Financial Reporting and Accountability

This curricular unit is based on the knowledge of the contents already acquired in the first year of the course in curricular units related to accounting standards.

The development of the program will be done, as much as possible, using active methods, which involve the participation of students and the promotion of a theoretical-practical perspective of the themes and an approach based on know how. For this, the explanation of the theoretical and conceptual foundations of the subjects will be combined with the analysis of real cases and the resolution of pedagogical exercises (individually or in groups), making a constant appeal to the students appreciation, in order to encourage reasoning and vision critical.

The curricular unit “Financial Reporting and Accountability” has as main objectives:

– Identify and prepare the financial statements compulsory and optional, according to national accounting standards;

– Address some specific issues of corporate reporting;

– Studying the obligations of accountability arising from corporate and tax law for commercial companies.

Students should acquire the following skills:

• Be aware of the statutory financial statements and the respective model according to entity type;

• Prepare the various financial statements;

• Know the importance of non-financial reporting and the entities required to prepare it;

• Know the obligations of accountability of companies, its content, requirements in elaboration and legal specificities;

• Meet the obligations of disclosure to third parties;

• Know how to make the connection between the accounting result and the tax result and identify some differences between them.

I. Introductory aspects and framework

I.1. Need for normalization, advantages and disadvantages

I.2. Accounting Normalization / Harmonization

I.2.1. Emphasis on the role of the IASB and the EU

I.3. Evolution of accounting normalization in Portugal: from POC to SNC

II. The financial reporting according to national accounting standards (SNC)

II.1. Financial statements compulsory and optional

II.1.1. Financial statements of the general model and the reduced model

II.2. Preparation and presentation of financial statements – general standards

II.2.1. Basis for the presentation of financial statements and conceptual structure

II.3. NCRF 1 – Presentation of financial statements

II.3.1. Framework

II.3.2. Preparation of Balance Sheet – Current / Non-current

II.3.3. Income statement

II.3.4. Annex

II.3.4.1. Framework and objectives

II.3.4.2. Some specific disclosure situations

II.4. NCRF 2 – Statement of cash flows

II.4.1. Framework

II.4.2. Types of activities

II.4.3. Direct method preparation

II.5. Statement of changes in equity

II.5.1. Framework and objectives

II.5.2. Accounting treatment of some specific situations

II.5.2.1. Results and its application

II.5.2.2. NCRF 4 – Accounting Policies, Estimates and Errors

II.5.2.3. Other movements in class 5

II.5.3. Components and preparation of the statement of changes in equity

III. The legal obligation of accountability of commercial companies

III.1. Framework

III.2. The documents of accountability

III.3. Non-financial reporting

III.3.1. The growing importance of non-financial information

III.3.2. The non-financial statement and its obligation

IV. From financial reporting to tax reporting

V.1. The influence of taxation on accounting

V.2. The accounting result as a basis for corporate taxation

V.5. Differences between accounting income and taxable income and deferred taxes

NAO

• Fundamental bibliography

Araújo, Duarte Nuno; Cardoso, Patrícia e Novais, José (2011), Manual de Prestação de Contas nas Sociedades Comerciais – O processo de relato financeiro em SNC. 2ª Ed. Porto: Vida Económica.

Borges, António; Rodrigues, Azevedo e Rodrigues, Rogério (2021), Elementos de contabilidade Geral. 27ª Ed. Lisboa: Áreas Editora.

Correia, Luísa Anacoreta; Matos, Sónia Costa e Martins, Rui Neves (2011), Novo sistema contabilístico: Anexo em SNC – guia prático. 2ª Ed. Porto: Vida Económica.

Finanças (2017), Decreto Lei n.º 89/2017, de 28 de julho.

Gonçalves, Cristina; Santos, Dolores; Rodrigo, José e Fernandes, Sant’Ana (2020), Contabilidade Financeira Explicada – Manual Prático. 4ª Ed. Porto: Vida Económica.

Lourenço, Isabel Costa; Morais, Ana Isabel e Lopes, Ana Isabel (2020), Fundamentos de Contabilidade Financeira – Teoria e Casos. 3ª Ed. Lisboa: Edições Sílabo.

Rodrigues, João (2021), Sistema de Normalização Contabilística Explicado. 8ª Ed. Porto: Porto Editora

Sistema de Normalização Contabilística (SNC) aprovado pelo Decreto-Lei nº 98/2015, de 2 de junho e legislação complementar.

Material disponibilizado pela docente.

• Complement bibliography

Código Comercial (approved in 1833 and revised in 1888).

Código das Sociedades Comerciais, aprovado pelo Decreto-Lei n.º 262/86 de 2/9/1986.

Código do Registo Comercial, aprovado pelo Decreto-Lei n.º 403/86 de 2/9/1986.

Cunha, Paulo Olavo (2019), Direito das Sociedades Comerciais. 7ª Ed. Coimbra: Almedina.

Gomes, João e Pires, Jorge (2015), SNC – Sistema de Normalização Contabilística, Teoria e Prática. 5ª Ed. Porto: Vida Económica.