COURSE INFORMATION Course Title: FINANCIAL ACCOUNTING II

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
BUS 232	B	4	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 , By appointment.
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:	Thursday E-314 08:45-11:30, & Friday E-311 08:45-11:30
Code of Ethics:	Code of Ethics of EPOKA University Regulation of EPOKA University "On Student Discipline"
Attendance Requirement:	75% Mandatory attendance requirement.
Course Description:	Financial Accounting II: This course is a continuation of the first semester course “Financial Accounting I”. In Financial Accounting II, the topics cover mainly the right side of the balance sheet; liabilities and equity accounts. Exploring current liabilities and long term liabilities and the accounting used; stockholder’s equity, income and changes in retained earnings; statement of cash flows and a technique for preparation is presented by working through examples. In the completion of this course, students will become competent in researching, interpreting, and analyzing financial statements.
Course Objectives:	To analyze and interpret financial statements, To understand the liability and equity accounts. Preparing cash flow statements. Apply and interpret basic financial statement analysis.

BASIC CONCEPTS OF THE COURSE

1	Plant and Intangible Assets
2	Bond Premiums
3	Bond Discounts
4	Short term and long term Liabilities
5	Additional Paid-in Capital
6	Unpaid Capital
7	Cash Flow
8	Operating Activities
9	Financing Activities
10	Investing Activities

COURSE OUTLINE

Week	Topics
1	Introduction of the course and review of syllabus.
2	Plant and Intangible Assets (Chapter 9). Accounting for depreciable assets, methods of depreciation (straight-line, accelerated methods, units-of-output method). Accounting for Natural resources, depletion, inventories and C.O.G.S.
3	Current Liabilities (Chapter 10). Accounting for Current Liabilities which includes notes payable, account payable, accrued liabilities which arise from the recognition of expenses for which payment will be made in a future period, payroll liabilities and the computation of the total payroll cost split in Social Security, Federal Income Tax Payables and State Income Tax Payables Accounts, and unearned revenues (page 430-435). Long Term Liabilities (Chapter 10) Accounting for Bonds in discount and premiums.
4	Stockholders’ Equity (Chapter 11) Formation of Corporations, Stockholder records in a corporation, Paid in capital or contributed capital, Common stock and preferred stocks, journal entries in the formation of companies. Issuance of stocks, stock premiums (additional paid in capital) (page 480- 520)
5	Stockholders’ Equity: Paid in capital Accounting for legal reserves in Europe accounting jurisdiction, stock splits, market price of stocks, treasury stock (page 480- 520)
6	Income and Changes in Retained Earnings Computation and analysis of the earnings per share (EPS), preferred dividends and earnings per share and representation in income statement (page 522- 527)
7	Income and Changes in Retained Earnings Accounting for distribution of cash dividends, entries that record stock dividends, reasons for stock dividends, prior period adjustments reflected in the statement of retained earnings (page 528- 561)
8	Midterm Exam
9	Statement of Cash Flow Chapter 13 - Purpose of the statement, classifications of the cash flows, cash versus accrual informations. Cash flows from operating activities which involve cash received from costumers, interest and dividend receives, cash payments for merchandise and for expenses, cash payment for interest and taxes. (page 564- 573)
10	Statement of Cash Flow Chapter 13- Preparation of the CFS by direct method- Cash Flows from Investing activities which includes purchases and sales of securities, loans made and collected, cash paid to acquire a plant asset and cash received from the sale of the plant assets. Cash flows from financing activities which includes the proceeds from short term borrowings, proceeds from issuing bonds payable and capital stock, cash dividend paid to stockholders ( page 573- 579)
11	Statement of Cash Flow Preparation of CFS by indirect method. Preparation of CFS with indirect method which requires supplementary schedule, budgeting as the primary cash management tool and follow on exercises
12	Financial Statement Analysis Chapter 14- Dollar and percentage change, Trend percentages, Component percentages, quality of the assets and the relative amount of debt. (page 622- 627)
13	Financial Statement Analysis Financial ratio analysis; liquidity, capital structure (solvency), and profitability. Measuring the liquidity and credit risk done through the following ratios ; working capital, current ratio, quick ratio, debt ratio. Measuring the profitability of the company through EPS (Earnings per share), P/E, ROI(Return on Investment), ROA (Return on Asset), ROE (Return on Equity). Analysis of common stockholders. Analysis by long-term creditors through yield rate on bonds, interest coverage ratio, debt ratio, secure claims. Analysis by short-term creditors through amount and quality of working capital, accounts receivable turnover rate, inventory turnover rate, operating cycle. ( until page 655)
14	General Review

Prerequisite(s):	-
Textbook(s):	Financial Accounting; 18th Edition By Jan Williams and Mark Bettner and Joseph Carcello, ISBN10: 1260247945, Copyright: 2021
Additional Literature:	Financial Accounting: Information for Decisions, 3ed Edition by Wild:McGraw-Hill, Inc., 2005 Kontabiliteti Financiar, Dhamo: Gervis, 2003 Pasqyrat Financiare: Sipas Standarteve te Kontabilitetit, Dhamo and Cela, 2008
Laboratory Work:	-
Computer Usage:	-
Others:	No

COURSE LEARNING OUTCOMES

1	Learning of transactions and related journal entries for right side of balance sheet; liabilities and stockholders’ equity.
2	To prepare and interpret cash flow statement by direct and indirect methods.
3	To have the ability about to analyze financial statements and ratio analysis.

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	55
Other	1	5
	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			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

The course ought to be revised to incorporate laboratory work.