The course aims to develop a thorough understanding of the basic concepts concerning the nature of the firm. The focus is on information that is most useful to external and internal decision-making. Therefore, the function of financial accounting as the primary source of information about economic entities will be highlighted. As a result, the students will be introduced to the financial accounting conceptual framework. Both the accrual and the cash basis of accounting will be discussed. The structure and use of financial statements will be eventually analysed.