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Academic staff member responsible for the design of the course syllabus
(name, surname, academic title/scientific degree, email address and signature)
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NA
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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
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Second Course Lecturer(s) (name, surname, academic title/scientific degree, email
address and signature) and Office Hours:
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NA
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| Teaching Assistant(s) and Office Hours: |
NA
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| Language: |
English
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| Compulsory/Elective: |
Compulsory
|
| Study program: (the study for which this course is offered) |
Bachelor in Banking and Finance (3 years)
|
| Classroom and Meeting Time: |
Tuesday E-213 12:45-14:30, & Friday E-311 11:45-13:30
|
| Code of Ethics: |
Code of Ethics of EPOKA University
Regulation of EPOKA University "On Student Discipline"
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| Attendance Requirement: |
75% Mandatory attendance requirement.
|
| Course Description: |
This course is a continuation of the second semester course “Introduction to Accounting”. In Financial Accounting, the topics cover mainly the balance sheet and the Cash flow statements. The topics explore the Financial Assets, non-current Assets, current liabilities and long-term liabilities, stockholder’s equity, income and changes in retained earnings; statement of cash flows and lastly the financial ratio analysis. The techniques of preparations of the journal entries and the cash flow statement are presented through comprehensive examples. In the completion of this course, students will become competent in researching, interpreting, and analyzing financial statements.
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| 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.
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BASIC CONCEPTS OF THE COURSE
|
| 1 |
Plant and Intangible Assets
|
| 2 |
Additional paid-in capital
|
| 3 |
Bond Discounts
|
| 4 |
Bond Premiums
|
| 5 |
Depletion
|
| 6 |
Depreciation
|
| 7 |
Cash Flow
|
| 8 |
Earnings per share
|
| 9 |
Share split
|
| Week |
Topics |
| 1 |
Introduction of the course and review of syllabus. |
| 2 |
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 (pages 358-360). |
| 3 |
Chapter 8 continued with problem solving. |
| 4 |
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. |
| 5 |
Current Liabilities (Chapter 10). Accounting for Current Liabilities which include notes payable, accounts 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 issued at discounts and premiums. |
| 6 |
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) (pages 480-520). |
| 7 |
Stockholders’ Equity: Paid in capital Accounting for legal reserves in Europe accounting jurisdiction, stock splits, market price of stocks, treasury stock (pages 480-520). |
| 8 |
Midterm Exam |
| 9 |
Income and Changes in Retained Earnings Computation and analysis of the earnings per share (EPS), preferred dividends and earnings per share and their representation in the income statement (pages 522- 527). |
| 10 |
Income and Changes in Retained Earnings Accounting for distribution of cash dividends, entries that record stock dividends, reasons for issuing stock dividends, prior period adjustments reflected in the statement of retained earnings (pages 528-561). |
| 11 |
Statement of Cash Flow (Chapter 13) Purpose of the statement, classifications of the cash flows, cash versus accrual accounting. Cash flows from operating activities which involve cash received from customers, interest and dividend received, cash payments for merchandise and for expenses, cash payment for interest and taxes (pages 564-573). |
| 12 |
Statement of Cash Flow (Chapter 13) Preparation of the CFS by direct method- Cash Flows from Investing activities which include 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 (pages 573-579). |
| 13 |
Statement of Cash Flow prepared by using the indirect method. Preparation of CFS with indirect method which requires supplementary schedule, budgeting as the primary cash management tool and follow on exercises. |
| 14 |
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). 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 (up to page 655) + General Review before the Final Exam. |
| No |
Program Competencies |
Cont. |
| Bachelor in Banking and Finance (3 years) Program |
| 1 |
The students gain the ability to look at the problems of daily life from a broader perspective with an increased awareness of the importance of moral/ethical considerations and professional integrity in the workplace. |
4 |
| 2 |
They develop their knowledge and understanding of banking and finance including concepts, theories, and analytical tools that serve both in national and international markets. |
4 |
| 3 |
They gain an understanding of the role of financial management in business firms and the essentials of corporate finance and further develop their knowledge in the field. |
3 |
| 4 |
They are able to apply valuation models to estimate the price of different financial assets, measure risk and describe the risk-return tradeoff. |
3 |
| 5 |
They are provided with the knowledge and understanding of the regulatory framework and functioning of banking system and central banking as well as international banking system. |
4 |
| 6 |
They are able to understand and use fundamental economic theories and tools to solve economic problems in banking and financial services industry. |
2 |
| 7 |
They have the ability to develop and utilize accounting, financial and economic data as well as other information to solve different business problems by making use of basic mathematical and statistical models. |
4 |
| 8 |
They are expected to develop their numerical and IT skills as well as knowledge of databases in order to address the significant development in the delivery and use of financial services known as FinTech. |
4 |
| 9 |
They develop their ability to think critically, do research, analyze, interpret, draw independent conclusions, and communicate effectively, both individually and as part of a team. |
3 |
| 10 |
They are provided with opportunities to acquire the necessary skills and competencies to develop professionalism in the banking and financial services industry or to move on to further study within the discipline. |
4 |
