ENGLISH FOR

FINANCIAL AND ACCOUNTING

MANAGEMENT

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Table des matières
INTRODUCTION...................................................................................................4
CHAPTER 1 :.......................................................................................................5
Definition of basic concepts..............................................................................5
1-Accounting :.................................................................................................5
2-Finance :.......................................................................................................5
3-Management :...............................................................................................5
CHAPTER 2 :.......................................................................................................6
FINANCIAL MANAGEMENT................................................................................6
I-Portfolio management..................................................................................6
1-PORTOFLIO MANAGEMENT: what is it?................................................6
2-PORTFOLIO MANAGEMENT: outcome and importance as a subject. 6
3-DEEP INSIGHT ON THE SUBJECT’S CONTENT....................................7
4-PORTFOLIO MANAGEMENT AS A CAREER..........................................9
5-PORTFOLIO MANAGEMENT: Case study examples...........................10
II-INTERNATIONAL-FINANCIAL MANAGEMENT (IFM):................................11
1-IFM: what is it?...........................................................................................11
2-IFM: outcome and importance as a subject.............................................11
3-Deep insight on the subject’s content.....................................................11
3.1-SPOT MARKET.....................................................................................11
4-THE OPTIONS MARKET.............................................................................12
5-THE SWAPS MARKET:..............................................................................13
III-Financial Engineering...................................................................................15
1-How To Use Financial Engineering?........................................................15
2-Key skills of a financial engineer..............................................................16
CHAPTER 3 :.....................................................................................................18
ACCOUNTING MANAGEMENT.........................................................................18
I-Accounting and financial audit..................................................................18
1- Definition of accounting and financial audit:......................................18

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 2- accounting and financial audit: outcome and importance as a
subject........................................................................................................18
3-deep insight on the subjects content...................................................18
4-accounting and financial audit as a career..........................................20
5-accounting and financial audit : case study examples.......................21
conclusion.........................................................................................................22
II-International accounting standards.............................................................23
1- definition of international accounting standards...................................23
2- IFRS outcome and importance as a subject..........................................23
3- deep insight on the subject content........................................................23
4-case study of International Financial Reporting Standards Adoption
and the Work of Accountants.......................................................................27
III-Cost Accounting:..........................................................................................28
1-Objectives of Cost Accounting.................................................................28
2-The main differences between Financial and Cost Accounting............29
3-Advantages of Cost Accounting ;.............................................................30
4-Limitations of Cost Accounting ;..............................................................30
CHAPTER 4 :.....................................................................................................31
FINANCIAL AND ACCOUNTING MANAGEMENT :Career opportunities......31
I-Hard skills :..................................................................................................31
II-Soft skills:...................................................................................................32
III-The emerging jobs in Morocco................................................................33
CONCLUSION :..................................................................................................35
Recommendations for students intrested in finance and accounting.........36
GLOSSARY........................................................................................................37
REFERENCES :.................................................................................................38

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INTRODUCTION
Finance is a study of theory and practice distinct from the field of
economics. It involves borrowing & lending, investing, raising capital, and
selling & trading securities. Morocco has reformed its economy to
enhance productivity and strengthen resilience to external shocks. Key
economic sectors such as Services, Industries, and Agriculture have been
stimulated by reforms in the country’s legislative, regulatory, and
institutional frameworks. At the national school of management (ENCG),
finance and accounting go together in the name of GFC, which aims to
offer students a generalist, management-oriented, high-density training
and to forge the outlines of a personality that best meets the profile
required by management professions. All of this to prepare students to
gettrain in accounting and financial techniques and tools for auditing,
Accounting and finance professions, Audit and management control
professions, Organizational management consulting professions.

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CHAPTER 1 :
Definition of basic concepts

1-Accounting:
Accounting is the systematic process of recording, summarizing,
analyzing, and interpreting financial transactions and information of a
business or organization. It involves the collection and analysis of
financial data to generate reports that provide insight into the financial
health of the business. Accounting also involves ensuring that financial
statements comply with GAAP and other regulatory requirements to
maintain the integrity and reliability of financial information.

2-Finance:
Finance is a field of study that encompasses a variety of activities related
to the acquisition, allocation, and utilization of financial resources. It is
essential for businesses, governments, and individuals, providing funds
to support economic activities. Financial professionals use their expertise
to help businesses, governments, and individuals manage their financial
resources effectively.

3-Management :
Management is the process of planning, organizing, directing, and
controlling resources to achieve goals and objectives. It involves setting
goals and objectives, organizing resources, motivating employees, and
controlling progress. Good managers must be able to communicate
effectively and adapt to changing circumstances.

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CHAPTER 2 :
FINANCIAL MANAGEMENT

I-Portfolio management 
Here we going to be presenting portfolio-management as a GFC subject in
ENCGT, I believe this is an important subject for students interested in
finance to learn, as it teaches them valuable skills for personal finance
and investing. In this part, we will define portfolio management, discuss
its importance, and take an insight over this subject’s content, and then
we will finish with some case studies illustrations.

1-PORTOFLIO MANAGEMENT: what is it?

Portfolio management is the process of managing a collection of
investments, such as stocks, bonds, and mutual funds, to achieve a
specific financial goal. The goal may be to maximize returns, minimize
risk, or achieve a balance between the two. Diversification, or spreading
investments across different asset classes and industries, is a key aspect
of portfolio management. This helps to reduce the impact of market
fluctuations on the overall portfolio.

2-PORTFOLIO MANAGEMENT: outcome and importance as a

subject
There are several benefits to teaching portfolio management in schools.
First, it provides students with practical skills for managing their
personal finances. By learning how to create and manage a portfolio,
students can make more informed decisions about their own investments

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and retirement planning. Second, it can help students to develop critical
thinking and problem-solving skills. Portfolio management involves
analyzing data, evaluating risks, and making decisions based on available
information.

3-Deep insight on the subject’s content

This subject’s content is built around an understanding of basic concepts
of portfolio management as profitability, yield, risk, duration and
diversification
Then it goes deep to explore various portfolio management strategies
and models.
3.1-BASIC CONCEPTS OF PORTOFLIO MANAGEMENT

Profitabilty:
Profitability is a measure of the financial performance of an
investment, calculated by comparing the purchase price to the
selling price or current value. It can be used to evaluate the
performance of a security or investment portfolio, but past
profitability does not guarantee future profitability.

Yield:
Yield is the profit an investor realizes on their investment in a
security, calculated by dividing the income generated by the
purchase price.

Risk:
Investors face several types of risks when investing in securities,
including market, credit, interest rate, currency, political, and
liquidity risk. It is important to understand the risk associated with
a security before making an investment decision, as higher risk may
offer higher returns but also come with increased risk of financial
loss.
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 Duration:
Duration is an important measure for bond investors to evaluate the
interest rate risk associated with a bond investment, allowing them
to construct balanced portfolios.

Diversification:
Diversification is a risk management strategy that involves investing in a
variety of assets, industries, and geographic regions to spread investment
risk and reduce the impact of any one investment.
3.2-PORTFOLIO MANAGEMENT STRATEGIES

Portfolio management strategies are techniques used to manage and

optimize a portfolio of investments. The goal of portfolio management is
to maximize returns while minimizing risk, and there are many different
strategies that can be used to achieve this goal.

The stock index strategy:

The stock index strategy is a passive investment strategy that involves
investing in index funds that replicate the performance of a benchmark
index, offering advantages such as lower management costs, automatic
diversification, and exposure to the entire market.

The immunization strategy:

The immunization strategy aims to minimize interest rate risk by
selecting fixed-income securities with durations that match the investor's
future liabilities or obligations.
3.3-PORTFOLIO MANAGEMENT MODELS:

Various portfolio management models can be used to construct and

manage investment portfolios. In our case, we only study two:

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 Modern Portfolio Theory (MPT):
Modern Portfolio Theory (MPT) is a portfolio management model
developed by Harry Markowitz in the 1950s. It assumes that
investors are rational and risk-averse, and that asset returns are
normally distributed. It provides a framework for constructing an
efficient portfolio by calculating the expected return and risk of
individual assets and combining them in a way that maximizes or
minimizes the expected return for a given level of risk. However, it
does not take into account taxes, transaction costs, and other factors
that can affect portfolio returns.

Capital Asset Pricing Model (CAPM):

The Capital Asset Pricing Model (CAPM) is a portfolio management model
developed by William Sharpe in the 1960s. It assumes that investors are
rational and risk-averse, and that asset returns are normally distributed.
It is widely used in finance as a tool for estimating the expected return of
an asset or portfolio and determining the appropriate discount rate.
However, it does not take into account unsystematic risk or other factors
that can affect asset returns.

4-PORTFOLIO MANAGEMENT AS A CAREER

Portfolio management is a challenging and dynamic career path for
individuals interested in finance and investment management, with the
potential for high earning potential and career advancement
opportunities. Key skills include understanding financial markets,
analytical and problem-solving skills, communication and interpersonal
skills, and the ability to work under pressure and meet deadlines.

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5-PORTFOLIO MANAGEMENT: Case study examples
5.1-CASE STUDY: investments firms

Company X is a large investment firm that manages the portfolios of

several institutional and individual clients. One of its clients, ABC Pension
Fund, has an investment portfolio consisting of stocks, bonds, and
alternative investments, with a total value of 100.000 MAD
The portfolio is managed by a team of portfolio managers who are
responsible for making investment decisions on behalf of the client. The
team uses a mix of fundamental and technical analysis to identify
investment opportunities and manage risks.
In order to optimize the portfolio's performance, the team conducts a
thorough analysis of the client's investment objectives, risk tolerance,
and investment constraints. Based on this analysis, the team develops a
customized investment strategy that is aligned with the client's goals.
The team also employs a variety of portfolio management techniques,
such as diversification, asset allocation, and rebalancing, to ensure that
the portfolio is well balanced and aligned with the client's investment
objectives.
Over time, the team monitors the performance of the portfolio and makes
adjustments as necessary to ensure that it continues to meet the client's
objectives. For example, if the market conditions change or if there are
significant changes in the client's investment objectives or risk tolerance,
the team may adjust the portfolio's asset allocation or make other
changes to optimize its performance.
Through the use of effective portfolio management techniques and
strategies, Company X is able to help its clients achieve their investment
goals and manage risk effectively.

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II-INTERNATIONAL-FINANCIAL
MANAGEMENT (IFM):
1-IFM: what is it?
IFM is a field of study that focuses on global financial issues, including
exchange rates, capital markets, foreign direct investment, currency and
credit risks, financing strategies, regulations, and tax policies.

2-IFM: outcome and importance as a subject

International financial management is essential for businesses and
governments to effectively manage their financial resources and
investments across borders. It provides students with a strong
foundation in finance and economics, which can be applied to a wide
range of careers in business, finance, consulting, government, and non-
profit organizations. Studying international financial management in
college can provide students with valuable knowledge and skills that can
be applied in a wide range of professional settings and prepare them for
a rapidly evolving global economy.

3-Deep insight on the subject’s content

The content of the International financial management is all about the
understanding of different international financial markets as:
3.1-SPOT MARKET
WHAT IS A SPOT MARKET:
The spot market is a financial market where financial instruments or
commodities are traded for immediate delivery or settlement. Prices are
determined by supply and demand and buyers and sellers negotiate the
price at the time of the transaction. It is important for businesses and

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investors to take advantage of short-term market movements or hedge
against market risks.

IT’S CHARACTERISTICS:
1. Immediate delivery or settlement: The main characteristic of a spot
market is that it provides for the immediate delivery or settlement of
the asset being traded. This means that once a transaction has been
completed, the asset is delivered and payment is made shortly
thereafter.
2. Cash or cash equivalent transactions: Transactions in spot markets
are usually made in cash or cash equivalents, such as bank transfers,
rather than through the exchange of physical assets.
3. Market determined prices: Prices in the spot market are determined
by the forces of supply and demand, with buyers and sellers
negotiating prices based on current market conditions.
4. Low transaction costs: Since spot market transactions involve
immediate delivery or settlement, they typically involve lower
transaction costs than futures or options contracts.
5. Short-term focus: Spot markets are generally used for short-term
trading or for fulfilling immediate needs for goods or services.

6. High liquidity: Spot markets tend to be liquid, meaning that there are
usually many buyers and sellers in the market, making it easy to buy
or sell assets quickly.

2-THE OPTIONS MARKET

2.1-WHAT IS THE OPTIONS MARKET ?

The options market is a financial market where buyers and sellers trade
option contracts. Options are financial instruments that give the buyer
the right, but not the obligation, to buy or sell an underlying asset (such
as a stock, currency, or commodity) at a specified price on a future date.
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 2.2-ITS CHARACTERISTICS

1. Standardized contracts: Options contracts are typically standardized,

meaning that the terms and conditions of the contracts are the same
for all buyers and sellers.
2. Expiration date: Options contracts have an expiration date by which
they must be exercised or they expire worthless.
3. Premium: The buyer of an option must pay a premium to acquire the
right to buy or sell the underlying asset. The premium price is
determined by the market based on the expected volatility of the
underlying asset, the time remaining until the expiration date, the
strike price, and other factors.
4. Right, but not obligation: The buyer of an option has the right, but
not the obligation, to buy or sell the underlying asset at the specified
strike price. The seller, on the other hand, is obligated to sell or buy
the underlying asset if the buyer decides to exercise the option.
5. Option strategies: Investors can use a variety of option strategies to
profit from different market conditions, including buying and selling
options, short selling, covered call options, and spread strategies.
6. Risks: Options carry risks, including the risk of loss of the premium
paid, the risk of fluctuation in the price of the underlying asset, and the
risk of non-exercise of the option before the expiration date.

3-THE SWAPS MARKET:

3.1-WHAT IS THE SWAPS MARKET:

The swaps market is a financial market where participants

exchange cash flows based on a predetermined formula or
benchmark. It is used by institutional investors and large
corporations, and is subject to regulation and oversight by
government agencies to ensure market stability and protect
investors.
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 3.2-ITS CHARACTERISTICS:

1. Customization: Swaps are highly customizable financial instruments

that can be tailored to meet the specific needs of the parties involved.
For example, parties can agree on the notional amount, the underlying
asset or benchmark, the payment frequency, and the duration of the
swap.
2. Over-the-counter (OTC) trading: Unlike exchange-traded instruments
such as stocks and futures, swaps are traded over-the-counter (OTC),
which means that they are not traded on a centralized exchange but
rather negotiated privately between the parties involved.
3. Bilateral agreements: Each swap is a bilateral agreement between
two parties, meaning that there is no central counterparty or
clearinghouse involved in the transaction.
4. Risk management: Swaps are commonly used for risk management
purposes, such as hedging against interest rate or currency
fluctuations. They allow market participants to manage their exposure
to risk and reduce the impact of market volatility.
5. High volume: The swaps market is one of the largest and most active
financial markets in the world, with trillions of dollars in notional
value traded each year.
6. Transparency: While swaps are traded OTC and lack the
transparency of exchange-traded instruments, regulations such as the
Dodd-Frank Act have increased transparency in the swaps market by
requiring certain swaps to be reported to regulatory agencies and
made available to the public.

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III-Financial Engineering 
Financial engineering (FE) is an interdisciplinary field focusing on
applications of mathematical and statistical modeling and computational
technology to problems in the financial services industry. It includes
mathematical modeling of market and credit risk, pricing and hedging of
derivative securities, asset allocation and portfolio management, and
portfolio optimization problems. Portfolio optimization problems are
often complex due to their dynamic and stochastic nature, high
dimensionality, and complexity of real-world constraints.

1-How To Use Financial Engineering?

 Financial engineering is used across a broad range of tasks in the

financial world. Some of the areas where it is most commonly
applied are the following:

 Corporate Finance

 Arbitrage Trading

 Technology and Algorithmic Finance

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  Risk Management and Analytics

 Pricing of Options and other Financial Derivatives

 Behavioral Finance

 Creation of Structured Financial Products and Customized Financial

Instruments

 Quantitative Portfolio Management

 CreditRisk and Credit Management

2-Key skills of a financial engineer

Successful financial engineers have a versatile skill set. The key skills they
possess include:

1. Computer programming
Computer programming skills are essential for financial
engineering, and can be improved by learning more about coding
and debugging.
1. Effective communication
Financial engineers need effective communication skills to explain
their ideas and identify emerging trends.
2. Mathematical skills
Financial engineers use mathematical skills to predict market
behaviour, increasing the likelihood of profitable trades.
3. Problem-solving
Problem-solving is an important asset for financial engineers, as it
can minimise capital losses by offering an effective trade solution.
Having broad knowledge of economics or finance is necessary to
become proficient.
4. Logical thinking

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 Having strong analytical skills is essential for financial engineers to
analyse trends and market activity.
5. Knowledge of economics
Economic knowledge is essential for financial engineers to make strategic
decisions and understand how politics and public relations affect the
market.

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CHAPTER 3 :
ACCOUNTING MANAGEMENT

I-Accounting and financial audit

1- Definition of accounting and financial audit:

Audits are conducted to ensure financial statements are fairly stated in
accordance with international accounting standards, and gather evidence
to identify any errors or misstatements.

2- accounting and financial audit: outcome and

importance as a subject
there are several benefits to teaching accounting and financial audit in
schools. it teaches the students the basics of finances and it also recaps
everything surrounding the operations surrounding the accounting

3-deep insight on the subjects content

3.1-basic concepts of accounting and financial audit
The accounting period concept prescribes a timeframe within which a
business records and reports its financial performance for the purview of
internal and external stakeholders. An accounting period of a company
may coincide with the fiscal year. A company can determine a timeframe
for internal reporting, like three or six months, or prepare monthly
financial reports to analyse their cash flow positions. The management
can determine a convenient accounting period for internal reporting, but
the reporting for investor, government and tax purposes is typically for
the period of one year.

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  Full disclosure concept
The full disclosure concept requires a business entity to furnish
necessary information for the benefit of those who read financial
statements and reports for investment, taxation or audit purposes. This
concept aims to provide important financial information to investors,
creditors, shareholders, clients, and other stakeholders. Disclosure
policies cover revenue recognition, depreciation, inventory, taxes,
earnings, stock value, leases and liabilities.

 Dual aspect concept

Dual aspect concept states that every transaction affects two accounts of
a business. A business then records both aspects to enable accurate
accounting. Every financial transaction has a credit or debit or a giver or
receiver aspect. If an accounting process does not represent both, it may
lead to faults in the final accounting record. The dual aspect concept is
the foundation of the double-entry system of bookkeeping, which is now
a standard method for auditing and taxation.

 Materiality concept
The materiality concept prescribes guidelines to identify if a piece of
financial information is material and whether it can influence the person
reading a company's financial statements. Based on this concept, an
accountant or a business may remove negligible transactions that may
not have a bearing on final accounts. This concept is open to subjective
interpretation and the basis for using the materiality concept varies with
the size of a company.

 Verifiable objective evidence concept

Under this concept, a business can record only those transactions that
they can furnish documentary proof for. Without proper and valid
documentary evidence, a transaction can be biased or undependable, and
it can increase the scope of financial irregularities. For example, a retail
employee may present a bill for purchases and sales, and corroborate it
with sale and purchase invoices.
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  Historical cost concept
The historical cost concept states that a business may record assets and
liabilities at their historical cost rather than their current market or sale
value. It helps to maintain consistent, reliable and verifiable financial
information. Including the current value of an entity can result in
financial irregularities.

 Money measurement concept

This is an accounting concept based on assumption, and it stipulates that
companies record only those transactions that they can quantify and
measure in terms of money. If they cannot assign a monetary value to a
transaction, they do not record it in their annual financial statement.
Though these transactions affect a company's financial performance, they
may not find a place in financial statements, as monetising them can be
challenging. Some examples of non-monetary value include employee
competence, product quality, employee efficiency, market sentiment,
business productivity and stakeholder satisfaction.

 Revenue realisation concept

Under the revenue realisation or revenue recognition concept, a seller
records potential revenue from a transaction, regardless of whether they
have or have not received proceeds. The ownership of a product
transfers from a buyer to a seller during a sale. A seller recognizes the
transaction by creating a receivable against the buyer's name in their
ledger. An accountant creates another entry when they receive the due
amount in the future.

4-accounting and financial audit as a career

The accounting and financial auditor is an independent professional who
checks company accounts to verify their sincerity, regularity, and ability
to reflect a faithful image. They must also assess the risks inherent in the
company, take into account its sectoral, legal, competitive environment,
and organization, and formulate relevant conclusions and
recommendations. They must have good legal, tax and social knowledge,
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good command of Excel, and knowledge of the audited sector. A good
auditor is attentive and rigorous in their work, as it certifies the financial
state and conformity of the documents of the company.

5-accounting and financial audit : case study examples

5.1- case study 1 RISK & MATERIALITY ASSESSMENT
 LEARNING OBJECTIVES – DETERMINING MATERIALITY
1. Identify business risks for the air transport service sector
2. Identify and evaluate the factors important in assessing an audit
client’s business risk and the risk of material misstatement
3. Identify and understand the implications of key inherent and business
risks associated with a new client
4. Determine planning materiality for an audit client
5. Provide support for your materiality decisions

 DETERMINING MATERIALITY
After you have accepted 4-Airlines as a new client, you are provided with
the preliminary December 31, 2xx1 financial statement.
5.2- case study 2 CLIENT ACCEPTANCE DECISION
 LEARNING OBJECTIVES – CLIENT ACCEPTANCE DECISION
1. Explain the objective of the client acceptance process
2. Understand the types of information relevant for evaluating a new
audit client
3. List some of the steps an auditor should take in deciding whether to
accept a prospective client
4. Understand the necessary level of knowledge of a client's business to
accept the client
5. Identify and evaluate factors important for the client acceptance
decision
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 6. Describe the procedures for communicating with a prior
(predecessor) auditor
7. Understand the auditor's responsibility in using the work of experts
8. Understand the process of making and justifying a recommendation
regarding client acceptance
9. Know the components of the terms of audit engagements
10. Understand the factors that influence the audit fee
11. Understand what an audit engagement letter includes and why these
contents are important.

conclusion
Analyzing the functioning of your company on as many points as possible
is very important and can be of little use. Indeed, the fact that a chartered
accountant certifies the veracity of the accounting entries allows the legal
person to prove its good financial standing. In addition, in terms of
efficiency, it can be useful to know if management is effective or if it
needs to be changed in order to improve it.
The primary role of the auditor is to provide solutions to his client if he
finds deficiencies so that the latter does not reproduce the same
errors. For this, the auditor will follow and help his client in the
implementation of these new processes. So beyond the control mission,
this is a real opportunity for some companies that are unable to solve
certain recurring problems in their internal operations.

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II-International accounting standards
1- definition of international accounting standards
International Accounting Standards (IASB) are a set of practices
established by the International Accounting Standards Board (IASB).
They are designed to make it easier for businesses around the world to
compare financial reporting and data, creating transparency and trust in
the accounting process. Having an international accounting standard also
alleviates compliance pressures and can significantly reduce costs
surrounding reporting. However, IFRS has been replaced by the newer
International Financial Reporting Standards (IFRS). IFRS are accounting
standards issued by the IFRS Foundation and the International
Accounting Standards Board (IASB). They are particularly relevant for
companies with shares or securities listed on a public stock exchange.

2- IFRS outcome and importance as a subject

Globally comparable accounting standards promote transparency,
accountability, and efficiency in financial markets around the world. This
enables investors and other market participants to make informed
economic decisions about investment opportunities and risks and
improves capital allocation. Universal standards also significantly reduce
reporting and regulatory costs, especially for companies with
international operations and subsidiaries in multiple countries.

3- deep insight on the subject content

 Conceptual Framework for Financial Reporting
The Conceptual Framework serves as a tool for the IASB to develop
standards. It does not override the requirements of individual IFRSs.
Some companies may use the Framework as a reference for selecting
their accounting policies in the absence of specific IFRS requirements.

 Objective of financial statements

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The Conceptual Framework states that the primary purpose of financial
information is to be useful to existing and potential investors, lenders
and other creditors when making decisions about the financing of the
entity and exercising rights to vote on, or otherwise influence,
management's actions that affect the use of the entity's economic
resources.
Users base their expectations of returns on their assessment of:
 The amount, timing and uncertainty of future net cash inflows to the
entity;
 Management's stewardship of the entity's resources.
 Qualitative characteristics of financial information
The Conceptual Framework for Financial Reporting defines the
fundamental qualitative characteristics of financial information to be:
 Relevance; and
 Faithful representation
The Framework also describes and qualitative characteristics:
 Comparability
 Verifiability
 Timeliness
 Understandability

 Elements of financial statements

The Conceptual Framework defines the elements of financial statements
to be:
 Asset: A present economic resource controlled by the entity as a
result of past events which are expected to generate future
economic benefits
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  Liability: A present obligation of the entity to transfer an economic
resource as a result of past events
 Equity: The residual interest in the assets of the entity after
deducting all its liabilities
 Income: increases in economic benefit during an accounting period
in the form of inflows or enhancements of assets, or decrease of
liabilities that result in increases in equity. However, it does not
include the contributions made by the equity participants (for
example owners, partners or shareholders).
 Expenses: decreases in assets, or increases in liabilities, that result
in decreases in equity. However, these do not include the
distributions made to the equity participants.
 Other changes in economic resources and claims: Contributions
from holders of equity and distributions to them

 Recognition of elements of financial statements

An item is recognized in the financial statements when:
 it is probable that future economic benefit will flow to or from an
entity.
 the resource can be reliably measured
In some cases specific standards add additional conditions before
recognition is possible or prohibit recognition altogether.
An example is the recognition of internally generated brands, mastheads,
publishing titles, customer lists and items similar in substance, for which
recognition is prohibited by IAS 38.in addition research and development
expenses can only be recognized as an intangible asset if they cross the
threshold of being classified as 'development cost'.

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Whilst the standard on provisions, IAS 37, prohibits the recognition of a
provision for contingent liabilities, this prohibition is not applicable to
the accounting for contingent liabilities in a business combination. In that
case the acquirer shall recognize a contingent liability even if it is not
probable that an outflow of resources embodying economic benefits will
be required.
 Concepts of capital and capital maintenance
Concepts of capital maintenance are important as only income earned in
excess of amounts needed to maintain capital may be regarded as profit.
The Conceptual Framework describes the following concepts of capital
maintenance:
 Financial capital maintenance. Under this concept a profit is earned
only if the financial amount of the net assets at the end of the period
exceeds the financial (or money) amount of net assets at the
beginning of the period, after excluding any distributions to, and
contributions from owners during the period. Financial capital
maintenance can be measured in either nominal monetary units or
units of constant purchasing power;
 Physical capital maintenance. Under this concept a profit is earned
only if the physical productive capacity (or operating capacity) of
the entity (or the resources or funds needed to achieve that
capacity) at the end of the period exceeds the physical productive
capacity at the beginning of period, after excluding any distributions
to, and contributions from owners during the period.
Most entities adopt a financial concept of capital maintenance. However,
the Conceptual Framework does not prescribe any model of capital
maintenance.

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4-case study of International Financial Reporting Standards
Adoption and the Work of Accountants
Although Byrne and Pierce (2007) find that an increasing regulatory
burden may decrease accountants’ chances of getting involved in
business, little is known about corporate reporting practice and whether,
and if yes how, regulation impacts on accountants’ work. In order to fill
this gap the paper provides a case study analysis of International
Financial Reporting Standards (IFRS) adoption and its impact on and
implications for an accountant’s role, positions, practices and work in a
continental European context. This study describes how IFRS expect
information preparers to take more responsibility for reporting than
domestic accounting standards (DAS). Thus the present study
contributes to the literature by arguing that it depends on the set of
accounting standards how they impact on accountants’ work. The study
shows why and how especially IFRS’ requirement of "business
involvement" in accounting revolutionises accountants’ work and how it
has implications on their roles, practices and positions in the case firm.
Finally, the paper explains how learning and knowledge creation
required by IFRS adoption was made possible through communities of
practice and hence how it was possible to clarify the responsibilities of
divisional and group accountants in the case firm. Thus, the present
study enhances our understanding of reporting activity by describing
actual practices of and mechanisms used in corporate reporting.

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III-Cost Accounting:
Cost Accounting is the process of accounting for costs which begins with
recording of income and expenditure and ends with the preparation of
statistical data. It provides analysis and classification of expenditure to
enable the total cost of any particular unit of production to be
ascertained with reasonable degree of accuracy and to disclose exactly
how such total cost is constituted. It also establishes budgets and
standard costs and actual cost of operations, processes, departments or
products and the analysis of variances, profitability and social use of
funds. Cost Accounting is a quantitative method that collects, classifies,
summarises and interprets information for product costing, operation
planning and control and decision making.
Objectives of Cost Accounting The following are the main objectives of Cost
Accounting :- (a) To ascertain the Costs under different situations using
different techniques and systems of costing (b) To determine the selling
prices under different circumstances (c) To determine and control efficiency
by setting standards for Materials, Labour and Overheads (d) To determine
the value of closing inventory for preparing financial statements of the
concern (e) To provide a basis for operating policies which may be
determination of Cost Volume relationship, whether to close or operate at a
loss, whether to manufacture or buy from market, whether to continue the
existing method of production or to replace it by a more improved method
of production....etcIn cost accounting, there are different methods for
determining costs. The
multipotent are the full cost method, the item cost method, the standard
cost
method, the variable cost method, and the ABC method.
Full Cost Method
This method allows companies to account for the results achieved during the
year
by adjusting the manufactured or sold products and their cost. A distinction
must
be made between direct and indirect costs. Indirect costs are then allocated
by
28
work (provided, produced, sold, etc.). Work units are set for each center.
This
operation allows you to decide what volumes to allocate to each product.
Then,
calculate the cost by adding the direct and indirect costs specific to each
product.
Variable Cost Method
The variable cost method consists of only considering the costs directly
related to
the company's activities. These decrease with a decrease in activity and
increase
with development. This method has the advantage of being able to
determine the
break-even point of the business.
The company, but doesn't take into account all the costs that the company
must
bear
In cost accounting, there are different methods for determining costs. The
multipotent are the full cost method, the item cost method, the standard
cost
method, the variable cost method, and the ABC method.
Full Cost Method
This method allows companies to account for the results achieved during the
year
by adjusting the manufactured or sold products and their cost. A distinction
must
be made between direct and indirect costs. Indirect costs are then allocated
by
work (provided, produced, sold, etc.). Work units are set for each center.
This
operation allows you to decide what volumes to allocate to each product.
Then,
calculate the cost by adding the direct and indirect costs specific to each
product

29
1-Objectives of Cost Accounting

The following are the main objectives of Cost Accounting :

 To ascertain the Costs under different situations using different
techniques and systems of costing
 To determine the selling prices under different circumstances
 To determine and control efficiency by setting standards for
Materials, Labour and Overheads
 To determine the value of closing inventory for preparing financial
statements of the concern
 To provide a basis for operating policies which may be
determination of Cost Volume relationship, whether to close or
operate at a loss, whether to manufacture or buy from market,
whether to continue the existing method of production or to replace
it by a more improved method of production....etc

Financial Accounting is primarily concerned with the preparation of

financial statements, which summarise the results of operations and
show the financial position of the company at particular dates. Cost
Accounting is primarily concerned with the determination of cost of
something, such as a product, service, process or operation, according to
costing objectives of management. A Cost Accountant is responsible for
providing cost data for whatever purposes they may be required for.

30
2-The main differences between Financial and Cost
Accounting

3-Advantages of Cost Accounting ;

Cost Accounting has many advantages, such as revealing unprofitable
activities, losses or inefficiencies, locating the exact causes for decrease
or increase in the profit or loss of the business, furnishing suitable data
and information to the management to serve as guides in making
31
decisions involving financial considerations, being useful for price
fixation purposes, and providing cost comparisons to help in cost control.
It is not suggested that having installed a system of Cost Accounting will
expect to derive all the advantages stated here, but the nature and extent
of the advantages obtained will depend on the type, adequacy and
efficiency of the cost system installed and the extent to which the various
levels of management are prepared to accept and act upon the advice
rendered by the cost system.

4-Limitations of Cost Accounting ;

Cost Accountancy is an art that has developed through theories and
accounting practices based on reasoning and commonsense. It
incorporates a large number of conventions, estimations and flexible
factors such as classification of costs, materials issue pricing,
apportionment of overhead expenses, arbitrary allocation of joint costs,
and division of overheads into fixed and variable. It lacks uniform
procedures and formats in preparing cost information, so all Cost
Accounting results can be taken asmere estimates.

32
CHAPTER 4 :
FINANCIAL AND ACCOUNTING
MANAGEMENT :Career opportunities

Job hunters have long been told to list, and give prominence to, technical
skills on their CVs, but finance sector employers are increasingly looking
for candidates with interpersonal abilities known as ‘soft skills'.
Demonstrating these 11 characteristics will help candidates with finance
skills prove their value in the workplace.

I-Hard skills :
ABILITY TO PERFORM MATHEMATICAL CALCULATIONS
Mathematical skills are essential for many areas of finance, making them
highly sought-after for accounting jobs.
A KNOWLEDGE OR MASTERY OF FINANCIAL MODELLING
Financial modelling involves representing a financial situation with
forecasts to simulate different outcomes to better understand the issues.
PROFICIENCY WITH SOFTWARE USED IN THE FINANCE SECTOR
Finance professionals should have a good working knowledge of finance
software and be able to adapt to technological change. These skills
include mastery of Microsoft Excel, FIS Global, SAP and other database
management systems, making them more useful to employers.
A CONSTANT WATCH ON FINANCIAL REGULATIONS
Conducting a news watch is essential for financial services regulations, as
it can prevent economic losses and save time for those with less
resources.

33
II-Soft skills:
 Analytical Thinking Skills
Financial statement analysis is the process of reviewing key financial
documents to better understand a company's performance.
 Financial Decision-Making Skills
Decision-making is essential for aspiring leaders, while finance is key
to positioning a company for success. Data-driven financial decision-
making provides a framework for leadership to reference and the
building blocks for intuition.
 Financial Reporting Skills
Financial forecasting is an important skill to include on a resume as it
helps business leaders make decisions around hiring, budgeting, and
strategic planning. Cash flow forecasting is particularly important as it
helps support a company's stability by determining whether it will
have enough cash to cover future expenses. These skills are often
synonymous with "forward-thinking".
 Communication Skills
Effective communication is essential for successful finance professionals,
and can take the form of oral or written communication. Financial
literacy is essential for understanding and using financial terminology,
statements, and concepts.
 Management Skills:
Employers in the finance sector seek applicants with management skills
and experience to manage people, capital structure, and reporting
processes.

34
III-The emerging jobs in Morocco
1-Chief Accountant
You will be overall responsible for the accounting, external and internal
reporting, tax, financing, projection and related processes of the Financial
Services legal entity.
2-Administrative and financial director
It’s about Supporting the general management in defining the group's
strategic orientations; Defining and supervising financial and accounting
management.
3-Management Control Manager
Provide the financial, operational and decision-making support necessary
to drive the industrial performance of a production site
4-Financial Analyst 
Financial analysts review financial data to guide businesses. They often
use past historical data to make projections relating to things like
revenue or spending. Financial analysts provide a lot of value to
companies because they help companies make more sound business
decisions.
5-Auditor 
When working internally, auditors identify an organization’s risks. They
also ensure the organization complies with any applicable financial
regulations
6-Credit Analyst 
A credit analyst’s main responsibility is to either approve or reject loan
applications. A credit analyst does this by looking at the creditworthiness
of the potential recipient and the potential profitability for the lender.
Credit analysts review information from credit bureaus, reporting
services, and banks. 

35
7-Portfolio Manager
 Portfolio managers (aka money managers) oversee institutional and
retail client investments. They recommend personalized investment
strategies and specific investment decisions to clients, and they usually
have discretionary power in executing those strategies to fulfill the
client’s goals.

36
CONCLUSION :
By and large, finance and accounting are an emerging fields in terms of
job prospects.it is a promising and booming sector that recruits various
executives and offers undeniable opportunities
Finance and accounting careers come with many benefits, including a
challenging work environment and the potential for lucrative
compensation. For those looking to enter the field of finance or
accounting, pursuing an in-demand job can increase your chances of
finding employment and the expected growth in demand for these
positions means more job security.

Recommendations for students

intrested in finance and accounting

37
Take relevant courses: Start by taking relevant courses in finance and
accounting to build a strong foundation. Some of the courses you can take
include financial accounting, managerial accounting, corporate finance,
investment analysis, and financial modeling.
Seek internships: Look for internships in finance and accounting to gain
practical experience and exposure to the industry. Internships can help
you understand the day-to-day workings of the industry and build your
network.
Network: Attend networking events and connect with professionals in
the finance and accounting industry. Joining a finance or accounting club
at your university or attending industry conferences can also help you
meet people in the field.
Stay up to date: Keep yourself updated on the latest trends and news in
finance and accounting. Read industry publications, follow thought
leaders on social media, and join relevant groups on LinkedIn to stay
informed.
Gain experience: Look for entry-level positions in finance or accounting
to gain experience in the industry. Consider working in a related field
such as auditing, tax, or banking to gain exposure to different areas of
finance and accounting.
Develop soft skills: Develop soft skills such as communication, problem-
solving, and teamwork to complement your technical skills. These skills
are essential in the finance and accounting industry, where you will need
to work with clients and colleagues on a regular basis.

Remember, success in finance and accounting requires hard work,

dedication, and continuous learning. Good luck!

GLOSSARY
accounting and financial audit comptable et financier
audit
financial statements les états financiers
38
international accounting
standards
dual aspect concepts
historical cost
internal control
detail of balance
expenses
asset
liability/debts
equity
capital maintenance
Portfolio management
Bonds
Yield
The stock index strategy
The immunization strategy
Modern Portfolio Theory
Capital Asset Pricing Model
investments
firms
financial management
THE OPTIONS MARKET
Standardized contracts
les normes comptables
internationales
concept du partie double
cout historique
controle interne
balance detaillee
les charges
actif
les dettes
les fonds
entretien des immobilisations
Management de portefeuille
Les bons
rendement
La stratégie d’indice boursier
Stratégie d’immunisation
La théorie moderne de
portefeuille
Modele d’évaluations des actifs
financiers
Les investissements
Les entreprises
Management financiere
Marché des options
Contrats standardisés

REFERENCES :
-Pr. CHRAIBI Abdeslam : Pratique de comptabilité générale- Professor at
the national school of management of Tanger

39
-Pr. ALAMI Youssef : Gestion financière internationale des entreprises-
Professor at the national school of management of Tanger

-JACQUES Richard : comptabilité générale système français et normes IFRS

– 8éme edition

-Pr. KABBAJ Smail : comptabilité générale : principes, techniques et outils-

Professor at the national school of management of Casablanca
-ISABELLE Abdernack : l’essentiel des IFRS

-DUBREUILLE Stéphane : Création de valeur et capital-investissement

40