10696 Accounting Principles for Students of Accounting 1

Credits: 6 intermediate credits in Accounting

Prerequisite: Passing the exemption examination in “Bookkeeping and Commercial Calculations” 2

Author: Yossi Aharoni

This introductory course provides students with practical and theoretical tools in the area of accounting and serves as the basis for further studies in financial and managerial accounting.

The course introduces students to the financial aspect of financial statements of a business entity (the managerial aspect is covered in Managerial Accounting for Students of Accounting, 10697). It deepens students’ knowledge of auditing in corporations and various business entities, and deals with the theoretical principles of accounting and the financial statement. The course covers accounting principles and standards, and introduces students to the bodies responsible for setting standards and legislation in accounting in Israel and the world.

Students are also taught how to classify, report and present the financial statements of a business entity, and how to report investments of companies in corporations which have control over them. The course is updated according to International Financial Reporting Standards (IFRS).

Topics: Theoretical principles of accounting and financial reporting; Measuring revenues and their presentation in financial statements; The balance sheet – report on the financial situation; The accounting process for preparing financial statements; Current assets – cash, receivables and short-term investments, inventory; Fixed tangible and intangible assets; Liabilities; Equity; Cash flow statement; Adjusting financial statements to changing prices; Held-to-maturity investments; Introduction to financial statement analysis.

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1There is some overlap in the content of this and other courses. For details, see Overlapping Courses.

2Beginning in Fall 2011, students can take the exemption exam no more than 4 times. A fee is charged for registration for the examination.