Faculty of Economics and Business Administration

1. Faculty of Economics and Business Administration

2. MSc International Business -Accounting Dr. Erik Peek (e.peek@aim.unimaas.nl) 21 May, 2008

3. About the Department of AIM... • Professors with international teaching and research experience (e.g., Wharton, MSU, U of Auckland) • Authors of established international textbooks (e.g., AIS, financial statement analysis) • Leading in accounting research on the European continent • Strong ties with the profession • Leading among European peers in commissioned research for e.g. the European Commission • Partner in the world’s primary audit research network … leading in international accounting research and education.

4. What our program offers… • Developing general skills: • Solving practical problems (PBL, real-life cases) • Being an active participant in high-level debates on contemporary accounting issues • Understanding the findings and practical implications of the latest academic research in accounting • Developing specific skills: • Measurement and disclosure of • Provision of assurance about • Interpretation of … financial information

5. Assuring the accuracy of financial information - Assurance Services - Internal Control Understanding the importance and knowing the essential elements of a well-functioning internal control system Understanding the essential stages and procedures of financial statement audits Being able to effectively perform entry-level assurance work in professional accounting firms Specific skills

6. Preparing and disclosing financial statements - Financial Accounting - Fin. Statement Analysis Interpreting and using financial information - Fin. Statement Analysis - Management Control - Strategic Performance Analysis Having a thorough understanding of IFRS reporting standards and the institutions that guide the preparation and publication of European financial statements Being able to interpret, and use financial information for making various resource allocation decisions (e.g., budgeting and control; investment decisions; loan granting decisions) Specific skills

7. (External) Auditor Manager Internal Audit ... Controller/Manager Planning and Control Financial/Business Analyst … These skills help you to become… • Reporting Analyst/ Manager Reporting and Consolidation • IFRS Consultant • Transaction Services Consultant … … and more… Accountancy focus Controlling focus

8. 40 % of CFOs of Hong-Kong-listed firms has an accounting background Accountancy (UK): “20 % of CEOs of FTSE100 has an accounting background” “Dutch” CFOs with accounting background: KPN, Heineken, Vedior, Randstad, Essent, Nielsen, LogicaCMG, Getronics… (Source: Dutch NIVRA) CFO magazine (US): “…We’re seeing a real shift to CFOs with a technical accounting background…”

9. Outline of the MSc IB Accounting Program (Accountancy focus) Balanced mix of research-, problem-, and case-based learning:

10. Outline of the MSc IB Accounting Program (Controlling focus) Balanced mix of research-, problem-, and case-based learning:

11. Post-graduate programs • The MSc IB Accounting program is an excellent preparation for A&IM’s post-graduate programs in auditing (RA) or control (RC) (in Dutch) • Other prerequisite: BSc Accounting major + Finance or IM minor • Remaining deficiencies for p-grad RA (if applicable): • Consolidation and fiscal accounts (summer course) • Tax + Corporate Law (can be done after entering the program) • For further info: Leon Timmermans

12. In short … • Strong department; first class teachers; small-scale approach • Practical training; development of directly applicable skills • Getting a good understanding of why and how businesses operate • Excellent job perspectives • Excellent preparation for postgraduate programs in auditing and control

13. Questions • Questions about the accounting track: E.Peek@aim.unimaas.nl • For specific questions regarding the postgraduate programs:Le.Timmermans@aim.unimaas.nl

14. Assurance Services • Become familiar with the stages, procedures and environment of an audit; prepare for entry-level assurance work in professional accounting firms • Assignments; discussion of academic research; two real-life cases aimed at training practical skills • Example case: • Based on company description and financials, conduct business risk analysis, identify risks for the inventory account, and outline the audit steps that you need to take to obtain assurance with respect to the inventory

15. Financial Statement Analysis • Business analysis and valuation using financial statements • Assignments; discussion of real-life cases; discussion of academic research • Example case: • Between 2000 and 2005, Carrefour’s share price decreased by 50 percent, despite the company’s ROE of close to 18 percent. Rumors are that Carrefour is a takeover candidate. • Task: analyze Carrefour’s financial statements to identify the causes of the company’s poor market performance. Is Carrefour a good takeover candidate?

16. Internal Control • Design of an effective internal control system to assure the quality of information • Problem-based learning; discussion of internal control cases; discussion of academic research • Example case: • A typology approach, e.g.: description of a manufacturing company • Task: Identify the risks and describe a set of internal and IT controls that can effectively assure the quality of information

17. Financial Accounting • Preparation of multinational companies’ financial statements in accordance with IFRS • Focus on application and rationale of accounting methods • Assignments, with focus on: • Business combinations and consolidation • Foreign subsidiaries • Segment reporting • Financial instruments

18. Management Accounting & Control • Become familiar with contemporary management accounting & control topics: • financial and non-financial performance measurement and management; • performance based rewards; • human behavior in response to economic incentives • Real-life cases • Strong focus on recent academic research and its implications for practice

19. Strategic Performance Analysis • Using management accounting to analyze complex business situations for strategic decision making • Value chain analysis, internal capital markets, turnaround management, and analysis of strategic changes • Academic research and real-life cases • Company workshop and SAP training