Overall objectives:

1 - Understand i) the goals, importance and usefulness of financial accounting ii) the accounting process iii) the entities and the framework of the accounting regulation and normalization in Portugal.
2 - To have an understanding of the concepts that will serve as the foundation to elaborate and interpret the balance sheet and profit and loss statement.
3 - To know how to prepare and interpret the individual balance sheet and profit and loss statement.
4 - To have a theoretical and practical view regarding present and future values within the compound interest framework.
5 - To know how to compute and interpret some of the key financial ratios.
6 - To have a preliminary view of how to present and interpret financial budgets.

Syllabus:

1 - Part I: Introduction to financial accounting
1.2 - Objectives, importance and usefulness of financial accounting. Accounting normalization and regulation in Portugal.
1.3 - Key accounting concepts.
1.4 - Balance sheet.
1.5 - Net income. Profit and loss statement.
2 - PART II: INTRODUCTION TO FINANCIAL ANALYSIS
2.1 - Compound interests.
2.2 - Financial ratios.
2.3 - Introduction to financial budgeting.

Literature/Sources:

BORGES, A., RODRIGUES, A. e MORGADO, J. , Contabilidade e Finanças para a Gestão , Áreas Editora
Borges, A., Rodrigues, A., Rodrigues, R , Elementos de Contabilidade Geral , Áreas Editora

Assesssment methods and criteria:

Classification Type: Quantitativa (0-20)

Evaluation Methodology:
The topics will be addressed in both theoretical and empirical perspectives. Hence, all the lectures will be complemented with practical strategies such as case studies and problem-solving. There will be two exams during the semester, 50% each, and two additional extraordinary exams.