FORE School of Management

Course Outline & Session Plan

Programme: PGDM (PGDM FMG-30, IMG-15, FM-04 & BDA-02)
Name of the Course: Financial Accounting Credit: 3.0
Term: 1 Academic Year: 2021-2022
Faculty: Prof. Ambrish Gupta / Prof. Vandana Bhama / Prof. Samta Jain / Prof. Gaurav Gupta
Office Contact No.:011- 41242434 / 46485507 / 46485503 / 46485531
Email: [email protected] / [email protected] / [email protected] /
[email protected]
INTRODUCTION
Financial Accounting now has one single language all across the economic and geographical
jurisdictions, thanks to wide spread implementation of International Financial Reporting Standards
(IFRS) the world over (barring the US) including India (with effect from financial year 2016-17). This has
changed the way the financial statements used to be prepared and analyzed earlier.

In this backdrop, this course deals with the latest in corporate financial accounting and analysis for
managerial decision making. Financial Accounting information is intended for both managers as also for
other end-users such as banks and other lenders, investors, and regulatory bodies. The course on Financial
Accounting emphasizes primarily on what the users of accounting information need to know about
financial statements of a company and how their preparers fulfil their varying needs which paves the way
for decision-making in organizations in formulating their strategies for revenue enhancement, cost
economies, efficiency improvements, restructuring of their operations and further expansion /
diversification for creating and enhancing the wealth of their shareholders and other stakeholders.

OBJECTIVES
 To let the students, understand what financial accounting does and what its practical relevance is for
the businesses.
 To familiarize the students with the nuances of preparing corporate financial statements in the light of
IFRS converged Indian Accounting Standards (Ind AS).
 To let them have an understanding of fair value measurement and its impact.
 To let them have exposure to asset valuation with particular reference to tangible and intangible
assets, inventories and financial instruments which make in to the final numbers in the financial
statements.
 To let them develop understanding of corporate annual reports which are the ultimate culmination of
the financial performance of a business.
 To equip them with the knowledge of tools and techniques of financial analysis of annual reports and
other financial data for analyzing the performance of companies and aid in decision making.

TEXT BOOK
Financial Accounting for Management: An Analytical Perspective by Ambrish Gupta, Sixth Edition,
2018, Pearson Education.

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(Kindle book: https://www.amazon.in/Financial-Accounting-Management-Gupta-Ambrish-ebook/
dp/B07FKP8N2S)

OTHER REFERENCES
Corporate annual reports, IFRS Converged Indian accounting standards, databases, books, websites and
other resources as advised in the text book from place to place. Financial newspapers, such as Economic
Times, and magazines such as Capital Market.

PEDAGOGY
A mix of- Lectures, In-class illustrations with practice problems, Quizzes, Case Studies, Presentations by
the Students, Group Assignments/ Projects etc. Group Learning is highly recommended.

EVALUATION COMPONENTS AND WEIGHTAGE

Evaluation Components Weightage in Marks
1 Quiz 10 %
2 Mid Term Exam. 20 %
3 Class participation/ 10 %
4 Group project 20%
5 End Term Exam. 40 %
Total 100 Marks

SESSION PLAN

Session Session Theme Additional Reading/ Question to

No. Cases explore/Learning outcome
1  Discussion on business,  Chapter 3
need and relevance of Recap of: Ex.2 Understanding the company
financial accounting for Surya Medical Equipment’s form of organization and
business. Recap of the (journal, ledger, trial balance, implications for financial
foundation course, financial statements, brief analysis) accounting
 Accounts of corporate (given as home work during the
entities: orientation)
Conceptual discussion  Chapter 4
Share capital...Pvt. Co. Illustration:
Jaimala Clothes Pvt. Ltd.
2-3-4-5 Accounts of corporate entities: Chapter 4, 5 and 14  Preparation and brief
 Share capital: Public Co. Cases of: analysis of corporate
 Dividend, pref cap, 1. Satya deep housing (Not Full. financial statements.
deferred taxes, OCI Only Small Illustrations)  To develop basic
 Preparation of Balance 2. Shashaank Industries Ltd., understanding of vertical
Sheet and Income (From Ch. 5) and financial statements
Statement 3. Reliance Industries (Ch. 14):
 Introduction to vertical DT/OCI
financial statements Chapter 7 and 8: Understanding the significance
 Introduction to Generally CH 8: of Ind AS and fair value
Accepted Accounting Illustration 1, Virat Associates measurement in financial
Principles, IFRS reporting
converged Ind AS and
fair value
measurement.

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6-7-7.5  Valuation of Fixed Assets Chapter 9, 10 & 11 Understanding valuation and
 Depreciation and disclosure of fixed assets
amortization Case: 1. Examination of how
 Intangible Whirlpool of India Ltd. (Chapter 9 corporates recognize,
 Fixed Asset Impairment & 10). measure and disclose
tangible fixed assets and
Cases:
depreciation thereon in
1. Asian paints ltd.
annual reports
(Chapter 11).
2. Examination of how
corporates recognize,
measure and disclose
intangible fixed assets and
amortization thereof in
annual reports
7.5-8.5 Inventory valuation Chapter 12 Understanding valuation and
disclosure of inventories.
Case: Examination of how corporates
1. Titan Company Ltd. (Chapter recognize, measure and disclose
12). inventories in annual reports.
8.5-10 Valuation of financial Chapter 13 Understanding valuation and
instruments including disclosure of investments.
investments Cases: Examination of how corporates
1. Ashok Leyland Ltd. recognize, measure and disclose
(Chapter 13). financial instruments and
investments in annual reports
Mid Term Examination
11-12  Understanding Annual Chapter 14 Understanding and interpreting
Report of Corporate (Case: Annual Report of Reliance the corporate financial
Entities: Financial Industries Ltd.) statements through the annual
Statements with Notes to report of Reliance.
Accounts and Accounting
Policies.
 Introduction to auditors
report, directors report
13-14- Financial Statement Analysis- Chapters 17-18  Understanding the various
14.5  Multi-step analysis, tools of analysis of
 Common-size statements, financial statements.
 Trend analysis.  Understanding EPS and
 EPS and diluted EPS: Diluted EPS analysis
Cases: Application of these tools to
1. Bajaj Auto corporate financial statements.
2. Havells
3. Eicher Motors
4. Liberty Shoes(Ch. 17)
14.5-15- Financial Statement Analysis- Chapter 19 and 21  Understanding ratio
16-17  Ratio analysis analysis.
 Model for Strategic and Cases:  Application of the tool of
Integrated Managerial 1. 10 case lets of leading ratio analysis to corporate
Financial Analysis companies like Philips, financial statements.
(GROUP PROJECT) MothersonSumi, ArcelorMittal,  Building up a model for
Raymond etc (Ch. 19) comprehensive analysis of
2. Full case of Reliance Industries annual report.
Ltd. and
3. Case lets: Blue Dart and
Grasim

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18-19-20 Financial Statement Analysis- Chapter 20 Construction of statement of
Making, Analyzing and cash flows
Interpreting Statement of Cash Cases: Analyzing and interpreting the
Flows: Indirect method only 1. E-I-D Parry cash flow stalemates of
2. High Life Ltd. companies.
3. Intel Corporation of US (Ch.
20)
20 Debriefing Open house

Note: Chapter numbers refer to the text book.

For official use: -

As Benchmarked with course content in previous year, the contents of this course: (Please mark the
right option below)
(a) Is totally new
(b) Has not changed at all
(c)  Has undergone less than/equal to 20%
change

(d) Has undergone more than 20% change

Faculty Signature: Prof. Ambrish Gupta / Prof. Vandana Bhama / Prof. Samta Jain / Prof. Gaurav
Gupta
Area Chair Signature: _____________

……………………

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