UNIVERSIDAD DE LA RIOJA

FACULTY OF BUSINESS MANAGEMENT

DIPLOMA IN BUSINESS MANAGEMENT

PROGRAMME

CORPORATE ACCOUNTING
(Code 1101018)
YEAR 2 – TERM 2
CORE SUBJECT OF 4.5 CREDITS
(Theoretical classes - 3 credits. In-class practicals – 1.5 credits.
Computer in-class practicals – 0 credits.

Teacher:

Consuelo Riaño Gil

Year 2004/2005
Department of Economics and Business Management
GENERAL OBJECTIVES OF THE SUBJECT

“Corporate Accounting” is a branch of Financial Accounting that studies the accounting

process of those operations that present specific unique features according to the legal
status of the figure engaging in the business activity in question. The types of legally
established companies studied in this subject from an accounting perspective are public
limited companies or joint stock companies. The aims of the subject are:

1) to develop students’ knowledge of accountancy, through a more in-depth and

broader study of its contents.

2) to study the accounting problems associated with the incorporation of public

limited or joint stock companies, modifications of company capital, external
financing through debt securities and the application of income.

3) to teach students to relate legal texts (Spanish Corporations Law) with

accounting.

METHODOLOGY AND WORK PLAN

In order to acquire the minimum knowledge required in the “Corporate Accounting”

subject, an eminently practical work programme will be developed. To this aim, the
theoretical developments will be combined with the presentation and resolution of
practical case studies. Students may prepare for the subject by:

a) taking notes in class and obtaining teachers’ notes that will be made available
through the University’s reprographic service.

b) consulting basic manuals.

c) participating in class. This will require students to work individually on class

material (concepts and exercises) and raising any doubts arising in the course of
their studies.

Teaching of this subject will be complemented by support classes for students, or

attendance-based tutorials, as well as network tutorials.

As complementary activities, students are recommended to collect national newspaper

announcements relating to dividend distribution agreements, capital increases or
decreases, etc. and also to consult Spanish National Securities Market Commission
(CNMV) (www.cnmv.es) registers of issuing companies which may be used to account for
the announced operations and to analyze the legal requirements of same. Students may

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also consult specific articles on corporate accounting published in specialist magazines
such as Técnica Contable”, “Revista Española de Financiación y Contabilidad”, “Revista
de Contabilidad y Tributación” or “Partida Doble”. These journals are available to
students at the university library.

ASSESSMENT SYSTEM

Students will be assessed by means of a written theoretical-practical examination to be

taken on the officially established dates in June and September. These dates will be known
by the students at the beginning of every academic year.

PROGRAMME

Topic 1.- Corporate accountancy: General aspects

OBJECTIVES: define the content and characteristics of corporate accounting as well as applicable
accounting and company regulations.

1.1. Concept and scope of corporate accounting

1.2. Trading companies

1.3. Sources of corporate accounting

BIBLIOGRAPHY: Chapter 1 of Besteiro, M.A. y Sánchez, G. (2003); Chapter 1 of Gallego, E. et al. (2000)
and Chapters 1 and 2 of Loring, J. (1995)

Topic 2.- Public limited/joint stock companies: incorporation

OBJECTIVES: study the characteristic features of public limited/joint stock companies, analyze the
accounting problems of different types of incorporation, as well as those arising from non-monetary
contributions and from the existence of defaulting shareholders.

2.1. Basic characteristics

2.1.1. Introduction
2.1.2. Shares

2.2. Requirements and types of establishment

2.3. Simultaneous incorporation and incorporation by agreement

2.2.1. Accounting aspects
2.2.2. Capital calls
2.2.3. Shareholder advances

2.4. Successive incorporation or incorporation through public offering

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 2.3.1 Accounting aspects
2.4.1 Financial intermediaries

2.5. Special situations: non-monetary contributions and defaulting shareholders

2.5.1 Non-monetary contributions
2.5.2 Defaulting shareholders

BIBLIOGRAPHY: Chapters 1 to 5 of Besteiro, M.A. y Sánchez, G. (2003); Chapters 1 to 4 of Gallego, E. et

al. (2000) and Chapters 3 to 5 of Loring, J. (1995)

Topic 3.- Capital increases

OBJECTIVES: study the different procedures for increasing capital, and the advantages and drawbacks of
each procedure. Analyze the impact of this operation from the standpoint of both the company and the
shareholder.

3.1. Concept

3.2. Legal regulations

3.3. Share premium and preemptive rights

3.3.1. Share premium
3.3.2 Preemptive rights

3.4. Different procedures for increasing capital

3.4.1. New contributions
3.4.2. Compensation of credits
3.4.3. Conversion of debentures into shares
3.4.4. Transformation of reserves or profits
3.4.5. Absorption of another company or part of the spun-off net worth of another
company

BIBLIOGRAPHY: Chapter 5 of Besteiro, M.A. y Sánchez, G. (2002); Chapter 5 of Gallego, E. et al. (2000)
and Chapter 6 of Loring, J. (1995)

Topic 4.- Capital decreases

OBJECTIVES: study the different procedures for reducing capital stock and their impact on the financial
structure of the company.

4.1. Concept

4.2. Legal regulations

4.3. Different forms of capital decreases

4.3.1. Reimbursement of contributions and write-off of unpaid capital

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 4.3.2. Formation or increase of reserves
4.3.3. Compensation of losses
4.3.4. Acquisition of own shares for redemption
4.3.5. Redemption of redeemable shares

4.4. Reduction of capital below the legal minimum (capital restructuring)

BIBLIOGRAPHY: Chapter 7 of Besteiro, M.A. y Sánchez, G. (2002); Chapter 6 of Gallego, E. et al. (2000)
and Chapter 7 of Loring, J. (1995), ICAC (1996).

Topic 5.- Treasury stock operations

OBJECTIVES: define the concept of treasury stock. Analyze the repercussions that the ownership of
treasury stock has for the company when it increases capital stock or distributes dividends.

5.1. Introduction

5.2. Legal regulations

5.3. Treasury stock system

5.4. Financial assistance for the acquisition of treasury stock

5.5. Accounting problems associated with treasury stock

BIBLIOGRAPHY: Chapter 5 of Besteiro, M.A. y Sánchez, G. (2002); Chapter 7 of Gallego, E. et al. (2000)
and Chapter 5 of Loring, J. (1995)

Topic 6.- Issue, redemption and conversion of debentures

OBJECTIVES: analyze the accounting problems associated with the issue, redemption and conversion of
debentures into shares of the company.

6.1. General aspects and legal regulations

6.2. Accounting process of the issue of debt securities

6.3. Accounting problems associated with the retirement of debt securities

6.4. Conversion of debentures into shares

BIBLIOGRAPHY: Chapters 9 and 10 of Besteiro, M.A. y Sánchez, G. (2002); Chapter 8 of Gallego, E. et

al. (2000) and Chapter 16 of Loring, J. (1995)

Topic 7.- The application of profit

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OBJECTIVES: analyze the legal restrictions on the distribution of dividends as well as the associated
accounting problems.

7.1. Legal regulations governing the distribution of profit

7.1.1. Proposed application of profit

7.1.2. Legal restrictions on the application of income

7.2. Allocation of profit

7.3. Accounting aspects of profit allocation

BIBLIOGRAPHY: Chapter 11 of Besteiro, M.A. y Sánchez, G. (2002) and Chapter 11 of Loring, J. (1995)

BASIC BIBLIOGRAPHY

BESTEIRO, M.A. y SÁNCHEZ, G. (2002): Contabilidad Financiera y de Sociedades II.

Pirámide. Madrid.

GALLEGO, E.; GONZÁLEZ, M. y RÚA, E (2000): Contabilidad de Sociedades.

Pirámide. Madrid.

LORING, J. (1995): Contabilidad de Sociedades Anónimas y de Responsabilidad

Limitada. Pirámide. Madrid.

BASIC LEGAL TEXTS

LEGISLACIÓN NACIONAL: Real Decreto Legislativo 1564/1989, de 22 de diciembre,

por el que se aprueba el Texto Refundido de la Ley de Sociedades Anónimas.

LEGISLACIÓN NACIONAL: Real Decreto 1643/1990, de 20 de diciembre, por el que se

aprueba el Plan General de Contabilidad.

INSTITUTO DE CONTABILIDAD Y AUDITORÍA DE CUENTAS (ICAC) (1996):

Resolución de 20 de diciembre de 1996, por la que se fijan criterios generales para
determinar el concepto de patrimonio contable a efectos de los supuestos de
reducción de capital y disolución de sociedades regulados en la legislación mercantil.

ADDITIONAL BIBLIOGRAPHY

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ASOCIACIÓN ESPAÑOLA DE CONTABILIDAD Y ADMINISTRACIÓN DE
EMPRESAS (AECA) (1998): Documento número 10 “Recursos Propios”.

BECKER, F. y ZUAZUA, F. (1995): Estudio Jurídico, Económico y contable de la

Sociedad Anónima. ICAC. Madrid.

BESTEIRO, M.A. y SÁNCHEZ, G. (2003): Contabilidad Financiera y de Sociedades I.

Pirámide. Madrid.

CEA, J.L. (1992): Perspectiva contable de la propuesta de aplicación del resultado.

Centro de Estudios Financieros. Madrid.

FERRER, M.; MARTÍNEZ, L.; PÉREZ, M.A. y ALONSO, T. (1998): Contabilidad de

Sociedades. Ariel Economía. Madrid.

GALLIZO, J.L. (1993): Distribución de beneficios y compensación de pérdidas. ICAC.

Madrid.

GALLIZO, J.L. (1993): Los estados financieros complementarios. Pirámide. Madrid.

GÓNZALEZ, J.F. (1996): Supuestos de Contabilidad de Sociedades. McGraw-Hill.

Madrid.

GOXENS, M.A.; GONZÁLEZ, E.; MELÚS, J. y GONZÁLEZ, A. (2001): Contabilidad

de Sociedades. Prentice-Hall. Madrid.

LEGISLACIÓN NACIONAL: Real Decreto 1784/1996, de 19 de julio, por el que se

aprueba el nuevo Reglamento del Registro Mercantil.

LEGISLACIÓN NACIONAL: Ley 37/1998, de 16 de noviembre, de reforma de la Ley

24/1988, de 28 de julio, del Mercado de Valores.

OMEÑACA, J. (2002): Supuestos prácticos de Contabilidad Financiera y de Sociedades

Deusto. Bilbao.

RIVERO, J (1999): Contabilidad de Sociedades. Trivium. Madrid.

RIVERO, J (1998): Supuestos de Contabilidad de Sociedades. Trivium. Madrid.

ROMANO, J.R. (1996): Contabilidad de Sociedades. Casos prácticos. Centro de Estudios

Financieros. Madrid.

SÁNCHEZ CALERO, F. (2000): Instituciones de Derecho Mercantil. Editoriales de

Derecho Reunidas. Madrid.

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RECOMMENDATIONS AND SUGGESTIONS ON PREVIOUS AND
SUBSEQUENT SUBJECTS

Bearing in mind that “Corporate Accounting” is encompassed within the scope of

“Financial Accounting”, in order to be able to follow the subject in an effective manner
students will require good knowledge of the concepts of Financial Accounting taught in
“Financial Accounting I” and “Financial Accounting II”, which students take in the first
and second terms of the first year.