At the end of the day your performance as a manager will be assessed by shareholders through the financial statements (Income Statement, Balance Sheet, Cash Flow Statement). 

Prerequisites

This is a 100 level introductory course with no prerequisites.

Course description

The course is designed to teach participants to become more competent users of accounting information, financial statements and techniques of financial analysis. Accounting as an information system is the communication mechanism that tells a company’s story in facts and figures. The idea is not to train participants to become accountants but instead to help them to understand accounting information so that they can contribute to the success of the business. 

Topics

• Introduction to accounting information system
• Annual report and financial statements
• Sources, records and books of prime entry
• Ledger accounts and double entry bookkeeping
• From trial balance to financial statements
• Sales tax (VAT = value added tax)
• Inventory valuation 
• Tangible and intangible non-current assets
• Accruals and prepayments
• Irrecoverable debts and allowances
• Limited liability companies (capital structure, equity versus loan finance, taxation)
• Preparation and interpretation of Cash Flow Statement
• Financial statement analysis and financial ratios

Learning outcomes

• feel comfortable with accounting concepts and double-entry bookkeeping
• understand how a Balance Sheet (Statement of Financial Position), a Profit & Loss Statement (Income Statement) and a Cash Flow Statement are prepared
• be able to assess the financial performance and situation of companies
• appreciate the flow of transactions through the business as shown by the accounting system
• be able to understand and assess the impact of business decisions on financial statements

Assessment

Students planning to obtain ECTS credits for the course will write a 90-minute in-class examination. Grading will be based on the written examination (80%) and contribution to class work (20%).

Reading materials

Course notes distributed on the sessions

Judit Fortvingler is an assistant professor at the Department of Finance and Accounting. Member and qualified tutor of the Hungarian Chamber of Auditors. She obtained DipIFR (Diploma in International Financial Reporting) qualification. She has been teaching both financial accounting, management accounting, and auditing for 13 years, in different programs accredited by British or Hungarian institutions. She has helped managers understand their businesses from accounting point of view.   

László Kovács FCCA, certified auditor, CFO at MOL Hungary is an executive level finance professional and experienced people manager. László started his carrier at PwC and went through the ranks to become a senior manager only in 7 years. During this spell he oversaw audits of large multinational companies, got involved in leading initial public offering projects on the Warsaw stock exchange and was diving the IFRS transition of several entities. László was Head of Controlling at MOL leading a team of 75.  He was managing the successful implementation of the digital transformation in line with the customer demands. As being promoted to CFO he has the financial responsibility for the Hungarian operation.

László Szívós is an assistant professor at the Department of Finance and Accounting. Member of ACCA (Association of Chartered Certified Accountants), with a REFA international controlling certificate. Within the framework of ACCA he has been preparing auditors for financial accounting and performance management examinations in English in several countries in Europe. He has actively participated in the development of corporate controlling systems and management information systems as a consultant.