wir841 - Advanced Financial Accounting (Complete module description)

Although it may sometimes seem that way, financial accounting is not just a mechanical process (i.e., "book-keeping"). It is the fundamental language used to express the complex economic realities of organizations. Managers communicate financial (and related) information to help stakeholders understand the firm and the managers’ view of its activities. To some extent the language of this communication is codified in generally accepted accounting principles (GAAP), such as International Financial Reporting Standards (IFRSs). But modern corporate reporting and communication also involves other pieces of information that go beyond GAAP or require means of communication other than published financial statements. In addition, the transition to the information society, new communication technologies and information intermediaries, or the increasing importance of non-financial information affect the environment of corporate reporting in capital markets.

This course is designed to give you a thorough understanding of advanced topics in financial accounting and reporting, focusing on International Financial Reporting Standards (IFRS). The course will…

…advance your skills in applying advanced IFRS topics and requirements and that are relevant to practitioners (such as managers, auditors, regulators, analysts, and investors);

…foster your critical thinking about the information provided by corporate reporting, e.g., by appreciating the role of financial statement information for capital markets, the various incentives involved, and the need to communicate information effectively;

…introduce you to the role of selected aspects of corporate communication and the information environment in capital markets, such as non-GAAP information, information intermediaries and new information technology;

…introduce you to empirical accounting research, discussing a view to assessing the economic consequences (e.g., capital markets effects) of IFRS reporting and corporate disclosure, and the idea of thinking about accounting throughout its effects on the broader organizational, social and political consequences of the craft.

We will work towards this objective by applying theory to real-life cases and analyzing real-life examples. The course will be useful for anyone who aims to become better in understanding the economic fundamentals of organizations based on financial statement information and the role of the information environment of modern organizations in capital markets. It is particularly well suited for students who aim for a career in accounting, finance, management, or consulting.

Upon successful completion of this course, you will be able to:

(1) Discuss the role of financial reporting in capital markets and the conceptual foundations underlying IFRS.

(2) Analyze a business using financial statement information.

(3) Apply IFRS reporting requirements for selected business transactions and evaluate the resulting information presented in corporate financial statements.

(4) Discuss and evaluate the role of selected aspects of corporate reporting and the information environment of the firm.

We will begin with a recap of corporate financial reporting following IFRS and, in particular, its conceptual foundations. We will then discuss about how financial statement information, in particular key financial ratios, can be used to understand the economic fundamentals of a firm. We will then turn to selected accounting topics, using real-world cases to discuss the application of IFRS reporting requirements and evaluate their implications (e.g., revenue recognition, accounting for mergers & acquitisions, stock options, pension plans, etc.). Some of these accounting topics will be prepared by me. Other topics will be discussed in the form of guest lectures or prepared by you in the form of case study presentations (see team assignment). Towards the end of the course, we will discuss selected aspects of corporate communication and the information environment in capital markets, such as non-GAAP information, information intermediaries and new information technology. The course concludes with an overview of empirical accounting research.

Picker/Clark/Dunn/Kloitz/Livne/Loftus/van der Tas: Applying IFRS Standards, 5th edition, Wiley 2025

Scott/O’Brien: Financial Accounting Theory, 8^th edition, Pearson 2020

Wagenhofer/Ewert/Schneider: Externe Unternehmensrechnung, 4th edition, Schäffer-Poeschel 2023 (in German)

www.fk2.uni-oldenburg.de/InstBWL/Rewe/

(Group) assignment): During the lecture period

Written exam: At the end of the semester

Portfolio: (Group) assignment and written exam