Financial Accounting refers to information describing the financial resources, obligations, and activities of an economic entity. The term financial position is used to describe an entity’s financial resources and obligations at one point in time, and the term results of operations is used to describe its financial activities during the year.
Financial Accounting information is designed primarily to assist investors and creditors in deciding where to place their scarce investment resources. Such decisions are important to society, as they determine which industries and companies and even countries will receive the financial resources necessary for growth, and which will not. Many other decision makers also make use of financial accounting information. A company’s manager and employees constantly need such information in order to run and control business operations.
All types of organizations and also individuals develop and use financial accounting information in conducting their daily activities. But the concepts of financial accounting are most highly developed and clearly defined in the business world. Therefore, this course focuses upon financial accounting information relating to profit-oriented business organizations.
This graduate course introduces the basic concepts and principles of accounting for preparing the financial statements such as income statement (financial performance) and balance sheet (financial position). The course focuses on detailed understanding of accounting information system, accounting concepts, accounting principles, accounting cycle, recording of transactions, and financial statement concepts.
LEARNING GOALS AND OBJECTIVES:
- This course will enable the students to combine practice and theoretical knowledge of financial accounting.
- The students of this course will be active learners and develop awareness of emerging trends in financial accounting,
- The course will provide decision making skills to the students in the financial analysis context,
- The students of this course will have the ability to identify and analyze financial accounting problems and opportunities in real life situations.
The objective of this course is to introduce problems of financial accounting such as measuring and reporting issues related to assets and liabilities and preparing the financial statements. Students are expected to gain the ability of using accounting information as a tool in applying solutions for managerial problems, evaluating the financial performance, and interpreting the financial structure.
1. Libby, B., Libby, P., and Short, D., Financial Accounting, McGraw-Hill Publishing Company (available in bookstore).
2. Harrison, W.T. and Horngren, C.T.,Financial Accounting, Prentice Hall (available in bookstore).
3. Engel, E., Hirst, D.E., and McNally, M.L., Cases in Financial Reporting, Cambridge Business Publishers, (available online) http://www.cambridgepub.com/casesinfinancialreporting/
4. Nuhoglu, Irem, Principles of Accounting, 7th edition, 2014, Boğaziçi Üniversitesi Yayınları (available in bookstore)