1. Understand the intuition behind important accounting standards.
2. Critically apply accounting principles to real-life examples.
3. Explain the relevance of external reporting for internal decisionmaking.
4. Evaluate the societal impact of accounting rules.

PLEASE NOTE THAT THE INFORMATION ABOUT THE TEACHING AND ASSESSMENT METHOD(S) USED IN THIS COURSE IS WITH RESERVATION. THE INFORMATION PROVIDED HERE IS BASED ON THE COURSE SETUP PRIOR TO THE CORONAVIRUS CRISIS. AS A CONSEQUENCE OF THE CRISIS, COURSE COORDINATORS MAY BE FORCED TO CHANGE THE TEACHING AND ASSESSMENT METHODS USED. THE MOST UP-TO-DATE INFORMATION ABOUT THE TEACHING/ASSESSMENT METHOD(S) WILL BE AVAILABLE IN THE COURSE SYLLABUS. This course teaches you the relation between information produced for external reporting purposes and the decisions made by management internally. It aims to advance your understanding of financial accounting principles and their implications for real decision-making. This course bridges the gap between financial and management accounting and provides you with hands-on knowledge necessary to become a future finance professional. Selected topics include segment reporting and internal capital allocation efficiency, consolidation and the internal allocation of goodwill, and the impact of accounting standards on the trade-off between real and accrual earnings management. We further explore the externalities of firm disclosures by looking at the implications of financial reporting for peer firms’ real decisions.

1. Understanding of financial accounting at an intermediate level (3rd year bachelor).
2. Understanding of introductory management accounting.