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FR-R12
PGDM-RM 2012-14: Term-I

Financial Reporting
Credits 1.5
Faculty Name P.K.Mohanty
Program PGPRM
Academic Year and Term 2012-13
Term-I


1. Course Description Accounting is important to managers, organizations and societies. Accounting information is often the basis for decisions. We all use accounting information in one form or other in our day to day life. Accounting helps us in understanding the economic performance of the business. The objective of this course is to help you understand how businesses work and the underlying business transactions. It will help you to know how they create accounting information and how decision makers both inside and outside the company use this information. This course will help you develop an understanding of accounting principles, conventions and the financial statements. This course will also help you use certain tools and techniques to interpret the results and develop an insight so that you can draw right conclusions with an understanding of the business environment in which the firm is operated.

2. Student Learning Outcomes (typically 3-5 bullet points)

· Be able to read and understand financial statements
· Be able to use accounting information for decision-making
· Be able to analyse the financial performance of a business entity

3. Required Text Books and Reading Material

1. Financial Accounting by Gary A. Porter and Curtis L. Norton, CENGAGE Learning
2. Financial Accounting for Management by H.V. Shankaranarayana and H.R. Ramanath, Cengage Learning
3. Financial Accounting – A Managerial Perspective by R. Narayanaswamy
4. Financial Accounting by Ashok Banerjee
5. Financial Accounting for Business Managers by Asish K. Bhattacharya
6. Financial Accounting for Management by Ambrish Gupta
7. Financial Accounting –Reporting and Analysis by Stice and Stice
8. Hand outs

4. Tentative Session Plan

Session 1: Business Decisions and Financial Statements: The business operations, Forms of Business Organisation, Importance of Accounting and its users, GAAP, Accounting Standards

Readings : Porter and Norton- Ch 1 page 22- 51; Shankaranarayana and Ramanath- Ch 1 page 2-29 , R.Narayanaswamy-Ch.1 page 1-15; Asish K. Bhattacharyya-Ch.1 page 9-11

Session 2: Basic financial statements: Accounting Equation, Analyzing the effect of transactions on accounting equation, Purpose of each of the Financial Statements and Information Reporting,

Readings : Porter and Norton- Ch 2 page 94-110; Shankaranarayana and Ramanath- Ch 2 page 34-55,R.Narayanaswamy-Ch.1 page 16-34; Asish K.Bhattacharya- Ch.2 page 20-23

Session 3: Income measurement and accrual accounting: recognition and measurement in financial statements, revenue recognition principle, expense recognition and matching principle.

Readings: Porter and Norton- Ch 3 page 198-235, R. Narayanswamy- Ch 3 page 109- 116

Session 4: Operating Decisions and the Income Statemen: inventories and cost of goods sold, beyond the bottom line, Gross profit, Operating income, Net income, Individual items,

Readings : Porter and Norton- Ch 5 page 278-299; Shankaranarayana and Ramanath- Ch 7 page 336-380; Ch 8 pg.446-450,R.Narayanaswamy-Ch. 3 page114-119; Asish K.Bhattacharya- Ch.3 page 54-63, Stice and Stice- page 177, Annual reports of Companies

Session 5: Investing and Financing Decisions and the Balance Sheet: Interpreting Current assets, Long-term assets, Current liabilities, Long-term liabilities and Stockholders’ equity

Readings : Shankaranarayana and Ramanath- Ch 7 page 336-380,R. Narayanaswamy- page 212-243, 263-268, 304-343, 418-495; Asish K. Bhattacharya- Ch.2 Page28-38; Stice and Stice- page 123-133

Session 6: Accounting for Fixed Assets and Depreciation Accounting: Property, plant and equipment, intangible assets, methods of calculating depreciation

Readings:Porter and Norton Ch 8 page 459- 485; Shankaranarayana and Ramanath- Ch 4 page 158-203 R.Narayanaswamy- Ch.8 page 350-394

Session 7: Receivables and Investments: Accounts receivable, Accounting for investments

Readings: Porter and Norton Ch 7 page 412- 429, R. Narayanswamy- Ch 5 page 212 - 232

Session 8: Current and long-term liabilities, Stockholders’ equity: current liabilities, long-term liabilities, liability for lease, an overview of stockholders’ equity

Readings: Porter and Norton- Ch 9 and 10 and 11 page 515-525, 575- 599 and 630-640; R. Narayanswamy- Ch 9 and 10 page 418-443 and 482- 492

Session 9&10: Statement of Cash Flows: Classifications of the Statement of Cash Flows, cash and cash equivalent, cash flows and accrual accounting, Reporting and Interpreting Cash Flows

Readings: Porter and Norton- Ch 12 page 700- 709; Shankaranarayana and Ramanath- Ch 8 pg.446-468, R.Narayanaswamy Ch.12 page 551-578 and exercises at the end of the chapter

5. Evaluation

1. Quiz : 30 marks

2. Assignment 10 marks

3. End-term Exam. 60 marks

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Total 100 marks

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6. Academic Integrity

Created By: Debasis Mohanty on 06/11/2012 at 10:58 AM
Category: PGPRM-I Doctype: Document

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