Principles of Accounting

The course addresses the following topics: 

1. Introduction to the purpose, principles, terminology and methods of financial accounting.
2. The accounting of operating transactions (purchase and sale of goods and services, payments, salaries and other current operations), investment transactions (purchase and sale of tangible, financial and intangible fixed assets, depreciation and other investment operations) and financing transaction (suance and repayment of equity and liabilities, retained earnings and dividends) . 
3. Accounts closing, adjusting transactions and financial statements preparation (balance sheet and income statements).
4. Introduction to the accounting analysis of annual accounts of the annual financial statements (liquidity, solvency and profitability analysis).

The goal of financial accounting is to measure and communicate the financial situation of an economic entity to interested parties, both internal and external. This information is instrumental to allow users such as shareholders, investors, suppliers, governments etc. with their decisions such as investing, lending money, allowing credit or tax the economic entity. The main objectives of the course are:

• understand the role and functions of financial accounting;
• understand the fundamental accounting principles and norms in Switzerland;
• acquire the language, method and basic tools of financial accounting;
• knowing how to prepare, understand and critically analyze the content of the annual financial statements in compliance with the Swiss Code of Obligations;
• knowing how to analyse and evaluate the economic and financial situation of a company.

In presence

The course is based on the combination of a deductive and inductive approach through theoretical lessons, exercises and practical cases.

The course is evaluated on the basis of a final written exam (100%). A few quizzes will be proposed during the semester which can award a bonus on the final note.