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Institute-University School of Business Department-Mba

This document provides an overview of the Master of Business Administration course Financial Reporting and Analysis (BAT-601). The course aims to impart understanding of basic accounting principles, prepare various financial statements, and provide knowledge to support financial decision making. Key topics covered include comparative and common size financial statements, trend and ratio analysis, fund flow and cash flow statements. The document outlines the importance of financial analysis for tasks like judging profitability and efficiency. Limitations of analysis like its historical nature are also noted. Assessment is via an exam. References include accounting textbooks and online sources.

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Abhishek kumar
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76 views

Institute-University School of Business Department-Mba

This document provides an overview of the Master of Business Administration course Financial Reporting and Analysis (BAT-601). The course aims to impart understanding of basic accounting principles, prepare various financial statements, and provide knowledge to support financial decision making. Key topics covered include comparative and common size financial statements, trend and ratio analysis, fund flow and cash flow statements. The document outlines the importance of financial analysis for tasks like judging profitability and efficiency. Limitations of analysis like its historical nature are also noted. Assessment is via an exam. References include accounting textbooks and online sources.

Uploaded by

Abhishek kumar
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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INSTITUTE-UNIVERSITY SCHOOL OF

BUSINESS
DEPARTMENT-MBA
Master of Business Administration
Financial Reporting and Analysis
BAT-601

FINANCIAL STATEMENT
ANALYSIS DISCOVER . LEARN . EMPOWER
FINANCIAL
STATEMENT
ANALYSIS
Course Outcome
CO Title Level
Number

CO1 To impart understanding of the Basic Principles of Remember Will be covered in this
Accounting, Accounting Standards, Reading and Analyzing   lecture
Balance sheets and its application in modern day business
CO2 To prepare various financial statements i.e. trading Understand
account, Profit and loss account and balance sheet, P/L  
Appropriation account, cash flow statement etc.
CO3 To provide knowledge of concepts those are helpful in Understand
financial decision making

2
It is a systematic process of the critical
examination of the financial information
contained in the financial statements in order to
understand and make decisions regarding the
operations of the firm

3
Tools and Techniques of Financial Statement

Comparative financial statements

Common size statements

Trend analysis

Ratio analysis

Fund flow statement

Cash flow statement

4
Types of Financial Analysis

• External analysis: Conducted by those persons who do not have access to the detailed record of the enterprise and depend
on the published reports.
• Internal analysis: Conducted by management so as to know the financial position nd operational efficiency of the
organization.
• Horizontal analysis: This analysis is made to review and analyse the financial statements for number of years and are
therefore based on the financial data based on those years.
• Vertical analysis: This is made to review and analyse the financial statements of one year only.

5
Importance of Financial Analysis

• Judging the earning capacity or profitabilty


• Judging the managerial efficiency
• Judging the long term and short term solvency of the firm
• Inter firm comparison
• Making forecasts

6
Limitations

• Historical analysis
• Ignores price level changes
• Qualitative aspect ignored
• Not free from bias

7
Assessment Pattern

8
References

• Reference book- Maheshwari S.N, Accounting for Management, Vikas Publishing House, New Delhi,2010
• Reference Website: https://www.investopedia.com/terms/f/financial-statement-analysis.asp
• Reference Journal for advance study: Journal of Accountancy (JOA)

9
THANK YOU

For queries
Email: [email protected]

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