Course code Ekon4099

Credit points 3

Financial Statements

Total Hours in Course120

Number of hours for lectures16

Number of hours for seminars and practical classes32

Independent study hours72

Date of course confirmation21.06.2018

Responsible UnitInstitute of Finance and Accounting

Course developer

author Finanšu un grāmatvedības institūts

Ingrīda Pētersone

Mg. oec.

Prior knowledge

Ekon4102, Financial Accounting

Course abstract

The study course provides knowledge and practical skills for preparing a quality financial report. The course program includes the basic principles for the preparation of a quality financial statement, methods of preparation of accounts, valuation requirements for balance sheet items and disclosure of information in the appendix, preparation of a profit and loss statement, a statement of changes in equity and a cash flow statement.

Learning outcomes and their assessment

1. Demonstrate the knowledge of basic requirements for producing financial reports, name and describe every component of a financial report - Group work, discussions in classes
2. Demonstrate the knowledge of basic requirements for and components of a financial report - Test
3. Demonstrate the knowledge of basic requirements for producing financial reports and the effects of complicated situations on the items of a financial report - Examination
4. Demonstrate a reasoned understanding of the layout of and the content of the appendix of a financial report - Independent work
5. Reasonably explain and discuss the basic requirements for producing financial reports - Discussions in classes
6. Produce financial reports and analyse the effects of some situations on the financial reports - Test with calculations
7. Produce financial reports from the data given - Group work
8. Responsible plan the completion of the assignments given - Independent work
9. Engage in and assume responsibility for group work and analyse the results of the work - Group work, a summary
10. Independently produce financial reports for an enterprise, understand the basic requirements for producing financial reports - Practical assignments
11. Analyse the situation and justify decisions and, if necessary, make corrections in the report - Tests, practical assignments

12. Independently produce financial reports for an enterprise form the data given - Examinat

Course Content(Calendar)

1. Financial Statements Regulatory Base in Latvia (lecture 1 hour, practical work 1 hour)
2. Composition of financial report (lecture 1 hour, practical work 1 hour)
3. Basic Principles and Qualitative Properties of Financial Reporting (lecture 1 hour, practical work 3 hours)
4. Approval and Submission of Annual Reports (lecture 1 hour, practical work 1 hour)
5. Financial Reporting Process in the Company (lecture 1 hour, practical work 1 hour)
6. Test “Basic Requirements for Preparation of Financial Statement” (practical work 1 hour)
7. Importance and Requirements of the Profit and Loss Account (lecture 1 hour, practical work 4 hours)
8. Basic Requirements for Revenue and Expense Recognition (lecture 1 hour, practical work 1 hour)
9. Net profit. Retained earnings and retained earnings for the reporting period. Profit Sharing (lecture 1 hour, practical work 2 hours)
10. Nature and Importance of Balance Sheet for Users of Financial Statements (lecture 1 hour, practical work 1 hour)
11. Information to be Included in the Balance Sheet Items from the Company's Accounting (lecture (1 hour, practical work 4 hours)
12. The essence and significance of cash flow statement for users of financial statement (lecture 1 hour, practice work 1 hour)
13. Preparation of Cash Flow Statement from Accounting Information by Direct Method (lecture 1 hour, practical work 2 hours)
14. Calculation of cash flow from operating activities from accounting information by indirect method (lecture 1 hour, practical work 4 hours)
15. The nature and significance of a statement of changes in equity for users of a financial statement (lecture 1 hour, practical work 2 hours)
16. Changing Accounting Policies, Changing Accounting Estimates and Correcting Errors in the Financial Statement (lecture 1 hour, practical work 2 hours)
17. The nature and importance of the notes to the financial statements for users of the financial statements (lecture 1 hour, practical work 1 hour)

Requirements for awarding credit points

During the course the student must pass a test on the basic requirements of financial reporting.
During the study course the student has to prepare independent work on the appendix to the financial statement.
At the end of the course, you must pass an exam in financial reporting.

Description of the organization and tasks of students’ independent work

To master and strengthen theory questions by studying literature and solving tasks. Prepare for the exam and test. Prepare independent work on the contents of the notes to the financial statements

Criteria for Evaluating Learning Outcomes

1. Examination of the Balance Sheet, Income Statement, Statement of Changes in Equity and Cash Flow Statement - 60 %
2. Test on the basic requirements of preparation of financial statements - 20 %
3. Independent work for preparation of financial statement annex - 20 %
Independent work, tests and examinations are evaluated according to the pre-defined assessment procedure.
The overall assessment of the study course depends on the assessment of the test, examination and independent work.
10 % are equal to one point on a 10 point marking scale

Compulsory reading

1. Leibus I., Pētersone I., Jesemčika A., Svarinska A., Grigorjeva R., Finanšu grāmatvedība. Rīga: Lietišķās informācijas dienests, 2016. 326 lpp.
2. Apsīte I. Uzņēmuma gada pārskats. Rīga: Lietišķās informācijas dienests, 2003.
3. Bojarenko J., Beļavska L., Tjurina A. Finanšu grāmatvedība: teorija un prakse. I daļa. Rīga: KIF Biznesa komplekss, 2009. 268 lpp. (Grāmatvedības un finanšu koledžas bibliotēka)

4. Bojarenko J., Tjurina A., Ķūda M., Pokromoviča I., Jespere I. Finanšu grāmatvedība: teorija un prakse. II daļa. Rīga: KIF Biznesa komplekss, 2009. 292 lpp. (Grāmatvedības un finanšu koledžas bibliotēka)

Further reading

1. Liepiņa I. Gada pārskata sagatavošanas rokasgrāmata 2009/2010. Rīga: LZRAIC, 2010. 119 lpp.
2. Ludboržs A. Finanšu grāmatvedība tirdzniecībā. Rīga: Lietišķas informācijas dienests, 2003.
3. Jaunzeme J. Starptautiskie finanšu pārskatu standarti: standartu apkopojums un pielietojuma piemēri. Rīga: Lietišķās informācijas dienests, 2016. 152 lpp.
4. Apsīte I. Uzņēmuma gada pārskats 2011. Sigulda: Lietišķās apmācības centrs, 2012. 296.lpp.
5. Grāmatvedības rokasgrāmata. Rīga: Dienas bizness, 2005.
6. Bilances gadagrāmata 2006. Rīga: Lietišķās informācijas dienests, 2006. 199 lpp.
7. Starptautiskie finanšu pārskatu standarti
8. Mācību materiāls Starptautiskajos finanšu pārskatu standartos. www.fm.gov.lv
9. Par grāmatvedību: LR likums [tiešsaiste]. Pieņemts 14.10.1992. Stājas spēkā 01.01.1993. [Skatīts 22.01.2020.]. Pieejams: https://likumi.lv/ta/id/66460-par-gramatvedibu
10. Noteikumi par grāmatvedības kārtošanu un organizāciju: LR MK noteikumi Nr.585 [tiešsaiste]. Pieņemts 21.10.2003. Stājas spēkā 30.10.2003. [Skatīts 22.01.2020.]. Pieejams: https://likumi.lv/doc.php?id=80418
11. Gada pārskatu un konsolidēto pārskatu likums: LR likums [tiešsaiste]. Pieņemts 22.10.2015. Stājas spēkā 01.01.02016. [Skatīts 22.01.2020.]. Pieejams: https://likumi.lv/ta/id/277779-gada-parskatu-un-konsolideto-gada-parskatu-likums

12. Gada pārskatu un konsolidēto pārskatu likuma piemērošanas noteikumi: LR MK noteikumi Nr.775 [tiešsaiste]. Pieņemts 22.12.2015. Stājas spēkā 01.01.2016. [Skatīts 22.01.2020.]. Pieejams: https://likumi.lv/ta/id/278844-gada-parskatu-un-konsolideto-gada-parskatu-likuma-piemerosanas-noteikumi

Periodicals and other sources

1. Bilance: grāmatvedība, likumdošana, finanses: žurnāls par grāmatvedību, likumdošanu un finansēm. Rīga: Lietišķās informācijas dienests, 2005- ISSN 1407-5709.

2. iFinanses.lv: elektroniskais žurnāls. SIA izdevniecība „Izdevniecība iŽurnāli”. Pieejams: http://www.ifinanses.lv/lat

Notes

Restricted elective course for the academic Bachelor’s study programme “Economics” of the Faculty of Economics and Social Development, Accounting and Finance specialisation