Accounting

Syllabus

1. The accounting as a source of the economic information with confirmatory and predicting value Essential elements used in the accounting (assets, liabilities, equity, expenses, income), theire economic substance and application for the decisions focused on the future and for the assessment of the past performance. Users of the accounting information and their typical requirement on the content and the quality of information. Assessment of the impact of actual transactions and other events on the wealth of a company and its changes. Comparability of accounting information and its impact on a creation of accounting regulation- 2. Measurement of assets and liabilities and its impact on accounting information Role of the measurement in assessment of the past results and decisions oriented for the future. Relation between essential accounting elements and cash-flows. Measurement based on the input and output prices. Use of the market prices, models using discounted cash-flows from the continuing activities and models with anticipated deterioration of the value. Allocation of the input and output prices. Procedures used for the non-monetary transactions and transactions with deferred payments. 3. Regulatory framework of the accounting The International (IFRS) and national (SR, CR, US GAAP) accounting statutes – their impact on the comparability of the accounting information and the cost of their provision. The scope and the volume of the accounting information required by the users and their impact on the typical organization of the accounting systems. The accounting information cycle: transactions, conditions, and other events within a domain of the accounting, accounting records, journal and books of accounts, and financial statements. Demands for aggregation and confidentiality as a reason for the invention of financial statements. General overview of the financial statements. Comparison of provisions on books on accounting in national statutes (SR and CR), comparison of provisions on financial statements in the SR, CR, and in accordance with the IFRS. 4. Accounting statutes in the Slovak republic Act on accounting and by-laws of the Ministry of finance of the Slovak republic – their function and scope. Relation between the accounting and other laws (Act on bankruptcy and restructuralization, Commercial code, Act on income taxes, Penal code). Accounting entity and the accounting related responsibilities of those with governing and controlling powers. Profit-based and other accounting entities. The role of the auditing of the financial statements. 5. Content and the structure of financial statements Classification of financial statements based on various criteria (annual and interim, periodicity, size criteria, respective industries, number of accounting entities covered). General structure of the financial statements and its components. Need for distinction of the equity and liabilities, non-current and current items. Open-source data about financial statements in the SR and the USA. 6. General requirements for accounting information Definition of the: faitfhul presentation of the financial situation and the performance of the accounting entity, relevance, comparability, understandability, timeliness, materiality, substance over the form, going concern, accruals, prudence, consistence, and verifiability. Illustration of the impact of their (non)application on the decisions to be taken by the stakeholders. 7. Business activities of an enterprise and its general reflection in the accounting I Business activities of an enterprise, its operating cycle, and their relation to the accounting. Key performance indicators for the enterprise. Transactions and events (including their change in measurement) having and not having an effect on profit or loss. Transactions and events (including their change in measurement) having and not having an effect on indebtedness and the ability of an enterprise to settle its liabilities in an ordinary manner. 8. Business activities of an enterprise and its general reflection in the accounting II General characteristics of following typical transactions and events and their impact on the (sub)headings (and/or individual items respectively) of a balance-sheet and the income statements: purchase, consumption, sales, and payments and clearing with suppliers, customers, and employees. 9. Business activities of an enterprise and its general reflection in the accounting III General characteristics of common transactions and their impact on (sub)heading (individual line items) of the balance-sheet and income statement: depreciation / amortization, impairment, revaluation, formation of a business, financing by credits and loans, relations with government 10. Principles of double-entry accounting and their applications General ledger and its role among the books of accounts, account, and double-entry accounting records. Use of double-entry and accounting equation as inherent controls of accounting. Fundamental principles of opening the accounts, examples of common accounting records of transactions on ledger accounts and fundamental principles of closing the ledger accounts. 11. Formal and technical aspects of the accounting I Documentation used and / or produced by the accounting, its content, obligatory information to be provided and requirement for its maintenance and storing. Examples of business documentation (price quotations, (sales) orders, receipts, invoices, statements form bank accounts, stock cards) and their relation to business activities and operating cycle of an enterprise. 12. Formal and technical aspects of the accounting II Confirmations of receivables and payables. Correction of errors. Stock-taking, its content, requirements for its realisation and its use as element of controls in accounting. Trial balance, its contents, its use as control of double-entry book-keeping a illustrative compilation based on a given data. 13. Comparison of financial statements for micro entities, small entities and large entities