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Financial Accounting

Financial Accounting

Code: ACC2RZ001
Extent: 5 ECTS (80 h)
Timing: Semester 1
Language: English
Level:  Professional studies
Type: Compulsory

Prerequisites
Basics of Business Mathematics

Learning outcomes
The course will introduce the basic concepts and procedures of financial accounting. The student will learn to analyse strategically the financial information that companies display in their Financial Statements. Emphasis will be placed on managerial level ratio analysis and interpretation. This course also includes the basic norms of income- and value added taxation.

All the material handled is based on industry cases to reach the financial thinking behind all business operations. Financial reports will be used as managerial tools.

On successful completion of this course, the student is able to

  • Calculate revenues and expenses based on operations
  • Make calculations how operational income is generated
  • Calculate the cash flows based on operations, investments and financing
  • Produce and analyze the financial statements: The Income Statement, The Balance Sheet and The Statement of Cash Flows
  • Calculate the working capital tied in business
  • Calculate company value added tax and income tax

Course contents

  • Accounting basics: Overview of accounting systems
  • Fundamental concepts: Revenue, Costs, Assets, Equity, Liabilities
  • The accounting cycle and Financial Statements: Income statement, Balance sheet, Statement of Cash Flows
  • Uniform System of Accounts for the Lodging Industry
  • Gross Profit and inventories
  • Working capital
  • Ratio analysis
  • VAT calculations

Cooperation with the business community and other organisations
Companies analyzed are real entities
Visiting speaker from industry

International
Throughout the course international accounting standards will be applied.

Teaching and learning methods
Contact lessons
Group working
Individual learning
Examination

Contact hours of teaching and other learning methods:
Contact lectures 40 hours
Group working 24 hours
Individual learning 70 hours
The own learning assessment 1 h

Recognition of Prior Learning, RPL  (in Finnish AHOT)
Courses or parts of courses at other educational institutes or work experience are not accredited as such towards the HAAGA-HELIA studies directly, but the required skills and competences are demonstrated by a skills examination.

Teacher/s with the main responsibility for the course
Pekka Heikkilä

Course materials
Schmidgall, R. 2006 (or later). Hospitality Industry Managerial Accounting. Educational Institute of the American Hotel & Motel Association, USA. Chapters 1. - 5.
Lecture materials in Moodle

Assessment
Assessment components and their respective weights:
Group working
Individual examination

The own learning assessment assignment does not impact your grade. The assignment is the same for all courses/modules and your answers will be used also for course development.

Assessment objects

  • Student´s skills to produce financial reports and calculations included in course contents and to analyse the financial feasibility of a hospitality business

The course is evaluated on a scale excellent (5), very good (4), good (3), satisfactory (2), fair (1), fail (0). The assessment criteria is presented on a scale 1 - 3 - 5.

Grade 1
The student masters the essential aspects of producing and analysing financial reports and calculations included in course contents. With given instructions, the student has the ability to perform basic tasks, but needs a lot of guidance.

Grade 3
The student masters the essential aspects of producing and analysing financial reports and calculations included in course contents. With given instructions, the student will be able to perform basic tasks.

Grade 5
The student masters the essential aspects of producing and analysing financial reports and calculations included in course contents independently. The student has the ability to apply the knowledge and skills learned in management position.