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

Introduction to the study of financial statements
The basic functions of financial statements
The nature of operating income and working capital
The purposes assignable to the annual financial statements
Relationship between income, accounting policies and the purposes of financial statements
The purposes of financial statements in business doctrine: the “alpha” purpose and the “beta” purpose

From the statement of accounts to the annual financial statements (epilogue entries, determination of the result for the year, general closing of accounts, opening entries and transfers)
The financial statement documents - Structure and content of the Balance Sheet, Income Statement and Cash Flow Statement (Articles 2423-ter - 2425-ter c.c.)
The general clause and principles for the preparation of financial statements (Articles 2423 - 2423-bis c.c.)
The special valuation criteria (art. 2426 civil code)
Tangible and intangible fixed assets (articulated accounting on amortization, depreciation, impairment, value restoration)
Securities and Equity Investments (accounting by cost method and equity method)
Receivables
Assets and liabilities in foreign currency (accounting)
Inventories (Lifo, Fifo, Cmp) (accounting entries)
Contract work in progress (accounting entries)
Equity

The contents of the notes to the financial statements, the report on operations and the cash flow statement

Translated with DeepL.com (free version)

During the course, professor will provide bibliographical indications and additional support material via the course's Teams platform (access to the platform may require prior registration via moodle).

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, Careers Pr. Inc, 2022.