INSTITUTE OF MANAGEMENT TECHNOLOGY

PGDM, PDGM (Finance) & PDGM (Marketing) Term - I,

AY 2019-2020
Financial Accounting

Course Code. : FIA 19101

Course Title : Financial Accounting
No. of Sessions : 20
Duration of session : 75 Minutes
Instructor(s) : Prof.A.Sarath Babu
Email : sarathbabu@imthyderabad.edu.in

1. Course Description

The course financial accounting is aimed at the person who wants to be a knowledgeable
user of accounting information as against the preparer of accounting reports. Hence the
stress is on the analytical uses of the accounting information by managers and analysts
rather than procedural details that the practicing accountant needs to know.

2. Course Objective

The objective of the course is to make the students to understand the framework for
preparation and presentation of financial statements. Evaluating the extent to which
financial statements reflect a fair view of the underlying economic substance of the firm
and also appreciate the element of subjectivity involved in measuring the same. Students
will be able to understanding the consequence of accounting policy choices that require
trade-off between relevance and reliability. Demonstrating mastery of the concepts and
language of accounting so they can be used as effective management tools for
communication, monitoring and resource allocation

3. Learning Goals and Assessment

S.No. Learning goals Learning Outcomes
The course aims to impart At the end of the course the
students should be able to
1. Functional Proficiency & Knowledge
Integration
• Understand the elements of
financial statements.
• Balance sheet through
accounting equation.
Learning Assessment
method
The outcomes would be
assessed through
• Test
• Comprehensive
Examination
• Written Assignment
• Class Participation
(CP)

• Fair value and revenue

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 concepts

• Profit vs Cash
Skills
• Business transactions and its
impact on financial
statements
2. Analytical and Critical • Evaluate pros & cons of
Thinking Ability Measurement and
recognition principles.
3. Communication Skills • Articulate concepts in a
crisp and concise
manner dealing strategic
issues in accounting
4. Leadership and • Develop competencies
Interpersonal Skills needed to function well
in teams
• Group Project
• Comprehensive
Examination
• Test
• Written
Assignment
• Group Project
• Class Participation
(CP)
• Comprehensive
Examination
• Class Participation
(CP)
• Group Project
• Group project
• Written Assignment
• Class Participation
(CP)

5 Ethical and Global • Understanding ethical • Class Participation

Perspective issues and global (CP)
practices in accounting
6 Creativity and Innovation • Appreciate and learn • Group project
Skills changes in accounting • Written Assignment
field.

4. Text Book
Accounting Text and Cases by Robert Anthony, David Hawkins and Kenneth
Merchant (13th Edition), The McGraw-Hill Companies

5. Reference Books:
• Financial Accounting by Needles & Powers (11th Edition), South Western Cengage
Learning
• Financial Accounting by Gary Porter & Curtis Norton (6th Edition), Cengage
Learning
• Managerial Accounting by Garrison, Noreen & Brewer (11th Edition), Tata Mcgraw Hill
• Introduction of Management Accounting by Horngreen, Sundem, Stratton,
Burgstahler and Schatzberg (14th Edition), Pearson
 • Indian Accounting Standards (Ind AS) & IFRSs for Finance Executives by T.P Ghosh (2nd
Edition), Taxmann Publications Pvt Ltd
• IFRS – A Briefing for Chief Executives, Audit Committees and Board of Directors issued by
IASB Red Book on International Financial Reporting Standards issued by IASB

6. Course Prerequisites
This course is core course for all the students. Students should have basic knowledge of
financial accounting to the extent of Introduction to Financial Accounting course covered
in management orientation program.

7. Pedagogy
• Lectures, Case discussion and sessions by practitioners. Use of Online Learning
Management System (LMS) to help as well as grade students.

8. Course Content and Session Plan

S. Date Case Topic(s) Readings
No
1 1st Framework Why Enterprises prepare & report Chp 1
July 19 Financial statements?
Notions of Income & Wealth
(Stock v/s Flow measures)

nd
2 2 Net Solutions Basic Elements, Conventions & Chp 1
July 19 Key
Characteristics of Financial statements,
Accounting equation
th
3 8 Dispensers of Preparation of Balance Sheet, Chp 2 & 3
July 19 California, Inc. Income Statement; Cash flow Framework
[Case 3-3] statement; Accounting Concepts &
Conventions, Notions of Profit,
Accrual v/s Cash based accounting
th
4 9 Maynard Preparation of Balance Sheet & Chp 2 & 3
July 19 Company (A) & Income Statement; Accounting Framework
(B) Concepts & Conventions, Notions of
[Case 2-1 & 3-1] Profit, Accrual v/s Cash based
accounting
th
5 15 Quick Lunch Preparation of financial statements Chp 2 & 3
July 19 [Case 14-1] Framework
th
6 16 Urban Water Multi period financial statements Chp 2 & 3
July 19 Partners (A) Framework
nd
7 22 Grennel Farm Revenue Recognition – Delivery, Chp 5; IND AS
July 19 [Case 5-2] Collection & Production Methods of 115
Revenue recognition

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 rd
8 23 *Joan Holtz (A) Comprehensive case on Revenue Chp 5; IND AS
July 19 [Case 5-3] Recognition 115

th
9 29 Lewis Inventory Costing methods – Chp 6; IND AS 2
July 19 Corporatio FIFO, LIFO, Weighted Average;
n [Case 6- Concept of LIFO Reserve
2]
th
10 30 Joan Holtz (B) Comprehensive case on Inventory Chp 6; IND AS 2
July 19 [Case 6-4] Valuation & COGS

h
11 12 Joan Holtz (B) Comprehensive case on Inventory Chp 6; IND AS 2
Aug 19 Valuation & COGS

th
12 13 Stafford Press Fixed Assets – Asset v/s Expense; Chp 7; IND AS 16,
Aug 19 [Case 7-3] Depreciation

th
13 19 Joan Holtz (C) Comprehensive case on Fixed Chp 7; IND AS 16,
Aug 19 [Case 7-2] Assets

th
14 20 Medieval Understanding Operating Cash Chp 11;
Aug 19 Adventures Co. Flows IND AS 7
[Case 11-1]
15 26
th
Chemlite Inc (B) Statement of Cash Flows – Direct Chp 11;
Aug 19 & Indirect Method IND AS 7
th
16 27 Chemlite Inc (B) Statement of Cash Flows – Direct Chp 11;
Aug 19 & Indirect Method IND AS 7
rd
17 3 Financial Statement Trend Analysis, Turnover ratios and Chp 13
Sep 19 Analysis (Basics) Profitability ratios
th
18 9 Financial Statement Liquidity and Solvency ratios Chp 13
Sep 19 Analysis (Basics)
th
19 10 *Extracts of Notes to the Accounts, Directors
Sep 19 Annual Report Report, Auditors Report

th
20 11 *Extracts of Interim Reporting IND AS 34
Sep 19 Published Interim

*Practitioner Sessions
9. Practitioner Details
Mr. Satyaranjan Jena, CAO, Volvo India
M r.
 10. Assessment Scheme:

Weeks 1-4 5-8 9 Total

Class Participation 2 3 5
Participation Case

Written Analysis of the case (Group-wise) 5 5

Group Project (Group-wise)
10 10

Mid-Term 10 10
Exam/ Quiz

Comprehensive Examination
20 20

Total 7 23 20 50

Details about the assessment components and guidelines

i. Class Participation
The following rubrics will be used while assessing the students. The students are expected
to read the assigned reading material and the case (if any) thoroughly.

A B C D
Preparation (20%) Is well prepared for class Is usually prepared for Is rarely prepared for Is almost never
with assigned reading class with assigned the class prepared for the class
material reading material

Quality of Input in Voluntarily & frequently Offers consistently Occasionally offers Offers limited or no
Discussion (30%) offers creative or originalappropriate responses responses, nothing responses, or single
responses/ and occasionally that really challenges word responses;
interpretations/ creative or original the class to think Is unable to connect
observations; responses; beyond the obvious; theory to the case; Is
Is consistently able to Is frequently able to Is weakly able to unable to relate
connect theory to the connect theory to the connect theory to the concepts across cases &
case; case; case; to other related
Is consistently able to Is occasionally able to Is unable to relate disciplines
relate concepts across relate concepts across concepts across
cases & to other cases & to other related cases & to other
related disciplines disciplines related disciplines

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Level of Involves others in class Responds to others’ Rarely raises any Never raises any
Engagement in discussions by asking questions but does not questions; questions;
Class (30%) questions and seeking raise any pertinent Is neither able to buildShows no interest in
others’ responses; questions; on others’ ideas nor class discussion and
Offers follow up Offers matter of fact able to comprehend appears distracted
responses, builds on responses and seldom or consolidate content
other ideas; builds on others’ ideas; discussed thus far
Enhances class learning Merely paraphrases
by consolidating ideas ideas already expressed
expressed at different
points of time during the
discussion

Behavior (20%) Demonstrates leadership Can assist the leader in Is a mere spectator to Goes back to an issue
by being able to bring streamlining the class a wayward point and after it is already been
the class back on track discussion once keeps away from discussed and settled;
during wayward initiated by the leader conflict situations Raises unrelated points
discussions; and also assists the and disrupts the flow
Possesses the ability to leader in diffusing of the class;
diffuse conflicting conflicts Does not give enough
situations opportunity to assess
class participation

ii. Written Assignment

Group of 5 students will have to submit analysis and discussion on a case.

iii. Quiz

Each student will be administered through a written test and students are required to
answer questions consisting of MCQs, fill up the blanks, True or False and concept
clarifiers in 60 minutes.

1v. Group Project Guidelines

For the purpose of group project a team of four students should be formed
and each group will have to select a company which is listed in NSE and submit
a report by the end of 9th week of the trimester covering details delineated in
project guideline.

v. Comprehensive Exam (at the end of the trimester)

An end term exam covering the entire syllabus will be for 2 hrs. The exam pattern
will be subjective and analytical including problems and cases.
11. Plagiarism Policy

Copying of the language, structure, ideas, or thoughts of another and representing

the same as one's own original work amounts to plagiarism. Examples of
plagiarism include: failing to use quotation marks when directly quoting from a
source; failing to document distinctive ideas from a source; fabricating or
inventing sources; and copying information from books and the internet.

Students found guilty of plagiarism will not be evaluated. Instructor shall decide to give
warning or grade cut or refers such students to the disciplinary committee for further
action.

12. Consultation Hours: Wednesday – 11:00 AM – 12:30 PM & Thursday, 4:30 PM -5:45 PM

Note: Make-up may be given only on genuine grounds. Prior permission has to be
obtained.

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