Enterprise analysis in the context of accounting rules

B.Sc. seminars

The purpose of the seminar is to prepare and aid students in writing an undergraduate thesis on the topic of business analysis, with particular emphasis on the accounting principles (Polish Accounting Act, International Accounting Standards and International Financial Reporting Standards and American Accounting Standards US GAAP). The topic of the paper will be determined individually with each student. The seminar is aimed at third-year students of all majors. Students are required to attend class regularly and make a presentation of their work during the seminar.

Class 1 General information on the methodology of writing bachelor thesis - the construction of the thesis, the formulation of hypotheses, the nature of economic research.

Class 2. The aim, the subject and the methods of economic analysis of enterprises - the role, objectives and types of economic analysis, sources of data for economic analysis, methods of economic analysis.

Class 3: Structure of financial statements – categories of main financial statements (balance sheet, income statement, cash flow statement).

Class 4: Advanced elements of financial accounting - calculation and accounting of deferred tax, principles of recognition of operating and finance leases, valuation and recognition of different types of financial assets.

Class 5: Difference between creative accounting and aggressive accounting - practical examples of creative accounting, aggressive accounting and financial fraud.

Class 6. Preliminary analysis of financial statements - (vertical and horizontal) analysis of the balance sheet (structure of assets and liabilities, dynamic/growth of categories of assets and liabilities, linkages among components of assets and liabilities), analysis of the income statement (structure of incomes and expenses, dynamic/growth of categories of incomes and expenses, linkages among components of incomes and expenses), cash flow analysis (structure of inflows and outflows, sign analysis of balances).

Class 7: Ratio analysis of enterprises - liquidity analysis (liquidity vs. solvency, liquidity ratios), efficiency analysis (efficiency ratios), profitability analysis (return on assets ratios, return on sales ratios, return on capital ratios, Du Pont analysis), debt analysis (criteria for selection of forms of business financing, debt level analysis, solvency analysis).

Class 8: Student presentations to present progress of work.

1. Wędzki, D. “Analiza wskaźnikowa sprawozdania finansowego”, Wolters Kluwers, Kraków 2006

2. Kalwasińska E., Maciejowska D. “Rachunkowość finansowa w teorii i praktyce” autorstwa, Warszawa, 2008.

3. Bednarski L., Analiza finansowa w przedsiębiorstwie, PWE, 2007

4. Czekaj J., Dresler Z., Zarządzanie finansami przedsiębiorstw. Podstawy teorii, PWN, 1998

5. Grzenkowicz N., Kowalczyk J., Kusak A., Podgórski Z., Analiza ekonomiczna przedsiębiorstwa, WZ UW, 2007

6. Jerzemowska M. (red.), Analiza ekonomiczna w przedsiębiorstwie, PWE, 2006

7. Kopiński A., Analiza finansowa banku, PWE, 2008

8. Micherda B. (red.), Sprawozdania finansowe i ich analiza. Analiza finansowa, Stow. Księg. w Polsce, 2005

9. Pomykalska B., Pomykalski P., Analiza finansowa przedsiębiorstwa, PWN, 2007

The expected learning outcome is that the student will prepare an undergraduate thesis on a previously selected topic in the field of business analysis. During the seminar, the student will have the opportunity to expand their knowledge of financial reporting, the principles of conducting fundamental analysis, the idea of creative accounting and the differences between creative accounting and aggressive accounting.

The student will have an in-depth knowledge of the categories of financial statements (balance sheet, income statement, cash flow statement) that can have a significant impact on the decisions made by stakeholders based on these statements.

1. The student understands the mechanisms of enterprise functioning in the context of the sector in which it operates and its market environment. (S1A_07)

2. The student is able to relate the results of economic analysis to the decision-making systems of enterprises and organizations. (S1A_06)

3. The student has knowledge on how to conduct the ratio analysis and is able to interpret the results of ratio analysis, taking into consideration qualitative factors impacting on enterprise functioning. (S1A_06), (S1A_07)

The student has the ability to conduct an independent analysis of an enterprise and evaluate the company's performance in terms of profitability, efficiency, debt and liquidity. In addition, the student has the ability to conduct their own literature research in the field of business economics, and then develop and conduct an empirical study.

1. The student is able to conduct an analysis of financial reports using the ratio method. (S1A_U01), (S1A_U02), (S1A_U03)

2. The student is able to interpret the results of the preliminary analysis (vertical and horizontal) and ratio analysis. (S1A_U01), (S1A_U02), (S1A_U03), (S1A_U04)

3. The student knows how to give basic recommendations to improve ratio results. (S1A_U03), (S1A_U04)

4. The student is able to independently conduct literature review in the area of their interest. (S1A_U01), (S1A_U02), (S1A_U03), (S1A_U04)

5. The student is able to critically independently address the literature in the research field. (S1A_U01), (S1A_U02), (S1A_U03), (S1A_U04)

6. The student is able to choose the empirical method appropriate to analyse a given phenomenon and apply it correctly. (S1A_U01), (S1A_U02), (S1A_U03), (S1A_U04)

The student is aware of the impact of accounting policies and principles on the information presented in financial statements of companies. The student knows can make decisions regarding the investment of funds in companies.

1 The student is aware of how the choice of accounting policies and principles affects the information presented in financial statements of companies and understands how companies can affect their evaluation. (S2A_K04), (S2A_K07)

2 The student is able to prepare a thesis. (S2A_K03, S2A_K06)

Attendance in class is mandatory. One (1) unexcused absence per semester is allowed. The condition for passing the first semester is the submission of the topic, the thesis plan, and a preliminary version of one of the chapters of the thesis. The prerequisite for passing the second semester is to make a presentation of as complete a version of the thesis as possible at the seminar and to prepare an undergraduate thesis.