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1. Course Description

The objective of this course is to enable the students to understand the language of business called accounting. Reported financial statements consist of three components: Balance Sheet, Income Statement and Cash Flow Statement. Through this course, the students will be able to understand how these statements are being prepared, their significance in the context of different business decisions, analysis of each such decision and future business planning.

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

· Be able to get into a position to read into the reported financial statements of a company

1. Financial Accounting – A Managerial Perspective by R. Narayanaswamy
2. Financial Statement Analysis by Charles H. Gibson
3. Financial Accounting for Business Managers by Asish K. Bhattacharya
4. Financial Accounting for Management by Ambrish Gupta
5. Financial Accounting –Reporting and Analysis by Stice and Stice
6. Class Notes

4. Tentative Session Plan

Session Number	Topics/Activities	Reading / case list etc.
1	Discussion on the course outline. Information asymmetry and users of financial reports Understanding the business operations, Conceptual Framework.	R.Narayanaswamy: Page no.- 4 to 6 & Class note
2	What is Accounting and its significance in business environment, Accounting measurement assumptions, Forms of Business Organization	R.Narayanaswamy: Page no.- 7 to 17
3	GAAP, Institutions that influence Indian GAAP, Converging IGAAP with IFRS, Accounting Equation: Tool to understand business decisions.	R.Narayanaswamy: Page no.- 20 to 36
4	Statement of Profit and Loss: Revenue from operations, expenses, exceptional & extraordinary items.	Class note, exercise under revised schedule –VI
5	Statement of profit & Loss: Tax expenses(current & deferred tax), Discontinuing operation, EPS(basic & diluted)	Company’s financial statement
6	Balance Sheet – Equity & Liabilities & Assets	Company’s financial statement
7	Owners capital, borrowed capital & short term liabilities	Class note, exercise
8	Long term assets, Current investments & current assets	Class note, exercise and selected exercise from published financial reports
9	Effect of Business Transactions on the financial statements, Measuring Business Income and Preparation of financial statements	Analysis of company’s financial statement
10	Introduction to Cash Flow Statement (Financing Decisions / Investment Decisions / Operating Decisions )	R.Narayanaswamy: Page no.- 584 to 634 Analysis of company’s financial statement
11	Understanding the business, objectives of analysis, Tools and Techniques of Analysis, Horizontal analysis, Vertical Analysis, Trend Analysis	R.Narayanaswamy: Page no.- 526 to 542
12	Tests of Profitability and their Interpretations	R.Narayanaswamy: Page no.- 544 to 546
13	Tests of Liquidity, Tests of Solvency, Turnover Ratios and their Interpretations	R.Narayanaswamy: Page no.- 551 to 555
14	Capital Market Ratios and their interpretations, Corporate Discloser Policy	R.Narayanaswamy: Page no.- 556 to 560
15	Du Pont Analysis and their interpretations	R.Narayanaswamy: Page no.- 547 to 550

5. Evaluation

1. Quizzes : 40%

2. Group Work : 20%

3. End-term : 40%

Total : 100%

6. Academic Integrity

As per Institute’s norms

Created By: Debasis Mohanty on 07/01/2013 at 09:41 AM
Category: ExPGP-I Doctype: Document