Financial Accounting

BED2 Financial Accounting

Spring 2024

Autumn 2024
  • Topics

    The course Finansregnskap (Financial accounting) includes preparation and analysis of financial statements. The objective is to develop a basis for understanding accounting information. The course covers basic accounting principles, valuation rules, and presentation and disclosure requirements according to Norwegian Accounting Act. The course demonstrates how financial statement can be used for accounting analyses, with an emphasis on  on evaluation of risk and profitability. The most common measurement problems in financial reporting are explained. In addition, the course will introduce accounting for complex transactions of business combinations.

    Accounting theory discusses several models for accounting, especially the historical cost and fair value models. The course will discuss various models to enable students to understand advantages and disadvantages with the model in the Norwegian Accounting Act. The teaching emphasise the ethical challenge in financial reporting; to give open, objective, reliable and relevant information to external users the enterprise is dependent on. Several historical examples of reporting manipulation are given; examples where important information is excluded or biased and beyond commonly accepted ethical values and professional standards. The attempts to secure accounting quality through law regulation and the auditing function will also be examined.


    Course overview:

    1. Basic understanding of accounts

    • Elements of financial statements: income statement, cash flow statement, balance sheet and how these are connected. 
    • The objective an users of financial accounting
    • Norwegian accounting regulation
    • Accounting theory, models and principles
    • Limited liability companies, tax, equity transactions and group structures


    2. Basic analyses of accounts

    • Accounting adjustments for analysis purposes
    • Assessment of profitability
    • Risk assessment


    3. Measurement and presentation

    • Trade debtors and losses
    • Share trading
    • Inventory and calculation of profit/loss in the wholesale and retail trade
    • Inventory and production costs in production enterprises
    • Contract manufacturing
    • Fixed assets and depreciation/write-downs
    • Liabilities  

    4. Acquisition transactions

    • Consolidated accounts

  • Learning outcome

    Learning outcomes

    The student


    • understands the objevtive and content of financial accounts
    • has knowledge of the national regulation of financial accounts and can relate this to theoretical perspectives
    • understands the interplay between profit/loss, balance sheet and cash flow
    • understands how judgement and uncertainty affect financial accounts


    • can apply the basic principles and measurement principles in the Norwegian Accounting Act
    • can discuss other basic models for financial reporting 
    • can adjust financial accounts for analysis purposes
    • is capable of using simple techniques for profitability and risk assessments of companies based on their financial statements
    • is capable of solving key measurement problems in the financial accounts
    • is capable of preparing cash flow statements for companies based on information about their profit/loss and balance sheet
    •  is capable of preparing consolidated accounts on the basis of company accounts


    General competence

    • is capable of presenting accounting information in writing
    • is capable of discussing the information value of an accounting report for different users
    • is capable of communicating financial information honestly and in compliance with legal and accounting standards

  • Teaching

    The lectures will consist of theory lecturs and case lectures. 

    Theory lectures will in the start and in the end be physical lectures held as plenary lectures. However, most theory lectures will be prerecorded video lectures.

    Case lectures will be held as physically in auditorium. The students will be devided in smaller classes for discussion of cases while the lecturerer goes between the classes

    In addition, it will be arranged 5 rounds of casework in groups, 1 mandatory hand-in and Q&A service. These activities are served by student assistants.

    Except for prerecorded lectures, the lectures and other activities will be held physical and will not be streamed or recorded.

  • Required prerequisites


  • Credit reduction due to overlap


  • Compulsory Activity

    The course has one individual assignment that must be approved.

    Compulsory activities (work requirements) achieved 2017-2023 is valid for exam autumn 2023 and spring 2024. 

    If you have taken the course before autumn 2017, there is no compulsory activities (work requirements) required in order to retake the exam. 

  • Assessment

    3-hour individual school exam.

  • Grading Scale


  • Computer tools

    No special tools are required

  • Literature

    Oddbjørn Sættem: Bedriftens finansregnskap. Det analytiske brukerperspektivet. 3rd edition. Los Forlag.

  • Permitted Support Material

    Calculator and all written material


ECTS Credits
Teaching language

Autumn. Offered autumn 2023.

Exam is held every semester.

Course responsible

Kjell Ove Røsok, Department of Accounting, Auditing and Law.