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.
Sustainability reporting is increasingly important for companies. We will shortly explain what this is and what is the main differences compared to financial reporting
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 with most focus on inventory, fixed assets and shares.
4. Acquisition transactions and consolidated accounts