Financial Accounting

After the study of this subject, students should be able to:
- Know and understand the idea of Accounting as an information system.
- Know and understand the basic economic concepts used in business management (equity, results, income, expenses, assets, etc.).
- Identify accounting events and learn how to record them according to the accounting method.
- Understand the accounting cycle of the company and the bases of presentation of basic summary information: balance sheet and profit and loss account.
- Understand the usefulness of the analysis of financial statements for management and other users of accounting information.

THEME I: INTRODUCTION TO ACCOUNTING

1. What is accounting? Types of accounting.
1.1. General accounting.
2. Accounting planning and standardisation.
3. Structure of the General Chart of Accounts (2007).
3.1. The conceptual framework of accounting.
3.2. The annual accounts.
3.3. Information requirements to be included in the annual accounts.
3.4. Generally Accepted Accounting Principles and Standards.


THEME II: COMPANY ASSETS.

1. Definition of equity.
2. The composition of equity. The assets and liabilities.
2.1. Active or asset elements.
2.2. Passive or liability elements.
2.3. Elements of equity.
2.4. The fundamental equity equation.
2.5. Income and expenses.
3. The bodies of assets and liabilities. The fundamental equity equation.
4. The assets and liabilities and the annual accounts according to the conceptual framework (PGC, 2007).
4.1. The Inventory.
4.2. The balance sheet.
4.3. Differences between the Inventory and the Balance Sheet.


THEME III. ANALYSIS OF THE ECONOMIC AND FINANCIAL STRUCTURES.

1. Concept and composition.
2. The economic structure.
2.1. Fixed assets or non-current assets.
2.2. Current assets.
3. The economic structure in the balance sheet.
4. The financial structure.
4.1. Equity.
4.2. Non-current liabilities.
4.3. Current liabilities.
5. The financial structure in the balance sheet.
6. The elements of the economic and financial structure.

THEME IV: ANALYSIS OF RESULTS.

1. Expenses and income attributed to the profit or loss for the financial year.
1.1. Operating income.
1.2. Operating expenses.
1.3. Financial income.
1.4. Financial expenses.
2. The result of the financial year: the Profit and Loss Account.
3. Expenses and income in the chart of accounts (PGC, 2007).

THEME V: THE ACCOUNT AS AN INSTRUMENT OF REPRESENTATION AND THE ACCOUNTING METHOD OF RECORDING.

1. Definition of an account.
2. Technicalities of the accounts.
3. Classification and debit and credit conventions of the accounts. 3.1.
3.1. Balance sheet accounts.
3.2. Management accounts.
4. Phases of the accounting register.
5. The method of recording. The duality principle.
5.1. Recognition criteria according to the conceptual framework (PGC, 2007).
5.2. Definitions and accounting relationships (PGC, 2007).


THEME VI: THE ACCOUNTING CYCLE

1. Outline of the accounting process.
2. Regulatory provisions on accounting books and records.
2.1. The Commercial Code. Entrepreneurs' books.
2.2. Accounting principles (PGC, 2007).
2.3. Valuation criteria and recording and valuation rules.
3. The opening of the accounts.
3.1. The opening inventory
3.2. The opening entry
4. Management entries.
5. The trial balance.
6. The regularisation process.
6.1. Adjustment entries.
6.2. Adjustment entries.
7. The closing of the accounts.
7.1. The closing inventory
7.2. The closing entry.
8. Drawing up the annual accounts.
9. Filing and publication of the accounts

THEME VII: NON-FINANCIAL FIXED ASSETS.

1. Concept and classification.
2. Transactions with non-financial fixed assets.
2.1. Additions to inventory (purchase, manufacture, leasing, rental).
2.2. changes in value
2.3. write-downs
2.4. impairment losses
2.5. Inventory write-offs
2.6. Other transactions.


THEME VIII: TRANSACTIONS WITH INVENTORIES AND SERVICES RENDERED.

1. Concept and classification.
2. Purchases and sales of inventories.
2.1. Accounting issues relating to packaging.
2.2. Invoice and non-invoice discounts.
2.3. Perpetual inventory records.
3. Income from services rendered.
4. Valuation adjustments.

LARRAN JORGE, M. (2009): Fundamentos de contabilidad financiera. Teoría y práctica. Ediciones Pirámide.
ALCARRIA JAIME, J. J. (2012). Introducción a la contabilidad. Publicacions de la Universitat Jaume I. Disponible en http://dx.doi.org/10.6035/Sapientia66
ALCARRIA JAIME, J. J. (2009). Contabilidad financiera I. Publicacions de la Universitat Jaume I. Disponible en http://hdl.handle.net/10234/24002

LEGISLATIÓN:
- REAL DECRETO 1514/2007, de 16 de Noviembre, por el que se aprueba el Plan General de Contabilidad.


In general, any general accounting manual adapted to the General Accounting Plan approved in 2007 will be appropriate for the study of this subject.

BASIC AND GENERAL
CB1 - Students have demonstrated possession and understanding of knowledge in an area of study which builds on the foundation of general secondary education, and is usually at a level which, while relying on advanced textbooks, also includes some aspects which involve knowledge from the cutting edge of their field of study.
CB2 - Students are able to apply their knowledge to their work or vocation in a professional manner and possess the competences usually demonstrated through the development and defence of arguments and problem solving within their field of study.
CB3 - Students have the ability to gather and interpret relevant data (usually within their field of study) in order to make judgements which include reflection on relevant social, scientific or ethical issues.
CB4 - Students are able to communicate information, ideas, problems and solutions to both specialist and non-specialist audiences.
CB5 - That students have developed those learning skills necessary to undertake further studies with a high degree of autonomy.
CG5 - To possess the general knowledge and learning skills necessary to continue studying and to undertake specialised studies in the various fields of business and related areas, with a high degree of autonomy.

TRANSVERSALS
CT1 - Analysis and synthesis
CT6 - Problem solving.
CT9 - Autonomy in learning
CT10 - Teamwork

SPECIFIC
A6 - Basic elements of accounting
D6 - Identify the sources of relevant economic information and their content

Given the characteristics of the subject, special attention is paid to face-to-face activities. The expository and interactive teaching will be mainly face-to-face. Tutorials may be partially conducted virtually.
Classroom sessions are aimed at introducing and explaining the basic aspects of each subject contained in the programme, providing students with the necessary basic information to allow for the proper development of the autonomous learning process.
After the presentations of each of the topics, we propose different activities and practical exercises, which will have to be solved individually and/or in small groups.
The didactic materials used in the development of the subject, as well as all the teaching support material, can be found in the virtual classroom of the subject.

Active and continuous participation in the activities proposed during the course is considered very important, since, in addition to the fact that their adequate completion is considered in the final grade, it will allow students to achieve the objectives of the subject.
The aspects that will be taken into consideration for the evaluation of the subject, differentiating the criteria and the instruments for their determination, as well as the weight that they will have in the final grade, are indicated below:

Evaluation: Continuous assessment + final test (compulsory)

Final test: exam (FP)

WEIGHT: Value 70% ( up to 7 points)
In order to pass the exam it will be necessary to obtain 2.8 points out of a possible 7.

Continuous assessment (CA).

WEIGHT: 30% (up to 3 points)
Aspects to evaluate:
- Practical and/or theoretical exercises to be solved and handed in by students throughout the four-month period.
- Class participation
- Compulsory evaluation activities without marking. Failure to complete them within the deadlines indicated will result in a 0 mark in the CA.
- Evaluation tests, as long as they reach a minimum mark. The list of these tests will be published in the teaching guide of the subject.

Final mark:


Fulfilling the minimums, the final grade is PF+AC.

Minimum to pass the subject: 5 points and 4 points out of 10 (or 2.8 out of 7) in the FP.

*** This evaluation system is the same in each of the exam opportunities (May/June and July) and for all students, whether they are first-year or second-year students.

Exemption from attendance
Students who officially accredit that they have been granted dispensation from class attendance will take an exam which will be assessed at 100% of the final grade. In order to pass the subject, students with dispensation must obtain a minimum mark of 5 out of 10.


Fraudulent performance of activities.
For cases of fraudulent performance of exercises or tests will be applied as set out in the Regulations for the evaluation of the academic performance of students and review of the grade (DOGA 21-07-2011).


ASSESSMENT OF COMPETENCES:
Continuous assessment: CB1, CB2, CB3, CB4, CB5, CG5, CT1, CT6, CT9, CT10, A6 and D6.
Final exam: CB1, CB2, CB3, CB4, CB5, CG5, CT1, CT6, CT9, A6 and D6.

Total hours of face-to-face work in the classroom 60

Total hours of personal work by students 90

Attendance to lectures and interactive teaching.
- Consultation of doubts in tutorials
- Consultation of the recommended manuals and complementary readings.
- Completion of practical cases as an alternative to those developed in the classroom.
- Continuous study of the subject, given the close relationship between its contents.

Esta materia conta con Aula Virtual que se utilizará como apoio á la parte teórica e práctica da materia, onde os estudantes terán dispoñibles tanto esquemas que lles poden axudar no estudo da mesma como os boletins de exercicios de auto evaluación. Tamén se empregarán as ferramentas de comunicación (e-mail, foro, Chat…) entre os estudantes e os profesores para plantexar debates e outras cuestión e dúbidas da materia.