Hochschule München

Learning outcomes / skills:

To extent knowledge in Management Accounting and Financial Reporting, IFRS:

“The age of free trade and the interdependence of national economies is now with us. Many of the largest companies in the world often do more of their business in foreign lands than in their home country. Companies now access not only their home capital markets for financing but others as well. As this globalization takes place, companies are recognizing the need to have one set of financial reporting standards.” Kieso (Accounting 2014) S. 2, pls. see literature

The basic concepts of IFRS shall be part of this course.

The course should also help students to find a more elaborate access to cost accounting in order to fulfill requirements being asked for in a commercial management position. Beside the traditional methods of cost accounting, the students will get familiar with the concepts of Activity based costing, Target Costing and capital investment decisions, planning and budgetary control systems as well as the concept of performance measurement.

On the basis of an integrated financial model, which the students will design and build themselves, they will intensify their understanding regarding the connection between income and balance sheet and the cash flow statement. Furthermore will the students be introduced to the requirements a reporting system asks for in order to be able to develop an adequate controlling system.

Contents:

IFRS (International Financial Reporting Standards)

Financial Reporting and Accounting Standards

Conceptual Framework for Financial Reporting

The Accounting Information System

Income Statement and Related Information

Statement of Financial Position and Statement of Cash Flows

Accounting and the Time Value of Money

Accountants’ role in an organization

Cost Terms and purposes

Cost Allocation

Process costing system – Activity based costing

Target Costing

Capital investment decisions

Planning budgetary control systems

Performance measurement

Deployed methods of business administration:

·         Models and Methods of analytics (research- and analytic models):

o    Process models (e. g. procedure of due diligence)

o    Component models (e. g. time series analyses for key figures development)

o    Normative decision theory (e. g. assessment of the impacts of individual forms of financing)

o    Qualitative optimization models

o    Quantitative optimization models

o    Forecasting models (budget figures)

o    Models of interaction (communication)

·         Quantitative-empirical methods (comparative – statistic, mathematic methods, data analyses):

o    Key figures on the financial situation (such as liquidity, inventory turnover period), the income situation (e. g. return on investment, interest expense ratio), the financial position (e. g. cash flow figures, days payables outstanding); in this context, working with primary data and secondary data

o    Quantitative comparative analyses (e. g. statistical references from Standard & Poor’s)

o    Statistical analyses (e. g. medians of key figures in rating classes)

·         Qualitative-interpretative methods  (expert interview, surveys, standardized inquiry):

o    Qualitative company analyses (branch, organizational structure, management, business relationships, payment behavior)

o    Descriptive decision theory

o    Prescriptive decision theory

o    It is possible to conduct expert interviews as part of the project work

Methods of Teaching and Learning:

·         Lectures and discussions: Theory and Reality

·         Case studies and group work

·         Self-controlled learning

·         Special guests lectures (N.N.)

·         Seminar paper

Literature:

·         A. Bhimani, C. Horngren, S. Datar; Management and Cost Accounting, Prentice Hall International, 2011

·         Kieso, Donald E., Weygandt, Jerry J., Warfield, Terry D.; Intermediate Accounting, IFRS Edition, John Wiley & Sons, Inc., 2nd Edition, 2014

·         More literature at the beginning of the course