Course title : Financial Reporting & Analysis

Batch : PGDM 2019-21

Term :1

Credits :2

Faculty : CA.K.K.Ramesh Email ID :profkk.ramesh@gmail.com Mobile:9447126307

About the Course:

Introduction:
Accounting is the language of business. An organisation speaks to the stakeholders
using the language of accounting. To understand this one needs to know the
grammar. This course will help you to understand this language and the grammar
used there in.

Course Objectives:
This course introduces you to the concept of financial accounting and helps you in
acquiring technical skills required for preparation and analysis of financial
statements and disclosures. This course emphasises on recording of transactions
and processing them into the three financial statements namely:
1.Income statements
2. Balance sheet
3. Cash flow statements
The course will be based on International Financial Reporting Standards (IFRS)
The course will ultimately move to Analysis and interpretation of financial
statements

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Pedagogy:
Lectures, assignments, self regulated practice groups and case sessions

The basic concepts will be explained with numerical examples, these concepts would
be reinforced by discussing numerical cases and real-life examples. The cases and
the numerical questions to be discussed will be announced prior to the class. The
students are expected to come to the class with proper preparation.

Course Evaluation: (No component should exceed 30% of the total)

Component % marks

Class Participation 10

Case Analysis & Presentation (Team) 10

Quiz I 15

Quizzes II 15

Group Assignment 10

Individual Assignment 10

Final Exam 30

Total 100

Session Plan

Session Coverage

1  Introduction to Accounting-Objectives and Purpose

 Types of Business Organization in the context of accounting

 Basic rules of Accounting

Suggested Reading – Chapter 1 and 2

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2,3,4,5,6  Analyzing business transactions using accounting equation

 Recording transactions in books of accounts

 Preparation of income statement and balance sheet

 Distinction between Revenue expenditure and Capital expenditure

 Accounting for merchandising transactions

Suggested Reading – Chapter 3,4,5,6 and 7

Adjustments to be done in books of accounts at the time of closing

7,8
 Provisions
 Outstanding expenses
 Prepaid expenses
 Accrued Income and unearned income

Suggested Reading – Chapter 4

9
Depreciation methods –

 Straight line method

 Written Down Value method

Suggested Reading – Chapter 7

10 Preparation of Cash flow statement

 Direct Method
 Indirect Method

Suggested Reading – Chapter 12

11 - 12 Cash Flow Analysis

Suggest Reading – Chapter 12

Analysis of Financial statements
13 – 14
 Ratio Analysis
 Common sized statements

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  Vertical and Horizontal analysis
 Trend percentages

Suggested Reading - Chapter 11

Recommended Text Books:

 Financial Accounting A Managerial Perspective, (5th Edition) by R
Narayanaswamy, PHI Learning Pvt. Ltd.

References:
 Accounting Text and Cases, (12th Edition) Robert N Anthony, David F Hawkins
and Kenneth A Merchant (AHM)
 Financial Accounting for Management, (3rd Edition) by N Ramachandran and
Ram Kumar Kakani, Tata McGraw-Hill
 Modern Managerial Accounting and Control by Sunder Ram Korivi, Himalaya
Publishing House
 Accounting Made Easy, Rajesh Agrawal and R Srinivasan, Tata McGraw-Hill

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