ΛΧΡ522: Financial Accounting

The Thematic Unit on Financial Accounting aims to provide students with an understanding of theoretical and applied accounting issues, and is essentially a continuation of the Thematic Unit TXΛ512 Principles of Accounting. In particular, the thematic unit aims to familiarise students with the topics of Financial Accounting, both in theory and in practice. After the student has first learned the basics of accounting (TXΛ512: accounting statements, records, accounting cycle), in this thematic unit he/she will deal with accounting analytics techniques in order to understand the importance of indexes, trend indicators, vertical and horizontal analysis, among other tools. It will thus be able to effectively assess and predict the evolution of the financial and economic course of businesses, banks, and organisations. In particular, the thematic unit emphasizes the study of indices to of liquidity, activity, profitability, capital structure, sustainability, and investment.

The thematic unit also covers the valuation of companies, comparing their book value to their market value. In addition, it presents the sources of business capital (e.g. equity, liabilities). In this context, it delves into the accounting treatment of increases in shareholder’s capital, as well as the accounting treatment of liabilities. It also examines the individual categories of cash flows and their estimation methods. Finally, it presents the financial statements and the corresponding indices for credit institutions.

The objective of the Thematic Unit ΛΧΡ523 is to present the techniques of financial accounting, so that based on it, financial assessments can be made and critical decisions can be taken in the contemporary demanding business environment.