Academic management

Accounting is a fundamental topic in Accounting and Finance Degree. It provides information of great utility in decision making processes in enterprises both by managers, as well as by others interested parties in those enterprises.

According to the bachelor’s degree in Accounting and Finance Curriculum, Financial Accounting II is included in the module of Accounting, particularly under the heading Financial Accounting. Students have previous contact with other accounting subjects as Introduction to accounting and Financial Accounting I. Those subjects establish basic accounting knowledge of the branch of Accounting aimed primarily at decision making by external users.

In accounting and finance studies, Financial Accounting, which addresses accounting from an external point of view and focuses on the company, is very useful for their professional future activity in management and administration, accounting and auditing, … Those jobs have an important demand in society.

After studying this subject, students should be able to:

• Understand the registration and valuation rules applicable in special operations such as acquisition of property, plant and equipment, leases, intangible assets, different categories of financial assets and financial liabilities, provisions and contingencies.
• Understand the accounting record of the tax on benefits comprising its two components (current and deferred tax) as well as valuing and recording the related assets and liabilities.

At the same time, this subject is not only a continuation of others, it will also be very useful to face in a successfully way other compulsory and elective subjects as:

• Compulsories: Analysis of Financial Information and Audit I.
• Electives: Audit II and Advanced Accounting.

It is also worth highlighting the importance of Accounting in the Curriculum because it is difficult to understand the Degree in Accounting and Finance without having in-depth knowledge in accounting, which will be demanded in the labour market, either directly or indirectly.

Knowledge acquired in previous subjects as Introduction to Accounting and Financial Accounting I are basic and essential to understand Financial Accounting II and taking into account that the acquisition of knowledge in this discipline is progressive, it is necessary to keep in mind everything already studied in those subjects, since this one constitutes only a continuation.

General competences students will develop in Financial Accounting II are:

• CG1 - Capacity for analysis and synthesis.
• CG3 - Capacity for oral and written communication in the native language.
• CG4 - Ability to communicate orally and in writing in a foreign language.
• CG6 - Ability to search, analyse and interpret information from various sources.
• CG7 - Ability to solve problems.
• CG8 - Ability to make decisions.
• CG9 - Ability to work in a team.
• CG12 - Critical and self-critical capacity.
• CG13 - Ethical commitment at work and motivation for quality.
• CG14 - Autonomous learning capacity.
• CG15 - Ability to adapt to new situations.
• CG20 - Ability to apply knowledge to practice.

Students will also develop the following specific competences:

• CE7. Understand the mechanisms of the business information processing process.
• CE11. Apply and interpret accounting regulations.
• CE12. Provide advice on accounting and tax matters.
• CE13. Analyze and interpret the company's financial statements.
• CE21. Apply commercial regulations in the preparation of financial statements.

Having finished the subject, the following learning outcomes should be achieved:

• RA1.1. Understand accounting basic concepts and interpret accounting principles as well as apply them in recording and valuating business transactions.
• RA1.3. Have an ethical behaviour applying accounting standards and the ethic code that is mandatory for all accountants.
• RA1.6. Interpret the accounting information in order to obtain valid conclusions about the historical and future, either economic or financial evolution of the company, all based on real cases.

Brief Programme

Unit 1. – Property, plant and equipment.

Unit 2. – Intangible assets.

Unit 3. – Financial assets.

Unit 4. – Provisions, contingencies and error corrections.

Unit 5. – Income tax.

Detailed Programme

Unit 1 – Property, plant and equipment

1.1. Property, plant and equipment: definition and measurement.

1.2. Special forms of acquisition.

1.3. Accounting for leases.

General aim of the unit:

Identify the main modalities of acquisition of property, plant and equipment and their accounting.

Specific learning outcomes:

• Identify the characteristics of property, plant and equipment, investment properties and non-current assets held for sale.
• Initial and subsequent valuation of property, plant and equipment, investment properties and non-current assets held for sale.
• Accounting for property, plant and equipment free acquisitions and exchanges.
• Differentiate different leases modalities of non-current assets and their accounting treatments.

Unit 2 – Intangible assets

2.1. Intangible assets: definition and measurement.

2.2. Specific standards on intangible assets.

General aim of the unit:

Demonstrate an understanding of significant characteristics and other judgements that are required in accounting for intangible assets.

Specific learning outcomes:

• Identify intangible assets and their characteristics.
• Measure intangible assets on initial recognition and subsequently.
• Account for different intangible assets

Unit 3 - Financial instruments.

3.1. Financial assets.

3.2. Financial liabilities.

General aim of the unit:

Distinguish different types of financial assets and liabilities and their respective accounting valuations.

Specific learning outcomes:

• Identify and describe different categories of financial assets.
• Apply the criteria of registration and valuation to different categories of financial assets.
• Identify and describe different categories of financial liabilities.
• Apply the criteria of registration and valuation to the different categories of financial liabilities.

Unit 4 – Provisions, contingencies and error corrections

4.1. Provisions: definition and classification.

4.2. Non-Trade provisions.

4.3. Trade provisions.

4.4. Contingencies

4.5. Error corrections

General aim of the unit:

• Understand the meaning of contingent assets and contingent liabilities and distinguish contingent liabilities with liabilities and provisions.

Specific learning outcomes:

• Distinguish between provision and contingency.
• Apply existing criteria of registration and valuation in different provisions categories.
• Identify contingency situations and explain their accounting treatment.
• Distinguish errors from other situations and learn how to correct them.

Unit 5 – Income tax

5.1. Accounting-tax relationship in corporation tax.

5.2. Synthesis of tax rules.

5.3. Income tax.

General aim of the unit:

Study the income tax accounting.

Specific learning outcomes:

• Understand the relationship between Accounting and Taxation
• Calculate the taxable income.
• Distinguish two components of the income tax: current tax and deferred tax.
• Accounting for current tax.
• Understand permanent and temporary differences and their accounting record.
• Valuate and record deferred tax assets and liabilities.

The methodology used in the course Financial Accounting II is based on a combination of in class and distance learning activities, in both cases encouraging active student participation by means of the introduction of elements of dialogue and argument in class, aimed at assessing and supervising their understanding of the topics explained.

In this discipline theory and practice are perfectly integrated, so any teaching method for accounting must necessarily have a strong practical orientation on a sound theoretical basis, where the student tries to face and confront economic reality by applying theoretical knowledge.

The basic material used in this course development includes relevant laws and regulations, slides for every unit and a practice exercises booklet, supplemented with other material prepared by teachers. In order to support teaching, students are provided with other resources which complement both the theoretical and practical aspects of the subject and include references to useful books as well as national and international websites from which they may obtain relevant and updated information. In addition to the material listed above, teachers will make other useful study material available to students through the Virtual Campus.

Teaching schedule is organized as follows:

Work requiring attendance: 60 hours

– Lectures. Lectures are delivered to the whole class at the same time and seek to present the theoretical aspects of the subject, enabling the teacher to point out key points in a lesson, control the presentation time and promote effective methods to study the subject. Furthermore, the active participation of students will be encouraged. Lectures development is based on the course material which will be available to students in advance of lectures, so that they can prepare units before they are delivered in class.

– In-class practical sessions. “Active-learning” techniques will be used aimed at encouraging student participation and interpersonal interaction among students as well as between the professor and students.

– Tutoring sessions. Students can take individualized tutorials with each lecturer who teach the subject.

– Evaluation session. Written exam consisting of theoretical questions and practical exercises to assess student progress.

Exceptionally, if sanitary conditions require it, non-face-to-face teaching activities may be included, in that case students will be informed of those changes.

Work not requiring attendance: 90 hours

– Individual work. It is based on three types of activities: study the theoretical aspects related to “lectures”, study practical aspects related to “practical sessions” and, when appropriate, out-of-class practice activities or completion of homework assignments.

The following tables show the distribution of time for each activity:

The following methods will be used to assess student performance:

1. Continuous assessment. It involves analysing different parts of the learning process so as to assess student progress throughout the course and then produce a final evaluation result from these periodic assessments. This method of assessment is based on active commitment of students to in class activities, theoretical and practical quizzes, solving cases and exercises and practical activities as well as presentations made in groups and/or individually. Continuous assessment evaluates the knowledge and learning outcomes acquired by the student every moment.

2. Final exam. It is the overall assessment that takes part at the end of the learning process, which quantifies and evaluates student performance through a grade. Its primary purpose will be to measure the student's level at the end of the course.

Grading System

The final grade in all examinations sitting during the academic year 2022-23 (May/June and June/July) will be a weighted average of scores from the continuous assessment and the final exam, with a weighting of 40% for the continuous assessment and 60% for the final exam.

The total score for the continuous assessment (4 points out of 10) can be obtained as follows:

• In lectures’ classes. Exams will be carried out throughout the semester. According to these tests the student will be able to obtain a maximum of 1.8 points. If the exam were a multiple-choice test, wrong answers will be penalized.

Likewise, the attitude and active participation of the student in class will be valued with a maximum score of 0.2 points. Lecturer will propose questions to be resolved and debated by the students.

• In class practical sessions. Exams will be carried out throughout the semester. According to these tests the student will be able to obtain a maximum of 1.8 points. If the exam were a multiple-choice test, wrong answers will be penalized.

Likewise, the attitude and active participation of the student in class will be valued with a maximum score of 0.2 points. Lecturer will propose questions to be resolved and debated by the students.

In the end of course examination (ordinary sit, 6 points out of 10), it is necessary to meet the following requirement to pass the subject:

• In the part of the final exam that assesses Unit 5 "Corporate Income Tax", students cannot obtain a score lower than 30% of the total score assigned to that part.

Assessment in the ordinary sit

Nonetheless, the continuous assessment mark is only useful for the ordinary sit. In extraordinary examinations the exam mark is over 10.

Successful completion of the course is achieved when, meeting all requirements, the student obtains a final mark of 5 points or above (out of 10).

Students who in the ordinary examination, despite having obtained a mark equal to or greater than 5 when adding the continuous assessment and the final exam, have not passed the course due to not having achieved, in the final exam, the minimum score required in the corporate income tax part, will appear on official transcripts / mark reports with a grade of 4.5.

Exceptionally, if sanitary conditions require it, non-face-to-face evaluation methods may be included; in that case students will be informed of those changes.

Finally, It is recalled that the Code of Ethics of the University of Oviedo is in force and it is applicable, you can access using the following link: Universidad de Oviedo - Código ético (uniovi.es).

Students with differentiated assessment, accredited part-time, will be evaluated solely through the final exam, which will get a score of 10 points in all examinations (art 7.2 a) Agreement of the 17th June 2013, the Governing Council of the University of Oviedo, approving the revised text of the Rules of assessment of learning outcomes and skills acquired by students. Successful completion of the course is achieved when the student obtains a final passing grade of 5 points in that final and only exam.

Exceptionally, if sanitary conditions require it, non-face-to-face evaluation methods may be included; in that case students will be informed of those changes.

Finally, It is recalled that the Code of Ethics of the University of Oviedo is in force and it is applicable, you can access using the following link: Universidad de Oviedo - Código ético (uniovi.es).

Laws and Regulations

Real Decreto 1514/2007, de 16 de noviembre, por el que se aprueba el Plan General de Contabilidad (BOE de 20 de noviembre).

Real Decreto 1515/2007, de 16 de noviembre, por el que se aprueba el Plan General de Contabilidad de Pequeñas y Medianas Empresas y los criterios contables específicos para microempresas (BOE de 21 de noviembre).

Real Decreto 1159/2010, de 17 de septiembre, por el que se aprueban las Normas para la Formulación de Cuentas Anuales Consolidadas y se modifica el Plan General de Contabilidad aprobado por Real Decreto 1514/2007, de 16 de noviembre y el Plan General de Contabilidad de Pequeñas y Medianas Empresas aprobado por Real Decreto 1515/2007, de 16 de noviembre.

Real Decreto 620/2016, de 2 de diciembre de 2016, por el que se modifica el Plan General de Contabilidad aprobado por el Real Decreto 1514/2007, de 16 de noviembre; el Plan General de Contabilidad de Pequeñas y Medianas Empresas aprobado por Real Decreto 1515/2007 de16 de noviembre; las Normas para la Formulación de Cuentas Anuales Consolidadas aprobadas por el Real Decreto 1159/2010 de 17 de septiembre; y las Normas de Adaptación del Plan General de Contabilidad a las Entidades sin Fines Lucrativos aprobadas por el Real Decreto 1491/2011, de 24 de octubre.

Real Decreto 1/2021, de 12 de enero, por el que se modifican el Plan General de Contabilidad aprobado por el Real Decreto 1514/2007, de 16 de noviembre; el Plan General de Contabilidad de Pequeñas y Medianas Empresas aprobado por el Real Decreto 1515/2007, de 16 de noviembre; las Normas para la Formulación de Cuentas Anuales Consolidadas aprobadas por el Real Decreto 1159/2010, de 17 de septiembre; y las normas de adaptación del Plan General de Contabilidad a las entidades sin fines lucrativos aprobadas por el Real Decreto 1491/2011, de 24 de octubre.

Resolución de 1 de marzo de 2013, del Instituto de Contabilidad y Auditoría de Cuentas, por la que se dictan normas de registro y valoración del inmovilizado material y de las inversiones inmobiliarias (BOE de 8 de marzo).

Resolución de 28 de mayo de 2013, del Instituto de Contabilidad y Auditoría de Cuentas, por la que se dictan normas de registro, valoración e información a incluir en la memoria del inmovilizado intangible (BOE de 3 de junio).

Resolución de 18 de septiembre de 2013, del Instituto de Contabilidad y Auditoría de Cuentas, por la que se dictan normas de registro, valoración e información a incluir en la memoria de las cuentas anuales sobre el deterioro del valor de los activos (BOE de 25 de septiembre).

Resolución de 9 de febrero de 2016, del Instituto de Contabilidad y Auditoría de Cuentas, por la que se desarrollan las normas de registro, valoración y elaboración de las cuentas anuales para la contabilización del Impuesto sobre Beneficios (BOE de 16 de febrero).

Resolución de 10 de febrero de 2021, del Instituto de Contabilidad y Auditoría de Cuentas, por la que se dictan normas de registro, valoración y elaboración de las cuentas anuales para el reconocimiento de ingresos por la entrega de bienes y la prestación de servicios.

Basic bibliography

Materials prepared by the teachers of the subject, available to students on the Virtual Campus: www.campusvirtual.uniovi.es

Supplementary bibliography in English

LEWIS, R. and PENDRILL, D. (2004): Advanced Financial Accounting, 7th edition, Prentice Hall, Great Britain.

ELLIOT, B. and ELLIOT, J. (2011): Financial Accounting and Reporting, 11th edition, Prentice Hall, Great Britain.

Supplementary bibliography in Spanish

ALONSO PÉREZ, A. y POUSA SOTO, R. (2016): “2000 Soluciones Contables PGC”, CISS Grupo Wolters Kluwer, Bilbao. 

ESTEIRO VARELA, M.A. y MAZARRAZCÍN BORREGUERO, M.R. (2016): Contabilidad Financiera Superior I y II, Pirámide, Madrid.

GALLEGO DIEZ, E. y VARA VARA, M. (2008): Manual Práctico de Contabilidad Financiera, Pirámide, Madrid.

LARRÁN JORGE, M. (Coord.) (2009): Fundamentos de Contabilidad Financiera. Teoría y Práctica, Pirámide, Madrid.

LÓPEZ DÍAZ, A. (Dir.) (2008): Manual de Contabilidad Financiera, Universitas, Madrid.

MARTÍNEZ ALFONSO, A.P. y LABATUT SERER, G. (2009): Casos Prácticos del PGC y PGC-Pymes y sus Implicaciones Fiscales, Edición Fiscal CISS, Wolters Kluwer, Bilbao.

MARTÍNEZ ARIAS, A. y FERNÁNDEZ RODRÍGUEZ, E. (2011): Contabilidad de los Impuestos Empresariales, Consejo General de Colegios de Economistas de España, REAF - Economistas Asesores Fiscales, Madrid.

MONTESINOS JULVE, V. (2010): Fundamentos de Contabilidad Financiera, Pirámide, Madrid.

OMEÑACA GARCÍA, J. (2008): Contabilidad General. 11ª edición actualizada, Deusto, Barcelona.

REJÓN LÓPEZ, M. (2008): Manual práctico del Nuevo Plan General de Contabilidad 2008, Grupo Editorial Universitario, Granada.

VARIOS AUTORES (2013): Supuestos de Introducción a la Contabilidad, Ediuno, Servicio de Publicaciones de la Universidad de Oviedo, Oviedo.

VARIOS AUTORES (2018): Manual de Introducción a la Contabilidad, Ediuno, Servicio de Publicaciones de la Universidad de Oviedo, Oviedo.

WANDEN-BERGHE, J.L., FERNÁNDEZ DAZA, E. y BAÑÓN CALATRAVA, C. (2011): Contabilidad Financiera I, Pirámide, Madrid.

Complementary Documentation

Additionally, students may also visit the following websites: