Accounting II

2019-2020

Course Objective

This course focuses on the use and analysis of accounting information.
It conveys knowledge and skills about how specific financial and
management accounting methods and techniques are used in practice, and
how this information is used in decision-making processes both within
and outside corporations. Specifically, after completing the course, you
are able to:
- use a commonly applied framework for analyzing and valuing companies;
- explain much-used methods and techniques for decision-making, planning
and control. You will apply this knowledge on the basis of case
assignments and relevant examples (Bridging theory and practice –
knowledge; Bridging theory and practice – application).
- critically assess specific accounting information, particularly about
the functioning of an organization and parts thereof, and the role that
this information plays in decision-making and management of companies
(Broadening your horizon; Academic and Research skills).

Course Content

The knowledge that you gained in the first year of the BSc Economics and
Business Economics, specifically Accounting I, will be broadened and
deepened. While Accounting I introduced you to specific methods and
techniques in accounting from a preparer’s perspective, Accounting II
takes the perspective of a user of accounting information. After
completing this course, you will thus be able to critically analyze and
interpret accounting information.

In accounting, one can broadly distinguish financial and management
accounting. In financial accounting, the course emphasizes the
perspective of financial statement analysis. This means that there will
be a focus on financial statements, particularly how the different
choices and decisions that are made when preparing these statements, and
methods and techniques to analyze these choices. Specifically, after
completing the course, you are able to:
- identify and analyze an organization’s strategy;
- analyze an organization’s financial accounting information;
- conduct financial analysis;
- conduct prospective analysis.

In management accounting, the course reviews the most important methods
and techniques in this area, such as cost allocation, the analysis of
cost behavior for decision-making, budgeting, variance analysis,
transfer pricing and performance measurement. This course makes
intensive use of cases to practice and apply course contents.
Specifically, after completing the course, you are able to:
- explain the most important types of cost;
- explain job-costing and process-costing systems and the relevant
issues surrounding these systems;
- explain the most important methods and techniques in the area of cost
allocation and know how to apply these;
- analyze cost and revenue behavior;
- explain which information is relevant for different decision-making
purposes;
- explain the most important methods and techniques in the area of
budgeting and know how to apply these;
- analyze and interpret variances;
- explain the most important methods in the area of transfer pricing;
- explain the most important principles behind methods and techniques in
the area of performance measurement.

Accounting II builds on the knowledge gained in Accounting I, so it is
highly recommended to have completed that course before taking
Accounting II.

Teaching Methods

Lectures
Tutorials

Method of Assessment

Case assignments – Group assessment
Written exam – Individual assessment

Literature

Financial Accounting (recommended):
Palepu, K.G., P.M. Healy, and E. Peek, 2019, Business Analysis and
Valuation: IFRS Edition, 5th edition, Andover: Cengage Learning.

Management Accounting (required):
Bhimani, A., C.T. Horngren, S.M. Datar and M. Rajan (2015), Management
and Cost Accounting, Person Higher Education, 6th edition.

Recommended background knowledge

Accounting I

General Information

Course Code E_EBE2_ACC2
Credits 6 EC
Period P1
Course Level 200
Language of Tuition English
Faculty School of Business and Economics
Course Coordinator dr. D. Detzen
Examiner dr. D. Detzen
Teaching Staff

Practical Information

You need to register for this course yourself

Teaching Methods Study Group, Lecture, Response class
Target audiences

This course is also available as: