SVKM’s
NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES
POST GRADUATE DIPLOMA IN MANAGEMENT
Program: PGDM Trimester: 1
Course: Financial Accounting Code:
Teaching Scheme Evaluation Scheme
Classroom Practical/ Continuous Term End Examination
Tutorials Credit
Sessions Group work Evaluation (TEE)
20 3 50% 50%
Course Rationale:
Accounting is the language of business and finance. A well-functioning capital market closely tracks the
performance of a business organization, as communicated through its Financial Statements. This Course
aims to equip the participant with the skill set necessary to understand, analyze, interpret and comment
upon the Financial Statements. A solid grasp of Financial Accounting strengthens one’s ability to
understand the current operations of a business, analyze its financial position, and weigh upon its future
prospects. These skills would help a manager make sound financial and economic decisions are therefore
imperative for building a successful business career. This Course lays the foundation for advanced elective
courses in Finance, Accounting and Strategy.
Course Objectives:
This course focuses on the analysis of corporate financial statements, after providing a basic understanding
about their preparation. The course aims to:
1. Define the meaning & purpose of financial reporting and provide an introduction to the framework of
Generally Accepted Accounting Principles (GAAP)
2. Cover the complete accounting cycle from the first step of journalizing to the final preparation of
financial statements
3. Discuss the methods for analysis and interpretation of financial statements
4. Stress on interpretation of some selected accounting policies and unveil the issues in accounting
Information
Learning Outcomes:
Upon successful completion of this course, participants are expected to be able to:
1. Apply the accounting cycle in the preparation of Financial Statements
2. Analyze important items like Inventories, Long-lived Assets & Receivables
3. Analyze the Financial Statements of a business and assess whether they truly represent its economic
performance
4. Choose between alternate accounting policies and assess their impact on the Financial Statements of
the business
Prerequisite:
‘Foundations of Accounting’ course offered in the Orientation program.
Pedagogy:
A mix of pedagogy would be adopted. Conceptual inputs will be given through short lectures. The extent &
quality of learning will depend on the quality & depth of discussion in the class. This in turn depends on the
preparation and thinking that has been put in by the students for each session. A typical student is expected
to spend 3-4 hours on preparation for each classroom session; about 75% of the time will be required for
pre-class preparation and about 25% for post-class revision. Readings, Assignments and Numerical
problems, whenever given, are a means of focusing on central issues, concepts or knowledge. Students
who are aloof to the class-room proceedings or do not read the pre-reading(s) will miss a significant
segment of the course. A student’s ability to solve problems is also a reflection of the extent to which
concepts have been understood. The course is a hands-on course and requires the participant to work out
multiple examples to gain confidence.
Textbook:
Financial Accounting: A Managerial Perspective, 6e, Narayanaswamy R. (RNS), Prentice Hall India, 2017.
Reference Books:
Accounting-Text and Cases, 13e, Robert Newton Anthony, David F Hawkins, Kenneth A Merchant,
(AHM), McGraw Hill Education, 2011.
Corporate Financial Reporting and Analysis: A Global Perspective, 3e, S David Young, Jacob Cohen
(YC), John Wiley, 2013.
Financial ACCT: A South-Asian Perspective, 2e, Norman Godwin, Wayne Alderman, Debashish
Sanyal, (GAS), Cengage Learning, 2016.
Journals:
Journal of Accounting Research
Accounting Review
Links to websites:
ICAI ([Link]);
Accounting Standards issued: [Link]
NCERT Accounting course: [Link]
Companies Act 2013, ebook: [Link]
IASB ([Link]);
FASB ([Link])
Evaluation Scheme:
Class Quizzes (2) 10%
Course Project
(Financial Statement Analysis) 20%
Mid-Term 20%
Term-End Exam 50%
Total 100%
Session Plan:
Textbook
Session Topic (including sub topics) Learning Outcomes Pedagogical Tool Chapters &
Readings
1-2 Accounting cycle & Understand JanMar Fabrics Textbook:
Preparation of Financial Accounting Cycle& (Case 2.1, YC), Chapter 3,4
Statements – I preparation of Reference Book (RNS)
Journalising Financial Statements
Ledger Posting
Trial Balance
3-4 Accounting cycle & Understand Case: Textbook:
Preparation of Financial Accounting Cycle& Microsoft's Financial Chapter 3,4
Statements – II preparation of Reporting Strategy (RNS)
Adjusted Trial Balance Financial Statements #100027-PDF-ENG
Preparation of Income Published 1999
Statement and Balance Revised 2000
Sheet HBS
Revenue Recognition
5-6 Financial Reporting in Understand a Maruti Suzuki; Textbook:
Corporate Context Corporate Annual (Chapter 2, GAS, Chapter 2 :
Report - its Structure Ref. Book) (GAS)
& Contents, Notes Reading:
to Accounts etc. Browse through
Annual Report
of any company
to know the
various kinds of
information in
an Annual
report
7-8 Inventory Understand Case: Textbook:
Nature of Inventory Inventory Valuation Summit Distributors Chapter 5:
Inventory Valuation– & Analysis (A) (RNS)
LIFO, FIFO, and WAC #193053-PDF-ENG
LIFO related concepts/ Published 1992
terms- LIFO Layers, LIFO Revised 1997
Reserve, LIFO HBS
Liquidation.
9-10 Long-Lived Assets Understand Long- Case: Textbook:
Initial Recognition Lived Assets & Depreciation at Delta Chapter 6:
Depreciation various methods of Air Lines and (RNS)
Asset Revaluation and Depreciation Singapore Airlines
Impairment (A)
Intangible Assets #198001-PDF-ENG
Published 1997
Revised 2004
HBS
11 Analysis of Receivables Understand Lectures and Class Textbook:
Credit Losses (Bad debts) Receivables Discussion Chapter 7:
Allowance for Credit Analysis (RNS)
Losses
Ageing of Receivables
12-13 Cash Flow Statement Understand Cash Monahan Chapter 13:
Elements of Cash Flow Flow Statement Manufacturing (RNS)
Statement Analysis (Case 5.2,
Interpretation of every area YC, Ref. Book)
of Cash Flow Statement
Preparation of Cash Flow
Statement
14-16 Financial Statement Analysis Understand Profitability analysis Textbook:
Common size statements Financial Ratio and Walmart’s Chapter 12:
Trend Analysis Analysis (FRA) Suppliers (RNS)
Ratio Analysis (Case 6.1, YC,
Du Pont Analysis Ref. Book)
17-18 Financial & Operating Understand basics of Lectures and Class Textbook:
Investments Consolidated Discussion Chapter 8:
Consolidated Financial Financial (RNS)
Statements (Basic Investments
Concepts)
19 Earnings Analysis & Understand Earnings Lectures and Class Textbook:
Qualitative Information Management Discussion Chapter 15:
(RNS)
20 Global Accounting Understand basic Lectures and Class Textbook:
Standards and Regulatory issues in Global Discussion Chapter 3 :
Framework Accounting (YC)
ICAI, IASB, FASB frameworks
Article:
Tread Lightly
Through These
Accounting
Minefields
# R0107K-PDF-
ENG
Published 2001
HBS
Browse the
following
websites: IASB
([Link]
m); ICAI
([Link].i
n); FASB
([Link])
