_________________________________HEC Paris______________________________
MSc in Management
2015-2016
Financial accounting
(36 hours)
Course syllabus
Last update: July 23, 2015
Course leader: Dr Hervé Stolowy, HEC Paris, Department of Accounting and Management
Control
Course instructors: Mrs Sylvie Beaujan, Dr Woo-Jin Chang and Mrs Aurore Dauverne, HEC
Paris, Department of Accounting and Management Control
This document may not be used, reproduced or distributed without the authorization of HEC Paris
1 - GENERAL OVERVIEW
The course is an introduction to Financial Accounting & Reporting designed for business
students with the assumption that the knowledge of a unique accounting system (the US, the
UK or the French one) is not sufficient. The main purpose of this course is to deal with the
measurement of value created (and value creation from the point of view of outside decisionmakers) and the use of financial accounting information.
The approach is based on the following ideas:
-
We adopt a user perspective, rather than a producer one, because most MBA students will
become users of financial statements, internal (managers, executives) or external
(investors, analysts…), rather than preparers of financial statements. Thus the same
financial information a company uses to assess its performance internally is used by
investors and analysts to determine how to assess a company in the marketplace.
-
When faced with a complex problem, we begin examining the problem by a general
overview of the possible solutions and what impact they will have on a company’s
financial decisions. This requires an a-national or non-national approachit is more
useful to take time explaining the various possible solutions than studying the way a
particular country handles the issue. In the first part of the course, all the developments
are not based on a specific country but on a generic country. In the second part of the
course, we mainly refer to International Financial Reporting Standards (IFRS), though
occasionally we will mention the US approach to the problem. Since over 100 countries
have adopted IFRS, students should be able to understand financial statements produced
in many countries.
-
The comparative part of the course is based on a topic-based (issue) approach, rather than
a country approach.
1.1 Course objectives
The objectives of this course are:
-
To understand the process of accumulating, identifying, measuring and recording
economic information
Appreciate the use of accounting information for external decision-making
Understand the underlying similarities and differences of generally accepted accounting
principles in the world
To understand the importance of financial statement analysis for fund managers, financial
analysts, strategy advisors and the stakeholders of the company
To master the different “tools” used to perform a financial statement analysis.
1.2 Course content
-
Definition of financial accounting, users of financial accounting, introduction to the
accounting process
Course description - p. 1
-
-
-
The financial statements (Balance sheet, balance sheet equation, income statement, notes
to financial statements, principle of double entry, examples of transactions, profit
appropriation, notion of depreciation, consumption and inventory)
Accounting principles and preparation of financial statements (accounting principles,
end-of-period entries: adjusting entries, change in value of fixed assets, change in value
of current assets, other entries and adjustments)
Financial statement analysis (financial statements format, statement of cash flows,
common-size income statement, financial structure, ratios).
1.3 Course material
The course is based on the following textbook: “Financial Accounting and Reporting: A
Global Perspective” (co-authored by Prof. Hervé Stolowy with Prof. Michel Lebas and Prof.
Yuan Ding), Cengage Learning, Andover, UK, 4th edition 2013. This book is specifically
tailored for the approach used in this course.
Some resources will be made available online from two different websites:
-
-
The course’s Website, run by the instructors, accessible from the following address:
http://www.hec.fr/compta1
 Login:
 Password:
The book’s Website, run by the Publisher (see instructions in the card inserted in each
book).
The reading of some parts of the book is compulsory (see Course content, below).
1.4 Teaching methods
-
Compulsory reading of a recommended textbook
Problems and cases studies
Business game.
1.5 Format
24 sessions of 1.5 h during the first semester (September/December) - 2 sessions by week.
1.6 Evaluation and grading of the participants
Elements in grading
Your final grading will contain different items weighted as follows:
Business game
Midterm test
Final test
Total
10 points
30 points
60 points
100 points
Course description - p. 2
1.5 hour
3 hours
Grading scale
Grading is based on ECTS (European Credit Transfer System):
A
B
C
D
E
FX
F
Excellent
Very Good
Good
Satisfactory
Pass
Insufficient
Very insufficient or absent
The grading rules set by the HEC administration are as follows:
A
A+B
A+B+C
A+B+C+D+E
FX + F
Between 10 to 20 %
Between 20 to 40 %
Between 40 to 70 %
Between 70 to 100 %
Maximum of 30 %
Course description - p. 3
2 - COURSE CONTENT
S
1
2-3
4-5
6
7-9
10
1114
15
16
1720
2122
2324
Learning objectives
Required
readings
Definition of financial accounting
Users of financial accounting
Introduction to the accounting process
Introduction to the financial statements
Balance sheet
Accounting equation (balance sheet equation)
Income statement
Notes to financial statements
Principle of double entry
Examples of transactions
Introduction to the financial statements
Profit appropriation
Notion of depreciation
Consumption and inventory
Financial statements: interrelations
The link between the balance sheet, income statement
and statement of cash flows
Preparation of the financial statements
The link between the balance sheet, income statement
and statement of cash flows: practice
Production process of accounting information
Double entry bookkeeping and the recording of
transactions
Accounting process
Chart of accounts
Accounting principles and preparation of financial
statements
Accounting principles.
End-of-period entries: adjusting entries, change in value
of fixed assets, change in value of current assets, other
entries and adjustments (errors, inventory)
Earnings management and accounting fraud
Cases and exercises to
prepare
Cases and
exercises for
review
-
Chapter 1
pp. 2-21
Costas
Chapter 2
pp. 37-59
A 1.3 Xenakis
Verdi
A 2.4 Corelli (1)
R 1.1 MCQ
Chapter 2
pp. 59-77
A 2.1 MCQ
A 2.2 Vivaldi 3
A 2.5 Corelli (2)
R 2.1 Vivaldi 1
R 2.2 Vivaldi 2
R 2.3 Albinoni
Chapter 3
A 3.3 Schumann (1)
R 3.1 Beethoven
(1)
A 3.5 Bach (Business
game)
-
p. 88-93
Chapter 3
pp. 91-104
A 3.6 Sibelius (2)
R 3.3 Grieg (1)
R 3.3 Grieg (2)
Chapter 4
pp. 120-142
A 4.1 MCQ
A 4.4 Lalo
R 4.1 Adam
Chapter 17
pp. 579-281
Financial statement quality: the role of auditors
Presentation
by an auditor
Statement of cash flows
Chapter 14
Objectives and usefulness of a statement of cash pp. 499-519
flows
Preparation of the statement of cash flows (IAS Chapter 17
7/FAS 95 model)
pp. 574-579
Satyam case
Income statement analysis
Common-size income statements
Common-size income statements by nature: value
added statement and statement of intermediate
balances
Balance sheet analysis
Common-size balance sheets
Common-size balance sheet: the link between
working capital, working capital needs and net cash
A 16.2 Smetana (3)
A 16.3 Procter &
Gamble (1)
A 16.4 Club
Méditerranée
A 15.2 Smetana (2)
AA 15.12 PetroChina
Chapter 16
pp. 554-566
Chapter 15
pp. 528-545
Course description - p. 4
A 14.1 MCQ
A 14.2 Smetana (1)
A 17.2 Smetana (4)
A 17.5 Procter &
Gamble (2)
R 14.1 Dvorak
(1)
R 17.1
Mitsubishi
Electric
R 16.1 Chugoku
(2)
R 15.1 Dvorak
(2)
R 15.2 Chugoku
(1)
Schedule of sessions
Cours :
Numéro :
GEFFCCO001
R21
FINANCIAL ACCOUNTING
Professeur :
125628
DAUVERNE Aurore
Date début :
07/09/2015
Date fin :
Date des séances
Lundi
09/12/2015
Horaire
07/09/2015
13:00 - 14:30
Mercredi 09/09/2015
13:00 - 14:30
Lundi
14/09/2015
13:00 - 14:30
Mercredi 16/09/2015
13:00 - 14:30
Lundi
21/09/2015
13:00 - 14:30
Mercredi 23/09/2015
13:00 - 14:30
Lundi
28/09/2015
13:00 - 14:30
Mercredi 30/09/2015
13:00 - 14:30
Lundi
05/10/2015
13:00 - 14:30
Mercredi 07/10/2015
13:00 - 14:30
Lundi
12/10/2015
13:00 - 14:30
Mercredi 14/10/2015
13:00 - 14:30
Mercredi 28/10/2015
13:00 - 14:30
Lundi
02/11/2015
13:00 - 14:30
Mercredi 04/11/2015
13:00 - 14:30
Lundi
09/11/2015
13:00 - 14:30
Lundi
16/11/2015
13:00 - 14:30
Mercredi 18/11/2015
13:00 - 14:30
Lundi
23/11/2015
13:00 - 14:30
Mercredi 25/11/2015
13:00 - 14:30
Lundi
30/11/2015
13:00 - 14:30
Mercredi 02/12/2015
13:00 - 14:30
Lundi
07/12/2015
13:00 - 14:30
Mercredi 09/12/2015
13:00 - 14:30
Course description - p. 5
Cours :
Numéro :
GEFFCCO001
R22
FINANCIAL ACCOUNTING
Professeur :
114410
BEAUJAN Sylvie
Date début :
07/09/2015
Date fin :
Date des séances
Lundi
09/12/2015
Horaire
07/09/2015
13:00 - 14:30
Mercredi 09/09/2015
13:00 - 14:30
Lundi
14/09/2015
13:00 - 14:30
Mercredi 16/09/2015
13:00 - 14:30
Lundi
21/09/2015
13:00 - 14:30
Mercredi 23/09/2015
13:00 - 14:30
Lundi
28/09/2015
13:00 - 14:30
Mercredi 30/09/2015
13:00 - 14:30
Lundi
05/10/2015
13:00 - 14:30
Mercredi 07/10/2015
13:00 - 14:30
Lundi
12/10/2015
13:00 - 14:30
Mercredi 14/10/2015
13:00 - 14:30
Mercredi 28/10/2015
13:00 - 14:30
Lundi
02/11/2015
13:00 - 14:30
Mercredi 04/11/2015
13:00 - 14:30
Lundi
09/11/2015
13:00 - 14:30
Lundi
16/11/2015
13:00 - 14:30
Mercredi 18/11/2015
13:00 - 14:30
Lundi
23/11/2015
13:00 - 14:30
Mercredi 25/11/2015
13:00 - 14:30
Lundi
30/11/2015
13:00 - 14:30
Mercredi 02/12/2015
13:00 - 14:30
Lundi
07/12/2015
13:00 - 14:30
Mercredi 09/12/2015
13:00 - 14:30
Course description - p. 6
Cours :
Numéro :
GEFFCCO001
R23
FINANCIAL ACCOUNTING
Professeur :
114410
BEAUJAN Sylvie
Date début :
07/09/2015
Date fin :
Date des séances
Lundi
09/12/2015
Horaire
07/09/2015
14:40 - 16:10
Mercredi 09/09/2015
14:40 - 16:10
Lundi
14/09/2015
14:40 - 16:10
Mercredi 16/09/2015
14:40 - 16:10
Lundi
21/09/2015
14:40 - 16:10
Mercredi 23/09/2015
14:40 - 16:10
Lundi
28/09/2015
14:40 - 16:10
Mercredi 30/09/2015
14:40 - 16:10
Lundi
05/10/2015
14:40 - 16:10
Mercredi 07/10/2015
14:40 - 16:10
Lundi
12/10/2015
14:40 - 16:10
Mercredi 14/10/2015
14:40 - 16:10
Mercredi 28/10/2015
14:40 - 16:10
Lundi
02/11/2015
14:40 - 16:10
Mercredi 04/11/2015
14:40 - 16:10
Lundi
09/11/2015
14:40 - 16:10
Lundi
16/11/2015
14:40 - 16:10
Mercredi 18/11/2015
14:40 - 16:10
Lundi
23/11/2015
14:40 - 16:10
Mercredi 25/11/2015
14:40 - 16:10
Lundi
30/11/2015
14:40 - 16:10
Mercredi 02/12/2015
14:40 - 16:10
Lundi
07/12/2015
14:40 - 16:10
Mercredi 09/12/2015
14:40 - 16:10
Course description - p. 7
Cours :
Numéro :
GEFFCCO001
R24
FINANCIAL ACCOUNTING
Professeur :
125591
CHANG Woo-Jin
Date début :
08/09/2015
Date fin :
Date des séances
08/12/2015
Horaire
Mardi
08/09/2015
08:00 - 09:30
Jeudi
10/09/2015
08:00 - 09:30
Mardi
15/09/2015
08:00 - 09:30
Jeudi
17/09/2015
08:00 - 09:30
Mardi
22/09/2015
08:00 - 09:30
Jeudi
24/09/2015
08:00 - 09:30
Mardi
29/09/2015
08:00 - 09:30
Jeudi
01/10/2015
08:00 - 09:30
Mardi
06/10/2015
08:00 - 09:30
Mardi
13/10/2015
08:00 - 09:30
Lundi
19/10/2015
13:00 - 14:30
Mardi
20/10/2015
08:00 - 09:30
Mardi
27/10/2015
08:00 - 09:30
Mardi
03/11/2015
08:00 - 09:30
Jeudi
05/11/2015
08:00 - 09:30
Mardi
10/11/2015
08:00 - 09:30
Jeudi
12/11/2015
08:00 - 09:30
Mardi
17/11/2015
08:00 - 09:30
Jeudi
19/11/2015
08:00 - 09:30
Mardi
24/11/2015
08:00 - 09:30
Jeudi
26/11/2015
08:00 - 09:30
Mardi
01/12/2015
08:00 - 09:30
Jeudi
03/12/2015
08:00 - 09:30
Mardi
08/12/2015
08:00 - 09:30
Course description - p. 8
Cours :
Numéro :
GEFFCCO001
R25
FINANCIAL ACCOUNTING
Professeur :
125591
CHANG Woo-Jin
Date début :
08/09/2015
Date fin :
Date des séances
08/12/2015
Horaire
Mardi
08/09/2015
09:40 - 11:10
Jeudi
10/09/2015
09:40 - 11:10
Mardi
15/09/2015
09:40 - 11:10
Jeudi
17/09/2015
09:40 - 11:10
Mardi
22/09/2015
09:40 - 11:10
Jeudi
24/09/2015
09:40 - 11:10
Mardi
29/09/2015
09:40 - 11:10
Jeudi
01/10/2015
09:40 - 11:10
Mardi
06/10/2015
09:40 - 11:10
Mardi
13/10/2015
09:40 - 11:10
Lundi
19/10/2015
14:40 - 16:10
Mardi
20/10/2015
09:40 - 11:10
Mardi
27/10/2015
09:40 - 11:10
Mardi
03/11/2015
09:40 - 11:10
Jeudi
05/11/2015
09:40 - 11:10
Mardi
10/11/2015
09:40 - 11:10
Jeudi
12/11/2015
09:40 - 11:10
Mardi
17/11/2015
09:40 - 11:10
Jeudi
19/11/2015
09:40 - 11:10
Mardi
24/11/2015
09:40 - 11:10
Jeudi
26/11/2015
09:40 - 11:10
Mardi
01/12/2015
09:40 - 11:10
Jeudi
03/12/2015
09:40 - 11:10
Mardi
08/12/2015
09:40 - 11:10
Course description - p. 9