Accounting for Managers

Class of Course Code Credit : 2013 : SL AC 501 : 3 Academic Year Semester Sessions : First :I : 30

AIM
To provide the understanding of corporate financial reporting system and cost concepts.

Learning Outcomes
Demonstrate understanding of concepts relevant to financial statement analysis.

Demonstrate ability to analyse, diagnose and interpret financial health of companies. Enable to evaluate, report and present effectively financial results of companies. Comprehend financial statements and rectify errors in financial information. Understand different cost concepts & prepare Cost sheet. Demonstrate knowledge of contemporary topics in the area of Accounting.

REFERENCE BOOKS Financial Accounting- A Managerial Perspective (Latest Edition) Accounting : Text and Cases Financial Accounting for Management (An Analytical Perspective) Modern Accountancy Cost and Management accounting Cost Accounting 8th edition

AUTHOR / PUBLICATION Prof. R. Narayanswamy Prentice Hall of India

12e Anthony, Hawkins & Merchant, TMH, Special Indian Edition Gupta, Ambrish. Pearson Education - 2005 Mukherjee, Amitabha / Hanif, Mohammed. Tata Mc Graw Hill Ravi M Kishore Taxmann Jawaharlal Tata McGraw Hill

Detailed Syllabus Introduction to Financial accounting: Distinction among financial accounting, cost accounting and Management accounting Evolution of Accounting basic concepts of financial Accounting conventions of accounting stages of preparing accounting statements from input to output users of financial statements- advantages of

accounting Generally Accepted Accounting Principles Understanding Financial Statement: Nature and objectives of Financial Statements, Uses of Financial Statements, form and content of Financial Statements, users of Financial Statements Financial Reporting and Regulations:

Introduction to USGAAP, Introduction to International Accounting Standards, Indian Accounting Standards, Applicability of Various Standards, Comparison and Harmonization Financial Statements of Limited Companies: Format and Content of Profit and Loss Account - Requirements of the Companies Act for the Presentation of the Companies Profit and Loss Account - Treatment of Special Items Relating to Companies Final Accounts - Requirements of Appropriation of Profits by the Company - Format and Content of the Balance Sheet Cash Flow: Statement of Cash Flows Purpose of the Statement of Cash Flow Content and Format of the Statement of Cash Flow - Preparation of Cash Flow Statement Usefulness of the Statement of Cash Flow Annual Report: Contents of Annual Report Directors report Auditors report - Financial Statements and notes thereon Other information. Limitations of Financial Statements and Window Dressing: Critical Review of Financial Statements - Effects of Abnormal Items and Changes in Accounting Policies, Creative Accounting. Financial Statement Analysis: Financial Statements Understanding the Features of Variables in Financial Statements - Ratio Analysis Liquidity, Profitability and Leverage - Du-Pont Analysis Problems Encountered in Financial Statement Analysis. Introduction to Cost Concepts: Interface of Financial Accounting with Cost Accounting, Cost- Types of costs- Historical Costs, Future Costs, Standard Costs, Period Cost, Prime Cost, Direct & Indirect Cost, Opportunity Cost, Imputed Cost, Programmed Cost, Joint Cost, Sunk Cost, Discretionary Cost, Out of Pocket Cost, Differential Cost, Capacity Cost, Conversion Cost, Committed CostCost Unit -Cost Center. Cost Accounting: Cost accumulation - cost object - cost assignment - cost classification -cost tracing - cost allocation - cost application -cost driver - variable cost and fixed cost - costs in financial statements mechanics of cost accumulation - cost

behaviour and cost estimation - techniques of costing. Preparation of Cost sheet: Prime Cost, Overheads, Cost sheet Contemporary Topics: Human Accounting, Inflation Accounting Cases and Exercises Maruti Udyogs Accounting Aig: The Accounting Scandal Unfourts Fannie Mae: The US Mortgage Giants accounting Controversies Annual report of select company ( Latest ) Faculty will identify appropriate cases on Window Dressing Suggested Schedule of Sessions Topic Introduction to Financial Accounting Understanding Financial Statement Financial Reporting and Regulations Financial Statements of Limited Companies Cash Flow Annual Reports Limitations of Financial Statements and Window Dressing Financial Statement Analysis Introduction to Cost Concepts Cost Accounting Preparation of Cost sheet Contemporary Topics Total No. of Sessions 1 1 4 6 5 2 1 Resource

4 1 2 2 1 30

Pre-requisites: Knowledge of Fundamental principles, concepts & the mechanics of Financial Accounting