ØBR114 Advanced Financial Accounting

Contents and structure

The course builds on BØA117 "Financial accounting with analysis" or an equivalent course.

The content of the course is threefold and covers the subjects of accounting regulation, accounting theory and advanced financial accounting.

The course starts with the subject of accounting regulation. It is essential to understand why the financial accounts are regulated and which societal interests may be threatened by accounting manipulation. This part of the course emphasizes building up good knowledge of how the preparation of financial statements is regulated today and how this may change in the future.

The subject accounting theory provides a basis for reflecting on central parts of the theoretical foundation for financial accounting. Emphasis is placed on an understanding of the structure of the Accounting Act and of the basic accounting principles in the Accounting Act and of the main structure of the IASB's "Conceptual Framework". Emphasis is placed on students gaining an understanding of the differences between the two frameworks.

Advanced financial accounting provides in-depth study of the most central challenges of accounting, measurement and presentation at the end of annual accounts in accordance with good accounting practice. This section covers the most significant types of current and fixed assets and assessment of debt and equity. The course section illustrates the difference between the Accounting Act's ordinary rules and IFRS/IAS on certain selected types of assets.

Learning Outcome

Knowledge

The student must:

• have in-depth knowledge of the user groups' information needs and needs for accounting regulation.

• have in-depth knowledge of accounting regulations and knowledge of the basic accounting principles.

• have in-depth knowledge of the theoretical basis for the basic accounting principles and good accounting practice.

• have knowledge of international accounting developments, regulatory forms and bodies.

• have knowledge of the conceptual framework of the IASB.

• have knowledge of the differences between results and balance orientation.

• have in-depth knowledge of accounting and measurement of the most important accounting items.

• have in-depth knowledge of income tax accounting.

• have in-depth knowledge and understanding of the connection between the income statement and the balance sheet.

• have in-depth knowledge of the regulation of the disposal of the annual profit in a limited company, including important provisions in the Companies Act.

• know the regulations for notes and annual reports.

• know the requirements for ethics and social responsibility in accounting reporting

• know different forms of accounting manipulation.

• have knowledge of accounting regulation for small enterprises.

• have knowledge of requirements for ethics and social responsibility in accounting reporting.

Skills

The student must:

• have the skills to carry out accounting treatment in the profit and loss account and in the balance sheet of key accounting items.

• have the skills to be able to apply basic accounting principles to current issues.

• have the skills to thoroughly explain and account for profit and loss accounts in the company accounts.

• have the skills to show and explain the connection between the income statement and the balance sheet.

• have the skills to apply IFRS/IAS to certain selected types of assets.

• have the skills to dispose of the annual result in a limited company, including being able to use and reflect on the restrictions in the Companies Act in this area.

General competence

The student:

• develops critical thinking skills.

• gain knowledge of the subject's history, tradition and uniqueness, as well as research and development work.

• develops problem-solving skills and written presentation skills.

• develops analytical thinking skills.

• develops skills to be able to analyse financial issues related to reorganizations in the business world.

• demonstrates an understanding of how issues are affected by context.

• develops the ability to make a critical analysis of the uncertainty in analyses.

Entry requirements

BØA117 "Financial accounting with analysis" or equivalent course

Teaching methods

Lectures, problem solving in class, problem seminars and compulsory submissions

Compulsory learning activities

Two work requirements in the subject. The work requirements include both calculation tasks and theory tasks. An unapproved work requirement gives the right to a new attempt.

The subject area covered by this course is constantly developing on the regulatory side. Therefore, approved work requirements are valid for a limited period. The work requirement is valid in the exam semester and 3 subsequent semesters.

Assessment

Written individual school exam, 6 hours. The exam can be held on a digital exam system.

The time and place of the exam will be stated on Studentweb.

Grading scale A-F, where F equals fail.

Examination support material

The Accounting Act in special print. The company law in special print. Taxlaw (collection). A special collection of relevant laws and standards might be developed by the course supervisor in the subject, and such a special collection might be allowed as a legal aid in the exam.

All calculator models are allowed, with the following exceptions

- the calculator should not have the possibility of receiving / sending

- the calculator should not be able to process symbolic mathematical expressions

- the calculator cannot be connected to the mains

- the calculator must not make noise

More about examination support material

Course reductions

• ØBR104 - Rekneskap fordjuping - Reduction: 10 studypoints
• ØKB3117 - Vidaregåande finansrekneskap - Reduction: 5 studypoints
• ØKB3118 - Rekneskapsteori - Reduction: 5 studypoints