FINANCIAL ACCOUNTING I

LESSON 1: CONCEPT OF ACCOUNTING
1.1. Concept and objectives of Financial Accounting

1.2. Users of the accounting information

1.3. Accounting classification

LESSON 2: THE ECONOMIC AND FINANCING STRUCTURE OF THE COMPANY
2.1. Accounting concept of equity

2.2. Components of the economic and financing structure

2.3. Average maturity period

2.4. The balance sheet

2.5. Types of financial balances

LESSON 3: ACCOUNTING REPRESENTATION: THE ACCOUNT AND THE ACCOUNTING BOOKS

3.1. The account as an instrument of representation and measurement

3.2. Technical terms of the accounts

3.3. Classification of the accounts and operation agreement

3.4. The double entry method

3.5. Accounting books: Journal and General Ledger

LESSON 4: THE ACCOUNTING CYCLE

4.1. Start of the accounting cycle: opening inventory and opening entry

4.2. Development of the accounting process: record of the accounting events and trial balances

4.3. Closing of the accounting period: accounting regularization and the closing entry

4.4. The financial statements

LESSON 5: REGULATION OF ACCOUNTING IN SPAIN: THE GENERAL ACCOUNTING PLAN
5.1. Accounting in Spain: applicable regulations

5.2. The General Accounting Plan

5.3. Accounting principles in the General Accounting Plan

5.4. Balance sheet format in the General Accounting Plan

LESSON 6: INCOME AND EXPENSES: THE COMPANY PERFORMANCE
6.1. Income: concept and classification

6.2. Expenses: concept and classification

6.3. Model of presentation of the profit and loss account in the General Accounting Plan

6.4. Accounting of personnel expenses

6.5. Introduction to the value added tax (VAT)

LESSON 7: ACCOUNTING TREATMENT OF INVENTORY
7.1 Types of inventories: commercial companies and industrial companies

7.2 The speculative account of merchandise in the GAP

7.3 Valuation of stocks

7.3.1 Valuation of entries
7.3.2 Valuation of the cost of outflows: WAC and FIFO methods

7.4. VAT in commercial transactions: discounts, advances and returns

7.5. Accounting treatment of containers and returnable packages

7.6. Stock impairment

7.7. Accounting treatment of foreign currency

LESSON 8: ACCOUNTING TREATMENT OF CREDITORS AND DEBTORS FOR TRADE OPERATIONS
8.1 Accounts receivable

8.2 Doubtful accounts: systems for estimating insolvency

8.3 Trade receivables

8.3.1 Banking discount of bills

8.3.2 Collection management/negotiation of bills

8.3.3 Unpaid bills

8.4 Accounts payable

8.5 Accounting treatment of differences in foreign currency in credits and debits


LESSON 9: ACCOUNTING TREATMENT OF FINANCIAL ACCOUNTS
9.1 Concept of financial accounts in the General Accounting Plan

9.2 Accounting representation of the cash flow: cash flow in foreign currency

9.3 Accrual adjustments

LESSON 10: ACCOUNTING TREATMENT OF NON-CURRENT ASSETS
10.1 Concept and classification of non-current assets

10.2 Valuation of tangible non-current assets

10.2.1 Initial valuation

10.2.2 Specific issues: improvements/enhancements and capitalization of financial expenses

10.3 Intangible non-current assets

10.4. Value corrections of non¿current assets: depreciation, impairment losses and irreversible losses

10.5. Disposal of non-current assets

LESSON 11: THEORY OF ECONOMIC DEPRECIATION
11.1. Analysis of depreciation

11.2. Economic and financial meaning of depreciation

11.3. Basic elements of a depreciation plan

11.4. Methods for calculating the annual depreciation quota: constant vs variable quotas

LESSON 12: ACCOUNTING TREATMENT OF PERMANENT FINANCING
12.1. Concept of permanent financing in the General Accounting Plan

12.2. Owners' equity: concept

12.2.1 Capital

12.2.2 Reserves

12.2.3 Revenue pending allocation

12.3. Capital subsidies

12.4. Long-term external resources: bank loans

12.5. Liability provisions

LESSON 13: THEORY OF NET INCOME

13.1. Net income

13.2. Relativity of net income

13.3. Profit tax

Practices 1 to 4. Balance sheet. Double-entry method. Fundamental equation of accounting. Trial balance. Practice 5. Income and expenses Practice 6. Personnel expenses. Practice 7 and 8. Inventories. Purchases and sales. Value added tax (VAT). Practice 9. Accounts receivable. Operations with trade bills. Practice 10. Global system for doubtful receivables. Practice 11. Individualized system for doubtul receivables. Practice 12. Financial accounts. Practice 13. Non-current tangible assets Practice 14. Non-current intangible assets. Practice 15. Bank loan. Practice 16. Liability provisions At the end of the course, a global exercise covering all the subjects will be solved.