International Finance and Accounting (ILV)Back
|Specialization Area||International Finance and Accounting|
|Semester of degree program||Semester 3|
|Mode of delivery||Presence- and Telecourse|
|Language of instruction||English|
Professional skills and expertise
In this module, students will acquire competencies in analyzing the specifics of accounting systems and practices in different countries, discussing key financial management issues of firms that operate internationally, and evaluating the use of different instruments for risk management in international financial markets.
On successful completion of this module, students will be able to:
- describe how and why accounting systems and practices differ in different countries
- explain the process of accounting harmonization in selected geographical regions and globally, including the role of the International Accounting Standards (IAS) Board and its policies of developing international accounting standards
- evaluate selected accounting issues from an international perspective
- evaluate the capital structure of multinational companies
- review and propose short- and long-term financing strategies of multinational companies
- understand the role of risk in valuation
- suggest strategies for managing and mitigating financial risks (e.g. exchange rate or interest risks) in an international business context
In this module, students will acquire the following personal skills:
- critically analyze how institutional and cultural factors can have an impact on accounting systems and practices
- applying systematic methods for analyzing risks
In this module, students will acquire the following skills related to the use of digital technologies:
- explain how digital tools can be used to increase the efficiency of accounting and reporting processes in multinational companies
This module covers the following topics:
I. Fundamentals of international accounting
• Classification of accounting systems (including the role of culture) and comparative international financial accounting
• International accounting standards (e.g. IFRS, US-GAAP) and global convergence
• International financial statements analysis
• International transparency and disclosure
II. Specific issues in international accounting
• Mergers and acquisitions, goodwill and intangibles
• International accounting for price changes
• International corporate governance and auditing issues
• International taxation and transfer pricing
• The use of digital tools to automatize accounting and reporting tasks
III. International finance
• Capital decisions in multinational companies (capital structure, cost of capital, international capital budgeting)
• Long-term financing (including leasing)
• Short-term financing, working capital management, and financial planning
• Multinational cash management
IV. Risk management in international finance
• The role of risk in valuation and the pricing of risk in capital markets
• Risk assessment and risk management strategies
• Exchange rate and interest rate risk hedging (derivatives)
Berk J. & DeMarzo P. (2019). Corporate Finance. 5th global ed. Harlow: Pearson.
Brealey, R., Myers, S., & Allen, F. (2019). Principles of Corporate Finance. 13th ed. London: McGraw Hill Education.
Doupnik, T. Finn, M., Gotti, G., & Perera, H. (2019). International Accounting(5th ed.). London: McGraw Hill Education.
Fox, R. & Madura, J. (2020). International Financial Management. 5th ed. Andover: Cengage Learning EMEA.
Moffett, M. H., Stonehill, A. I., & Eiteman, D. K. (2020). Fundamentals of Multinational Finance. 6th ed. Harlow: Pearson.
Nobes, C. & Parker, R. B. (2020). Comparative International Accounting. 14th ed. Harlow: Pearson.
- Lecture and discussion
- Group work
- Case studies
Integrated module exam (immanent examination character):
- Final written exam (70%)
- Case study preparation (30%)