Financial Accounting

Course instructor
Dr. Minimol M.C 1, PGDM, A and B [email protected]
Dr. Anu Antony 1, PGDM, C [email protected]

1. About the Course

The role of accounting is to provide information to investors, policy-makers, regulators, and other
decision-makers to facilitate the allocation of resources in society. The purpose of this course is to
understand the accounting process and to develop skills necessary to evaluate an enterprise’s
financial position. The accounting course will emphasis on these two viewpoints

1. What the user of accounting information needs to know about financial accounting
2. What the preparer of accounting information needs to know about financial accounting

The course gives students the necessary background to: (a) understand the concepts and
measurements that underlie financial statements, (b) develop the skills needed to analyze financial
statements effectively, and (c) gain an understanding of the choices enterprises make in reporting
the results of their business activities.

2. Course learning objectives mapped to Programme Learning

Objectives(PLOs)

CLO-1: Describe the purpose of financial reporting and identify the primary financial
statements.
CLO-2: Identify and explain the steps in book keeping in accrual basis using journal entries,
ledgers and trial balance and to learn how the accounting cycle is completed using
adjusting entries, financial statements and closing entries.
CLO-3: Prepare income statement, balance sheet and statement of stockholders’ equity.
CLO-4: Outline the structure of cash flow statement with detailed reporting of the three
main categories of the cash flow statement: operating, investing, and financing (PLO
1a).
CLO-5: Understand - classification, valuation and accounting for inventory. valuation and
presentation of receivables, fixed assets and depreciation
CLO-6: Learn how financial statement analysis is done using ratio, time series and common
size analysis.
PLO 1a : Our graduates will be able to identify the business problem in a given situation.

3. Session Plan
Sessio Methodology
Topics Reading
n
Module 1
AHM Lecturing with
Nature and purpose of accounting, major financial
Chapter-1 PPT
1-2 statements, what is financial accounting and how it is
WKK
different from cost and management accounting.
Chapter-1,
3-4 Introduction to basic accounting concept and financial AHM
statement (AS1,AS 5 and IAS1) Chapter-1

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Sessio Methodology
Topics Reading
n
Module 1
WKK
Chapter-1,
Use of accounting concepts( business entity, going AHM Case:
concern, dual aspect, money measurement and cost Chapter-2, Music Mart,
5-6
concept) in preparation of balance sheet using WKK Inc.
accounting equations Chapter-4
Module 2
Use of accounting concepts( accounting period, AHM Lecture ,
conservatism matching, realization, consistency and Chapter-3, Problem
7-8
materiality)in preparation of income statement using WKK solving
accounting equations Chapter-3
The recording process, debits and credits and their use Lecture ,
AHM
in recording business transactions and journal and how Problem
Chapter -4
9-10 it helps in the recording process. Time period solving
WKK
assumption, accrual basis of accounting, reasons and
Chapter 2
major types of adjusting entries. Closing entries
AHM Individual
Ledger and posting and how it helps in the recording
Chapter -4 Assignment-1
11-12 process. Trial balance and explain its purposes.
WKK
Preparation of income statement and balance sheet
Chapter 2
Module 3
AHM Exercises
Distinguish among operating, investing, and financing Chapter -11
13-14
activities.(AS3 and IAS 7) WKK
Chapter 17
Prepare a statement of cash flows using the indirect AHM Individual
method. Assess a firm’s financial strength by analyzing Chapter -11 Assignment-2
15-16
the relationships among cash flows from operating, WKK
investing, and financing activities. Chapter 17
Module 4
Explain the accounting for inventories, inventory cost AHM Lecture ,
flow methods, its financial effects and assumptions. Chapter -6 Problem
17-18
Inventory valuation and accounting standard for WKK solving
inventory(AS2 and IAS2) Chapter 6
AHM Lecture ,
Receivables – types, recognition, valuation and Chapter -5 Problem
19-20
presentation of receivables( AS9 and IAS18) WKK solving
Chapter 9
Long lived assets: fixed assets, natural resources and Lecture ,
intangible assets – cost principle – concepts of AHM Problem
depreciation, depletion and amortization – disposal of Chapter -7 solving
21-22
fixed assets - accounting standards on fixed assets, WKK
natural resources and intangible assets (AS6,AS10 and Chapter 10
IAS16)
Module 5
AHM Lecture,
Analyzing firms performance using liquidity,
23-24 Chapter -13 Exercises
profitability, activity solvency and valuation ratios
WKK

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Sessio Methodology
Topics Reading
n
Module 1
Chapter 18
Comparative analysis, horizontal analysis, vertical WKK Lecture,
25-26
analysis Chapter 18 Exercises
Concept of quality of earnings – concept of earnings Lecture
WKK
27-28 power – irregular items - discontinued operations and
Chapter 18
extraordinary items
difficulties associated with financial statement analysis Lecture
WKK
29-30 treatment of irregular items under different
Chapter 18
accounting standards

4. References/Books
i. Accounting Principles 12E, Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, John Wiley &
Sons, Inc. (WKK)
ii. Accounting Text and Cases 13E (Indian) Robert N Anthony, David F. Hawkins, Kenneth A.
Merchant McGraw Hill Education. (AHM)
iii. Intermediate Accounting, 17E, Earl K. Stice, James D. Stice, K. Fred Skousen South-Western
Cengage learning (SSS)
iv. Financial and Management Accounting. T.S. Reddy, Y Hari Prasad Reddy. Margham
Publications (TSR).
v. Corporate Accounting 3E, S N Maheshwari, Vikas Publishing House.

5. Grading Structure
Evaluation tool Marks PLOs Assessed
Individual Assignment 15
Mid-term examination 20
Quiz 15
Project 15
Attendance 5
End term examination 30 PLO 1a
Total 100 marks

6. Grading or Evaluation Tools other than Examinations

Individual Assignments: There will be two types of individual assignments
Assignment -: a) The student need to write down the solution of numerical problems and submit
through QAIMC. b) The student need to analyze the case study and write down the appropriate
solution with working and justification and submit through QAIMC. Marks will be based on the
accuracy, format, steps, working notes, neatness, timely submission etc. of the assignment

Quiz: The quizzes will be conducted through Moodle®. User overrides will be at the discretion of
the course instructor. Quizzes will have a mix of multiple choice and short answer questions.
Prior notice regarding quizzes will not be given by the instructor.

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 Project: The faculty will assign an industry to a group of six students. Each student need to select
a company from the industry and discuss the way its financial statement are presented in the
annual report. The students individually need to analysis the performance of the company
selected by them using ratio analysis with previous 5 years data. In group, students need to
compare the performance of the companies in the industry and submit a report containing the
individual analysis and the group comparison

7. Course policies
Please refer student guidelines

8. Assignment/presentation…. Schedule
Date Assignment/presentation Due date
Session 11 Individual Assignment Session 14
Session 16 Quiz Session 20
Session 20 Project Report Session 25

9. Course requirements
The students are expected to maintain a separate folder with all their class files for this course.
Student may be asked to submit their folder through the academic office for class participation
assessment purposes.

The students shall access Moodle and make used of readings and cases posted.

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