Financial Accounting with financial statement analysis

The goal of the course is that students can keep a simple account with a focus on various postings such as goods transactions, salaries, accruals, etc. In addition, students should be able to perform a year-end closing including tax and dividends and prepare the 3 main reports in accounting with key figure analysis in accordance with the Norwegian Accounting Act (NGAAP).

Learning outcomes:

• Understand basic accounting principles
• Understand the difference between income/costs and receipts/payments
• Perform different types of bookkeeping of varying difficulty including relevant accruals in order to close an account in line with the Norwegian Accounting Act
• Perform a year-end closing of the account with associated closing entries in line with the Norwegian Accounting Act
• Prepare profit and loss and balance sheet reports, as well as a cash flow statement
• Discuss a simple key figure analysis based on calculations

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)
  • 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 keep simple accounts
• 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.

Competences

The Student

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

• Plenary lectures
• Practice hours with guidance from learning assistants or lecturer
• Independent work with tasks/work requirements individually or in groups