Course Overview

This course provides an introduction to financial accounting, emphasizing its critical role in organizing and communicating business information for decision-making. Rather than focusing on training students to become accountants, the course equips them to become discerning users of financial statements who can analyze, interpret, and critique the information provided.

Key topics include the foundational concepts and techniques underlying financial statements, the accounting treatment of significant financial items (e.g., inventory, receivables, assets, liabilities, and shareholders’ equity), and the relationship between accounting and economic activity. Students will explore how accounting supports decisions around resource acquisition, the use of cash and noncash resources, and the financial needs of various stakeholders, including owners, lenders, and equity holders.

The course also examines the broader societal role of financial statements, questioning whether they meet the information needs of diverse stakeholders and contribute to understanding how businesses support the United Nations Sustainable Development Goals (SDGs). This reflects the Principles for Responsible Management Education (PRME), fostering critical thinking, ethical decision-making, and the ability to evaluate a company’s impact on global sustainability.

This foundational course is a prerequisite for advanced study in accounting and finance, ensuring students are well-prepared to analyze financial statements and understand their limitations and implications in a global context.

Course Learning Outcomes:

By the end of this course, students will:

• Develop a critical mindset to assess business challenges by using accounting tools and techniques effectively.
• Understand and explain the principles of income and accrual accounting and their role in financial reporting.
• Identify the purpose and function of the key components of financial statements.
• Understand how major items in financial statements are valued and measured.
• Apply core accounting principles and standards to real-world business scenarios.
• Analyze financial statements to evaluate a company’s performance and communicate insights effectively
• Collaborate effectively within a team to share ideas, contribute to group success, and achieve common goals.