Course Objectives
Mastering the basics of financial accounting, and especially understanding of: global procedures in bookkeeping, accounting instruments, concept and essence of bookkeeping and accounting, differences between financial and management accounting, a system of double-entry bookkeeping, accrual accounting basis, account types, bookkeeping rules, principles of orderly bookkeeping, accounting principles, basic accounting categories, rules for evaluation of elements of financial statements, inventories, pre-closing and closing entries, making of the trial balance and trial balance sheet, contents of the basic elements of financial statements, and more.
Learning Outcomes
During the study of planned curriculum students acquire the necessary knowledge and skills for understanding of global accounting procedures and instruments, differences between bookkeeping and accounting, principles of separation between financial and management accounting, system of double-entry bookkeeping and accrual accounting basis, accounts types and bookkeeping rules, principles of orderly bookkeeping and basic accounting principles, the rules of valuation, basic principles of inventory, closing entries and preparation of the closing balance as the basis for the preparation of basic financial statements, basic principles on which the current legal and professional regulation in this area is based in the Republic of Srpska, etc.
Course Content
Bookkeeping and accounting; subject and purpose of accounting; principles of orderly bookkeeping and accounting principles; basic global procedures in the accounting and accounting tools, accounting accounts: concept, types and rules of making entries into accounts; business (economic) changes; layout of chart of accounts and chart of accounts; property inventory; errors in accounting; establishment of a legal entity and acquiring the initial capital; procurement of fixed and current assets; liabilities: definition, classification, origin and settlement; expenses and costs by nature, principles of income valuation; business, financial, other and revaluation income; methods of balancing financial results; pre-closing and closing entries; basic principles of preparation and presentation of financial statements in accordance with IFRS; basics of the financial statements analysis.
Teaching Methods
Current theoretical knowledge in the subject area is transferred to students during lectures by using the presentations in Power Point. Exercises are carried out through performing specific tasks. Preparation and presentation of the seminar paper is done with the mandatory application of the methodology for the preparation of professional papers. Students are regularly encouraged to have an active attitude towards the lectures and exercises, i.e. proactive participation in and mastering of curriculum during lectures and exercises, participation in consultations, as well as independent work.
Assessment Methods
Colloquium I (0-20 points); Colloquium II (0-20 points); Final exam (0-50 points); Attendance (2point); Class activities (seminar papers, discussions, case studies) (0-8 points)
Textbooks and Other Materials
Šnjegota, D. (2010). Application of IFRS through the balance sheet chart of accounts layout. Banja Luka: Faculty of Economics and Finrar;
Škarić, Jovanović, К. (2006). Financial Accounting. Belgrade: Faculty of Economics;
Gray/Needles. (2006). Financial accounting – general approach. Copyright: Houghton Mifflin Company. Banja Luka: The Association of Accountants and Auditors of the Republic of Srpska.
