Financial Accounting

Total Hours in Course81

Number of hours for lectures16

Number of hours for seminars and practical classes16

Independent study hours49

Date of course confirmation06.09.2023

Responsible UnitInstitute of Economics and Finance

Course developer

lect.

Anna Jesemčika

Mg. oec.

Prior knowledge

Ekon3153, Economics

Course abstract

In the course of study, students gain an understanding of the accounting system in Latvia, accounting activity areas, basic principles and methods, accounting objects and the reflection of accounting objects in accounting in the double entry system, the content of the annual report. The purpose of the study course is to gain knowledge about accounting objects in the company, the content of the annual report, accounting documents, registers and reports

Learning outcomes and their assessment

Knowledge. Knows the accounting system in Latvia and accounting methodology (discussion). Knows the basic requirements in the accounting of the company's assets, capital, revenues, and costs (control test).
Skills. Able to apply accounting methods and follow accounting principles for evaluating balance sheet items (discussion). Able to plan the execution of tasks within certain deadlines, get involved and present the analysis of economic processes carried out in group work. Can communicate and think critically (discussion, group work). Able to collect information, able to make reasonable statements and perform a situational analysis of current accounting problems (independent work, discussion).
Competence. The ability to independently obtain, select, systematize the necessary information based on extensive and comprehensive theoretical knowledge and regularities (independent work, discussion). Able to justify accounting provision in the company and analyse problems of accounting work organization (independent work, discussion, control test).

Course Content(Calendar)

Full-time classroom studies:
1. Introduction to accounting. Basic definitions. Accounting concepts (conceptions). The essence and tasks of accounting. Accounting data users. Basic accounting organization and arrangement requirements. Monetary value concept (lectures 2 hours).
2. Accounting subject and methods. Accounting objects. Costs and values. The principle of individual assessment. Accounting method elements. Financial accounting subject (lectures 2 hours). Economic means and their formation sources, classification. Accounting balance sheet compilation (practical 4 hours). Test 1 (1 hour).
3. Accounting balance sheet and its structure. Accounting (balance sheet) equation. Balance concept and structure. Changes in balance sheet items. Business equation (earned profit). Long-term investments and current assets. Capital and Revenue. Creditors and debtors (lectures 4 hours). Changes in the balance sheet as a result of economic activities. Accounts, double entry system, general ledger (practical 2 hours).
4. Accounts and their general structure. The concept of accounts and their general structure. Balance account’s structure. Operating account’s structure. Synthetic and analytical accounts. Registration of economic transactions. Registration and double entry system (lectures 2 hours). Accounts and registration of economic transactions (practical 1 hour). Test 2 (1 hour).
5. Document concept and meaning. Requirements for documents. Classification of documents: movement of funds, production, raw materials, materials and fixed assets, wage calculations and other documents. Correction of errors in accounting documents and registers (lectures 2 hours). Accounting documents, filling out documents certifying business trip expenses, wage calculations and documentation (practical 2 hours).
6. Organization of accounting work in the company. Accounting policy and accounting organization documents. Inventory (lectures 2 hours). The concept, meaning and types of inventories. Adjustment and posting of open differences in inventory (practical 1 hour).
7. The Annual report content, preparation, approval and submission. Profit or loss statement. Cash flow statement (lecture 2 hours). Preparation of the annual report. Compiling a profit or loss statement, calculating net profit and reflecting it in the balance sheet (practical 3 hours). Test 3: content, compilation and approval of the annual report (1 hour).
Part-time distance studies:
1. Introduction to accounting. Basic definitions. Accounting concepts (conceptions). The essence and tasks of accounting. Accounting data users. Basic accounting organization and arrangement requirements. Monetary value concept (lecture 1 hours).
2. Accounting subject and methods. Accounting objects. Costs and values. The principle of individual assessment. Accounting method elements. Financial accounting subject (lecture 1 hour). Economic means and their formation sources, classification. Accounting balance sheet compilation (practical 2 hours). Test 1 (1 hour).
3. Accounting balance sheet and its structure. Accounting (balance sheet) equation. Balance concept and structure. Changes in balance sheet items. Business equation (earned profit). Long-term investments and current assets. Capital and Revenue. Creditors and debtors (lectures 2 hours). Changes in the balance sheet as a result of economic activities. Accounts, double entry system, general ledger (practical 1 hour).
4. Accounts and their general structure. The concept of accounts and their general structure. Balance account’s structure. Operating account’s structure. Synthetic and analytical accounts. Registration of economic transactions. Registration and double entry system (lectures 1 hour). Accounts and registration of economic transactions. Test 2 (1 hour).
5. Document concept and meaning. Requirements for documents. Classification of documents: movement of funds, production, raw materials, materials and fixed assets, wage calculations and other documents. Correction of errors in accounting documents and registers (lecture 1 hour). Accounting documents, filling out documents certifying business trip expenses, wage calculations and documentation (practical 1 hour).
6. Organization of accounting work in the company. Accounting policy and accounting organization documents. Inventory. The concept, meaning and types of inventories. Adjustment and posting of open differences in inventory (practical 1 hour).
7. The Annual report content, preparation, approval and submission. Profit or loss statement. Cash flow statement (lecture 1 hours). Preparation of the annual report. Compiling a profit or loss statement, calculating net profit and reflecting it in the balance sheet (practical 1 hour). Test 3: content, compilation and approval of the annual report (1 hour).

Requirements for awarding credit points

Students must successfully write a control test with calculations on the accounting balance, accounts and their structure, recording of economic operations. Task performance activities of practical works. Ability to discuss accounting methods and principles, use of communicative skills in providing skills specific to the lesson.

Description of the organization and tasks of students’ independent work

Studying the specified normative literature and educational literature, preparation for discussions on important accounting issues.

Criteria for Evaluating Learning Outcomes

Passing with a grade: accumulative assessment of study results (100%). incl. discussion in class, group and independent work make up 40%; practical works make up 30%, control test with calculations make up 30% of the final grade.

Compulsory reading

1. Kelmere L. Ievads grāmatvedībā jeb Grāmatvedības pamati: teorija un uzdevumi. Atkārtots un papildināts 2. izdevums. Rīga: Lietišķās informācijas dienests, 2022. 279 lpp. ISBN 978-9984-896-29-8
2. Leibus I., Grigorjeva R., Jesemčika A., Svarinska A. Grāmatvedības pamati uzņēmumos. Atkārtots un atjaunots 2. izdevums. Rīga: Lietišķās informācijas dienests, 2019. 195 lpp. ISBN 978-9984-896-10-6
3. Leibus I., Pētersone I., Jesemčika A., Svarinska A., Grigorjeva R. Finanšu grāmatvedība. Atkārtots un atjaunots 2. izdevums. Rīga: Lietišķās informācijas dienests 2018. 320 lpp. ISBN 978-9984-896-18-2

Periodicals and other sources

1. iBizness. Rīga: Izdevniecība iŽurnāli. ISSN 2256-0882
2. iFinanses. Rīga: Izdevniecība iŽurnāli. ISSN 2255-985X
3. Bilance: grāmatvedība, likumdošana, finanses. Rīga: Lietišķās informācijas dienests. ISSN 2005-1407-5709

Notes

The basic course of theoretical knowledge of the professional study field for students of the first-cycle professional higher education bachelor's study programme "Catering and Hotel Management" of the Faculty of Agriculture and Food Technology of LBTU

Atsauksmes