should be disclosed (pg 198-199). Closing of the temporary accounts, closing entries for revenue and expense accounts to income summary (pg 200-202). Closing the income summary account (pg 203). Closing the dividends account (pg 203-204). Summarizing the closing process and preparation of the after-closing trial balance (pg 204-205). Evaluation of profitability and liquidity (pg 205-206).
5	Merchandising Activities (Chapter 6). The operating cycle of a merchandising company and the comparison between merchandising activities with manufacturing activities (pg 248-249). Income statement of a merchandising company (pg 249). Accounting system requirements for merchandising companies: use of control accounts and subsidiary ledgers (pg 250-251). Two approaches used in accounting and merchandise inventories (pg 251). Perpetual inventory systems and periodic inventory systems: differences in journalizing, accounts and the closing process (pg 251-256).
6	Merchandising Activities continued with problem solving (Chapter 6)
7	Financial Assets (Chapter 7). The basis for valuation of financial assets: cash and cash equivalents, short-term investments (marketable securities), receivables (pg 290-292). Cash management and internal control over cash: cash over and short (pg 291-292). Reconciling the bank statements and steps in preparing a bank reconciliation along with illustrations (pg 295-296). Accounting for marketable securities, recognition of sale revenue and sale of investments (investments sold at a gain and loss) (pg 298-299). Adjusting marketable securities to market value (pg 299-300). Accounts receivable: internal control over receivables, uncollectible accounts, allowance for doubtful accounts (pg 300-303). Estimating credit losses- the balance sheet approach (pg 304-305). Estimating credit losses- the income statement approach (pg 306-307). Direct write-off method (pg 307).
8	Midterm Exam
9	Financial Assets continued with problem solving
10	Inventories and Cost of Goods Sold (Chapter 8). The flow of inventory costs: cost flow assumptions, average-cost method, first-in first-out method, last-in first-out method and evaluation of methods (pg 342-349). Taking a physical inventory: recording shrinkage losses, LCM and other write-downs of inventory (pg 351-358). Techniques for estimation of the cost of goods sold and the ending inventory: the gross profit method, the retail method (pg 358-360).
11	Inventories and Cost of Goods Sold continued with problem solving (Chapter 8)
12	Plant and Intangible Assets (Chapter 9). Major categories of plant assets (pg 392). Accountable events in the lives of plant assets. Determining the costs of plant assets. Depreciation: allocating the cost of plant and equipment over the years of use. Methods of computing depreciation: straight-line, accelerated methods. Financial statement disclosures: estimates of useful life and residual value, the principle of consistency and revision of estimated useful lives. Other methods of depreciation: the units-of-output method, MACRS, sum-of-the-years' digits, decelerated depreciation methods. Disposal of plant and equipment: gains and losses on the disposals. Intangible assets.
13	Plant and Intangible Assets continued with problem solving (Chapter 9)
14	General Review

Prerequisite(s):	Introduction to Accounting
Textbook(s):	Financial Accounting; 18th Edition By Jan Williams and Mark Bettner and Joseph Carcello, ISBN10: 1260247945, Copyright: 2021
Additional Literature:	-
Laboratory Work:	No
Computer Usage:	Yes
Others:	No

COURSE LEARNING OUTCOMES

1	To explain key terms regarding basic financial statements.
2	To identify steps of the accounting cycle.
3	To prepare basic financial statements: retained earnings, income statement and balance sheet.
4	To appraise merchandising activities and compare inventory systems.
5	To account activities related to financial assets.
6	To account inventories and COGS.
7	To appraise accounting for PPE and intangible assets.

COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES (Blank : no contribution, 1: least contribution ... 5: highest contribution)

No	Program Competencies	Cont.
Bachelor in Economics (3 years) Program
1	Students define the fundamental problems of economics	3
2	Students describe key economic theories	3
3	Students critically discuss current developments in economics	2
4	Students appropriately use software for data analysis	2
5	Students critically contextualize the selection of an economic problem for research within scholarly literature and theory on the topic	3
6	Students apply appropriate analytical methods to address economic problems	3
7	Students use effective communication skills in a variety of academic and professional contexts	4
8	Students effectively contribute to group work	4
9	Students conduct independent research under academic supervision	2
10	Students uphold ethical values in data collection, interpretation, and dissemination	3
11	Students critically engage with interdisciplinary innovations in social sciences	2
12	Student explain how their research has a broader social benefit	3

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Midterm Exam(s)	1	40
Final Exam	1	60
	Total Percent:	100%

ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)

Activities	Quantity	Duration(Hours)	Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours)	1	64	64
Hours for off-the-classroom study (Pre-study, practice)	1	16	16
Mid-terms	1	10	10
Assignments	1		0
Final examination	1	20	20
Other	1	15	15
Total Work Load:			125
Total Work Load/25(h):			5
ECTS Credit of the Course:			5

CONCLUDING REMARKS BY THE COURSE LECTURER

Financial accounting plays a pivotal role in understanding and communicating an organization's economic health. All relevant topics were covered and studied through cases.