Course Objectives

On completion of this course the participants are expected

• To equip the students with practices and procedures of financial reporting including accounting concepts, conventions, policies and generally accepted accounting principles (GAAP)
• To enable the student to attain practical knowledge of various aspects of an annual report including note on accounts and management discussion and analysis.
• To equip the students with a detailed understanding of the tools and techniques of financial statement analysis including the ramifications of CAGR.
• To introduce to the students the practical aspects of financial statement analysis through contemporary case studies for credit analysis and equity research

UNIT I

Financial Accounting - Definition - Accounting Principles - Concepts and conventions - Journal - Ledger - Trial Balance - Final Accounts with simple adjustment, Depreciation -Concept – Objectives. Computerization of accounts.

UNIT II

Introduction, Meaning of Production and Production Function- Law of Variable Proportions- Cost of Production: Various types of cost of production (internal cost and external cost) Type I Cost of production: Short run cost of production analysis. Type II cost of production: Long run cost of production analysis– Externality- Positive and Negative Externality.

UNIT III

Ratio Analysis - Calculation of ratios - construction of balance sheet using ratios. Cash flow statement - Preparation of Cash Flow Statement.

UNIT IV

Budget and Budgeting Control - Meaning - Types of budgets - Preparation of Functional and Flexible budgets and Zero Base Budgeting

UNIT V

Additional information in annual report– segment reporting, notes to financial statement – full disclosure – comparative statement – management discussion and analysis. Recent trends in accounting

Learning Resources

• N.P. Srinivasan & M.Sakthivel Murugan, “Accounting for Management” 2nd Edition, 2010, S.Chand& Company Ltd., New Delhi.
• S.P. Jain, K.L. Narang, “Financial Accounting analysis”, 3rd revised Edition, 2004, Kalyani publisher, New Delhi.
• T.S. Grewal, S.C. Gupta, “Introduction to Accountancy”, 8th revised Edition, 2008, S.Chand& company Ltd., New Delhi.
• R.K. Sharma, Sashi K.Gupta, “Management Accounting, Principles and Practice”, 7th revised Edition, 2008, Kalyani Publishers, New Delhi.
• .M.Y. Khan, P.K. Jain, “Management Accounting Text, problems and cases, 5th Edition,2010, Tata Mcgraw Hill publishing company ltd., New Delhi.