Checking date: 27/06/2020

Course: 2020/2021

Financial Accounting II
Study: Bachelor in Finance and Accounting (201)

Coordinating teacher: GARCIA LARA, JUAN MANUEL

Department assigned to the subject: Department of Business Administration

Type: Compulsory
ECTS Credits: 6.0 ECTS


Students are expected to have completed
Introduction to Accounting Financial Accounting I
Competences and skills that will be acquired and learning results. Further information on this link
Knowledge: - Understand the process of preparation of the financial statements, both at the consolidated and single company level. - Understand the usefulness of financial statements for decision making and other purposes. - Understand the concept of group of companies and the need for consolidated financial statements. - Understand the different methods to prepare consolidated financial statements and to be able to interpret the consolidated financial statements. Abilities - Ability to work in groups and individually. - Ability to resolve new problems. Attitudes: - Be a critical observer of managerial behavior.
Description of contents: programme
Part A: Financial Statements 1.- Presentation of financial statements. 1.1. Balance sheet 1.2. Income statement 1.3. Statement of changes in equity 1.4. The notes 1.5. Intermediate and simplified financial statements 2.- The cash-flow statement Part B: Consolidation 3.- Basic concepts about consolidation of financial statements 3.1. Definition and economic role of the consolidation of financial statements 3.2. Groups of enterprises and other formal links between companies 3.3. Spanish regulation 3.4. Scope of consolidation and consolidation procedures 4.- Full consolidation 4.1. Introduction to the method of full consolidation 4.2. Homogenizing adjustments 4.3. Investment/Equity elimination 5.- Intragroup transactions under full consolidation 6.- Other consolidation methods 6.1. The equity method 6.2. Proportionate consolidation
Learning activities and methodology
We combine the following methods: 1) Lectures, with a good number of practical examples, are used with the objective of making students acquire the basic knowledge. 2) Exercises, that students resolve at home. Tutorials (grupos reducidos) where additional exercises are done and resolved. We also use real life examples. 3) Tasks to be resolved during the tutorials (grupos reducidos).
Assessment System
  • % end-of-term-examination 60
  • % of continuous assessment (assigments, laboratory, practicals...) 40
Basic Bibliography
  • IASB. International Accounting Standard 1: Presentation of financial statements.. IASB.
  • IASB. International Accounting Standard 7: Cash flow statement.. IASB.
  • IASB. International Accounting Standard 27: Consolidated and separate financial statements.. IASB.
  • IASB. International Accounting Standard 28: Investments in associates.. IASB.
  • IASB. International Financial Reporting Standards 10, 11 and 12. IFRS Foundation.
Additional Bibliography
  • Ernst&Young. International GAAP 2017 (Chapters 6 and 7). Wiley. 2017

The course syllabus and the academic weekly planning may change due academic events or other reasons.