Course code Ekon2136

Credit points 3

Economics Theory and Accounting

Total Hours in Course48

Number of hours for lectures32

Number of hours for seminars and practical classes16

Date of course confirmation24.02.2015

Responsible UnitInstitute of Economics and Regional Development

Course developers

author Ekonomikas un reģionālās attīstības institūts

Aija Eglīte

Dr. oec.

author Finanšu un grāmatvedības institūts

Anna Jesemčika

Mg. oec.

Prior knowledge

Mate3012, Mathematics

Course abstract

Economics: the aim of the course is to introduce students to theoretical basics and economic regularities at the microeconomic and in macroeconomic levels in order to understand the practical opportunity to use them, as well as to understand macroeconomic relationships and trends in the economy of Latvia.
Accounting: the course provides basic knowledge of the system of accounting in Latvia, the areas, principles and methods of accounting, accounting items, how to organise the accounting process and keep records in the double entry system as well as of the content of an annual accounting statement.

Learning outcomes and their assessment

Students will be able to demonstrate: Economics: familiarity with the real situation in the national economy and the contribution of the forest industry to the economy. Discussion. Test; ability to assess the market situation and the effects of non-price factors of demand and supply on market equilibrium and perform an economic assessment of enterprise production costs. Practical assignments. Test; ability to analyse macroeconomic regularities and discuss urgent problems in the national economy. Discussion. Test. Accounting: knowledge – understanding of accounting methodologies, accounting items and their recording in the double-entry system, the structure of the annual report and the basic principles of the preparation thereof. Assessment method: a test with calculations, discussions in classes; skills – an ability to apply accounting methods in enterprises, to define the modern forms of the company’s internal control and to apply these forms, the ability to observe the accounting organization requirements and accounting rules specified in regulatory enactments. Assessment method: practical assignments, a test with calculations, discussions in classes; competencies – an ability to implement the accounting principles in a company according to the requirements of relevant regulatory enactments and the specifics of the activity of the hospitality company. Assessment method: tests, practical assignments.

Course plan

1. Economic levels. Demand and supply. Price elasticity of demand and supply.
2. Consumer behaviours in the market.
3. Production, related costs.
4. Kinds of markets.
5. Key macroeconomic indicators: GDP, employment, inflation.
6. Money. The banking system.
7. Fiscal and monetary policies.
8. International trade.
9. Introduction to accounting. The meaning of and requirements for accounting. The essence and tasks of accounting.
10. Subject and methods of accounting. Accounting items. Elements of the accounting method.
11. Concept and structure of a balance sheet. Changes in balance sheet items.
12. Concept of accounts and their general construction. Balance sheet account structure. Operation account structure.
13. Concept and meaning of a document. Requirements for documents.
14. Organization of the accounting process at a company. Accounting for long-term investments.
15. End of the year: an annual report, a balance sheet and a cash flow statement.
16. Drawing up, approval and submission of an annual report. Test.

Requirements for awarding credit points

Economics
The student has to pass a test in microeconomics and a test in macroeconomics.
Accounting
Cumulative assessment is made up of: 1) two tests successfully completed during the semester: the accounting balance and its structure; accounting accounts and registration of economic operations; 2) practical tasks enforcement activities. If the test has not been credited, overwriting of the test will be permitted once, in writing, for theoretical issues and practical tasks learned during the semester.

Description of the organization and tasks of students’ independent work

Economics
The student has to do independent work – to prepare for a test – by studying textbooks as well as make a presentation on an innovative product in Latvia.
Accounting
The student must to do compulsory reading –regulatory literature on accounting – throughout the semester and prepare for tests. The student has be able to explain and interpret complex technical accounting data and learn to register economic transactions in an account, make a profit or loss account, calculate net profit and report it on the balance sheet.

Criteria for Evaluating Learning Outcomes

Economics: the final mark is calculated as an arithmetic average of the marks of both tests.
Accounting. Assessment weights, %: two tests (25% + 30%) and activity in practical classes (45%). The final mark is based on a cumulative score (100%).

Compulsory reading

Leibus I., Grigorjeva R., Jesemčika A., Svarinska A. Grāmatvedības pamati uzņēmumos. Atkārtots un atjaunots 2. izdevums. Rīga: Lietišķās informācijas dienests, 2016. 195 lpp. ISBN 978-9984-896-10-6 2. Gada pārskatu un konsolidēto gada pārskatu likums. Pieņemts: 22.10.2015. Stājas spēkā: 01.01.2016.Pieejams: https://likumi.lv/ - gada-parskatu-un-konsolideto-gada-parskatu-likums. 3. Par grāmatvedību: LR likums // LR Normatīvie dokumenti: www.likumi.lv.

Further reading

1. Dzelmīte M., Volodina M. Mikroekonomika. Rīga: SIA Izglītības soļi, 2004. 241 lpp 2. Bikse V. Makroekonomika: teorija un politika. LiePA, 2015. 269 lpp. 3. Januška M. Uzskaite un pārskati mūsdienu uzņēmējdarbībā. Rīga: Merkūrijs LAT. 2008. 99 lpp. 4. Krogzeme H. Komersantu darbības analīze un kontrole. Rīga: RTU 2013. 348 lpp.

Periodicals and other sources

1. Bilance: grāmatvedība, likumdošana, finanses: žurnāls par grāmatvedību, likumdošanu un finansēm. Rīga: Lietišķās informācijas dienests. 2005- ISSN 14075709 2. iFinanses. Rīga: Izdevniecība iŽurnāli. ISSN 2255-985X

Notes

Field professional specialisation course at the Forest Faculty in the study programme Forestry Science and Forest Engineering for the professional Bachelor’s programme during the 4th and 6th semester in full and part-time studies.