10708 Financial and Managerial Accounting 1

Credits: 6 intermediate credits in Industrial Engineering and Management

Prerequisites: none

Authors: Yossi Aharoni, Joshua Livnat, Haim Falk, Jacob Kamin, Yair Bahar, Nitza Geri, Menahem Fass, Kobi Shkolnik, Ahron Filin

The course acquaints students with the basic concepts of financial accounting, managerial accounting and costing. It discusses financial reporting standards within the framework of financial accounting, provides students with an understanding of the significance of financial statements of the business entity and develops their ability to analyze these statements. To this end the course familiarizes students with the process of data gathering and processing from an accounting perspective that serves as the basis for compiling financial statements. The second part of the course deals with costing principles, decision-making, and budgeting and control.

The course is based on selected topics from the courses Introduction to Accounting (10280) and Cost and Managerial Accounting (10404). It is updated according to International Financial Reporting Standards (IFRS).

Topics: Theoretical principles of accounting and financial reporting, measuring revenues; 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; Equity capital and liabilities; Cash flow statement; Introduction to financial statement analysis; Managerial accounting goals, defining and classifying costs; Equilibrium point analysis � the relationship between cost, price and sales volume; Contribution costing and absorption costing � allocating fixed costs to inventory; Order costing and process costing � methods for recording and calculating production costs based on plant activity characteristics; Allocating indirect costs and service departments, shared costs and shared products; Costs relevant to managerial decisions; Budgeting and control � preparing a budget and the standard costing system � analyzing deviations.

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