Students are able to prepare annual financial statements in their basic form in accordance with the relevant legal provisions. They can exercise accounting and valuation options in a goal-oriented manner. After successfully completing the course, students are able to establish the connection between the result under company law and the income statement item taxes on income and profit. Students understand the difference between the total cost method and the cost of sales method. Students are able to describe the purpose of a cash flow statement and name its components. They can explain the connection to the annual financial statements under company law.

• LO3: Students can explain the functions of the annual financial statements according to the Austrian Commercial Code and the principles of proper accounting (k2).
• LO4: Students can make the closing entries necessary for the preparation of the annual financial statements (k3).
• LO5: Students can apply the provisions of the Commercial Code, Book III, and implement the recognition and valuation provisions (k3).
• LO6: By transferring the corporate result to the tax result, students can recognize the connection between the corporate result and the income tax item (k4).
• LO7: When making the closing entries, students understand whether the profit and loss statement is prepared according to the total cost method or the cost of sales method. (k2)

1. Students learn the content of an annual financial statement according to the Commercial Code and the underlying legal standards and principles for accounting.
2. Students recognize the functions of the annual financial statement according to the Commercial Code.
3. Students learn the valuation rules for the balance sheet items covered.
4. Students learn how to make the closing entries that are necessary for preparing the annual financial statement in its basic form according to the Commercial Code.
5. Students learn how to exercise the recognition and accounting options according to specified goals.
6. Students learn the relationship between the result under commercial law and the tax result.
7. Students learn the different forms of preparation for the profit and loss statement (cost of sales and total cost method).
8. Students learn the basics of the cash flow statement.
   
   

Learning Outcomes

• LO1: Students know the content of the annual financial statement and the principles of proper accounting (k1).
• LO2: Students know the accounting and valuation rules and options relevant for the preparation of the annual financial statements (in their basic form) (see course contents) (k1).