Financial Accounting

BED2 Financial Accounting

Autumn 2021

  • 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 Law and international accounting standards. The course demonstrates how financial statement can be used for accounting analyses, withe an emphasis on  on evaluation of risk and profitability. The most common measurement problems in financial reporting are explained in detail. In addition, the course will introduce accounting for complex transactions of business combinations and mergers. Alternatives to transaction based historical cost accounting will also be presented with focus on fair value accounting. 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, is dim 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 and international accounting regulations (IFRS regulations)
    • Transactions and bookkeeping
    • 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: internal rate of return, profitability and required rate of return
    • 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
    • Mergers between companies

  • Learning outcome

    Learning outcomes

    After completing the course, the student has achieved the following learning outcomes


    • understands the objevtive and content of financial accounts
    • has knowledge of the national and international regulation of financial accounts
    • understands the interplay between profit/loss, balance sheet and cash flow
    • understands how judgement and uncertainty affect financial accounts


    • masters the basic models for financial reporting where uncertainty is present
    • 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 and merged accounts on the basis of company accounts


    General competence

    • is capable of presenting accounting information in writing
    • is capable of discussing professional opinions and 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

    30 hours of plenary lectures, 5 rounds of group work, 1 compulsory assignment, Q&A service. Plenary lectures and group work will primarily be held physically in auditorium. However, some may be held digitally due to the corona pandemic. Plenary lectures and group work will in any case be digitally available.

  • Required prerequisites


  • Credit reduction due to overlap

    The course is equivalent to BED020

  • Requirements for course approval

    The course has one individual assignment that must be approved in order for the candidate to receive course approval.

    If you have taken the course before autumn 2017, there is no requirement for course approval upon retake of exam.

  • Assessment

    3-hour individual home exam.

  • Grading Scale

    Grading scale A-F

  • Computer tools

    No special tools are required

  • Literature

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


ECTS Credits
Teaching language

Autumn. Offered autumn 2021.

Exam is held every semester.

Course responsible

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