Financial Statement Analysis:
1. Explain the purpose of financial statement analysis.
2. Understand the relationship between financial statement numbers and use ratios in analyzing and describing a company's performance.
3. Use common-size financial statements to compare financial statements across years and between companies.
4. Understand the DuPont framework and how return on equity can be decomposed into its profitability, efficiency, and leverage components.
5. Use cash flow information to evaluate cash flow ratios.
6. Understand the limitations of financial statement analysis.

Managerial Control:
1. Understand the role played for strategy implementation by managerial control and performance measurement systems.
3. Learn fundamental concepts and techniques of cost accounting and managerial costing.
4. Understand the basic structure of a cost assignment process.
5. Become familiar with both job order systems and process cost systems.
6. Appreciate the relations between the evolution of business processes and the emergence of new managerial costing techniques.
7. Understand the differences between variable and full costing.
9. Comprehend the distinction between "resources used" and "resources supplied" in order to be able to fully appreciate the relation between fixed costs and "capacity".
10. Acknowledge "complexity" as an important cost driver.


Consolidated Financial Statements
1. Recognize the reasons for business expansion.
2. Discriminate the different kinds of organizational structures and the types of acquisitions.
3. Understand how ownership and control can influence the accounting for investments in common stock.
4. Appreciate the usefulness and limitations of consolidated financial statements.
5. Understand and explain how consolidation procedures differ when there is a differential.
6. Understand and explain differences in the consolidation process when the subsidiary is not wholly owned.
7. Understand and explain inter-company transfers and why they must be eliminated.

This course aims to provide knowledge that requires prior comprehension of the fundamental topics taught in the Accounting course to be understood and absorbed. For this reason, those who have not passed Accounting cannot take this exam.

The course deals with several accounting issues organised around three main “areas of knowledge”: 1. Financial Statement Analysis (FSA) 2. Managerial Control (MNC) 3. Consolidated Financial Statements (CFS) The aims of each section are the following: FSA: Advance the understanding of how to use financial information to analyse firms. MNC: Introduce the concept of managerial control systems, defining their role in strategy execution. Define the role played in this regard by managerial costing logic and tools. CFS: Lead the student to analyse transactions where one firm acquires control of another firm and apply accounting rules for consolidation of financial reports.

Financial Statement Analysis: Required reading: Resutek Richardson (2024) Financial Statement Analysis: a Data Analytics approach, McGraw-Hill in Bertoni M., Valentinuz G. (2025) Financial statement analysis and consolidation: an introduction, Create McGraw Hill. Additional material: The lecturer will provide slides used in class in PDF format and selected readings. Managerial Control: Required reading: Miller-Nobles, Mattison: “Horngren's Financial & Managerial Accounting. The Managerial Chapters, 8/E, Pearson Higher Education, 2024, ISBN: 9781292463186 (Chapters 3, 4, 5, 6, 9, 10) (students can use older editions of the textbook). Additional material: The lecturer will provide slides used in class in PDF format and selected readings. Consolidated Financial Statements: Required reading: Christensen, Cottrell, Budd, Advanced Financial Accounting, McGraw-Hill in Bertoni M., Valentinuz G. (2025) Financial statement analysis and consolidation: an introduction, Create McGraw Hill.

Financial Statement Analysis a. The need for Financial Statement Analysis. b. Business Strategy Analysis, Accounting Analysis, Financial Analysis, Prospective Analysis. c. The adversarial nature of Financial Reporting: the importance of being skeptical. d. Comparative Financial Statement Analysis. e. Common Size Financial Statement Analysis. f. Cash Flow and Working Capital Analysis. g. Credit Analysis (Liquidity & Solvency). h. Liquidity ratios. i. Solvency ratios: debt ratios and coverage ratios. l. Profitability Analysis: measuring efficiency. m. Profitability and efficiency ratios. n. Activity ratios. o. DuPont framework. p. Gauging risk: operating Managerial Control a. The need for Managerial Control. b. Job Costing and Process Costing c. Cost Behaviour: Fixed and Variable Costs. d. Cost Tracing and Cost Allocation: Direct and Indirect Costs. e. Criteria to Guide Cost Allocation Decision f. Cost-volume-profit analysis. Break-Even Point in Unit Sales and Sales Dollars. g. Variable Costing versus Absorption (Full) Costing. h. Volume Drivers versus Complexity Drivers. From Variability to Responsiveness. i. Activity-Based Costing. Resources Are Not Consumed by Products. j. The Mechanic of ABC: Resource Drivers and Activity Drivers. k. Responsibility accounting and performance evaluation. l. Short-term business decisions. Consolidated Financial Statements a. Groups of Companies and Business Combinations b. The Equity Method of Accounting for Investments c. Consolidation of wholly owned subsidiaries. Consolidation of partially owned subsidiaries. d. Accounting treatment of the noncontrolling interest in consolidated financial statements. e. Goodwill from acquisition and its accounting treatment. f. Consolidation adjustments after the acquisition g. Intercompany transfers of inventory, services, and plant assets.

Although the main mode of content delivery remains traditional, techniques and tools to foster interaction with students will be used if possible.

Different teaching modes and learning techniques will, therefore, be used:
Face-to-face lectures
Autonomous Learning
Incidents and Cases Analysis & Discussion

Attendance to all lectures is strongly recommended and active participation is encouraged. Students should prepare for class by reading the assigned materials (if any) and developing answers to the application case questions at the ends of chapters.
In addition to the face-to-face teaching hours carried out by the lecturers, the Issues in Financial and Management Accounting course also includes 10 additional hours of supplementary teaching activities, consisting of exercises and applications of the concepts covered in class.

The course is structured in two modules designed as follows:

FIRST MODULE (30 hours)
"Financial Statement Analysis"
Lecturer: Prof. Giorgio Valentinuz

SECOND MODULE (30 hours):
“Management Control”
"Consolidated Financial Statements"
Lecturer: Prof. Michele Bertoni

However, all supplementary materials and all communications to students will be provided (for both modules) using the same Moodle page and Teams group, which will be activated at the beginning of the course. Students are urged to keep up to date by consistently consulting those sources.

This course is composed of two modules, each under the responsibility of a different lecturer: Module 1: Financial Statement Analysis, taught by Prof. Giorgio Valentinuz Module 2: Consolidated Financial Statements and Management Control, taught by Prof. Michele Bertoni The final grade is the average of the grades obtained in the two modules. In order to pass the course, students must meet the following two conditions: The final average grade must be at least 18 out of 30 The grade in each individual module must be at least 15 out of 30 Additional details are available on the course's Moodle page. Students may choose the order in which they take the two module exams. However, Prof. Michele Bertoni is responsible for the official recording of the final grade. Therefore, students approaching their graduation deadline should ensure that there is an available exam date with Prof. Bertoni in time to finalize the grade. Please note that passing the exam is always required, regardless of whether it is your last exam before graduation: no grades will be awarded without meeting the required standards. Assessment Methods Module 1 – Financial Statement Analysis To take this exam, students are required to complete a project, either individually or in small groups. The project aims to apply classroom concepts to a practical case and to develop analytical and presentation skills. Each student must present the project individually during an oral exam, defending the analysis and responding to related theoretical questions. Module 2 – Consolidated Financial Statements and Management Control This module is assessed through a written exam, equally divided between the two subject areas: 50% on Management Control 50% on Consolidated Financial Statements The exam may include numerical exercises, open-ended or multiple-choice theoretical questions, and journal entries. Regardless of the outcome of the written exam, an oral exam may be requested by the instructor if clarifications or additions are deemed necessary due to anomalies identified in the written test. Moreover, an oral exam is mandatory in all cases where past violations of academic integrity have been recorded.

(4) Quality Education
(8) Decent Work & Economic Growth