In the first part, students will be given an overview of the economic and institutional framework of financial reporting that determines financial reporting quality, based on insights from academic research.
Subsequently, an introduction will be given to the major issues within group accounting. In particular, the following issues will be dealt with: concepts of group and control, requirements to prepare group accounts, group accounting methods, goodwill, minority interests, elimination of inter-company transactions, preparation of the consolidated balance sheet and income statement. The preparion of group accounts is considered following Belgian Company Law and following IFRS (International Financial Reporting Standards).
The first part is concluded with the introduction of some important concepts and special topics within financial reporting following IFRS: deferred taxes, fair value accounting and impairment, financial instruments, and the effects of changes in foreign exchange rates.
The second part deals with financial statement analysis of individual financial statements and group accounts. Next to studying the traditional tools and instruments for financial statement analysis, attention will also be given to cash flow analysis, segment- and interim reporting, non-financial information in the annual report, the advent of internet reporting and XBRL, and bankruptcy prediction. Furthermore, evaluation of accounting quality and the influence of IFRS is dealt with. Finally, the role of corporate governance and external auditing for financial reporting is discussed using insights from academic research.