Students are expected to have covered the “Introduction to Accounting” and “Financial Accounting” courses in previous semesters, before taking this Advanced Financial Accounting course. During those previous courses, the students should have become familiar with accounting for short-term operations and long-term investments and understand the resulting impact on the Income Statement and Balance Sheets. Advanced Financial Accounting is designed to prepare the students for an effective understanding of those aspects regarding the relationship of the company with the shareholders, presented in the Statement of the Shareholder’ Equity. In addition, they will pursue an accounting perspective on Corporate Tax management, foreign currency, financial assets and business combinations (mergers and acquisitions).

Business Administration and Management students can pursue diverse career paths, where they will frequently be expected to put together Financial Statements or to analyze the information provided by the Statements. In this course, the students will work on those skills necessary for creating a company, increasing or reducing the capital when needed, working on tax management, making decisions for distributing the obtained profits or losses, and managing the investments of the company, in order to gain a solid understanding of these situations from an accounting perspective.

SKILLS

In this course, students will develop the following skills:

G.1. Knowledge and use of the accounting model

G.2. Corporate tax management and the effect, specifically that of deferred taxes, on the financial statements

G.3. Knowledge of the options and limitations for distributing the profits or losses obtained by the company in that year and its impact on the shareholders' equity.

G.4. Students will be capable of deciding if the company needs to increase or reduce capital, based on the analysis of the shareholder’s equity, and be able to account for those decisions.

G.5. Students should have the ability to understand and use the Statement of Shareholders Equity appropriately.

G.6.- The students will have the ability to know and understand the characteristics of different financial investments a company can make, understand the effects that different investments can produce in the accounting and properly understand and account for all decisions that the company makes regarding financial assets.

G.7. The students will be able to understand the decisions regarding mergers and acquisitions, and they will be able to accomplish them using different methods.

G.8. The students will be able to account for situations that may arise with the use of different currencies.

These skills will be developed through transversal abilities like autonomy, analytical thinking, critical thinking and teamwork..



LEARNING OUTOMES

To certify the above skills, the students must obtain the following LEARNING OUTCOMES:

E.1. Create a business, thinking through all decisions involved and presenting those ideas appropriately in the Financial Statements (Income Statement, Balance Sheet and Statement of Shareholders Equity), using all variables and conditions that were taken into consideration, incorporating a sustainability approach (to do so, they must identify which SDGs they will apply in their company, justifying it

E.2. Elaborating the corporate tax from, both, the accounting and tax perspective. Indicate appropriately the impact of the corporate tax on the Financial Statements (Income Statement, Balance Sheet and Statement of Shareholders Equity),

E.3. Depending on whether the result of the financial year is a profit or a loss, taking into account all distribution requirements, formulate a proposal for distribution and adequately express it in the Financial Statements (Income Statement, Balance Sheet and Statement of Shareholders Equity),

E.4. Taking into account the situation of the shareholders equity of the company and its objectives, students should be able to decide whether to increase or reduce the capital, after analyzing the different options and reflect those decisions appropriately in the Financial Statements (Balance Sheet and Statement of Shareholders Equity).

E.5. The students will be able to understand the decisions regarding mergers and acquisitions, and they will be able to accomplish them using different methods.

E.6. Identify the different options of financial investments for the company, understand their characteristics and properly account for them. The transactions generated will also be properly represented in the Financial Statements (Income Statement)

E.7. The students will be able to account for situations that may arise with the use of different currencies and reflect them in the Financial Statements (Journal, Income Statement)

Unit 1: Statement of Shareholders Equity

Unit 2: Starting a business

Unit 3: Accounting for corporate tax

Unit 4: Distribution of earnings

Unit 5: Increasing capital

Unit 6: Reducing capital

Unit 7: Financial Assets

Unit 8: Business combinations

Unit 9: Foreign currency transactions

The teaching and learning methodology proposed for this subject will be based on cooperative and dynamic learning methods proposed by the University of the Basque Country (UPV/EHU). Students will be the focus of learning and will participate actively in the subject. This way the core competencies will be taught progressively through dynamic cooperative participation in class and in group work, as well as autonomously fulfilling individual assignments.

Different methodologies will be used, the main one being project-based learning in groups of 2-3 students. All the contents that are developed in the course should be applied to the projects. The objective is to prepare students to make the usual decisions that are taken in regular business management operations on a daily basis (profit management, tax management, shareholders’ equity management).

• Continuous Assessment System
• Final Assessment System
• Tools and qualification percentages:
  • Written test to be taken (%): 50
  • Individual works (%): 20
  • Team projects (problem solving, project design)) (%): 30

CONTINUOUS ASSESSMENT



Studies: the scores obtained in the different projects and tests, both individual and collective, will represent 40% of the final grade of the subject.

Final test: the evaluation will be completed with an exam that will represent 60% of the final grade.





(In the event of an exceptional public health crisis, such as the COVID pandemic, if it is not possible to perform the examination in class or in person, it will be conducted online and will consist of a test with short answer questions. The students will have a period of up to 7 days before the date of the final examination to waive the continuous assessment, if they wish to do so.)



This test result must be a minimum of 40% of the 6 points (2.4 points of 6) to add the 4 points of the continuous assessment test.

Only students who at the end of the term achieve 80% attendance (to both theoretical and practical classes) are eligible for continuous evaluation. Students who do not meet this requirement will take the final assessment system.



FINAL ASSESSMENT

Students who waive the continuous evaluation will have the option of accrediting their knowledge of the subject through a single test to be carried out in the first call for the exam. This exam result will make up 100% of the course grade.



In the event of an exceptional public health crisis, such as the COVID pandemic, if it would not be possible to perform the examination in person, it will be conducted online and will consist of two sections:

1. An online test consisting of questions and short exercise tests that will represent 60% of the final grade. To receive a passing grade in this subject, it will be necessary to obtain a minimum of 2.4 points out of 6, requiring a minimum of 5 points between the two tests.

2. An individual test, that will represent 40% of the final grade, conducted via video call with interview questions about the contents of the subject. The student must obtain a minimum of 50% of the maximum score on this test in order to be able to add the result to those of the online test.

Students are required to communicate to the teacher by email their intention to perform the FINAL ASSESMENT at least 7 days in advance of the test date. The teacher and the student will agree on a day/time for the test.

A single test will be given to in order for the students to prove their knowledge. This test will have a value of 100% of the course note.



In the event of an exceptional public health crisis, such as the COVID pandemic, if it would not be possible to perform the examination in person, it will be conducted online and will consist of two sections:

1. An online test consisting of questions and short exercise tests that will represent 60% of the final grade. To receive a passing grade in this subject, it will be necessary to obtain a minimum of 2.4 points out of 6, requiring a minimum of 5 points between the two tests.

2. An individual test, that will represent 40% of the final grade, conducted via video call with interview questions about the contents of the subject. The student must obtain a minimum of 50% of the maximum score on this test in order to be able to add the result to those of the online test.

Students shall communicate to the teacher by email their intention to perform the FINAL ASSESMENT at least 7 days in advance of the test date. The teacher and the student will agree on a day/time for the test.

For the follow-up of the High Level Financial Accounting subject, the material elaborated by the professor, which collects the theory and exercises, will be used.

Basic bibliography

Lessambo, F. ( 2018): Financial Statements. Analysis and Reporting.

Sheila Ammons et al. (2001): Instructor's Manual Financial Accounting: The Impact on Decision Makers

Robert Libby et al. (2021): Financial Accounting 10th Edition

Tom Y. Sawyer (2014): Financial Modeling for Business Owners and Entrepreneurs: Developing Excel Models to Raise Capital, Increase Cash Flow, Improve Operations, Plan Projects, and Make Decisions

Garrison et. al (2020): Managerial Accounting

Christensen, T et al. (2018): Advanced Financial Accounting



Online resources

IRFS, International Reporting Financial Standards: https://www.ifrs.org/

US SECURITIES AND EXCHANGE COMMISSION: https://www.sec.gov/

Financial Accounting Standards Board (FASB): https://www.fasb.org/home

Corporate Finance Institute: https://corporatefinanceinstitute.com/resources/knowledge/accounting/stockholders-equity-guide/

https://corporatefinanceinstitute.com/resources/knowledge/finance/equity-definition

Patriot Software: https://www.patriotsoftware.com/blog/accounting/what-is-equity-in-a-business/

Accounting Coach: https://www.accountingcoach.com/stockholders-equity/outline

In-depth bibliography

CASTRILLO LARA, L.A. (coordinador) (2008): Plan General Contable 2007. Aplicación de las normas de valoración. (Comentarios y casos prácticos). Ed. Delta. Publicaciones Universitarias.
FERNÁNDEZ, F.J. ; ALVAREZ CARRIAZO, JL.: " Contabilidad de Sociedades". ED.CEF,2009.
GUTIÉRREZ VIGUERA, M. : " Contabilidad de operaciones Societarias". Ed. CISS, 2011.
GUZMAN, I.; PUERTA, A. : " Contabilidad de sociedades". Ed. LID, 2009
TORVISCO MANCHÓN, B.; OLÍAS DE LIMA Y HERAS, R.: “ Fundamentos de Contabilidad de Sociedades”. Ed. Pirámide. 2015.

Journals

REVISTA CONTABLE: http://revistacontable.wke.es/ EHUko liburutegian eskuragarri.

Web addresses

www.icac.meh.es. ICAC Instituto de Contabilidad y Auditoría de Cuentas,
Espainako kontabilitate arautegia

www.cnmv.es. CNMV COMISIÓN NACIONAL DEL MERCADO DE VALORES:
Enpresa kotizatuen eragiketen informazioa.