Indian Institute of Management Rohtak

Course Outline

Course Title : FINANCIAL REPORTING AND ANALYSIS

Credits : 1
Type : Compulsory
Session Duration : 75 minutes
Term :I
Year : 2019-20
Faculty : Prof. Shantanu Mehta
________________________________________________________________________
Introduction
Accounting is the language of business. It attempts to measure and report corporate
performance. Financial statements widely used for variety of decisions making by different
stakeholders. Accounting is following certain basic conventions that universally
recognized and accepted. Beside, in order to standardized reporting and make it uniform,
the Accounting Standards are developed and adopted by most of the progressive countries.
The Accounting is vary vast and includes many branches of it, however, the coverage of
this course is limited to draw and interpret accounting information from the financial
statements and use in some business decision making process

Course Objectives
The specific objectives of the course are:
1. To develop an ability to draw and understand various financial statements viz. balance
sheet, income statement and statement of cash flows for improved decision-making
2. To familiarize the students with the tools and techniques that can be used for the analysis
and interpretation of the accounting numbers reported in the financial statements.
3. To develop the ability in participants’ to use financial statements to assess a company’s
performance.

Pedagogy
The pedagogy would be a mix of Lecture, Discussion, Cases Analysis, Mini-case Analysis
and Annual Report Discussion, Assignments, Quizzes and Tests.

Evaluation Scheme
Quiz 10% Assignments/CP 10%
Class Test 20%
Mid Term Examination 30% Final Examination 30%

* There are no makeups for quizzes, mid-term and end term examination

1. Text Book:
Financial Accounting: A Managerial Perspective by Narayanaswamy. R, PHI Learning
(NS)
2. Reference Books/ Materials:

1
  Accounting Text and Cases (AHM),Author- Robert N Anthony, David F Hawkins
and Kenneth A Merchant- Publisher- Tata McGraw
 Introduction to Financial Accounting by Charles Horngren, and Other, Publishers:
Pearson
 Cases and Reading material (To be provided in course pack) CP

Session Plan

Session Topic and Sub-topics Reading /Reference Case

No.
Module I: Introduction to Accounting and Preparation of Financial Statements
1. Overview of Financial Accounting and NS: Chapter 1
Control: Accounting, Markets, and AHM- Chapter 1
Regulations
2. Analyzing the Effects of NS: Chapter 2 C-1
Business Transactions- Accounting AHM- Chapter 2,3
Equation approach
3. Financial Statements: Accounting NS: Chapter 2 C-2
Equation approach AHM- Chapter 2,3

4. Financial Statements: Accounting NS: Chapter 3 C-3

Process AHM- Chapter 4
5. Financial Statements: Balance Sheet NS: Chapter 2 C-3
Accounting Conventions AHM- Chapter 2
6. Financial Statements: Balance Sheet NS: Chapter 2 C-4
AHM- Chapter 2
7. Financial Statements: Income Statements: NS: Chapter 4 C-5
Accounting Conventions AHM- Chapter 3

8. Financial Statements: Income Statements NS: Chapter 4 C-5

AHM- Chapter 3
Module II: Accounting Policies and Management Choices
9. Revenue Recognition AHM: Chapter 5 C-6
10. Accounting for Inventory NS: Chapter 5 C-7
AHM: Chapter 6
11. Accounting for Depreciation NS: Chapter 6 C-8
AHM: Chapter 7
12. Accounting for Long Lived Assets NS: Chapter 6 C-9
AHM: Chapter 7
13. Accounting for Equity and Liability NS: Chapter 11 C-9
AHM- Chapter 9

Module III: Understanding and Analysis of Financial Statements

2
 14. Understanding Financial Statements: NS: Chapter 13 C-10
Cash Flow Statement AHM: 314
15. Preparing Financial Statements: Cash NS: Chapter 13 C-11
Flow Statement AHM: 314
16. Preparing Financial Statements: Cash NS: Chapter 13 C-11
Flow Statement AHM: 314
17 Financial Statement Analysis NS: Chapter 12 C-12
AHM: Chapter 13, 14
18 Financial Statement Analysis Methods NS: Chapter 12 C-12
and Tools AHM: 13, 14
Understanding of Annual Report Published Financial C-13
19 Statements of Hindustan
Unilever Limited for 2017-
18
2 Review of Learning and Contemporary
20 issues

List of Cases and Reading

Case Session
No.
C-1 Lone Pine Café A : AHM Text book page No. 48 2

C-2 Maria Hernandez & Associates: HBS: No.9-902-401, May 24, 2004 3

C-3 Chemalite, Inc., David, A. Wilson, HBS: 9-177-078, June 5, 2008 4 and 5

C-4 Lone Pine Café B AHM Text book page No. 74 6

C-5 Seshan S (2003) Symphony Theatre IIMA No. F&A 0126®, Indian 7 and 8
Institute of
Management, Ahmedabad Case Repository
C-6 Joan Holtz (A) AHM pg. 135 9
C-7 Lewis Corporation AHM pg. 167 10
C-8 Joan Holtz (C) AHM pg. 197 11
C-9 Now you see it , How you do not : The case of Jet Airways and Its 12
accounting Policy. : Padmini Srinivasan, IIMB IMB 331
C-9 John Holtz (D) AHM pg. 245 13
C-10 North Mountain Nursery: Luann Lynch. DARDEN: UVA –C-2259 14
C-11 Chemalite, Inc., (B) , David A. Wilson, HBS: 9-195-130, June 12, 2017 15 & 16

3
C-12 American Company (B) AHM pg. 390 17 and 18
C-13 Hindustan Lever Limited Annual Report 2017-18 (URL : 19
https://www.hul.co.in/Images/hul-annual-report-2017-18_tcm1255-
523195_en.pdf
Reference Reading

R-1 Microsoft Financial Reporting Strategy, Dawn Matsumoto, Robert

Bowen : HBS: 9-100-027 February 16, 2000
R-2 Industry and Background Note, Revenue Recognition, Paul M. Healy
(HBS: 101017-PDF-ENG)
R-3 Long-lived Fixed Assets ,David F. Hawkins
(HBS195264-PDF-ENG)
R-4 Introduction to Financial Ratios and Financial Statement Analysis
William J. Bruns Jr.(HBS:193029-PDF-ENG)
R-5 A Letter from Prison,: HBS : 5-110-059;