Overview

The course is an introduction to Financial Accounting & Reporting designed for business. The principal objective of the Bach Business Game is for students to learn how to prepare - and balance! - the three financial statements used in reporting financial performance and condition (balance sheet, income statement and statement of cash flows), whilst understanding the logical links that connect them. This is done in a dynamic and unpredictable environment.

Learning outcomes

When you successfully complete the business game, you should be able to: 

  • master the preparation of the three financial statements used in reporting financial performance and condition (balance sheet, income statement and statement of cash flows) while understanding the logical links that connect them.
  • explain the difference between period income and end-of-period cash balance.
  • recognize the mechanism of additions to shareholders’ equity either through the flotation of new shares or through an incorporation of reserves. In the second ‘year’ of the game, students find they often need to turn to their shareholders to obtain additional cash capital.
  • comprehend the role of the professional accounting ‘expert’ (CA, CPA, etc.) and of the statutory auditor. Generally, for practical reasons, the instructor often plays both these roles (and more) in this game, although such a practice of merging both functions is absolutely illegal in the ‘real world’ due to the conflict of interest it creates.
  • understand some rudimentary practices of calculation of product costs.
  • explain the impact of a dividend pay-out policy on the cash situation and on the balance sheet.
  • understand the process of negotiation with a banker or lender.
  • understand the valuation of a business.