Accounting is the process of identifying, measuring and communicating information to permit informed judgments and decisions by users of the information. Accounting mirrors economic reality. Accounting is the lingua franca of the financial world and impacts all aspects of management and financial decision making. Lawyers are faced with matters of business administration and business decision making and will be confronted with concepts of accounting. Business accounting is divided into financial accounting and management accounting.
Financial accounting deals with the annual report, the Statement of Financial Position (balance sheet), the Income Statement (profit and loss account) and the Statement of Cash Flows. Financial accounting refers to information describing the resources, claims, and activities of an economic entity. Financial accounting information is designed primarily to assist investors and creditors including banks in deciding where to invest their scarce investment resources.
Management accounting deals with cost classifications, full costing and the relationship between costs of production, volume of sales and profit. Management accounting involves the development and interpretation of accounting information intended specifically to assist management in managing and controling the business.
- Describe the role, function, and usefulness of accounting in general;
- Describe the basic concepts of financial accounting and management accounting;
- Recognise specific financial accounting and management accounting similarities and differences;
- Apply financial accounting and management accounting cases and methods in simplified descriptions of real world situations;
- Identify from real world cases the accounting relevant data to draw conclusions;
- Perform and report a financial statement analysis;
- Demonstrate a critical and independent view when confronted with financial accounting and management accounting issues, to reach conclusions, and report the findings.
1. An insight of the main concepts of financial accounting and management accounting;
2. An analytical and practical skill to apply financial and management accounting in practice.
The timetable of this course can be found in uSis.
Mode of instruction
Number of (2 hour) lectures: 7
Names of lecturers: Dr. D.H. van Offeren en dr. T.L.M. Verdoes
Required preparation: reading literature
Number of (2 hour) seminars: 7
Names of instructors: Dr. D.H. van Offeren en dr. T.L.M. Verdoes
Required preparation: in the weekly seminars, students will actively engage in presenting their knowledge. Students need to prepare and present study problems from the textbook. During one seminars students present in groups the analysis of an annual report. In one other seminar students present and discuss in groups an accounting paper published in a scientific journal or on a reliable website, e.g. SSRN.
a. 2 multiple-choice tests
b. 2 presentations in groups consisting of the analysis of an annual report and of an accounting paper
c. Written exam
Examination form (for the exam and the retake):
Multiple-choice tests and presentations: maximum 20 points
Written exam: maximum 80 points
Total: maximum 100 points
The multiple-choice tests and the presentations can not be retaken. The points earned on the multiple-choice tests and the presentations will remain valid for the retake of the exam.
If a student has not passed the course by the end of the academic year, partial grades for written exam or multiple choice tests and presentations are no longer valid.
Areas to be tested within the exam
The written examan and the multiple-choice tests consist of the required reading (literature) for the course, the course information guide and the subjects taught in the lectures, the seminars and all other instructions which are part of the course.
Areas to be tested within the exam
The examination syllabus consists the required reading (literature) for the course, the course information guide and the subjects taught in the lectures, the seminars and all other instructions which are part of the course.
More information on this course is offered in Blackboard.
Obligatory course materials
McLaney E. and P. Atrill, Accounting and Finance: an introduction, last (seventh) edition, 2014, Pearson.
Course information guide (Blackboard)
Students have to register for courses and exams through uSis.
Co-ordinator: D.H. van Offeren
Work address: KOG, Steenschuur 25, 2311 ES Leiden, Office B 3.11
Telephone number: 071 527 77753
Institute: Fiscal-economics department
Department of Business Studies
Office hours: Monday-Friday 0.900-17.00
Telephone number secretariat: 071 527 7851
Belangstellenden die deze cursus in het kader van contractonderwijs willen volgen (met tentamen), kunnen meer informatie vinden over kosten, inschrijving, voorwaarden, etc. op de website van Juridisch PAO.