Foundation Course

Financial Accounting & AnalysisBatch 2015 - 2017Session 1Introduction, Double Entry Book-Keeping (DEBK), Meaning of Transaction,

Account, Types of Accounts.

Session 2Golden Rules and Journalizing of transaction.

Session 3 Journal and Ledger

Session 4Ledger Posting & Trial Balance

Session 5Final Accounts without adjustment

SYLLABUS

Course Code:

Course Title:Financial Accounting & Analysis

No of Credits: 3Contact Hours:30

Objectives:To understand the scope and limitations of Financial Accounting and Financial Analysis. To show how the final accounts are prepared as per GAAP and how the profit/loss and financial position of the firm gets affected by various accounting practices relating to depreciation, various adjustments etc. To understand how to read and interpret information given in the final accounts of the firm. It is also intended to show the inter firm comparison. The Financial Analysis will help the student to measure the performance in various areas like Operating performance, Financial performance, Overall performance etc. It also teaches, how to interpret Off balance sheet items. To understand the significance of Cash flow /Fund Flow Statement from the view point of a Company.Contents: Financial Statements of a Proprietor's Business

Accounting for Depreciation Financial Statements of Companies as per Revised Schedule VI of the

Companies Act, 2013 Introduction and the Tools & Techniques of Financial Analysis

- Comparative Statement

- Common Size Statement

- Trend Analysis Ratio Analysis Fund Flow Statement Cash Flow StatementText Book:1. Financial Accounting Principles &- Prof. Jawahar Lal & Dr. Seema Srivastava, Practices

S.Chand, 3/e, 2014.Reference Books:1. Financial Accounting for Management- D.D. Harsolekar, Multitech

Publishing,2nd Edition, 2010

2. Accounting for Management

-S.N.Maheshwari, Vikas

Publication, 3/e, 2012

3. Financial Accounting

-Tulsian, TMH,20084. Financial Analysis for Management Decision- M. Sarnagadharan, 2011, PHI5. Financial Accounting for Management-Paresh Shah, Oxford Publication, 2nd Edition, 2013

E-Books:1.Financial Accounting - Tulsian, Tata McGraw-Hill Education, eBook,

01-Aug-2006

2. A TEXTBOOK OF ACCOUNTING FOR MANAGEMENT - S N Maheshwari, Sharad K Maheshwari, VIKAS PUBLISHING HOUSE PVT LTD, EBook.(21 October 2010)3.Accounting for Management- Lal, Jawahar., Himalaya Pub. House., 2009,

eBook. Financial Accounting & AnalysisCOURSE OUTLINEI Overview The course is designed to provide an understanding of the role and relevance of accounting function in an organisation. The course will deal with issues such as how the final accounts particularly corporate final accounts are prepared and how various accounting practices affect the profit/loss and financial position of the firm with particular reference to depreciation. At the same time it will familiarize the students with how to read and interpret information given in final accounts of the firm. In the Financial Analysis part, tools and techniques of financial analysis like comparative statements, common size statements, trends, ratios etc. will be covered.II Course Objectives

At the completion of this course, the student should be able to understand:Financial Accounting: To show how the final accounts are prepared as per GAAP and how the profit/loss and financial position of the firm gets affected by various accounting practices relating to depreciation, various adjustments etc.Financial Analysis: The objective is how to read and interpret information given in final accounts of the firm. It is also intended to show the inter firm comparison. The Financial Analysis will help the student to measure the performance in various areas like Operating performance, Financial performance, Overall performance etc. It also teaches how to interpret off balance sheet items.

III Course Format and Discussions

The course is based on experiential learning through case discussion, group dynamics and action team learning in the class sessions supplemented with readings. Classes will follow a lecture format (given at Section B) in conjunction with the assigned readings from the prescribed books and practice assignments. The students are expected to solve the numerical problems from the text book. The students are expected to read the chapters related to each session and participate in the discussion. Entire pedagogy is envisaged to be learner- centric. Entire class will be divided into 10 groups. Each group will be responsible to handle at least one module and present it to the class as indicated in the session plan. Each group will give the copy of the presentation to all the groups to see that the presentation becomes interactive. The assignment will be submitted to the faculty in a structured format before the end of the term

There may be surprise quiz / Test. All students should read the relevant chapters and reading materials (R) followed by the case (C); reference book and additional readings will help to understand the concept better.IV Assignments / Quiz / Current Issues, debate and class participation Each group is supposed to come prepared with the project and group assignments as well as the topic for the session as mentioned in the session plan. There are some other parameters of internal assessment also. Class participation has been given a weightage of 10 marks and will be assessed by cold calling i.e. by calling any group to lead the discussion on the given session. This has been done with a view to ensure that each group comes prepared with the session of the day.V Assessment Class based

Case/assignment/research paper-report and presentation

15 Marks

Class Tests

15 Marks Project, Viva

10 Marks Written Examination

60 Marks

VI Presentation Dynamics

The objective of this project is to provide the students with an opportunity to apply several concepts and techniques of Financial Management covered in the course to an ongoing company.

While discussing case/ presentation or any project the quality of individual participation will be assessed mainly on the basis of extent of understanding of the subject matter and its applications, communication and analytical skills and capacity to satisfy and manage the participant's responses, the contents of the project report and presentation. As mentioned earlier, to make the discussions interactive, each group will share their readings with the other groups as well with the faculty.

In case a group project is given, guidelines as how to prepare the project report should be given either as a part of course outlines or separately.

VIII Session- wise Details: Study Plan and Class Plan (T= Topic; ST= Sub Topic, , R= Reading Material, NM= Numericals)

SessionTopics & Sub-TopicsReading Material

Session 1

T: Principles & Concepts of AccountingST: Accounting Systems

ST: Principles & Concepts

ST: Accounting Standards - AS1, AS3 & AS6R1: Financial Accounting, Prof Jawahar Lal & Dr Seema Srivastava

Chapter 2R2: PPT

Session 2 to 5T: Financial Statement of a Sole Proprietorship EntityST: Trading & Profit & Loss A/c without adjustment

ST: Trading & Profit & Loss A/c with adjustments of Closing Stock, Depreciation, Prepaid & O/s Expenses, Income received in Advance, Income Receivable

ST: Final Accounts with further adjustments Reserve for Doubtful Debts, further bad debts, Goods in transit, goods distributed as free sample & Discount on Debtors.R1: Financial Accounting, Prof Jawahar Lal & Dr Seema Srivastava

Chapter 9R2: Numericals

Session 6 to 7

T: Accounting for DepreciationST:Only using Provision for Depreciation A/c

ST: NMR1: Financial Accounting, Prof Jawahar Lal & Dr Seema Srivastava

Chapter 10R2: PPT

Session 8,9

T: Financial Statements of Joint Stock Co. as per Revised Schedule VIOf Companies Act, 2013ST: Provision for Taxation

ST: Proposed Dividend

ST: Transfer to Reserves

R1: Financial Accounting, Prof Jawahar Lal & Dr Seema Srivastava

Chapter 14

R2: PPT

Session10,11

T: Financial AnalysisST: Introduction, Tools & Techniques & Limitations of Financial Analysis

ST: Common Size Statements

ST: Comparative Statements

ST: Trend AnalysisST: NumericalsR1: Financial Accounting, Prof Jawahar Lal & Dr Seema Srivastava

Chapter 19

R2: PPT

Session 12Test.

Session 13 to 16

T: Ratio Analysis

ST: Introduction, Types (Liquidity, Solvency, Activity, Profitability & Valuation) & Limitations

ST: Standards of Comparison

ST: Practical Applications & InterpretationsR1: Financial Accounting, Prof Jawahar Lal & Dr Seema Srivastava

Chapter 19

R2: PPT

Session 17, 18, 19

T: Fund Flow Statement

ST: Need, Importance & Limitations

ST: Preparation of Fund Flow Statement

ST: NumericalR1: Financial Accounting, Prof Jawahar Lal & Dr Seema Srivastava

Chapter 17R2: PPT

Session 20,21

T: Cash Flow Statement

ST:Need, Importance & Limitations

ST: Preparation of Cash Flow Statement

ST: NumericalR1: Financial Accounting, Prof Jawahar Lal & Dr Seema Srivastava

Chapter 18

R2: PPT