Università Roma Tre

Module I - The theory of financial statements

Introduction to the study of financial statements.
The basic functions of financial statements.
The nature of operating income and working capital.
The purposes that can be assigned to financial statements.
Relationship between income, valuation criteria and purposes of financial statements.
The purposes of the financial statements in the business doctrine: the "alpha" and "beta" purposes.

Module II - The Financial Statements in the Civil Code

The documents of the balance sheet - Structure and content (art. 2423-ter - 2425 Civil Code)
The general clause and the principles for drawing up the financial statements (articles 2423 - 2423-bis Civil Code)
Special valuation criteria (art. 2426 Civil Code)
Tangible fixed assets
Intangible fixed assets
Securities and Equity Investments
Receivables
Assets and liabilities in foreign currency
Inventories (Lifo, Fifo, Cmp)
Contract work in progress
The contents of the Explanatory Notes and the Management Report on Operations

Module III - Accounting

Closing entries, general closing and reopening of accounts
Fixed assets - Accounting based on amortization, depreciation, write-downs and reinstatement of value
Equity investments - Accounting with the historical cost method and equity method
Foreign currency transactions - Accounting treatment
Inventories and contract work in progress - Accounting treatment

Module IV - Fundamentals of financial statement analysis

Modules I e II: Tutino M. (2017), Bilancio e nuovi OIC, Cedam
Module III: Paoloni M., Celli M. (2012), Introduzione alla contabilità generale, Cedam.
Module IV: Paolucci G. (2016), Analisi di bilancio, Hoepli.

Teaching materials available to students on the course web pages

Modul I - Financial reporting

Introduction to the financial reporting study
The basic functions of financial reporting
The nature of income and working capital
The attributable purposes of financial reporting
Relationship between income, evaluation criteria and purposes of financial reporting
The purposes of the financial reporting in the business administration literature: the "alpha" and "beta" purposes

Module II - The Financial Reporting in the Civil Code
From accounting to financial reporting (Closing entries, general closing and reopening of accounts)
The documents of the financial reporting: balance sheet, financial statement and cash flow statement: structure and content (artt. 2423-ter – 2425 c.c. – 2425 ter c.c.)
The general clause and the principles for drawing up the financial reporting (articles 2423 - 2423-bis Civil Code)
Special valuation criteria (art. 2426 Civil Code)
Tangible and intangible fixed assets
Securities and Equity Investments
Receivables
Assets and liabilities in foreign currency
Inventories (Lifo, Fifo, Cmp)
Contract work in progress
The contents of the Notes and the Management Report

Module III - harmonisation accounting process (IAS/IFRS)

Zanda G. (Il bilancio delle società, Giappichelli, Torino, 2007 (integrato con il vigente Codice civile, artt. dal 2423 al 2429 compresi)
Tutino M. (2017), Bilancio e nuovi OIC, Cedam
Paoloni M., Celli M. (2012), Introduzione alla contabilità generale, Cedam.

First Part
The theory of Financial Reporting
Introduction
The goal of Financial Reporting
Capital and Income
Traditional Italian Theories on Income and Financial Reporting
Second Part
Introduction to Italian Accounting Standards and Laws on Financial Reporting
Balance Sheet, Income Statement, Cash Flows Statements and the Notes
The objective of general purpose financial reporting: the true and fair view
The exceptions to the application of the laws
The qualitative characteristics of useful financial information
The assets and liabilities measurement:
- Plants and equipment;
- The Depreciation process;
- The Impairment process;
- Intangible Assets;
- Goodwill;
- Interests in parent companies;
- Receivables and payables (expressed in Euro and in foreign currencies);
- Stocks;
- Financial Activities and Financial Derivatives.
Third Part
Financial Reporting for listed public companies.
The International Harmonisation of Accounting Standards
The Conceptual Framework for Financial Reporting
The Sustainability Reporting

T.R. Ittelson, Financial Statements, Career Pr Inc., 2022.