Student guide Faculty of Law A.Y. 2007/08

Business Economics - Bookkeeping and Accounting
Aim of the course
The course will introduce students to the main subjects involved in the operation of businesses, and the techniques of measuring and interpreting their results.
The course is divided into three sections throughout the academic year.
Section I – 1st semester.
The first section presents and analyses some basic subjects of Business Economics relating to the concept and rationale of the business. In particular, some crucial concepts will be studied in detail: the business and its role, its purpose, the parties involved, and the basic principles of its operation. Important subjects relating to corporate governance will be introduced, with special reference to the separation between ownership and control of companies. Subjects relating to different ownership systems and their development over time will therefore be analysed.
Section II – 1st semester.
The second section will introduce students to the process of drawing up annual accounts, which are the main information tool of a business, and analyse their contents and drafting principles according to the applicable legislation.
The course is divided into three parts. The first part of the course relates to the process of drawing up the accounts and the concept of working capital and operating income. The second part of the course will deal with the principles of drafting and valuation of the accounts. The third part will cover the structure of accounts destined for publication and the subject of consolidated accounts.
Section III – 2nd semester.
The third section will analyse subjects more directly connected with business management, with reference to the operational choices connected with everyday decisions and strategic choices connected with medium/long-term decisions. Students will also study the environment in which businesses operate, broken down into sectorial and market sub-systems. The concept of cost-efficiency will also be analysed, with special reference to its conditions over time, with the aid of an introduction to analysis of accounts.
Syllabus
Section I – 1st semester.
1.  The basic concepts of business economics.
2.  The aims and rationale of the business.
3. Stakeholders and governance models.
    Systemic concept and contractual concept of the company.
    Separation between ownership and control of the company.
    Agency costs.
    Ownership models.
Section II – 1st semester.
1.  General ledger as part of a company’s information system.
     Trading operations and the process of drawing up accounts.
     The concept of working capital and operating income.
     How the main trading operations are reflected in the accounts.
2.  The postulates of the accounts and principles of drafting accounts
     General and special valuation principles.
     Valuation of stocks.
     Valuation of tangible fixed assets.
3.  The structure of accounts destined for publication: Balance Sheet and Profit and Loss Account.
     The information contents of consolidated accounts.
Section III – 2nd semester.
1.  Cost-efficiency and value generation in the medium/long term.
2.  Strategic management and operational management.
3.  The business formula.
4.  The operation of a business in its environment.
5.  Competitive strategy.
6.  Portfolio strategy.
7.  The organisational function.
 
During the first lecture, students will be given a syllabus with analytical details of the contents of each session.
Examinations
Sections I and II – 1st semester.
An oral exam will be held.
A written exam will also be held at the end of the course, which can be taken by students who attend lectures.
 Section II – 2nd semester.
An oral exam will be held.
A written exam will also be held at the end of the course, which can be taken by students who attend lectures.
Reading list
Sections I and II – 1st semester.
·         Favotto, F., Economia Aziendale. Modelli, misure, casi,  McGraw-Hill, Milan, 2007
·         Reboa, M., Proprietà e controllo d’impresa: aspetti di Corporate governance, Giuffrè, Milan, 2002.
·         Corno, F., Lombardi Stocchetti,  G., Le valutazioni di bilancio. Normativa e principi contabili nazionali, Guerini, Milan, 2005.
·         S. Fossati, Introduzione alle rilevazioni contabili e al bilancio di esercizio. Esercizi svolti e da svolgere, Università LIUC, Castellanza, 2007.

Section II – 2nd semester.
·         Favotto, F., Economia Aziendale. Modelli, misure, casi,  McGraw-Hill, Milan, 2007
·         Reboa, M., Proprietà e controllo d’impresa: aspetti di Corporate governance, Giuffrè, Milan, 2002.