SCHOOL OF BUSINESS AND MANAGEMENT

MM5002

Accounting

GENERAL MANAGEMENT (GM 3)

August October, 2016

MASTER OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT
INSTITUT TEKNOLOGI BANDUNG
http://www.sbm.itb.ac.id/mba

Internationally accredited by

Contents
1.

Vision and Mission of MBA-ITB.....................................................................................................2

2.

Learning Goals of MBA-ITB...........................................................................................................2

3.

About the Lecturer ......................................................................................................................2

4.

Course Description and Objective.................................................................................................3

5.

Course Content ...........................................................................................................................3

6.

Pedagogical Approach and Material .............................................................................................4

7.

Reference ...................................................................................................................................5

8.

Performance Evaluation and Grading............................................................................................5

9.

Students Guidance ......................................................................................................................5

10. The Course Plan...........................................................................................................................6

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1. Vision and Mission of MBA-ITB

Vision:
To be A World Class Program of Master and Business Administration that Creates Ethical
and Entrepreneurial Leaders
Mission:
To educate and develop future leaders in business
To develop sustainable education program for building human resource capacity
needed for enhancing industry competitiveness in Indonesia

2. Learning Goals of MBA-ITB

In General, The MBA-ITBslearning goal is to developstudents to have the
followingcharacteristics :
A strongcompetences in business and technology-based management as well as
decisionmakingcapabilities as demonstrated by business leaders in the world.

An ethical leadership and professionalmindset

An entrepreneurial spirit both as professionals and as entrepreneurs.
Ability to makedecisionsbased on human values in a systemic and integrated manner
so as to meet the needs of the community.

3. About the Lecturer

Email : wdaryanto@cbn.net.id and wiwiekdaryanto@yahoo.com
Dr. Wiwiek M.Daryanto, SE-Ak, MM, CMA is an expert in accounting and finance who has a
high qualification both in academic and practical expertise. She has a degree in
accountancy with a predicate of cum-laude from Faculty of Economic, University of Gadjah
Mada. She continued her studies at the College of Economics and Management, University
of the Philippines at Los Banos, and got her Master of Management degree. She received
her Doctoral degree from Agriculture Industrial Technology, Institut Pertanian Bogor,
majoring in Management Technology of Agroindustry. She has a Certified Management
Accountant from the Institute of Certified Management Accountant, Australia. She has
more than twenty five years of experience in consulting and teaching at universities, public
seminars, and in-house training in leading companies. Her areas of teaching are financial
accounting, management accounting, and financial management.

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4. Course Description and Objective

Accounting is the language of business. Managers commonly express their concerns about
the performance of organizations in accounting terminologies, such as profits, return on
investment (ROI), revenues, costs, and expenses. We have to cut off some of our
unnecessary expenses, We have to be able to boost our revenues by ten percent,, and
Our goal is to maintain our ROI at 15% in the next four years are examples of the
managers phrases that use accounting terms. Organizations stakeholders, in particular
stockholders, debt holders, and government, also often use accounting terms as the basis
of their communication with the organizations. Understanding the basics of accounting,
therefore, is an important requirement to be a good manager. Only by having a good grasp
of what accounting is about can management maintain their communication network with
the stakeholders effectively.
This accounting course is designed to train students with basic accounting techniques. It is
given in the first term so that students are well equipped with one of the important tools
needed to follow business discussions. Through this course, the students will be exposed to
the recognition, measurements, and reporting systems used to organize economic events
incurred in organizations. Such an exposure will enable the students to gain knowledge
about the meaning of accounting numbers reported by companies and about the process
of deriving the numbers. In addition, such an exposure will also allow students to utilize
the accounting numbers to make sound business decisions. To be more specific, the course
is designed to meet the following objectives:

1.
2.
3.
4.
5.
6.

To introduce students with an overview of the financial reporting systems.

To create awareness among students of the need to understand financial accounting.
To familiarize students with the roles of accounting in making business decisions.
To expose students with financial reporting for different kinds of organization.
To develop the ability to select relevant information needed for a particular situation.
To enhance the ability to interact with financial staff to support his/her role in planning
and control functions.

5. Course Content
Traditionally, the field of accounting is divided into two areas of specialization, financial
accounting and management accounting. The difference between the two areas of
specialization lies in the target audiences. In financial accounting, the target audience is
external parties (or public), such as stockholders, bondholders, debt-holders, and
government institutions. The final output of the set of systems are financial statements, a
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set of reports that indicates the financial position of a company at a certain date and the
ability of the company to produce profits during a certain period. These financial statements
will be used by external parties to evaluate the prospect of the company in the future. It is
also a part of the management written responsibility report to their principals (stockholders
and debt-holders). The faceless nature of the audience (i.e., public) of financial accounting
suggests the need of certain standards and regulations. Such standards and regulations can
prevent (different) users of financial statements from making different interpretations
about the meanings of accounting numbers exhibited in the financial statements. For these
reasons, financial accounting is bound by strict standards and regulations.
The target audience of management accounting, as the name implies, is the management.
Hence, information produced by management accounting systems will be used by
management to run the organization in more efficient and effective ways. More
specifically, management accounting information will be used by management to
determine the cost of the products/services, to assess the profitability of a product or
service, to make business decisions, to make business plans , and to control the activities of
the organization. In management accounting, there is no specific standard or policy to be
followed. Rather, management accounting reports (or information) are produced as far as
they can help management to execute their managerial functions better.

6. Pedagogical Approach and Material

This course is not designed to prepare students to be accountants. Accordingly, the
emphasis is not on the technical parts, but on how to read financial statements, how to
interpret accounting numbers, and how to use accounting information to make decisions.
Cases will be used as a vehicle to discuss the accounting concepts and techniques. These
cases will be taken, mainly, from the reference book and from the Harvard Business School
Library (Publications). In addition, articles discussing recent developments in the area of
accounting, particularly in the area of management accounting, will also be discussed in
class.

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7. Reference
The reference text to be used for this course is:

Anthony, Hawkins, and Merchant, 2011, Accounting: Text and Cases, 13th edition, The
McGraw-Hill Company, Inc.

8. Performance Evaluation and Grading

The pedagogical approach adopted by MBA-ITB requires students to actively participate in
class discussions. To encourage students participation, a significant portion of the final
grade will be contributed by the quantity and quality of the participation of each student
during the class discussions. In addition, two exams will be given during the semester: Midterm Exam and Final Exam. Topics covered in the mid-term exam are those related to
financial accounting, whereas topics covered in the final exam are those related to
management accounting. In essence, the final grade of the students will be determined as
follows:

Mid-term exam
Final exam
Individual participation in class discussions
Individual assignment
Total

:
:
:
:
:

30%
30%
10%
30%
100%

9. Students Guidance
In order to succeed, students are advised to do the followings:
1. Allocate sufficient time for self preparation
2. Discuss concepts and cases with their syndicate
3. Elaborate practical cases apart from cases given
4. Have a proper notes of all lecture
5. Contribute actively in the class

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10. The Course Plan

Date
22-Aug-16
(Day One)

Outcome(s)
Chapter 1:
Early introduction to the products of
financial accounting - the financial
statements

Activity(ies)

Preparation

Facilitator(s)

Session 1 (13.45 PM 15.15 PM)

- Class Management, Rule of the
Game, Introduction

WMD

- Chapter 1. The Nature and Purpose

of Accounting
Chapter 2:
- Describes 5 of the 11 basic concepts from
which principles of accounting are derived.
- Also described, in a preliminary way, are
the nature of the balance sheet and the
principal categories of items that appe ar in
it.
- Finally, the chapter shows how amounts
that appear in the balance sheet are
changed to reflect events that affect an
organizations resour ces.

Break (15.15 PM 15.30 PM)

Session 2 (15.30 PM 17.00 PM)

- Case 1: 1-3 Baron Coburg

Chapter 3:
- Describes the last 6 of the 11 basic
concepts from which principles of
accounting are derived.
- Describes deeper into measurement of
income as used in financial accounting and
describes the income statement, the
financial st atement that reports income
and its determinants.
29-Aug-16

Session 1 (13.45 PM 15.15 PM)

- Chapter 2: Basic Accounting
Concepts: The Balance Sheet

(Day Two)

WMD

- Case 2&3 : 2-1Maynard Company

(A), and 2-3 Lone Pine Caf (A)
Break (15.15 PM 15.30 PM)
Session 2 (15.30 PM 17.00 PM)
- Chapter 3: Basic Accounting
Concepts: The Income St atement
- Case 3&4: 3-1 Maynard Com pany
(B), and 3-2 Lone Pine Caf (B)
5-Sep-16

(Day Three)

Chapter 4:
- Describes some of the accounting
procedures that are used in practice. The
procedures describes here provide the
mechanical means for making it easier to
record and summarize transactions.

Session 1 (13.45 PM 15.15 PM)

- Chapter 3: Basic Accounting
Concepts: The Income St atement

WMD

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- Case 3&4: 3-1 Maynard Com pany

(B), and 3-2 Lone Pine Caf (B)
- Chapter 4: Accounting Re cords and
Systems
- Case 5: 4-1 PC Depot
Chapter 5:
- This chapter discusses the two problems
in revenue recognition: 1). When - in which
accounting period should revenue be
recognized? ; and 2). How much revenue
should be recognized?
- A closely related matter, the
measurement of monetary assets,
especially accounts receivable, also is
discussed.

Chapter 6:
- This chapter describes principles and
procedures for measuring cost of sales as
reported on the income statement and for
the related measurement of inventory on
the balance sheet.

Break (15.15 PM 15.30 PM)

Session 2 (15.30 PM 17.00 PM)

- Chapter 5: Revenue and Monetary
Assets
- Case 6: 5-1 Stern Corporation

Chapter 7:
- This chapter describes other categories of
assets. The common characteristic of these
assets is that they are nonmonetary and
have long lives; they provide benefits to the
entity for several future years.
- Describes the accounting principles
involved recording the acquisition of these
long-lived assets, the conversion of their
acquisition costs to expenses, and the
disposition of such assets when they are no
longer provide service.
- Analytical techniques that give financial
statement users a better understanding of
a companys nonmonetary asset accounting
decisions and transactions also are
discussed.
19-Sep-16
(Day Four)

Session 1 (13.45 PM 15.15 PM)

- Chapter 6: Cost of Sales and
Inventories
- Case 7&8: 5-1 Stern Corporation,
and 6-1 Browning Manufacturing
Company

WMD

Break (15.15 PM 15.30 PM)

Session 2 (15.30 PM 17.00 PM)

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- Chapter 7: Long-Lived Nonmonetary

Assets and Their Amortization
- Case 9: 7-1 Stern Corporation (B)
26-Sep-16
3-Oct-16
(Day Five)

Mid Test
Chapter 8:
- This chapter discusses liabilities and the
related interest expense.
- Identifying the needs for new funds and
acquiring these funds are part of the
function known as financial m anagement
Chapter 9:
- This chapter continues more detailed
description of the liabilities and owners
equity portion of the balance sheet. A
company obtains its permanent capital or
invested capital from two sources: debt and
equity.

Chapter 11:
- This chapter describes the third
accounting report that a company must
prepare, the statement of cash flows (or
cash flow statement).

Session 1 (13.45 PM 15.15 PM)

- Chapter 8: Sources of Capital: Debt

WMD

- Case 10: 9-2 Innovative Engineering

Company
Break (15.15 PM 15.30 PM)

Session 2 (15.30 PM 17.00 PM)

- Chapter 9: Source of Capital:

Owners Equity
- Case 11: 9-1 Xytech, Inc.

Chapter 13:
- This chapter describes how to analyze
financial st atements, both by parties
outside the firm and by the companys own
management.
10-Oct-16

Session 1 (13.45 PM 15.15 PM)

- Chapter 11: The Statement of Cash
Flows
- Case 12: 11-1 Medieval Adventures
Company
Break (15.15 PM 15.30 PM)

( Day Six )

WMD

Session 2 (15.30 PM 17.00 PM)

Chapter 13: Financial Statement
Analysis
Case 13: 13-1 Genmo Corporation
17-Oct-16
( Day Seven)

Chapter 15:
- This chapter distinguishes m anagement
accounting inform ation from other types of
information.
- It compares and contrasts management
accounting inform ation with information
used for financial reporting.

Session 1 (13.45 PM 15.15 PM)

- Chapter 15: The Nature of
Management Accounting

WMD

Break (15.15 PM 15.30 PM)

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- It describes the three main uses of

management accounting information.

Session 2 (15.30 PM 17.00 PM)

- Case 14: 16-1 Hospital Supply, Inc.

Chapter 16:
- Understanding cost-volume relationships
how costs behave as the level of activity
changes is ne cessary for understanding
the various uses of management
accounting inform ation described in later
chapters.
- Accordingly, this chapter presents the
concepts of fixed and variable costs as well
as step-function costs.
- Cost behavior information can be
combined with revenue inform ation to
develop a profitgraph, which this chapter
discusses along with the related concept of
contribution.
Chapter 17:
- This chapter describes the construction
and use of full cost information the type
of management accounting inform ation
used for many cost measurement purposes.
Chapter 18:
- This chapter describes the two general
types of product cost accounting: job order
costing and process costing.
- Also discussed are the measurement of
direct material and direct labor costs, along
with techniques for allocating to a product
its fair share of indirect costs.
24-Oct-16
( Day Eight )

Session 1 (13.45 PM 15.15 PM)

- Case 15: 16-3 Bill French

WMD

Break (15.15 PM 15.30 PM)

Session 2 (15.30 PM 17.00 PM)
- Chapter 17: Full Costs and Their
Uses
- Chapter 18: Additional Aspects of
Product Costing Systems
Summary and Closing
31-Oct-16

FINAL TEST

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