LV EN RU DE FR

Financial Accounting

Course developer

Course abstract

The aim of the study course is to gain knowledge about the financial accounting organization and methodology of commercial companies and skills in financial accounting.
The course provides knowledge of financial accounting and the basic principles of accounting organisation, correspondence of accounts, documentation and requirements for accounting items stipulated by the legislation of the Republic of Latvia. Students acquire skills in preparing accounting information and using in accounting for long-term investments, current assets, equity, savings and liabilities.

Learning outcomes and their assessment

1. Understands the nature of accounting organizations, accounting documents and registers. Understands inventories and financial statements. Knowledge of the basic principles of accounting for long-term investments and current assets Discussions in classes. Practical works. Group work. 1st test.
2. Knows the basic principles of accounting for current assets. Discussions in classes. Practical works. Group work. 2nd test.
3. Knows accounting of equity, savings and liabilities. Practical works. 2nd test.
4. Able to independently, using the learned theoretical foundations, navigate the financial accounting organization issues, determine the documents and registers necessary for accounting in accordance with the requirements of the regulatory framework. Practical works. Discussions in classes.
5. Able to practically apply knowledge of long-term investments, current assets, equity, savings and accounting of liabilities. Practical works. Discussions in classes.
6. Able to independently understand and record economic transactions and determine the financial result of the reporting period. Practical works.
7. Able to engage in discussions. Practical works.
8. Able to work in a team and justify his opinion. Group work
9. Able to organize accounting records independently, in accordance with the knowledge of the requirements of the LR regulatory framework. Practical work, 1st test, exam.
10. Able to critically evaluate the organization of accounting, independently analyse accounting information and current problems, make proposals for improving accounting. Practical works, discussions in classes, 1st and 2nd test, exam.

Course Content(Calendar)

For full-time studies
1. Financial accounting process organisation. Requirements of the relevant legal framework. Inventorying process and presentation of results. Accounting documents and registers, essential requirements for content and accounting (3 lectures, 13 practical works)
2. Accounting for long-term investments. Long-term intangible investments, fixed investments and long-term financial investments. Classification and accounting of fixed investments. Documents of fixed investments ant their contents. Depreciation calculation and accounting (3 lectures, 8 practical works)
3. General characteristics of current assets. Accounting process organisation. Classification of accounts receivable and requirements for accounting (1 lecture)
4. Accounting of inventory (1 lecture, 5 practical works)
5. Accounting of trade receivables. Lost and insecure debtors. Cost accounting for the following periods. Accounting of loans (2 lectures, 6 practical works)
6. Accounting of money. Requirements of the cash and non-cash asset accounting (2 lectures, 4 practical works)
7. Classification of equity capital. Accounting for equity capital, retained profit, reserves and liabilities (1 lecture, 3 practical works)
8. Classification and accounting of long-term and short-term creditors. Trade payables, loans, their accounting. Accounting for salaries. Debts for taxes and other liabilities (3 lectures, 7 practical works)

For part-time extra-murel studies
1. Financial accounting process organisation. Requirements of the relevant legal framework. Inventorying process and presentation of results. Accounting documents and registers, essential requirements for content and accounting (1 lecture, 6 practical works)
2. Accounting for long-term investments. Long-term intangible investments, fixed investments and long-term financial investments. Classification and accounting of fixed investments. Documents of fixed investments ant their contents. Depreciation calculation and accounting (1 lecture, 4 practical works)
3. General characteristics of current assets. Accounting process organisation. Classification of accounts receivable and requirements for accounting (1 lecture)
4. Accounting of inventory (1 lecture, 3 practical works)
5. Accounting of trade receivables. Lost and insecure debtors. Cost accounting for the following periods. Accounting of loans (1 lecture, 2 practical works)
6. Accounting of money. Requirements of the cash and non-cash asset accounting (1 lecture, 2 practical works)
7. Classification of equity capital. Accounting for equity capital, retained profit, reserves and liabilities (1 lecture, 2 practical works)
8. Classification and accounting of long-term and short-term creditors. Trade payables, loans, their accounting. Accounting for salaries. Debts for taxes and other liabilities (1 lecture, 3 practical works)

Requirements for awarding credit points

At the end of the course, student must pass an examination on the topics covered (40%).
1st test. Financial accounting process organisation. Requirements of the relevant legal framework. Accounting documents and registers. Inventorying, financial reports of an annual financial statement, an audit and submission deadline of the statement. Accounting for long-term investment (15%).
2nd test. Accounting for current assets. Accounting for equity capital, reserves and liabilities (15%).
Discussions: Financial accounting process organisation. Formation of accounting documents (5%). Accounting for current assets. Accounting for advance transactions (5%).
Group work: Accounting for long-term investment (5%). Accounting for bad and lost debts (5%).
Fulfillment of practical assignments (10%).

Description of the organization and tasks of students’ independent work

During the study course all the independent assignments must be prepared

Criteria for Evaluating Learning Outcomes

The evaluation of the study course depends on the assessment of the tests and exam, 10% corresponds to one point on the 10-point assessment scale.

Compulsory reading

1. Leibus I., Pētersone I., Jesemčika A., Svarinska A., Grigorjeva R. (2020) Finanšu grāmatvedība: mācību grāmata. Rīga: Lietišķās informācijas dienests. 328 lpp.
2. Bojarenko J. (2022) Praktiskā finanšu grāmatvedība, I. Rīga: Artbuh. 180 lpp. LBTU ESAF Studiju un zinātnes informācijas centrs - Skaits: 1 eks.
3. Bojarenko J., Tjurina A. (2015) Finanšu grāmatvedības praktikums. Rīga: GFK. 383 lpp.
4. Grāmatvedības likums (2021): LR likums. [tiešsaiste] [skatīts 25.10.2023.] Pieejams: https://likumi.lv/ta/id/324249-gramatvedibas-likums
5. Grāmatvedības kārtošanas noteikumi (2021): MK 2021.gada 21.decembra noteikumi Nr.877 Pieejams: [tiešsaiste] [skatīts 25.10.2023.] Pieejams: https://likumi.lv/ta/id/328707-gramatvedibas-kartosanas-noteikumi

Further reading

1. Kelmere L. (2022) Ievads grāmatvedībā jeb Grāmatvedības pamati: teorija un uzdevumi. Rīga: Lietišķas informācijas dienests. 280 lpp.
2. Apsīte I. (2011) Pamatlīdzekļu uzskaite komercuzņēmumos. [Sigulda]: Lietišķās apmācības centrs. 266 lpp.
3. Grebenko M. (2018) Darba likums un grāmatvedība. Rīga: Lietišķas informācijas dienests. 2018. 155 lpp.
4. Krogzeme H. (2011) Nodokļu un finanšu grāmatvedības pamati: mācību grāmata. Rīga: RTU. 392 lpp.
5. Elliott J., Elliott B. Financial Accounting and Reporting. Twentieth Edition. Harlow; UK: Pearson Education Limited, 2022. 801 lpp. LBTU ESAF Studiju un zinātnes informācijas centrs - Skaits: 1 eks.

Periodicals and other sources

1. Bilance: žurnāls. Rīga: Lietišķās informācijas dienests, 2005-. ISSN 1407-5709
2. iFinanses: žurnāls. Rīga: iŽurnāli. ISSN 2255-985X
3. Latvijas Republikas oficiālais Valsts ieņēmumu dienesta portāls. [tiešsaiste]. [skatīts 25.10.2023.] Pieejams: https://www.vid.gov.lv/lv
4. Latvijas Republikas oficiālais normatīvo aktu portāls. [tiešsaiste]. [skatīts 25.10.2023.] Pieejams: https://www.likumi.lv

Notes

Limited elective study course for the ESAF academic bachelor program “Economics”