Accounting in Multi-National Enterprises

2019-2020

Course Objective

ACADEMIC AND RESEARCH SKILLS – STUDENTS CAN CONDUCT A BASIC
INTERNATIONAL RESEARCH PROJECT FROM START TO FINISH

After successfully completing this course, the student
• can analyze and demonstrate an understanding of financial and
management accounting information, focusing on the most relevant inputs
for business analysis decisions (Analysis)
• is able to put forward well-founded, substantiated points of view to
support decisions, such as recommending investment in a multi-national
company (Argumentation)

BRIDGING THEORY AND PRACTICE

KNOWLEDGE: Demonstrates theoretical and empirical knowledge concerning
the relevant areas in international business administration

After successfully completing this course, the student:
• can explain commonly used frameworks in accounting for business
analysis and valuation.
• can apply commonly used methods for planning, decision-making and
control purposes to have a set of tools available for business decisions

APPLICATION: Can propose a solution to an international real-life
business problem by applying relevant theories and methodologies.
After successfully completing this course, the student:
• Is able to provide practical solutions to a case by applying
accounting theory
• is able to apply theoretical knowledge in a specific business
situation

QUANTITATIVE SKILLS
• is able to apply relevant financial analysis tools, valuation
concepts, and common management accounting methods to determine the
information most relevant for your decision

BROADENING YOUR HORIZON - STUDENTS ARE ABLE TO REFLECT ON THE ETHICAL
AND SOCIAL IMPLICATIONS OF PROFESSIONAL AND GOVERNMENTAL DECISIONS

After successfully completing this course, the student:
• has a good understanding of the political, international, and
(cross-)cultural context related to the field of accounting, and
specifically emerging economies

Course Content

Suppose two firms report the same earnings in their financial
statements. How come investors react differently to them? Why is one
firm punished by the market, while the other’s share price increases? A
key aspect in answering these questions is the role of financial
analysts, who largely determine what capital markets can reasonably
expect from companies and whether investors should give their money to
multi-national enterprises. This course helps you understand this role
of analysts better by enabling you to trace and reproduce the way these
mediators come up with their recommendations, seeing through some of the
accounting choices companies make, placing the company firmly in its
international context, and applying valuation concepts to multi-national
enterprises in developed economies.
To do so, this class explicitly takes a user perspective to accounting
information to help you understand the relevance of accounting
information in multi-national enterprises. That means that you will take
the role of a financial analyst when examining companies’ financial
statements on the basis of a commonly used framework for analysis and
valuation. At the end of your assessment, you will be able to come up
with an investment recommendation. From a company’s perspective, you
will take the role of a decision-maker who needs to place his/her
judgment on the most relevant information for this decision. Hence, you
will improve your understanding of important management accounting tools
that you will encounter in your subsequent business career for planning,
decision-making and control purposes.

Teaching Methods

Lectures
Tutorials

Method of Assessment

Assignment – Group assessment
Written exam – Individual assessment
Mandatory attendance and in-class participation tutorials

Literature

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

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

Additional (required) materials will be announced via Canvas.

Recommended background knowledge

1.5 Accounting
Good command of basic financial and management accounting concepts

General Information

Course Code E_IBA2_AMNE
Credits 6 EC
Period P4
Course Level 200
Language of Tuition English
Faculty School of Business and Economics
Course Coordinator dr. D. Detzen
Examiner dr. D. Detzen
Teaching Staff dr. D. Detzen

Practical Information

You need to register for this course yourself

Last-minute registration is available for this course.

Teaching Methods Lecture, Study Group
Target audiences

This course is also available as: