Financial Accounting


On completion of this course a student should be able to:
A. Knowledge and Understanding:
 • Know several concepts which are commonly used in finance, investment analysis,project evaluation, etc., and understand what the figures represent and how they can be changed.
B. Subject Specific Skills:
 • Learn how debits and credits are used to account for the values of all transactions of firms and how they are compiled for the creation of financial statements. The students also learn how managers’ decisions and subjective evaluations can affect the values presented in financial statements and capital market’s reactions.
C. General Skills:
 • Understanding news in financial press which report on firm’s performance and analysts’ opinions on future returns on investments.

General characterization





Responsible teacher

Ricardo César Ribeiro Ventura Ferreira Reis


Weekly - Available soon

Total - Available soon

Teaching language





“Financial Accounting – IFRS edition”, 2nd edition, de Weygandt, Kimmel e Kieso – John Wiley & Sons. The book’s site has
some slides, check figures and self tests/O site do livro tem slides e testes: EHEP002480.html bcs/Books?
Additionally, students may use/Além disso, os alunos podem usar:
“Financial Accounting – Global edition”, de Short, Libby e Libby – McGraw Hill.

Teaching method

The course includes 33 hours of lectures, distributed through 11 classes (3 hours each). Each class is used to discuss a
particular topic. In this discussion there will be a combination of theory and examples with practice, through quizzes and
problems. This allows students to learn the concepts and understand the main accounting procedures before they apply
them. Students are provided with a set of slides which include theory and examples (both technical and from the financial
press and professional reports), and are discussed in classes.

Evaluation method

The quizzes and problems will be provided in class, given
that they are graded. Moreover, exercises are suggested as possible homework.

Subject matter

Accounting is the language of business, when it comes to making decisions and disclosing information to stakeholders. At
the end of this module students will have learned this language, so they can interpret the information disclosed by
companies as well as the news on the financial press. They will also be able to build from scratch and analyze a complete
set of financial statements, such as the ones in an annual report, in order to evaluate issues such as capital structure,
liquidity and profitability. The content of classes is as follows: 1. Introduction to financial accounting and its main concepts
2. The flow of accounting information and the accrual system 3. The income statement, the statement of changes in equity
and the balance sheet 4. The statement of cash flows and the notes 5. Turnover and accounts receivables 6. Inventory 7.
Revisions and intermediate test
8. Property, plant and equipment and intangible assets 9. Accounts payable 10. Debt 11. Equity


Programs where the course is taught: