6 ECTS credits
170 h study time

Offer 1 with catalog number 4021710ENR for all students in the 1st semester at a (E) Master - advanced level.

Semester
1st semester
Enrollment based on exam contract
Impossible
Grading method
Grading (scale from 0 to 20)
Can retake in second session
Yes
Taught in
English
Faculty
Faculty of Social Sciences & SolvayBusinessSchool
Department
Business
Educational team
Gregory Desmet
Stefanie Ceustermans (course titular)
Thomas Selleslagh
Activities and contact hours
39 contact hours Lecture
6 contact hours Seminar, Exercises or Practicals
125 contact hours Independent or External Form of Study
Course Content

In the part Finanial Reporting

  • we refresh basic accounting techniques (a.o. balance sheet equation and accrual income recognition) and the components of annual financial statements;
  • we obtain an understanding of the environment in which financial reporting takes place and how it is regulated; 
  • we acquire skills in how financial statements are analysed and interpreted (a.o. time series and cross-sectional analysis, accounting ratios, statement of cash flows, ROI decomposition);
  • we provide the basics of how consolidation is done and how a cash flow statement is prepared; 
  • we gain an understanding into earnings management and creative accounting techniques.

In the part Auditing (of financial statements):  

  • we obtain an understanding of the basic audit framework, audit quality and the inherent limitations of auditing;
  • we analyse the audit risk model (inherent risk, control risk, detection risk, materiality);
  • we analyse the types of audit opinion expressed in the auditor's report. 

The course does not situate itself in an individual national context. It uses International Financial Reporting Standards (IFRS) as its basis for Financial Reporting and International Standards on Auditing (ISAs) as its basis for Auditing.

Course material
Handbook (Required) : Global Financial Accounting and Reporting, Principles and Analysis, Walter Aerts and Peter Walton, 5th, Cengage Learning, 9781473767126, 2020
Digital course material (Required) : Lectures Auditing will be accompanied by excerpts of International Statements on Auditing and own study material, made available, Canvas
Additional info

The course consists of weekly theory lectures for which slides are provided. Workshops will mainly handle practical cases analysing financial statements. 

Lectures Financial Reporting will follow the textbook: Global Financial Accounting and Reporting. Principles and Analysis. 5th edition by Walter Aerts and Peter Walton. Published by Cengage Learning (2020). Print ISBN 9781473767140 OR eText ISBN 9781473767157. 

Lectures Auditing will be accompanied by excerpts of International Statements on Auditing and own study material, made available via the electronic learning environment Canvas. 

Complementary study material will be made available via the electronic learning environment Canvas. This material includes a.o. slide presentations of the lectures and case study material.

Teaching methods:

- Lecture: collective contact-dependent moments during which the lecturer engages with learning materials
- Seminar, Exercises or Practicals (Practical): collective or individual contact-dependent moments during which the students are guided to actively engage with learning materials
- Independent or External Form of Study (Self): independent study

This description of the teaching methods is indicative, in order to assess the expected study load.

REGULAR STUDENTS

Lecture: 30 hours (13 weeks x 2 hours + guest lecture : 2 hours + Q&A : 2 hours)

Practical: 13 hours

  • 5 workshops x 2 hours : 10 hours
  • Collective and/or individual feedback and help: 3 hours

Self: 116 hours

  • Keeping up with theory lectures, 1 hour per lecture hour: 26 hours
  • Preparing for workshops, 1 hour per workshop hour: 10 hours
  • Assignment ‘Financial Statement Analysis’ : 40 hours (5 days x 8 hours)
  • Preparation test basic accounting techniques: 8 hours
  • Preparation final exam: 32 hours (4 days of 8 hours)
Learning Outcomes

General Competencies

The student:

  • Knows the basic accounting techniques and can read a (consolidated) financial statement; 
  • Can independently conduct a thorough financial statement analysis and provide a report commenting on a company’s position and development with regard to liquidity, solvency and profitability;
  • Understands the environment in which financial reporting takes place and how it is regulated;
  • Understands and is able to recognize creative accounting techniques taking into account simple cases;
  • Understands the basic steps of the audit process and auditing concepts;
  • Is able to formulate an audit opinion taking into account simple cases.

Grading

The final grade is composed based on the following categories:
Written Exam determines 60% of the final mark.
SELF Practical Assignment determines 40% of the final mark.

Within the Written Exam category, the following assignments need to be completed:

  • written exam with a relative weight of 60 which comprises 60% of the final mark.

Within the SELF Practical Assignment category, the following assignments need to be completed:

  • Assignment fin.stat.analysis with a relative weight of 40 which comprises 40% of the final mark.

Additional info regarding evaluation

Three evaluation parts:

  1. Written test on the basics of accounting : 5%
  2. Assignment Financial Statement Analysis (groups of 2 students): 40%
  3. Written final exam (first and second session): 55%

At the beginning of the semester (around week 4) a test will be organised to test your knowledge on the basics of accounting. This test will count for 5% of the final course grade.

The assignment Financial Statement Analysis will count for 40% of the final course grade. The final exam will count for 55% of the final course grade. Both parts, the assignment ànd the final exam, are mandatory and must be taken, otherwise no final course grade can be given.

Detailed instructions related to the assignment (incl. group choice, deadlines, content,...) will be made available on CANVAS during the semester. 

The grade for the assignment Financial Statement Analysis can be transferred from first to second session, but can not be transferred to the next academic year. If the student wishes to retake the assignment Financial Statement Analysis-assignment for second session, he/she should notify the professor by email at the latest by June 30th. 

The test on the basics of accounting cannot be resumed in the second session. No replacement assignment will be organised. Grades on this component is transferred from the first to the second session, but are not transferred to the following academic year. If the test is not carried out during the semester, the grade on this component will be zero in the first and second exam session. As such the final grade will be limited to a maximum of 95% out of 20.

Allowed unsatisfactory mark
The supplementary Teaching and Examination Regulations of your faculty stipulate whether an allowed unsatisfactory mark for this programme unit is permitted.

Academic context

This offer is part of the following study plans:
Master of International Business: Standaard traject
Master of Business Engineering: Business and Technology: Standaard traject