Financial Accounting I

There are no recommended background. The course is tought onthe assumption that students have never taken accounting courses.

The teaching methodology will involve interactive lectures, questioning and demonstration with the resolution of corresponding exercises.

The inverted classroom and collaborative learning will also be promoted, where students will have the opportunity to share experiences.

The aim is for students to grasp the syllabus and acquire the skills defined.

• The objectives of the course are

  • To understand the importance of financial accounting within the information and management systems of organizations
  • To understand the accounting model, progressively, starting with a static analysis of an entity’s assets, and then proceeding to a dynamic analysis of the assets which will allow the Balance Sheet and the Income Statement by Nature to be constructed.
  • Understand concepts that form knowledge of the accounting standards (Sistema de Normalização Contabilística – SNC).

   

  After successfully completing this course, students should be able to:

• Framing the business reality and the position of the accounting system in that reality;

• Identifying the importance of accounting information and its recipients;

• Identifying the assumptions and characteristics inherent in the production of accounting information;

• Applying the methods and techniques of accounting for purchases and sales and other related operations;
• Characterizing IVA in theoretical terms, and applying it to accounting entries.

• Drawing up a company’s financial statements

• Recognizing some of the internal and external operations of companies in accounting terms, in accordance with the SNC.

1. Introduction
1.1 General considerations

1.2 Accounting as an information system

1.3 Concept of financial accounting

1.4 Main divisions of accounting

2. Fundamental concepts

2.1 Assets

2.2 Balance sheet

2.2.1 Concept

2.2.2 General Balance Sheet Equation

2.2.3 Representation of the Balance Sheet

2.3 The unit of aggregation in Accounting: the Account

2.3.1 Graphical representation

2.3.2 Requirements and characteristics

2.3.3 Examples

2.4 Overview: the elements of the financial statements (Assets, Liabilities, Equity, Expenses and Income)

2.5. The accounting method: double entries

2.6 Debit and credit laws

2.7. The Diary and the General Ledger and how they work together

2.8. Trial balance

2.9 Exchangeable and modifiable asset facts

2.10. Balance sheet and income statement by nature

2.11. Approach to NCRF 1

3. Accounting harmonization and standardization

3.1. General aspects of accounting standardization

3.1.1 Objectives

3.1.2 Advantages

3.2 Global accounting harmonization

3.2.1 The benchmark for global accounting standardization: the International Accounting Standards Board (IASB)

3.2.2 Standards issued by the IASB

3.2.3 Accounting harmonization in the European Union

3.3 National accounting standardization

3.3.1 General

3.3.2 The CNC: the body that issues accounting standards

3.3.3 The different accounting standards that coexist in Portugal

3.3.4 The Accounting Standardization System (SNC)

4. Theoretical approach to Value Added Tax (IVA) in sales and purchase transactions

4.1. General aspects of IVA

4.2 Deductible IVA

4.3 Liquidated IVA

4.4 IVA Adjustments

4.5 Intra-Community Transactions [RITI]

4.6 Exports and Imports

5. Accounting for transactions

5.1 Net financial resources

5.1.1 Cash

5.1.2 Bank deposits

5.1.3 Financial instruments held for trading (initial measurement, subsequent measurement and disposals)

5.1.4 Approach to NCRF no. 23

5.2 Purchases and other transactions with suppliers

5.2.1 Concepts

5.2.2 Measurement of payables

5.2.3 Accounting for purchase transactions

5.2.4 Advances to suppliers

5.2.5 NCRF no. 18

5.2.6 Discounts, returns and exchange differences

5.3 Sales and other transactions with customers

5.3.1 Concepts

5.3.2 Basis for recognizing income

5.3.3 Measurement of receivables

5.3.4 Accounting for sales and service transactions

5.3.5. Advances from customers

5.3.6 Discounts, returns and exchange differences

5.4 Inventories

5.4.1 Concepts

5.4.2 Measurement of inventories

5.4.2.1 Inventory entries

5.4.2.2 Inventory issues – Costing formulas

5.4.3 Accounting methods

5.4.3 Methods of accounting for inventories

5.4.3.1 Permanent inventory

5.4.3.2 Periodic inventory

5.4.4. Transactions with inventories

5.4.4.1. purchases and sales

5.4.4.2. adjustment of inventories

5.4.4.6 Consignment inventories

5.4.5 Cost of materials consumed (intermittent inventory system) and change in production (intermittent inventory system)

6. IVA Clearance

6.1 IVA payable

6.2 Recoverable IVA

6.3 IVA Refunds

7. The Concept of the Accounting Period and the Importance of Accruals and Deferrals

7.1 Main concepts

7.2 Debtors for accrued income

7.3 Creditors for accrued expenses

7.4 Deferrals – Expenses to be Recognized

7.5 Deferrals – Income to be Recognized

NAO