ACC306

Financial Statement
Analysis
Lecture #0

The kick start session

The hitch…
The BURNING questions in mind…

• Why are we learning FSA?

• What would we do with it?

• I am very good in my own area of

specialization” – Why FSA????
“How would you react to
the above statements?
 The Job Content…..

Management and
As Finance
Expertise
You
Move Functional
Expertise
Up
In Companies Like……

Students got placed mainly due to

knowledge of Financial Statement Analysis
In Curriculum Feedback with

1. Controller = Accounting + Basic Finance

2. Business Finance = Basic Accounting + Finance
About this course
• Financial Statement Analysis
• Annual Reports of companies
The course contents
• Overview of financial statements
• Profitability analysis
• Dupont analysis
• Leverage analysis
• Receivables management analysis
• Prospective analysis
• Corporate reporting
• Free cash flow
Course details

• LTP – 4 1 0

• Text Book
• Financial Statement Analysis by I M
Pandey
Course Assessment Model
• Marks break up*
• Attendance 5
• CA (Three academic tasks) 45
• ETE 50
• Total 100
The course outcome…

By the end of
ACC306, every
one of you would
have your own
packages
 Decision Maker
Apply accounting information for
decision making in organization
 Interpreter
Determine the process of projecting
financial position and performance
 Analyzer
Analyze various disclosure issues
pertaining to an economic entity
American Airlines

Following 9/11, airlines were having some difficulty.

There were numerous other factors involved, but the
terrorist attack on the World Trade Center and
Pentagon had left people a little uneasy about airplane
travel.
‘American Airlines’ was doing so poorly that they
would have needed to fill 103% of their seats just to
break even.

So Bob Crandall, the former chief of AA, made many

cost cutting decisions- including removing one olive
from each salad.

While one olive might not seem like

much cost saving, all the olives
taken out made up a $40,000 drop
in in-flight meal costs per year.
We’ll do it with……
 Books…not FACEBOOK
 Case based discussion
 Problem Solving
 Homework
 Group assignments
 Group discussions
 Class Discussions
YOUR ROLE………
 In General.......
 In particular….
Attending Taking
class notes
regularly

Practicing
at home

Working and
solving problems
in groups
Converting
theory into
practice
Clear Understanding of …..
Get Set Go!!!

Explore your
logical abilities

Build your
packages for
future support