International Accounting

This module provides an introduction to, and systematic overview of, the financial reporting and capital market communication of internationally active and publicly traded companies.

The course "International Accounting" familiarizes students with the system of International Financial Reporting Standards (IFRS) which are applied by stocklisted firms in the European Union and in more than 100 countries worldwide. We first introduce the institutional and conceptual backgrounds of IFRS and we answer the questions of how IFRS develop and why they are relevant in Germany and wider Europe. The course then covers issues of financial statement recognition, measurement, presentation and disclosure related to the most common business activities, transactions and events. These include accounting for revenue recognition, property, plant and equipment, intangible assets, impairment of assets, inventories, provisions and financial instruments. Practice cases and research insights serve as a basis for class discussion. Special emphasis is placed on the notion that financial reporting according to IFRS is based on judgments and estimates.