Course content

The course is an introduction to basic and financial accounting, including financial statement analysis. The content of the course gives an important basis for further studies in financial accounting.

In addition to familiarizing students with basic bookkeeping, the double-entry accounting principle, the accrual of income and expenses, and simple financial closing processes, the main objective of the course is to provide students with fundamental knowledge of preparing annual financial statements in accordance with the Accounting Act (NGAAP). This includes understanding basic accounting principles, valuation rules, reporting, and analysis of financial information.

Learning outcome

Knowledge

The student

• has knowledge of the financial statement as a source of information
• has knowledge of the content and regulation of financial accounting in Norway
• has knowledge of the fundamental accounting principles in the Norwegian accounting act
• has knowledge of recognition and measurement of assets, liabilities, income, and expenses in an annual account in accordance with Norwegian accounting act (NGAAP) with emphasis on:
  • Fixed assets
  • Inventory (stocks)
  • Shares
  • Receivables and cash
  • Current and non-current liabillities
  • Income tax
  • Equity and distribution of sharedividends to shareholders
• has insight of the content of a cash-flow statement
• has insight into key financial ratios in analysis of a financial statement (financial statement analysis)

Skills

The student

• can recognize necessary adjustments and prepare annual accounts for a small, limited liability company (Ltd) in accordance with Norwegian accounting act (NGAAP).
• can prepare a cash-flow statement
• can calculate key financial ratios and evaluate a business profitability and financial position in a financial statement analysis.

General competence

The Student

• can aquire new knowledge within the above-mentioned subject areas.

Learning methods and activities

Lectures, assignments and private study. During the semester there are exercises that must be approved to get access to the exam. Further information at the start of the semester.

Compulsory assignments

• Compulsory assignments

Specific conditions

Recommended previous knowledge

Managerial Economics (SMF1194)

Required previous knowledge

None

Course materials

Syllabus is given at the start of the semester.

Credit reductions