Accounting and Corporate Finance

The course cannot be taken simultaneously with:

Business Economics (BIE-EPD)

Lecturer:

Tutor:

Supervisor:

Department of Software Engineering

Synopsis:

Students understand the principles and have practical skills in corporate finance. They have a grasp of accounting principles and understand the concepts of assets and liabilities, costs, revenues and profit. They know the structure of financial statements and know how to analyze them. They are able to evaluate investments and understand the effect of inflation and taxes on investment decisions.

Requirements:

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Syllabus of lectures:

1. Long-term financing.

2. Goals and importance of accounting. Accounting principles.

3. Accounting methods. Valuation of assets and liabilities, long-term and short-term assets.

4. Asset and capital accounts, asset writeoffs.

5. Costs and income, classification of costs by purpose and by type, cost-based decision making.

6. Final accounts, preparation, audit.

7. Profit-and-loss statement, structure.

8. Cash flows in a company, cash-flow statement.

9. Financial indicators of a company.

10. Annuity, perpetuity, simple and composite interest.

11. Methods of evaluating investment efficiency.

12. Choice of comparison period, annual NPV equivalent.

13. Impact of inflation and taxes on financial decisions.

Syllabus of tutorials:

1. Test.

2. Legal forms of businesses, relationships with accounting.

3. Balance sheet, break-up into accounts.

4. Tangible and intangible assets in accounting, writeoffs. Examples of business operations.

5. Taxes and accounting.

6. Balance sheet, profit-and-loss statement - composition, analysis.

7. Cash flow statement.

8. Calculation of business financial indicators.

9. Financial mathematics.

10. Loans, interest.

11. NPV and IRR.

12. Effects of taxes and financing on NPV calculation.

13. Comparison period. Advanced examples of assessing.

Study Objective:

The module aims to teach the principles and practicalities of financing and financial policies of companies or organizations. Students learn to understand the structure of financial statements and their importance for company management. Students will be able to analyze corporate finances and make informed investment decisions.

Study materials:

1. Osteryoung, J. S. ''Small Firm Finance: An Entrepreneurial Perspective''. Thomson Learning, 1997. ISBN 0030982200.

Note:

Further information:

No time-table has been prepared for this course

The course is a part of the following study plans:

• Information Systems and Management (Presented in English) (compulsory course of the specialization, compulsory elective economic-management course)
• Information Technologies (Presented in English) (compulsory elective economic-management course)
• Computer Engineering (Presented in English) (compulsory elective economic-management course)
• Software Engineering (Presented in English) (compulsory elective economic-management course)
• Computer Science (Presented in English) (compulsory course of the specialization, compulsory elective economic-management course)
• Web and Multimedia (Presented in English) (compulsory elective economic-management course)
• Informatics (Presented in English) (VO, compulsory elective economic-management course)