ACC401E Financial Accounting I

• Topics

  The purpose of this course is to enable students to interpret and analyze financial statements prepared under IFRS. Students will learn the conceptual framework and key principles under IFRS, and in particular, how to apply IFRS to recognize, measure, and disclose accounting transactions. Topics covered by this course include:

  • IFRS Overview
  • The Conceptual Framework for Financial Reporting
  • Presentation of Financial Statements (IAS 1)
  • Inventories (IAS 2)
  • Property, Plant and Equipment (IAS 16)
  • Investment Property (IAS 40)
  • Intangible Assets (IAS 38)
  • Impairment of Assets (IAS 36)
  • Provisions, Contingent Liabilities and Contingent Assets (IAS 37)
  • Leases (IFRS 16)
  • Revenue from Contracts with Customers (IFRS 15)

• Learning outcome

  Upon completion of the course, students will:

  Knowledge

  • Understand the economic substance underlying the transactions and the purpose of financial statements.
  • Have knowledge of the regulation of IFRS.
  • Have knowledge of the framework, concepts, and key accounting policies in IFRS.
  • Know the discretion underlying the accounting standards and how it may affect the reported numbers in financial statements.

  Skills

  • Be able to explain the key principles and accounting rules under IFRS.
  • Know how to apply IFRS to recognize, measure, and disclose accounting transactions in real business situations.
  • Understand the key concepts in the Framework, and discuss if they are applyed consitenently or not in the different IFRS’s
  • Be able to exercise reasonable judgment and realize the discretion in applying accounting standards.

  General competence

  • Be able to raise critical questions, identify problems, and present solutions across a variety of accounting issues.

• Teaching

  This is an interactive and student-centered class, which focuses more on students’ learning than lecturing. The instructors mainly serve a role to facilitate students’ learning. To achieve the best possible learning outcomes for this course, students are expected to: (1) read the materials and prepare for the discussion questions before class; (2) have active participation in discussions in class; and (3) review and reflect on the knowledge learned and self-study after class. When encountering any questions or learning difficulties, students are encouraged and welcome to consult with the instructors or the teaching assistant individually.

  Class materials, including lecture slides, related IFRS standards, and discussion questions, are uploaded to the course website in advance so that students can have sufficient time to prepare before class.

  All our class meetings are held in person, which will not be recorded (to ensure that everyone can speak freely). In class meetings, we mainly focus on discussions of the pre-assigned questions for each topic and Q&As. No official answers will be provided to the discussion questions. There is a mini-lecture (about 20 minutes) at the beginning of each class meeting, which gives a brief recap of the lecture slides for the topic of the day. Students should read through the lecture slides before coming to class.

• Required prerequisites

  BED2/BED020 Finansregnskap or an equivalent course (e.g., introductory financial accounting) serves as a prerequisite for this course.

• Credit reduction due to overlap

  This course is a continuation of BUS402E and MRR412E, and is equivalent to ACC401N, BUS402 and MRR412. These courses cannot be combined.

• Compulsory Activity

  Attendance at class meetings, including active participation in discussions, and a group project assignment are required for the course approval. Students have to attend at least six class meetings (out of a total of ten class meetings) and participate in discussions actively, eg, sharing opinions or raising questions. The group project requires a video recording of the presentation and a peer review.

  Previous course approval from ACC401E/ACC401N, BUS402E/BUS402N, or MRR412E/MRR412N is valid as course approval in this course. Only students who obtain the course approval are allowed to take the exam.

• Assessment

  Four-hour digital individual written school exam in English. Access to Excel during the exam. The answers must be written in English.

• Grading Scale

  A - F

• Literature

  Picker, R., K. Clark, J. Dunn, D. Kolitz, G. Livne, J. Loftus, and L. van der Tas. 2019. Applying IFRS Standards, 4th Edition. Wiley.

  International Financial Reporting Standards (free access at https://www.ifrs.org).

  Online IFRS resources from Deloitte, PwC, EY, and KPMG:

  • https://www.iasplus.com/en
  • https://www.pwc.com/gx/en/services/audit-assurance/ifrs-reporting.html
  • https://www.ey.com/gl/en/issues/ifrs/ifrs-overview
  • https://home.kpmg.com/xx/en/home/services/audit/international-financial-reporting-standards.html

  Other supplementary materials are available on canvas.

• Permitted Support Material

  Calculator 

  One bilingual dictionary (Category I) 

  All in accordance with Supplementary provisions to the Regulations for Full-time Study Programmes at the Norwegian School of Economics Ch.4 Permitted support material https://www.nhh.no/en/for-students/regulations/https://www.nhh.no/en/for-students/regulations/ and https://www.nhh.no/en/for-students/examinations/examination-support-materials/https://www.nhh.no/en/for-students/examinations/examination-support-materials/