Universitat Internacional de Catalunya
Analysis and Consolidation Financial Statements
Other languages of instruction: Catalan, English
If the student is enrolled for the English track then classes for that subject will be taught in the same language.
Teaching staff
Introduction
This is the last accounting course taught in the Business Administration undergraduate degree. We understand that accounting is the language of business and the company in particular and the information is presented to us through the financial statements.
It is therefore essential to understand financial statements, and know how to analyse and interpret them in detail and accurately. The value of accounting is reflected in the corporate decision-making allowing economic units to achieve their goals with maximum efficiency.
Pre-course requirements
The student must have:
- Knowledge of accounting methods.
- Knowledge of accounting standards.
- Understanding of the basic financial statements comprising financial statements: Balance Sheet, Income Statement, Statement of Changes in Equity, Cash Flow Statement and Notes.
Objectives
- Approach to consolidated financial statements.
- Analyse the situation of a company based on its financial statements, diagnose the situation and issue a management recommendation.
- Study of financial statement auditing.
Competences/Learning outcomes of the degree programme
- 01 - To be familiar with, understand and apply the methods, techniques and instruments specific to accounting.
- 02 - To be familiar with and know how to interpret and apply current accounting standards.
- 03 - To select and adequately apply applicable accounting alternatives.
- 31 - To develop the ability to identify and interpret numerical data.
- 32 - To acquire problem solving skills based on quantitative and qualitative information.
- 50 - To acquire the ability to relate concepts, analyse and synthesise.
- 51 - To develop decision making skills.
- 52 - To develop interpersonal skills and the ability to work as part of a team.
- 53 - To acquire the skills necessary to learn autonomously.
- 54 - To be able to express one’s ideas and formulate arguments in a logical and coherent way, both verbally and in writing.
Learning outcomes of the subject
• Ability to apply concepts related to accounting.
• Ability to use tools related to the activities of the area.
• Ability to work independently and manage time well.
• Ability to work on specific aspects of accounting and present them in a clear and understandable manner.
• Ability to conduct accounting and financial analysis of available information and use it in decision-making.
• Understand and be inclined to respect the rules of the profession.
Syllabus
Theme 1: Consolidation of Financial Statements.
1.1 Introduction: the concept of group.
1.2 Subjects and consolidation methods applied.
1.3 Adjustments and eliminations: economic and financial.
1.4 Consolidated financial statements.
Theme 2: Analysis of Financial Statements.
2.1 Introduction.
2.2 Analysis techniques and tools.
2.3 Analysis of the financial situation in the short term.
2.4 Analysis of the financial situation in the long term.
2.5 Analysis of the income statement: profitability.
Theme 3: Audit of Financial Statements.
3.1 Introduction: concept and regulations.
3.2 Technical standards on auditing.
3.3 The audit report.
Teaching and learning activities
In person
The course will consist of theory sessions presenting the concepts necessary to meet the Course Objectives. These sessions will be complemented with practical sessions occupying much of the class time. It is particularly important to prepare so that students can participate in class, which should mainly be a forum for discussing the interpretation of the results.
When it comes to audits, an audit company will collaborate by giving a session / presentation from the professional perspective.
Evaluation systems and criteria
In person
Final examination: 70%. Divided into two parts: theoretical part (40% of mark) and practical part (60% of mark). A minimum grade of 5 out of 10 is required in order to obtain the weighted average with other activities.
Evaluation activities during the course (no established dates): 20%
Final Project: 10%
Second-sitting examination: A score of 5 out of 7 is required to pass this examination. Divided into two parts: theoretical part (40% of mark) and practical part (60% of mark). No average with other activities (evaluation activities during the course and final project) will be calculated.
Final Mark: Inappropriate conduct during class sessions and repeated absences may result in a penalty applied to the final grade.
Bibliography and resources
- Royal Decree 1514/2007: Approved on November 16, which outlines the General Accounting Plan.
- Hayes, R., Dassen, R., Schilder, A., & Wallage, P. (2014). Principles of auditing: An introduction to international standards on auditing (4th ed.). Pearson Education.
- Jeter, D.C., & Chaney, P.K. (2019). Advanced accounting (7th ed.). Wiley.
- Moroney, R., Campbell, F., & Hamilton, J. (2020). Auditing: A practical approach (4th ed.). Wiley.
- Robinson, T.R., Greuning, H. van, Henry, E., & Broihahn, M.A. (2020). International financial statement analysis (4th ed.). CFA Institute Investment Series. Wiley.
- Tan, P., Lim, C.Y., & Kuah, E.W. (2020). Advanced financial accounting: An IFRS® standards approach (4th ed.). McGraw-Hill Education.
- Elliott, J., & Elliott, B. (2022). Financial accounting and reporting (20th ed.). Pearson Education.
- Messier, W.F., Glover, S.M., & Prawitt, D.F. (2022). Auditing & assurance services: A systematic approach (12th ed.). McGraw-Hill Education.