SBM-NMIMS: COURSE TEACHING PLAN

Assurance of Learning AOL Specific

Course Code
Financial and Management Accounting
Course Title
Course
Dr C Dasgupta; Dr S Mazumdar; Dr S Wats; Dr H Gwalani; Prof S Pani
Instructor/s
Credit Value 3.0
Programme MBA Trimester I
& Trimester
Pre-requisite

CLO 1) Assess the impact of monetary transactions on financial statements by applying the
accounting concepts, principles, and standards (PLO 2b)

CLO 2) Construct Balance Sheet, Income Statement and Cash Flow Statement; understand
Learning the inter-linkages between the three statements (PLO 2b)
Objectives
CLO 3) Apply different costing frameworks to support managerial decision making (PLO
2b)

CLO 4) Construct budgets to support planning and control across functional areas of
business and analyse price and cost variances to enable corrective decisions (PLO 3a)

At the end of the course, students should be able to

1) Evaluate how a business transaction will impact the financial performance and financial
Learning position of a company
Outcomes
(Must be 2) Construct the financial statements for a business given information on monetary
connected to transactions over a period.
Learning
Objectives) 3) Use management accounting information to recommend appropriate decisions.

4) Build budgets and analyse variances to support planning and decision-making

This course introduces financial and managerial accounting. It emphasizes the analysis and
evaluation of accounting information in the processes of planning, decision-making, and
control, from the perspective of investors as well as managers.

The financial accounting module provides an understanding of basic accounting concepts

and principles, as well as the structure of income statement, balance sheet, and statement of
Course
Description cash flows. Financial accounting is relevant to shareholders, creditors, managers and other
users of financial information.

The management accounting module focuses on accounting information and frameworks to

support internal decisions, primarily for planning and control purposes. Such internal
decisions could include pricing of products and services, new product introduction and
discontinuation, making or outsourcing, and typically require detailed information at the
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 product and service level.

Specific 3 AOL CLO CLO CLO CLO

assessment Credit Instruments 1 2 3 4
methods (*)
Class 20
Participation
Individual 10 Rubric 10
Assignment
Quiz 20 Embedded 20
Questions
Group 10 Case based 10
Evaluation Assignment
Pattern
with
embedded
questions
Final Exam 40 Embedded 20 20
Questions
Total 100 10 20 20 30

Note: The individual assignment and the Quiz pertain to Financial Accounting. Quiz will be
due after session 9 (tentatively). Group assignment pertains to Management Accounting and
will be due after session 19. The final exam pertains to Management Accounting.

Topics / Sub -topics Chapter detail Pedagogy adopted for class

Sessions / Article Reference / Case engagement
Studies Learning Outcomes
session wise
Module I: Financial Accounting
Balance Sheet Case: Lone Pine Café (A) Case discussion
(AHM, Case 2-3, Pg. 51)
Classifying assets, Learning Outcomes
liabilities, and equity Reading: Chapter 2 (RK)
Balance Sheet (pg. 36-66) To learn how to create a
Preparing balance sheet balance sheet
1
Self-Learning
Chapter 2 (RK), Discussion Reconcile assets, liabilities,
Questions 1 to 7 (Pg. 78-79) and equity
Chapter 2 (RK), Numerical
Problems 1 to 5 (Pg. 79-83)

Income Statement Case: Lone Pine Café (B) Case discussion

(AHM, Case 3-1, Pg. 80)
Classifying income and Learning Outcomes
expenses Reading: Chapter 3 (RK)
Profit and Loss Statements To learn how to create a Profit
Preparing income (Pg. 98-136) and Loss statement
2
statement
Self-Learning
Chapter 3 (RK), Discussion
Questions 1 to 7 (Pg. 143-
145)
Chapter 3 (RK), Numerical
Problems 1 to 5 (Pg. 145-

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 149)

Preparation of Case: Campus Pizzeria Inc. Case discussion

Accounts (AHM, Pg 91)
Learning Outcomes
Reading: Chapter 5 (RK):
3 Preparing income Accounting Records (Pg. Preparing income statement &
statement and balance 234-273) balance sheet for a period
sheet; Accounting
mechanics Familiarisation with
accounting mechanics

Revenue Recognition Case: Hamilton Case discussion

Corporation (A)
Recognition of revenues Learning Outcomes
according to Ind AS 115 Reading: Chapter 3.8 (RK)
Possible Future Expenses To understand the recording
Accounting for (Pg. 110-112), and reporting of receivables;
4
receivables and bad debt methods used to account for
Self-Learning uncollectible receivables and
Chapter 9.17 (RK) Revenue estimate bad debts
from contracts with
customers (Pg. 521-525)

Inventory Valuation Case: Lewis Corporation Case discussion

(AHM, Case 6-2, Pg 177)
Implications of different Learning Outcomes
valuation methods on Reading: Chapter 3, (RK)
income statement and 3.11 Methods of Inventory Understand the impact of
balance sheet Valuation (Pg. 127-132) different inventory valuation
5
Chapter 8, 8.2 Accounting for methods on cost of goods sold,
Ind AS 2 Inventory inventories (Pg. 439-446) closing stock and reported
profit
Self-Learning
Self-Learning Review
Question 2 & 4 – Chapter 8-
(Pg. No 471 & 472)
Long Lived Non- Case: Hamilton Case discussion
Monetary Assets and Corporation (B)
Depreciation Policy Learning Outcomes
Chapter 8 (RK)
Recording, expensing, 8.1 Depreciation and Learn to estimate depreciation
and reporting non- amortization accounting (Pg. expense, profit/loss on sale of
current assets 430 – 439) machinery and preparing
assets schedule
6 Methods of calculating Self-Learning
depreciation Chapter 8 (RK), Discussion
Questions 1, 6,7 (Pg. 470)
Ind AS 16 Property, Chapter 8 (RK), Numerical
Plant and Equipment Problems 1(a, b) (Pg. 471)
Chapter 8 (RK), Multiple
Choice questions 1-2, (Pg.
486)

7-8 Statement of Cash Case: Bharat Chemicals Case discussion

Flows (Bhat & Pandey)
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 Learning Outcomes
Understanding inflow Reading: Chapter 4 (RK):
and outflow of funds The Cash flow Statement (Pg. To learn how to prepare cash
under the broad 165-198) flow statements; reconcile
categories of Operating, CFO with Profit
Investment and Self-Learning
Financing. Chapter 4 (RK), Discussion
Questions 1 to 5 (Pg. 209)
Ind AS 7 Statement of Chapter 4 (RK), Numerical
Cash Flows Problems 1 to 5 (Pg. 209-
214)

Familiarisation with Reading: Annual report of Participant centered learning

Corporate Annual Berger Paints Ltd through discussion of annual
Report reports.

Management Discussion Learning Outcomes

and Analysis/Directors’ Summarize and wrap up the
Report; Auditors’ financial accounting module
9
Report; Balance sheet; by looking at financial
Statement of changes in
accounting and corporate
equity; Profit and Loss
statement, Cash Flow reporting in action. Appreciate
statement, Notes to the wealth of information and
accounts data provided in financial
reporting and disclosure.

Module II: Management Accounting

Understanding of Cost Caselets and exercises on Case discussion and problem

and Managerial cost classification and cost solving.
Accounting sheet
Learning Outcomes
How Management Reading: Chapter 1 and 2
Accounting supports (HDR) (Pg. 1-16 and 35-59) To understand Cost
decision making - classification between fixed vs
pricing, performance Self-Learning variable, direct vs indirect,
evaluation, contracting, Works/factory cost vs cost of
product planning, Chapter 2 (HDR) Solved production vs cost of sales
budgeting. Examples Pg. 64- 70, 75-79
To understand how cost
Difference between Chapter 2 (HDR) Exercises classification is used in
10-11 Financial Accounting and managerial decision based on
Pg. 82- 84
Management Accounting cost analysis

Cost Classification and

its use in decision
making - Prime costs,
overheads, variable costs,
fixed costs, mixed costs,
step variable costs,
factory Costs, cost of
production, cost of sales.

Cost sheet and estimated

cost sheet.

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 Cost-Volume-Profit Case: Hallstead Jewelers Case discussion
Analysis (HBS) - 107060-PDF-ENG
Learning Outcomes
Understanding Cost- Reading: Chapter 3 (HDR)
Volume-Profit analysis (Pg. 87-109) To allow the students to
determine the level at which
Developing and using the the company must operate to
CVP equation
break even.
Self-Learning
Breakeven point, Margin How to use breakeven analysis
12 of safety, Contribution, Chapter 3 (HDR) Solved
to explore changes in
PV Ratio Examples Pg. 114- 115, 121-
business?
131
Introduction of new
product and service- Chapter 3 (HDR) Exercises
feasibility study-profit
Pg. 138-139
analysis and break-even
analysis

Marginal Costing and Caselet: Better and Better Case discussion

Relevant Costing Limited
Cost-Volume-Profit Learning Outcomes
analysis and Break-even Reading: Chapter 3 (HDR)
analysis, (Pg. 87-94) To practice CVP analysis for
decision making with
Make-or-buy, Chapter 11 (HDR) (Pg. 582- additional constraint situations
outsourcing decisions, 599)
13 Decision to drop a To familiarize with decisions
product, Decision from Self-Learning involving marginal costs,
among alternatives,
relevant cost, opportunity cost
Product mix decisions Chapter 3 (HDR) Solved
etc.
Examples Pg. 114- 115, 121-
Resource constraints-
131
Limiting factor decisions
Chapter 3, (HDR) Exercises
Pg. 138-139

Relevant Costing Case: Beauregard Textile Case discussion

Company (HBS) - 9-191-
Relevant costs, Decision 058 Learning Outcomes
making involving
relevant cost Reading: Chapter 3 (HDR) To attempt relevant cost
Decision making contribution analysis.
(Pg. 87-94)
involving relevant cost,
opportunity cost, sunk Chapter 11 (HDR) (Pg. 582- To understand decision
14 cost, incremental cost making under gaming
599)
considerations when
Self-Learning competitor’s interests are
considered.
Chapter 11 (HDR) Solved
Examples Pg. 616-617, 621-
633

Chapter 11 (HDR) Exercises

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 Pg. 638-643

Costing Systems Case: Camelback Case discussion

Communications (HBS) – 9-
Overhead absorption 185-179 Learning Outcomes
under traditional method
Reading: Chapter 5 (HDR) To be able to explain, why an
(Pg. 201 - 207) adequate costing system is
important for any
Self-Learning organization?

Chapter 5 (HDR) Solved Why over-aggregation of cost

Examples (Pg. 232- 241) systems reports results in
15
incorrect product costs?
Chapter 5 (HDR) Exercises
Show that the products that a
Pg. 265-266
firm chooses to sell can be
altered by the type of cost
system it has.

Understand how direct labor-

based cost systems work and
how they fail?

Overhead absorption Case: Destin Brass Case discussion

under Activity Based Products Co (HBS) – 9-190-
Costing 089 Learning Outcomes
To understand the relationship
Application in Reading Chapter 5 (HDR) between the costs and prices.
manufacturing set up; (Pg. 209-226) To appreciate the difference
16 ascertainment of cost between conventional cost
Self-Learning
Chapter 5 (HDR) Solved accounting system and a more
Examples, Pg. 241-245, 251- modern cost accounting
264 system.
Chapter 5, (HDR) Exercises
Pg. 267, 269-272 To appreciate activity-based
costing system.

Budgeting Caselet: David Ltd Case discussion

Master budgets as a tool Reading: Chapter 6 (HDR) Learning Outcomes

for planning and control; (Pg. 273-302)
budgeting process, what- To prepare various kinds of
if analysis; operational Self-Learning budgets for an organisation.
and financial budgets To understand the interlinkage
17 Chapter 6 (HDR), Solved of the different Budgets in the
Types of budgets: Sales Examples, Pg. 306-312,326- organization.
budget, Production 332 To prepare Budget keeping in
budget, Material usage mind the targeted profit of the
budget, Material Chapter 6 (HDR), Exercises organization.
purchase budget, Pg. 332-334, 335(6.36)-338
Manpower budget

18 Flexible Budgeting and Case: Waltham Motor Case discussion

Variance analysis Division (HBS) – 9-184-169

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 Learning Outcomes
Evaluation of various Reading: Chapter 7 (HDR)
budget related concepts (Pg. 339-346) To provide practice in the
– preparation of the construction of expected costs
flexible budget Self-Learning when information about cost
variability is known.
Chapter 7 (HDR) Solved
Examples Pg. 363-364 To understand the importance
of evaluating performance
Chapter 7 (HDR) Exercises against the level of cost that
Pg. 390 (7.33) should have been expected at
the actual level of operation
rather than a budgeted
performance level.

Standard costing and Caselet: Greek Art Case discussion and problem
Variance analysis solving

The flexible budget for Learning Outcomes

performance evaluation - Reading: Chapter 7 (HDR) To understand the concept of
Standard costing Pg. 339-352; 355-359 cost variances.

Quantity and price Self-Learning To analyse budgeted and

variances for material actual data for material, labor,
19-20
and labour Chapter 7 (HDR) Solved and overhead deviation.
Profit reconciliation
Examples Pg. 363-377 (7-
Learn to write a profit
between standard and 16 to 7-26), Pg. 385-389
reconciliation statement
actuals for managerial (7-30 to 7-31)
decision making elucidating the reasons for
deviation.
Variance Analysis

Reading List Financial Accounting

and Financial Accounting for Management by N Ramachandran and Ram Kumar Kakani, 5th
References Edition, McGraw Hill, 2020 (RK)

Management Accounting
Datar, S.M., & Rajan, M. (2017). Horngren’s Cost Accounting: A Managerial Emphasis.
16th ed. Pearson. (HDR)

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Prepared by Faculty Team Area & Program chairpersons

Approved by Associate Deans Approved by Dean SBM

Sticker for date of receipt and attachements rubic and project guidelines

Individual Assignment (Financial Accounting Module)

 The objective of the individual assignment is to familiarize students with how companies from
different sectors report their financial statements in compliance with the Indian accounting
standards.

 Students are expected to read the following Ind-AS after the relevant session:

Ind-AS Topic Related to Sessions

Ind-AS 1 Presentation of Financial 1-4

Statements

Ind-AS 115 Revenue from Contracts with 5

Customers

Ind-AS 2 Inventories 6

Ind-AS 16 Property, Plant and Equipment 7

Ind-AS 7 Statement of Cash Flows 8

 After reading the Ind-AS, students are expected to go through the MD&A, Auditor’s Report,
Financial Statements, Accounting Policies and Notes to Accounts sections of the Annual Reports
of the following 3 companies and prepare notes on how the companies are complying with the
Ind-AS mentioned above:
1. Maruti Suzuki
2. Infosys
3. Interglobe Aviation

 The students have to submit a brief report on the Ind-AS and their application by the 3 companies
mentioned above by the end of the 10th session. In addition, the faculty may call few students in
each session to share their understanding of the relevant Ind-AS for the 3 companies.

Assessment Rubric for the Assignment

Excellent Satisfactory Needs Improvement

Diligence and Diligently prepared, Diligently prepared and Weak in terms of

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application well - summarised & well-summarised diligence or
demonstrates good presentation
application (3-4 marks)
(1-2 marks)
(Out of 5 marks) (5 marks)

Maintaining integrity Timely preparation & Report has plagiarism

and timeliness submission of and not submitted in
plagiarism free report time
(Out of 5 marks)
(4-5 marks) (2-3 marks)

Group Assignment Submission (Management Accounting Module)

 The objective of the group assignment is to help students practice, assimilate and apply concepts
related to budgeting and variance analysis that are covered in sessions 17-20.

 This is envisaged as a group activity so that various analysis as well as possible solutions to a
managerial situation emerges in group discussion. To be able to assess them and finalize a group
response is a skill that students will find an opportunity to develop.

 A case or case problem would be provided to students. Students engage in their groups in defined
timelines and submit a solution to the managerial challenges or situation discussed in the case.
Assignment questions may be provided or may not be provided.
 All submissions will undergo similarity checks.

Assessment Rubric for the Assignment

Excellent Satisfactory Needs Improvement

Problem identification, Adequate Satisfactory Weak in terms of

assessment, analysis identification and identification and problem identification,
and application of analysis of issues analysis of issues weak, & application of
budgeting and involved, & involved, & concepts
variance analysis demonstrates good conceptual application
concepts application of concepts needs improvement (2-3 marks)

(Out of 8 marks) (7-8 marks) (4-6 marks)

Timely submission Timely submission Report has been

submitted late (0
(Out of 2 marks) (2 marks) marks)

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