SEMESTER/YEAR : TRIMESTER 1/2018

COURSE CODE : 18EPG102

TITLE OF THE COURSE : ACCOUNTING FOR MANAGERS
L: OCW:A:C : 18:108:2:3

Summary/Overview

This subject aims to create a good understanding of the financial statements and the other components
of the Annual Report. It focuses mainly on various tools for analysis and interpretation like ratio
analysis, and cash flow analysis. In addition it also introduces to the students, the tools for decision
making such as cost-volume profit analysis and the applications of marginal costing. It provides an
overview of the control techniques such as budgetary control, standard costing and variance analysis.
Since, cost control and cost reduction have assumed greater significance in view of the recent recession
elsewhere in the world and the consequent slowdown in our own country, understanding cost
concepts, costing methods and techniques, dissemination of costing information have become integral
part of reporting. Hence, the subject also covers the various elements of cost, the methods of costing,
with reference to different industries and also the costing techniques such as activity based costing.

Learning Outcomes:

On completion of this unit a student should be able to:

1. Understand and significance and importance of Accounting. What are the elements that go into
preparation of financial statements? What are the salient features and differences between
Financial and Management accounting? Get an insight into international accounting standards.
2. Understand the components of all three forms of financial statements, viz. Income Statement,
Balance Sheet and Cash Flow Statement. Be able to read financial statement of a company and
make sense out of it.
3. Be able to compute various ratios and compare them across companies or within a company
across horizontally or vertically with the aid of tools such as Excel.
4. Understand various types of costing. What is the importance of diligent costing in achieving
better pricing and hence better profitability? Analytical & conceptual understanding of CVP &
BEP.
5. The proof of understanding is in one’s ability to apply the knowledge. Students should be able
to take up any company of their choice, analyze critically based on their learning.

1. Lectures
Approach to Learning 2. Readings
3. Student presentation and class room
exercises
4. Group discussion
5. Case Analysis
6. Videos
Participants will be assessed on both
conceptual understanding and business
application of AM practices by way of:
Assessment Strategy
 Case study discussions & solving
examples in the class
 Submission of assignments
 Written Exam
1
# Assessment Description of Weight Submission
Method* Assessment Method Learning Outcomes day/week
% Assessed (assignments) or
length (exam)
 1 2 3 4 5

1 PF Class Participation 0 Recommended

2 CS Case Study 0 x x x x x At least two full

length case studies
per trimester

3 DTA Assignments 50% x x x x x Two assignments

per trimester

2 x 25 marks= 50
marks

4 EX Exam 50% x x x x Trimester End

Exam: 100 marks

*The following codes for assessment methods apply:-

LR literature review PC practical

CB computer-based PF performance

CS case study PL placement

DI dissertation or project PO portfolio

EX exam PR presentation

GR group report RE individual report

DTA during trimester assignment OR oral

Teaching Schedule

1 INTRODUCTION TO ACCOUNTING
Meaning, Basic Concepts, Principles of Accounting, Accounting Equation, Double entry system of
accounting, Accounting Mechanism Journal, Ledger, Trial balance, Capital & Revenue items and
Depreciation. Financial Accounting vs. Management Accounting. ( Theory and Problems)
2 ACCOUNTING STANDARDS: Accounting Standards, Introduction to Ind – AS, International accounting
standards such as GAAP & IFRS. ( Theory)
3 COMPANIES FINAL ACCOUNTS : Introduction, Meaning, types and characteristics of companies, Profit
and loss statement and balance sheet in detail as per the revised schedule VI of Companies Act of 2013 (
Only theory), Off Balance sheet items, Treatment of events occurring after Balance sheet
4 ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS
Ratio Analysis – Meaning of ratio, classification of ratios, Liquidity ratios, capital structure or solvency
ratios, turnover or activity ratios, Profitability ratios, Advantages and Limitations of ratio analysis and
its computations (Case study and Practical)
5&6 COSTING
1. Introduction to Cost Accounting
2. Cash Flow Statements
3. Marginal Costs

2
Recommended Resources

1. Managerial Accounting - 2nd Edition - Sawyers/ Jackson/ Jenkins/ Arora - Cengage.

2. Cost and Management Accounting by Colin Drury., Cengage Learning
3. Advanced Financial Management by Dr. S. N. Maheshwari Published by Sultan Chand and
Sons, 2007 edition.