BAF351 – Syllabus

BAF-351 BANK AACOUNTING SYLLABUS

Course code/title

BAF-351 Bank Accounting

Class Meeting Hours and Rooms

TBA

Course info

COURSE TYPE: Elective Lecture
LECTURER(S): Bülent Şenver
CREDIT VALUE: 3 Credit hours
ECTS VALUE: 6
DURATION OF COURSE: One semester

Course description

The main aim of this course is to provide students with an introductory yet comprehensive overview Bank Accounting. This course is an introduction to the preparation and interpretation of bank financial statements. The course covers the accounting cycle by which the information about bank transactions is summarized in these statements.

Course objectives

The objectives of this course are to establish a sound foundation of the bank financial accounting principles and to ensure students understand the process of gathering, recording, classifying, summarizing, reporting as well as interpreting bank financial information.

General learning outcomes

On successful completion of this course, all students will have developed knowledge and understanding of:

  • The language of bank accounting
  • Read & analyse bank financial statements: balance sheet, statement of income, statement of cash flow and statement of retained earnings

On successful completion of this course, all students will have developed their skills in:

  • Reading / writing / searching for bank accounting concepts
  • Understanding complex bank accounting issues
  • Interpreting and recording the effects of banking business transactions
  • Classifying the effects of banking transactions
  • Summarizing and communicating the bank accounting information to decision makers

On successful completion of this course, all students will have developed their appreciation of and respect for values and attitudes regarding the issues of:

  • Bank Accounting principles
  • Bank Accounting systems
  • Bank Accounting information
  • Bank Reporting systems

Learning/teaching method

Lectures, classroom examples, quizzes, midterm exam, and final exam.

Method of assesment

Midterm Exam 30%
Final Exam 50%
Quises 10%
Participation + Assignments 10%

Content and Schedule

WEEK TOPICS
1 Introduction to Banking and its Principles

-Essence of Banking

-Principles of Banking

-Types of Banking

-The role of Banks in Financial System

Tutorial: Concept Checks and Chapter-end Problems
2

 

 Accounting for Bank Business Transactions & Accounting Adjustments:

– Mechanics of Double–Entry Accounting

– Recording Changes in Revenues and Expenses

-Comprehensive Illustration—Journalizing,  Posting, and Preparing a Trial Balance

-Cash versus Accrual Accounting

-Classification of Adjusting Entries

Tutorial: Concept Checks and Chapter-end Problems
3

 

 Completing Bank Accounting Cycle:

-The Accounting Cycle:  Adjusted Trial Balance, Preparation of Financial Statements, Closing Entries,  Post–Closing Trial Balance

-The Worksheet

-Reversing Entries

-Comprehensive Illustration—Completing the Accounting Cycle

Tutorial: Concept Checks and Chapter-end Problems
4-5 The Financial Statements of Banks and some of their Competitors:

-Working with Financial statements of Banks

-Off Balance sheet Activities

-The Problem of Book-Value Accounting

Tutorial: Concept Checks and Chapter-end Problems
6-7 MID-TERM EXAMS
8-9 Application of Exercises – Working with Balance sheet and Income Statement of Commercial Banks: Different Case Studies

–Journalizing each transaction

-Posting entries to appropriate ledger account

-Preparing Balance Sheet and Income Statement

-Interest Computation
10-11

 

 Measuring and Evaluating the Performance of Banks and Their Principal Competitors

Tutorial: Concept Checks and Chapter-end Problems
13 Presentation of Case Study
14-15 FINAL EXAMS

Course notes and textbooks

  1. The handbook of bank accounting,1993, Charles J Woelfel
  2. www.bseducation.net web site
  3. Reading Materials to be assigned by the instructor in the class