Corporate Simulation I

Pre-requisite:

Students should have a good knowledge of:

   – Financial Accounting

   – Management Accounting

   – Taxation

  –  Labor law

  – Corporate law

Students are first organized into groups of three or four elements, each group activating the management of a virtual company, in a business simulation environment.

As the companies to be created will be preferentially from the services sector and the existence of complementarity between them should be sought.

The companies will start their activity in November of year n, so that at the end of the financial year students can carry out all the procedures related to the preparation for the closing of the year.

During their activity, as companies they will generate and receive documents that will be organized, classified, and recorded in an integrated management computer system. In addition to current management, students will be faced with challenges of accounting and tax, so that they can apply in practice the theoretical knowledge acquired in other curricular units such as knowledge of financial accounting, corporate accounting, taxation, corporate law , labor law, among others.

Classes will take place in computer rooms equipped with printer and scanner, where each group of 3/4 students will have access to computers and respective integrated management software. From the input of data, documents for external and internal use will be produced, and statements and analysis reports will be obtained. From this work, outputs, generated by the different software modules, will be organized, and filed in a file.

The teacher, in addition to making a brief approach to the most relevant concepts in the scope of the tasks to be performed, namely in the areas of Accounting, Taxation, Labor Law, Corporate Law and Management, will combine theoretical explanations of the architecture of an integrated management software program with practical examples in the software chosen to support the Business Simulation I classes.

This course aims to achieve the following objectives:

•Make students aware of the relevance of using information technologies in conducting management business.

•Disclose the procedures for setting up companies.

•Use and understand a type of software that allows to produce documents for internal and external use as well how to prepare control and analysis maps and financial statements.

•Make students aware of the critical analysis of the outputs generated by the software.

•Promote teamwork.

• Provide students with useful and essential tools for simulating a business environment.

Learning outcomes and competences:

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

• Develop a business idea and monitor the constitution of a company.

• Understand the role of ERP and its significance in managing a company.

• Parameterize an ERP to produce automatic accounting records.

• Produce and analyze accounting records produced automatically.

• Make the monthly accounting closing using an ERP.

• Organize accounting documents in journals.

• Know how to interpret and analyze the various maps and financial statements.

• Understand the procedures and phases of accountability.

• Able to work in team into a real organization

1. Business simulation objectives

2. Presentation of software used to support business simulation

3. Create a virtual company

3.1 and 3.2. Fulfillment of necessary obligations to start the activity

3.3. Organization of the company, bearing in mind the constraints of a specific activity, namely about:

3.3.1. Accounting organization in accordance with the Portuguese Accounting Standardization System (SNC), from receipt of document to classification, and records.

3.3.2. Internal control practices.

3.4 Business Plan

4. Collect data and process accounting transactions over the last two months of the financial year (Nov. and Dec.) and at the same time compliance with legal obligations.

4.1. Creation of supporting documents.

4.2. Identification and follow-up regarding the resolution of the organization’s issues, namely using contacts with services related to the profession of Chartered Accountant

4.3. Identification, preparation and recording documents from current operations:

• Purchases and sales
• Payments and Receiving
• Remuneration Processing
• Purchase and Sale of Fixed Assets
• Non-current operations (Challenges)

5. Preparation of accounting outputs

5.1 Review of accounting operations (Trial Balance Sheet on 12/31/2021)

5.2. Corrections and adjustments for the year to obtain the Rectified Trial Balance.

5.3. Preparation of basic accounting outputs.

NAO

Fundamental Bibliography:

Books

Borges, A., Rodrigues, R., & Rodrigues, J.A. (2021). Elements of General Accounting (27th ed.). Publisher Areas.

Fernandes, C., Peguinho, C., Vieira, E., & Neiva, J. (2019). Financial Analysis: Theory and Practice-Application within the SNC (5th ed.). Silabo Editions.

Neves, J.c. (2011). Financial Analysis and Reporting: An Integrated Management View. Text Editors.

Bibliography Legislation and other elements

Accounting Guidelines, Explained SNC and ROC Manual

Tax codes (VAT Code, IRS Code, and IRC Code)

Labor Code

Social Security Regulation

Regulatory Decree 25/2009

Decree-Law No. 31/98

Complementary Bibliography:

Lopes, A.I., Morais, A.I., & Lourenço, I. (2020). Fundamentals of Financial Accounting: Theory and Cases (3rd ed.). Silabo Editions.