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    2 Financial Statement Analysis Sem II

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    nawinarasa
    This document outlines the course objectives and units for a semester 2 B.COM course on financial statement analysis and interpretation. The 4 units cover company final accounts, nature and techniques of analysis, ratio analysis and economic value added, and cash flow statements. Guidelines for the exam are also provided.

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    © All Rights Reserved
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    2 Financial Statement Analysis Sem II

    Uploaded by

    nawinarasa
    6 views3 pages
    This document outlines the course objectives and units for a semester 2 B.COM course on financial statement analysis and interpretation. The 4 units cover company final accounts, nature and techniques of analysis, ratio analysis and economic value added, and cash flow statements. Guidelines for the exam are also provided.

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    2-Financial-Statement-Analysis-Sem-II

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    This document outlines the course objectives and units for a semester 2 B.COM course on financial statement analysis and interpretation. The 4 units cover company final accounts, nature and techniques of analysis, ratio analysis and economic value added, and cash flow statements. Guidelines for the exam are also provided.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    6 views3 pages

    2 Financial Statement Analysis Sem II

    Uploaded by

    nawinarasa
    This document outlines the course objectives and units for a semester 2 B.COM course on financial statement analysis and interpretation. The 4 units cover company final accounts, nature and techniques of analysis, ratio analysis and economic value added, and cash flow statements. Guidelines for the exam are also provided.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    B.

    COM
    SEMESTER II
    Financial Statement Analysis & Interpretation (CC 6)
    (100Marks – 60 Lectures)

    Course objectives
    To develop skills in students to analyze and interpret financial statements from viewpoint of
    liquidity, solvency, profitability and cash flow of entities and apply the same for decision
    making.

    Unit I Company Final Accounts (Elementary Level) (20 Marks, 15 Lectures)


    Preparation of “ Statement of Profit and Loss account” and “ Balance sheet” as per Schedule III
    of the Companies Act 2013.

    Unit II Nature and Techniques of Financial statement analysis (40 Marks, 18 Lectures)
    Nature and Component of Financial Statement, Meaning and Need for Financial Statement
    Analysis, Traditional & Modern approaches to Financial Statement Analysis, Parties interested
    in Financial Statement Analysis. Techniques of Financial Statement Analysis:
    a) Common-size statement analysis
    Meaning, preparation, interpretation, uses, merits and demerits
    b) Comparative statement analysis (restricted to 2 years for intra-company and 2 companies
    for inter-company problems)
    Meaning, preparation, interpretation, uses, merits and demerits
    c) Trend analysis
    Meaning, determination, interpretation uses, merits and demerits
    Practical problems to include preparation of Profit & Loss Statement and Balance Sheet as per
    Schedule III of Companies Act 2013 from the Trial Balance given and prepare common size or
    Comparative statement.

    Unit III Ratio Analysis and Economic Value Added Analysis (20 Marks, 15 Lectures)
    (a) Ratio analysis
    Meaning, Objectives, Nature of Ratio analysis, Importance & Limitations of ratio analysis,
    Classification of Ratios - Balance Sheet ratios, Income statement ratios, and Combined ratios,
    Computation, Analysis and Interpretation of important ratios for measuring – Liquidity,
    Solvency, Capital Structure, Profitability and Managerial Effectiveness. Overview of ratio
    analysis in service organization.

    (b) Economic Value added (EVA)


    Evolution of EVA concept, EVA concept, Market value added, Calculating EVA: The
    conceptual issues, calculating Net operating profit after tax (NOPAT), Capital employed (CE),

    1
    weighted average cost of capital (WAC), Importance of EVA, Advantages of EVA, Limitations
    of EVA

    Unit IV Cash Flow Statement (20 Marks, 12 Lectures)


    Meaning, Objectives of Cash Flow Statement, Non-cash transactions, Activity classification,
    Cash and cash equivalents, Direct and indirect method, Preparation and presentation of Cash
    Flow Statement as per indirect method and IND AS 7

    References:

    1. Bhirud, S., & Naphade, B. Management Accounting. Pune: Diamond Publications.

    2. Gupta, S., & Sharma, R. Financial Management. New Delhi: Kalyani Publishers.

    3. Jain, & Narang. Advanced Accountancy. New Delhi: Kalyani Publishers.

    4. Madegowda, J. Management Accounting. New Delhi: Himalaya Publishing House.

    5. Mukherjee, A., & Hanif, M. (2002). Modern Accountancy (Vol. II). New Delhi: Tata
    McGraw Hill.

    6. Raman, A. Advanced Accountancy. New Delhi: Himalaya Publishing House.

    7. Shukla, M. C., & Grewal, T. S. Advanced Accounts. New Delhi: S. Chand & Co .

    8. Shukla, M., Grewal, T., & Gupta, S. Advanced Accounts. New Delhi: S. Chand & Co.

    9. Tulsian, P. C. Accountancy. New Delhi: S. Chand & Co.

    Journals for Study and Reference:


    1. The Chartered Accountant: The Institute of Chartered Accountants of India
    2. The Management Accountant: The Institute of Cost Accountants of India
    3. The Accounting World : ICFAI Hyderabad

    Guidelines for setting Question Paper


    1. The question paper shall have total of 6 questions of 20 marks each
    2. Four questions of 20 marks each to be answered
    3. Question No. 1 to be compulsory (should be a practical question)
    4. A question may be sub-divided if necessary
    5. One question each from Unit I, Unit II, Unit III and Unit IV
    6. Two questions each to be asked on unit II and unit III

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