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Course, academic year 2023/2024
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Financial Accounting - JEB044
Title: Financial Accounting
Guaranteed by: Institute of Economic Studies (23-IES)
Faculty: Faculty of Social Sciences
Actual: from 2021
Semester: winter
E-Credits: 6
Examination process: winter s.:
Hours per week, examination: winter s.:2/2, Ex [HT]
Capacity: 185 / 185 (185)
Min. number of students: unlimited
4EU+: no
Virtual mobility / capacity: no
State of the course: taught
Language: English
Teaching methods: full-time
Teaching methods: full-time
Additional information:
Note: course can be enrolled in outside the study plan
enabled for web enrollment
priority enrollment if the course is part of the study plan
Guarantor: doc. Bc. Jiří Novák, M.Sc., Ph.D.
Teacher(s): Ing. Barbora Hildebrandt, M.A.
Mgr. Pavel Neumann
doc. Bc. Jiří Novák, M.Sc., Ph.D.
Attila Sarkany
Fan Yang
Class: Courses for incoming students
Annotation -
Last update: doc. Bc. Jiří Novák, M.Sc., Ph.D. (25.09.2022)

The aim of this course is to provide understanding of the broad principles that govern the use of accounting, of the fundamental accounting concepts and of the ways in which they are interlinked. At the end of the course students should be able to understand accounting information, analyze it and draw conclusions for relevant economic decisions. The course is intended for the second year students. The first year students are welcome in the course provided that they feel confident to follow a course in English and that they have some basic pre-knowledge of accounting relationships.

Literature -
Last update: doc. Bc. Jiří Novák, M.Sc., Ph.D. (25.09.2022)

Harrison, W.T., Horngren, C.T., Thomas W., Tietz W. M. - Financial Accounting. (Pearson Publishing)
Note: Older editions of this textbook specify different authors (Harrison, W.T. a Horngren, C.T.). Newer editions specify Thomas W. a Tietz W. M. It is fine to use newer or older editions. The textbook is available at the library of the IES FSV UK.

Stickney, C. P., Weil, R. L. - Financial Accounting - An Introduction to Concepts, Methods and Uses. (Thomson, Mason, Ohio)
Easton, P., J. Wild, R. Halsey, and M. McAnally - Financial Accounting for MBAs. (Cambridge Business Publishers)
White, G. I., A. C. Sondhi and D. Fried - The Analysis and Use of Financial Statements. (Wiley, New York ; Chichester)

Requirements to the exam -
Last update: doc. Bc. Jiří Novák, M.Sc., Ph.D. (31.08.2023)

Students are invited to submit responses to lecture preludes and participate in in-class discussions. Students are required to take the final written in-class exam. The final grade is determined based on the result of the final exam. Students may be upgraded (but not downgraded) based on the quality of their responses to lecture preludes and their contribution to in-class discussions. The grading scale is as follows:

  • 91 pts - A – excellent 
  • 81 pts - B – very good
  • 71 pts - C – good
  • 61 pts - D – fair
  • 51 pts - E – satisfactory
  • less - F – fail
Syllabus -
Last update: doc. Bc. Jiří Novák, M.Sc., Ph.D. (31.08.2023)


1. Accounting Framework – course outline, key concepts, types of accounting, financial reports
2. Balance Sheet – balance sheet equation, assets, liabilities, equity, recognition exercise
3. Income Statement – revenues, expenses, gains, losses, accounting cycle exercise
4. Revenues, Expenses – revenue recognition, expense matching, contingent gains, and losses
5. Inventory Valuation – cost flow assumption, FIFO, LIFO, average cost, the LIFO reserve
6. Accounts Receivable – direct write-off method, allowance method, sales returns and allowances
7. Fixed Assets – historical vs. fair value, depreciation, straight-line vs. accelerated
8. Corporate Bonds, Leasing – discount/premium amortization; operating vs. capital lease
9. Accruals – IS vs. SCF, accruals, and deferrals, classification of business activities
10. Cash Flows – direct method, indirect method, cash flows vs. earnings
11. Earnings Management – institutional settings, cash flows vs. earnings, accounting manipulation
12. Accounting Jeopardy – practical applications of accounting, tricky issues, interconnections

Files (ACT23, JEB044, IES FSV UK, Financial Accounting) | Google Disk

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