Financial Reporting
Code
400014
Academic unit
NOVA Information Management School
Credits
6.0
Teacher in charge
Teaching language
Portuguese. If there are Erasmus students, classes will be taught in English
Objectives
At the end of the semester students should be able to
-Frame and characterize the financial (banking and insurance) and non-financial (companies) sectors in terms of accounting and regulatory norms applicable;
-Understand the major concepts that are essential to the interpretation and analysis of the structure and content of the reported financial statements;
-Identify and quantify the assets, liabilities and equity instruments of both the financial and nonfinancial sectors, taking into account the specific features that distinguish these entities;
-Know the standards and regulatory requirements and oversight mechanisms in the financial sector
-Understand the organization and functioning of financial markets and their participants and distinguish the various financial instruments traded in each segment
-Understand and distinguish the different methods used to determine the fair value of financial instruments traded in the spot and derivative markets
-Know the methods used to quantify and manage the financial and technical risks
Prerequisites
NA
Subject matter
1.The accounting standards : International accounting harmonization , the national accounting standard
2.The reporting of non-financial corporations: The structure and content of financial statements; Complete set of financial statements, Presentation of individual financial statements; disclosures; Events after the balance sheet date; Changes in accounting policies, changes in estimates and errors
3.Recognition and measurement of assets, liabilities and equity: Nonfinancial assets; Investments; Provisions in nonfinancial sector; Liabilities for post-employment benefits and Other related standards: Brief notions.
4.Off balance sheet items: Contingent assets and liabilities of non- financial corporations
5.The reporting of financial corporations: The structure and content of financial statements; Disclosures; mandatory disclosure requirements, the reporting of risk: Identification and quantification.
6.Standards and regulatory requirements and oversight mechanisms : European architecture of financial supervision, Solvency II, Basel III.
7.Analysis, valuation and Risk Management of Financial Instruments: Classification of financial assets and liabilities, complex financial products, banking and insurance products, methods of fair value computation; Derivative financial instruments: characterization, pricing models (forward contracts / futures, FRAs, options Plain vanilla / exotic options, swaps); Pricing fixed / floating rate instruments; Analysis of profitability and risk; contingent assets and liabilities of financial corporations.
Bibliography
Bessis, J. (2010). Risk Management in Banking., 3rd Edition, John Wiley & Sons.; Cuthbertson, K. e Nitzsche, D. (2001), Investments, Spot and Derivative Markets, John Wiley & Sons.; ALMEIDA, Rui M.P., ALMEIDA, Maria do Céu, DIAS, Ana Isabel, ALBUQUERQUE, Fábio, CARVALHO, Fernando, PINHEIRO, Pedro, (2010) ¿SNC Casos Práticos e Exercícios Resolvidos¿, (Volumes I e II), ATF ¿ Edições Técnicas, Lisboa.; ALMEIDA, Rui M.P., DIAS, Ana Isabel, ALBUQUERQUE, Fábio, CARVALHO, Fernando, PINHEIRO, Pedro, (2010), ¿SNC Explicado¿, (2ª Edição), ATF ¿ Edições Técnicas, Lisboa.; EPSTEIN, Barry J. & JERMAKOWICZ, Eva K. (2010), ¿IFRS ¿ Interpretation and Application of International Financial Reporting Standards¿, Wiley.
Teaching method
-Expositional and Questioning Method Active Methods and Case Studies
-Investigation projects and practical applications.
-Knowledge development and learning capability.
Evaluation method
-Essays and/or problems solving activities
-Written exams