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    Fundaments of Accounting

    Track:All tracks
    Follow-up / Interfaces:All classes
    Pre-requisites:Pre-reading and preparation tasks
    Didactics:

    Lecture, case studies, individual tasks, plenum discussions, E-learning platform, Computer simulation
    Exam:Oral and written exam
    ECTS points:3
    Lecturer:Prof. Dr. Martin Göbl

    Aims and objectives:

    The goal of the course is to provide students with an introductory understanding of the meaning and uses of information generated by internal cost accounting as well as external financial reporting. This course is intended to enable participants to make use of cost and financial information in order to analyse the performance of a business and to comment on how this might be improved, and to plan and control the activities of a business. Introduction to Accounting teaches participants to prepare and analyse the three main financial accounting statements - the balance sheet, profit and loss account and cash flow statement.

    General learning objectives:

    The MBA programme should provide all participants with a substantial knowledge of all relevant business areas and a holistic understanding of the value chain of a commercial company and how the different functions work together. They should have the insight how to organize and steer an organization.
    The participants of the MBA programme should gain particular knowledge in the description and analysis of financial data and the rules for financial decision making.

    Detailed learning outcomes:

    • Understanding the rules for financial decision making
    • Using cost and financial information in order to analyse the performance of a business
    • Planning and controlling the activities of a business
    • Applying their problem solutions to their business environment
    • Creating and analysing the three main financial accounting statements - the balance sheet, profit and loss account and cash flow statement

    Course textbook:

    Collier (2015): Accounting for Managers, 5th Ed.

    Provided simulation manuals

    Content of Introduction to Accounting:

    1. Introduction to Accounting

    • Why accounting is a necessary skill?

    2. The Fundamentals of Accounting

    • Basic terms
    • Assets and Liabilities
    • Owners' Equity, Accounting Equation
    • Bookkeeping

    3. Cost Accounting

    • Cost Type Accounting
    • Cost Centre Accounting
    • Cost of Unit Accounting
    • Additional Accounting Tools
    • Contribution Margin Accounting

    4. The Financial Statement

    • Profit and Loss Statement
    • Balance Sheet
    • Cash Flow

    5. Decision Making Process

    • Influence on Business Strategy and Competitive Advantages
    • Value Analyses
    • Choosing relevant Information and KPIs
    • Interpret results

    Recommended supplemental readings:

    Mc Laney / Atrill (2008): Accounting. An Introduction, 4th Ed.

    Black (2008): Introduction to Accounting and Finance, 2nd revised Ed.

    Bhimani / Horngren / Datar / Foster (2008): Management and Cost Accounting

    Horngren / Datar / Foster / Rajan / Ittner (2009): Cost Accounting

    Krause / Arora (2008): Key Performance Indicators

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