Financial Accounting

Base Knowledge

It is recommended that students understand the accounting model and the portuguese accounting regulations (SNC), namely, have knowledge of its Conceptual Structure.

Teaching Methodologies

Attendance to classes is optional but highly recommended.

Classes are theoretical-practical, using an expository methodology for the presentation of the material, supported later in a methodology of work by the student in the application to practical exercises with the objective of consolidating knowledge.

Developed summaries and exercise books are available. 

Learning Results

The Financial Accounting Curricular Unit in the Master’s Degree in Agricultural Business Management aims to develop some accounting topics that are directly related to Agriculture. Specifically, the objectives include:

1. Know the fundamental concepts of accounting, accounting standardization and the conceptual structure.

2. Analyze the specific accounting aspects of agricultural activity, within the scope of national accounting regulations;

3. Know the accounting treatment of financial instruments and the respective recognition, measurement and disclosure requirements, within the scope of national accounting regulations;

4. Know the requirements required for the recognition of hedge accounting and its accounting treatment, within the scope of national accounting standards.

 

Attendance and approval in this Curricular Unit should allow students to acquire knowledge about:

a) when and how to account for biological assets related to agricultural activity;

b) the accounting treatment of different financial instruments.

Program

 

1. Introduction to Financial Accounting

  • Basic Accounting Concepts
  • Importance of Accounting in Agricultural Companies
  • Generally Accepted Accounting Principles (GAAP)

2. Chart of Accounts for the Agricultural Sector

  • Adaptation of the SNC (Accounting Standardization System) to Agricultural Companies the Specific Chart of Accounts for Agriculture
  •  Examples of Common Accounts in the Sector

3. Record of Accounting Operations

  • Accounting Documentation (invoices, receipts, contracts, etc.)
  • Record of Purchases and Sales of Agricultural Products
  • Register of Agricultural Grants and Subsidies
  • Register of Biological Assets

4. Recognition and Measurement of Agricultural Assets and Liabilities

  • Biological Fixed Assets: Definition and Measurement
  • Recognition of Agricultural Products
  • Sector Specific Liabilities (agricultural credits, etc.)

5. Financial Statements

  • Income Statement
  • the Balance
  • Cash Flow Statement
  • Annex to the Financial Statements

6. Tax Particularities in the Agricultural Sector

  • VAT Scheme in the Agricultural Sector
  • Tax Implications of Subsidies and Incentives
  • Taxation of Biological Assets

7. Financial Analysis of Agricultural Companies

  • Economic and Financial Indicators
  • Profitability Analysis
  • Risk Management and Financial Control

Curricular Unit Teachers

Internship(s)

NAO

Bibliography

Fundamental Bibliography:

 – GONÇALVES, Cristina, FERNANDES, Sant’Ana, SANTOS, Dolores e RODRIGO, José (2020) Contabilidade Financeira Avançada – Manual Prático, 4ª Edição, Vida Económica, Lisboa.

 – RODRIGUES, João (2021), SNC – Sistema de Normalização Contabilística – Explicado, 8ª Edição, Porto Editora.

Complementary Bibliography:

 – PRICEWATERHOUSECOOPERS (2022) IFRS Manual of Accounting – 2022. Global guide to International Financial Reporting Standards, Global Accounting Consulting Services PricewaterhouseCoopers LLP, CCH, Londres.