XAVIER INSTITUTE OF MANAGEMENT AND ENTREPRENEURSHIP

KOCHI

COURSE PLAN

Financial Reporting and Analysis

Course Overview

Program: Post Graduate Diploma in Business Administration (PGDM)

Batch, Year: Batch 8, 2020 – 2021

Course Code: 18CF01

Name of Course : Financial Reporting and Analysis

Type of Course : Core

Name of faculty : Ms. Lincy P.T

Email ID : lincy@xime.org

Course Description

This course is intended as a first level course in Business Schools. This course
emphasizes the preparation of Financial Statements and their analysis. This course
helps to interpret the financial performance of an organization so as to make effective
decisions for its future better performance. Recording of business transactions,
preparation of financial statements, its analysis and interpretations are the major
subject matter of this course.

Prerequisites

This course requires an introductory level of knowledge in Accounting. The students

should have minimum knowledge on common expenses, incomes, assets and liabilities
of firms and other entities.

Pedagogy

The course is planned to spreadover into 30 sessions of 60 minutes each. The teaching
pedagogy is designed to achieve the course objectives through the class lectures,
assignments, mini projects, case discussions and presentations. The latter part of the
course is designed as a participative method of learning.

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Course Objectives
This course indents to introduce the students to the basics of Accounting and also
develops skills to prepare and analyse the financial statements of firms. At the end of
this course, the students will be attaining analytical skills and problem-solving skills in
interpreting financial statements and making financial decisions. This course enables
the students:

 Interpret accounting principles and concepts.

 Examine the treatment of assets, liabilities, expenses and revenues.
 Review the financial statements and interpret the financial statements of
corporates.
 Research on profitability, liquidity and leverage ratios of the corporates.

Course Outcome
On completion of the course, the students will be able to:

1. Define the key terms, concepts, principles and theories in Accountancy.

2. Record and report business transactions in the books of firms and prepare
Financial Statements of firms
3. Make effective decisions based on an accurate analysis of the financial
performance of firms to interpret and analyse the annual report of companies.
4. Analyse a comparative evaluation of the performance of various firms.

Course Evaluation
Sl.
No Continual Assessment component Marks Weightage (%)
.
1 Class test 1 10 5

2 Quiz- 1 10 5

3 Midterm Examination 25 25

4 Quiz- 2 10 5

5 Mini Project / Presentation / Case Study 10 5

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6
Class participation 10 10

7 End Term examination 40 40

8 Attendance 5 5

TOTAL 120 100%

Course Outcome – Program Outcome Mapping Chart

PROGRAM OUTCOMES

Sl. Course PO1 PO2 PO3 PO4 PO5 PO6

No. outcomes
1 CO1 2
2 CO2 3 2 3
3 CO3 1 2 1
4 CO4 3 3 2
*Mark the degree of Relationship with the program outcome using the following marking
scheme: 3 – High, 2 – Moderate, 1 -Low

Guidelines to the submission of Mini projects / Presentations

Two quizzes will be conducted based on the chapters covered up to pre midterm and
post midterm. There will be having 10 questions and each question will carry 0.5 mark .
There will be no negative marks for incorrect answers.

Mini Project– Students should select any three companies in the same industry and
analyze their financial performance using various tools. They should compare the
results and finally recommend a company which shows financially better performance.
The total mark for the project is 10 marks and it has a weightage of 5 marks in the
internal evaluation. The evaluation criteria is based on the tools used for analysis and
the final recommendation made by students. After completing this project, students will
be able to analyse the financial performance of each company and they can
recommend necessary inputs in order to improve its financial performance. In addition
to this, they will be able to advice the investors to make better decisions. (PO1& PO2)

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Textbook / Reference Books/ Case / Reference book

Textbook

 Narayanaswamy, R. (2017). Financial accounting: a managerial perspective (7th

Edition). Prentice Hall India Learning Pvt. Ltd.

Reference Books

 Anthony, R. N., Hawkins, D. F., & Merchant, K. A. (2011). Accounting: text and

cases. McGraw-Hill.
 Ramachandran, N., &Kakani, R. K. (2013). Financial accounting for management
(3rd Edition). Tata McGraw-Hill Education, New Delhi.
 Tulsian, P. C. (2003). Financial Accounting. Pearson Education India.

 Maheshwari, S. N., Maheshwari, S. K., &Maheswari, S. K. (2013). An Introduction to

Accountancy (11th Edition). Vikas Publishing House.
 Kimmel, P. D., Weygandt, J. J., Kieso, D. E., &Trenholm, B. (2016). Financial
Accounting. Wiley.

Course Content and Teaching plan

Sl. TOPICS TO BE COVERED Pre-reading / Preparation Activities / Evaluation

No. required

1 Introduction– Accounting Chapter 1: Business and

principles, concepts,
conventions
2 Accounting process - Chapter 2: Financial
Accounting Cycle- Analysis
of Accounting Transactions-
Accounting Equation
3-4 Accounting Records and
system – Journal, Ledger
Accounting Basics- Identify the
Accounting principles, pp accounting period of
21-32 various countries.
Statements- Accounting
Equation, pp 47 Practice Problems
Chapter 3: Transaction Practice Problems
Processing- Recording Evaluation: A Quiz /
class test will be

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Sl. TOPICS TO BE COVERED Pre-reading / Preparation Activities / Evaluation

No. required

5-6 Preparation of Ledger & Transactions, Ledger,

Trial balance Trial Balance, pp 87-91 conducted at the end
of 6th Session

7 Case Discussion -1 Business Decision Quiz I – Before case

Cases, pp 106-111 / HBS (understanding
Case concepts and
remembering case
facts)
8 Preparation of Financial
Statements-Relationship Chapter 4: Measuring
between Profit and Loss Income
Account and Balance sheet-
Preparation of Income Part Two: Measuring and Practice Problems
Statement Reporting Assets,
Liabilities and Equity
9-10 Preparation of Income Evaluation: A class
Statement test will be conducted
at the end of 12th
11-12 Preparation of Balance Session
sheet – Understanding
Assets and Liability items in
Balance Sheet

13 Depreciation and Chapter 6: Long-lived

Amortization Assets- Depreciation, pp Practice Problems
219-230
Quiz II – Before case
14 Case Discussion -2 HBS case will be (understanding
discussed concepts and
remembering case
facts)

MIDTERM EXAMINATION
15-16 Statement of Cash Flows Practice Problems
– Purposes of Cash flow Chapter 13: Statement of
Statement – Reporting Cash Flows, pp. 458-482
Cash Flows from Operating
Activities – Direct Method

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Sl. TOPICS TO BE COVERED Pre-reading / Preparation Activities / Evaluation

No. required

17 Indirect Method- Reporting

Cash flows from Investing
Activities and Financing
Activities
18 Treatment of special items
like foreign currency cash
flows, Interest and
Dividends, Taxes on
incomes, etc.
19 Analysis of Cash flow
statements.
20 Case Discussion – 3 HBS case will be Quiz IiI – Before case
discussed (understanding
concepts and
remembering case
facts)
21 Understanding Corporate
Annual Reports and
Practices – Notes to Concept illustration using Group
Accounts – Directors’ the annual report of Presentation: The
Report- Independent Infosys March 2020 class will be divided
Auditors’ Report into 4 groups and
22 Segment Information – each group should
Related Party Transactions present their
- Corporate Governance assigned topic using
Report- Management the annual report of
Discussion Infosys March 2020.
23 Analysis Report- Business
Responsibility Report-
Value Added statement and Evaluation: Group
Economic Value Added presentation will be
Statement evaluated.

24 Financial Reporting
Standards – Comparison of
Indian GAAP, IFRS and
25 Indian AS of
Analysis Financial
Statements from Chapter 12: Balance Mini Project –
Managerial Perspective- Sheet and Statement of Analyse the financial
Comparative Financial statements of any
Statements

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Sl. TOPICS TO BE COVERED Pre-reading / Preparation Activities / Evaluation

No. required

26 Common-Size Financial Profit and Loss Account,

Statements- Trend pp. 423-446
Percentages
27 Ratio Analysis - Profitability three companies in
Measures, Test of Financial performance of the same industry
Efficiency in Investment Infosys will be analysed and conduct a
Utilization, using various financial comparative study.
28 Test of Financial Position,
Ratios involving Share statement tools in the
information class Evaluation: A Quiz /
class test will be
29 Analyzing Financial
conducted at the end
statements of Corporates in
of 27th Session
different industries.

30 Case Discussion- 5

Skill development / Participative / Experiential learning activities planned

Details of Industrial visits / Industrial projects / Expert lectures planned

Sl. Activity Planned Industry Month Planned

No.
1 Experiential Learning- Lecture on Financial Sector September
Annual Report (PO2)
2 Skill Development– Financial Financial Sector October
Statement Analysis of various
companies and making a decision for
better investment. (PO2)

……………………………………… ……………………………………

Signature of Dean Academics Signature of Faculty

Name: Dr. T. V. Francy Name: Ms. Lincy P. T.
Designation: Dean Academics Designation: Assistant Professor

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