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