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Bucharest University of Economic Studies

Faculty of Business Administration in Foreign Languages-


English track

Financial Accounting- 2019


Adriana Dutescu, Prof. , PhD

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Adriana Dutescu

Education:
•Bled School of Management, Slovenia
•University of Ottawa & HEC University, Canada
•Universite d’Orleans, France
•University of Reading – Great Britain
•Universite des Sciences Sociales de Toulouse-France
•Bucharest University of Economic Studies, Romania
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Adriana Dutescu

Professional qualifications:
•Charted accountant
•Charted financial auditor
•Charted tax consultant

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Adriana Dutescu

Academic qualifications:
•Professor
•PhD tutor

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Financial Accounting Course
Content

TOPIC I: Introduction & recap


TOPIC II: Conceptual framework of financial
statements
TOPIC III: The statement of the financial position
(balance sheet)
TOPIC IV: The income statement and other
comprehensive income (Profit & Loss Account/Income
Statement)
TOPIC V: The Statement of Changes in the Financial
position (the Cash-flow-statement) 5
Financial Accounting Course
Content

TOPIC VI: The statement of changes in equity


TOPIC VII: Non-current assets
TOPIC VIII: Current assets
TOPIC IX: Sources of capital: non-current liabilities
TOPIC X: Current liabilities
TOPIC XI: Special cases: provisions
TOPIC XII: Sources of capital: equity
TOPIC XIII: Financial analysis 6
Financial Accounting Course

GRADE COMPOSITION:
•30% SEMINAR MARK
•70% FINAL EXAM MARK

NB: bonus 10% for all courses homework performed


and 5% for min. 5
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Financial Accounting Course

COURSE OBJECTIVES:
• get familiar with key accounting principles, concepts
& techniques
•understand, apply and use the financial information to
fundament in the decision making process
•able to provide basic financial analysis
• be aware of cultural differences of various financial
statements & disclosure patterns

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Financial Accounting

Accounting & financial scandals

http://www.youtube.com/watch?v=7g_d-phoUrU

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Financial Accounting

Why do we need accounting ?


•information system
•communication tool

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Financial Accounting

Why do we need accounting ?


•financial information – a
commodity

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Financial Accounting

Who needs the accounting information?


•Investors
•Creditors
•Suppliers & clients
•State
•General public 12
Financial Accounting
Accounting profession:
•IFAC-International Federation of Accountants
•FEE- Federation of European Accounting Experts
•CECCAR-the Body of Licensed & Chartered
Accounts of Romania
•CAFR- Romanian Chamber of Financial Auditors
•CCFR- Romanian Chamber of Tax Consultants

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Legal & accounting framework

⚫ Corporate (company’s) act & specific accounting


laws/regulations

⚫ Accounting framework:
– Local accounting standards
– IFRS
– US GAAP
– UK GAAP
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Romania: regulations & framework

⚫ European Directive 2013/34/UE on the annual


financial statements, consolidated financial
statements and related reports of certain types
of undertakings
⚫ Order 1802/2014 on the approval of accounting
regulations for individual and consolidated
annual financial statements (Ministry of
Finance)
⚫ Law of 15Accounting, no. 82/1991
Organisational chart

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Differences between financial and management
accounting

Financial accounting Management accounting


information information
⚫ for the use of managers ⚫ for internal use only
and external parties ⚫ flexible formats of
⚫ compulsory formats of presentation
presentation ⚫ based on business
⚫ based on GAAP requirements
⚫ historical ⚫ dynamic

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Financial Accounting
Financial statements:
•Statement of financial position (Balance sheet)
•Income statement/Profit & Loss Account
•Statement of Cash Flows
•Statement of Changes in Equity
•Notes
•Others 18
Financial Statement Objectives
Financial reporting should provide
information:

 about the financial position of the company


 about the performance of the company
 about the change in the financial position of
the company

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Conclusion
An organization has four types of accounting
information:
 Operating information, which has to do with the
details of operations
 Management accounting information, which is
used internally for planning, implementation, and
control
 Financial accounting information, which is used
both by management and external parties
 Tax accounting information, which is used to file
tax returns with taxing authorities
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