Business Simulation II

Knowledge obtained in the curricular units of the Accounting and Auditing degree, as well as in the degree in Business Management, with greater relevance from the following u.c.,:

 • Financial Accounting
• Corporate Accounting
• Management Accounting
• Business and Labour Law
• Taxation
• Economic and Financial Analysis
• Financial Management
• Business Reporting
• Auditing and Internal Control

1 Frequency regime:

Given the predominantly practical nature of this course unit and its role in developing essential competencies for the professional practice of a Certified Accountant, regular attendance is considered indispensable.
Learning is based on the progressive execution of tasks, problem-solving, and continuous use of integrated management software. As such, knowledge cannot be acquired exclusively through bibliographic materials, but rather through interaction with the lecturer, the software, and the working team, within a business simulation context.

2 Classroom methodology:
The teaching methodology is based on a combination of realistic business simulation, Project-Based Learning (PBL), and collaborative work, using authentic accounting, administrative, and tax documentation, as well as certified business management software.
2.1. Business Simulation Environment
Classes take place in computer labs equipped with workstations properly configured with the PHC ERP system, ensuring appropriate conditions for practical work in a business simulation context.
Students work in groups of two or three members, ensuring effective collaborative dynamics and allowing the distribution of tasks related to the accounting, financial, and tax management of a company.
In addition to the equipment available in class, students also have remote access to the ERP on their personal computers, enabling continuity of work outside class hours, the implementation of corrections, and the progressive development of learner autonomy.
The virtual company managed by each group continues the activity initiated in the first semester, reinforcing a comprehensive view of the annual accounting cycle and allowing the simulation of routine operations, closing procedures, tax obligations, and the preparation of financial statements.
Based on data entered into the system, students produce internal and external documents, generate accounting and financial reports, and build a documentary file that includes:
• accounting records,
• reconciliations,
• financial statements,
• reports,
• and simulated statutory filings.
All documentation used and produced reflects real professional practices, including invoices, receipts, bank statements, payroll records, and tax and corporate returns, ensuring a close approximation to professional reality.
2.2. Project-Based Learning and Continuous Tutoring
The methodology follows the principles of Project-Based Learning (PBL):
throughout the semester, students develop all activities required for financial reporting and year-end closing, culminating in an oral presentation at a simulated General Meeting.
The lecturer provides continuous tutoring, including individual and group support, technical clarification sessions, systematic feedback on performance, and guidance on the interpretation of accounting, tax, and corporate legislation. The lecturer integrates essential theoretical explanations with practical demonstrations in the ERP, promoting an applied and integrated learning experience.
2.3. Use of Certified Software and Critical Analysis
Through the ERP system, groups record transactions, process payroll, carry out closing procedures, extract financial reports, and perform other critical tasks of the business simulation, producing documentation that is integrated into the final dossier.
Students are encouraged to develop critical analysis skills regarding ERP outputs by validating balances, checking documents, applying internal control principles, and conducting financial analysis of key performance indicators, based on the accounting and management information generated by the system.
Each group critically analyses the accounting and tax work of another team, reviewing the procedures adopted, assessing the internal control system implemented, and preparing improvement recommendations. This activity promotes professional rigour, critical thinking, and technical review skills—essential competencies for the practice of a Certified Accountant.
2.4. Simulated Submission of Statutory Returns
In a controlled and simulated environment, students execute and understand the procedures for the electronic submission of tax and social security obligations through official portals:
• Tax Authority Portal (VAT, withholdings, e-fatura, Model 22, IES)
• Social Security Direct (DRI/DRO)
This practice reinforces regulatory compliance and professional preparedness.
2.5. Communication, Presentation, and Discussion of Results
At the end of the semester, each group delivers an oral presentation of the financial reporting process, simulating a General Meeting, including the discussion of results, analysis of indicators, and defence of the company’s financial position.
Throughout the semester, moments of critical discussion, organisational communication, and technical argumentation are promoted, aligned with the professional competencies defined by the OCC.

1 Objectives:

• To consolidate and deepen the application of technical accounting knowledge within a simulated business environment initiated in the first semester.
• To develop planning, organisation, and execution skills related to complex accounting operations, including year-end closing and the preparation of financial reporting.
• To foster ethical reasoning and regulatory compliance, ensuring the correct application of accounting standards (SNC, IAS/IFRS), as well as tax and labour regulations.
• To use technological tools (ERP systems) to produce, validate, and analyse accounting, financial, and tax information.
• To raise students’ awareness of the critical analysis of accounting and financial outputs, promoting an integrated view of business management.
• To promote collaborative work and decision-making in an advanced business simulation environment.
• To equip students with essential skills for the preparation of the management report and financial statements, as well as for compliance with statutory reporting obligations.
• To assess the internal control system adopted by another team and formulate well-grounded recommendations for improvement.

2 Skills to be developed:

At the end of the course unit, students should be able to:

• To record accounting transactions for the months of January, February, and March of year N+1, ensuring the continuity of the company’s activity initiated in the first semester.
• To carry out the year-end closing of accounts for year N, including end-of-period procedures such as accruals and deferrals, adjustments, tax estimation, and profit or loss determination.
• To prepare and analyse financial statements in accordance with the SNC (Statement of Financial Position, Income Statement by Nature and by Function, Cash Flow Statement, Statement of Changes in Equity, and Notes to the Financial Statements).
• To prepare the Management and Financial Report, supporting the main economic and financial indicators.
• To comply with, prepare, and submit accounting and tax statutory returns (VAT, Recapitulative Statements, Monthly Remuneration Statement/Social Security, Corporate Income Tax Return – Model 22, IES, Single Report, among others).
• To carry out and simulate compliance with tax and social security obligations, including the electronic submission of returns through the Tax Authority Portal and the Social Security Direct platform.
• To interpret and analyse key economic and financial indicators, assessing the company’s performance and financial position.
• To use the PHC ERP system at an advanced level, including monthly closing procedures, extraction of reports, reconciliations, and management support reports.
• To apply internal control principles, ensuring the reliability of accounting records and financial reporting.
• To integrate and collaborate effectively within a team, adopting ethical and professional behaviour appropriate to the practice of the Certified Accountant profession.
• To develop internal audit and internal control skills, identifying weaknesses in procedures adopted by other teams and proposing duly substantiated recommendations for improvement.

1. Initial organisation of the semester and activity planning

1.1. Presentation of the course unit and allocation of teams
1.2. Review of task planning and the simulation timetable
1.3. Reopening of the accounting year in the ERP

2. Year-end operations and accounting closing

2.1. Non-current operations

2.1.1. Depreciation and amortisation
2.1.2. Adjustments: accruals and deferrals, impairments, provisions
2.1.3. Tax challenges associated with non-current operations
2.1.4. Verification and validation of account balances

2.2. Inventory and adjustments

2.2.1. Verification of inventory accounts
2.2.2. Inventory adjustments (year-end)
2.2.3. Adjustment entries in the ERP

2.3. Determination of profit before tax

2.4. Estimation and determination of income tax

2.4.1. Guided completion of Corporate Income Tax Return – Model 22 (simulation)

2.5. Determination of net profit

3. Financial reporting

3.1. Preparation of information for decision-making

3.2. Preparation of Financial Statements:

3.2.1. Statement of Financial Position
3.2.2. Income Statement (by nature and by function)
3.2.3. Cash Flow Statement
3.2.4. Statement of Changes in Equity
3.2.5. Notes to the Financial Statements

3.3. Preparation of the Management Report

3.4. Report and Opinion of the Supervisory Body

3.5. Notice convening the General Meeting

3.6. Minutes approving the financial statements

4. Tax obligations – mandatory monthly and quarterly compliance

4.1. Periodic VAT Return
4.2. Recapitulative Statement
4.3. Communication of invoices to the Tax Authority (E-fatura)
4.4. Inventory reporting
4.5. Payment form for withholding taxes (PIT/CIT/Stamp Duty)
4.6. Monthly Remuneration Statement
4.7. Model 10 Return
4.8. Model 39 Return
4.9. Corporate Income Tax Return – Model 22
4.10. IES (Annual Accounting and Tax Information Statement)
4.11. Other ancillary obligations

5. Legal obligations — Social Security and other authorities

5.1. Monthly remuneration declaration (DRI/DRO)
5.2. Payment of social security contributions
5.3. Single Report
5.4. Annual holiday schedule

6. Ongoing activity (1st quarter of year N)

6.1. Reopening of the accounting year

6.1.1. Opening entries
6.1.2. Verification of the opening balance sheet

6.2. Preparation and recording of corporate changes occurred

6.3. Routine operations (January, February, March)

6.3.1. Creation of supporting documents for the simulation of operations
6.3.2. Classification and accounting recording of transactions: customers, suppliers, cash, banks, loans, investors, shareholders, and payroll-related operations (salary processing and related procedures)
6.3.3. Preparation of bank reconciliations
6.3.4. Preparation of professional opinions and the tax, accounting, and professional treatment of proposed challenges

7. Document archiving and internal control

7.1. Organisation of the accounting file
7.2. Organisation of the tax file (Article 130 of the Corporate Income Tax Code)
7.3. Internal control procedures

7.3.1. Auditing the work of another group and preparing an internal control report on the practices adopted, including the respective recommendations.

NAO