Admas University

School of Postgraduate Program

Course Outline

Course Title: Accounting for Managers

Course Code: ACFN 501

Credit Hours: 2 hrs
Course Description: The course aims to expose students to the nature and use of accounting
information, and processes of accounting. The aim is to have students understand accounting
information and to appreciate its uses from various decision-making perspectives. This subject
provides a sound grounding in the application of accounting concepts and techniques and
considers ethical and corporate governance issues associated with the provision of accounting
reports. The topics chosen are a mix of financial and management accounting. The financial
accounting topics concern the basic financial statements, their analysis and the concepts and
procedures that underpin their preparation. Management accounting concerns 'cost', cost
behavior, product costing and information for planning and control.

Course Objectives

Upon completion of this course students should be able to:

 use accounting processes and business technology, information and support systems to
monitor issues, problems and opportunities affecting business
 understand the purpose, content and format, of financial statements and the methods
used by accountants to prepare these statements which are governed by regulatory
requirements and relevant accounting standards governing disclosure requirements for
these reports
 understand the implications of financial reports and their role in the development of
effective governance mechanisms
 analyze and interpret financial statements so as to extract information about past
operations and to develop expectations about future outcomes
 explain the role of management accounting information in managerial decision-making
and apply basic management accounting techniques
 identify and explain accounting issues that arise in the workplace and their implications
for business behavior and resource allocation decisions.

1
Course Contents

Chapter 1: General Overview

 Accounting vs Finance: A distinction
 Financial vs Management Accounting: User Perspective
Chapter 2: Accounting Concepts and Principles
 Global Financial Accounting Standard
o Why global standard?
o History of International Financial Reporting Standards(IFRS)
o Objectives of the International Accounting Standards Board(IASB)
o IASB Hierarchy
 Basic Accounting Concepts and Principles
Chapter 3: Financial Accounting
 The Accounting Cycle
o Capturing Economic Events
o Recording business transactions
o Ledger accounts and posting
o The unadjusted trial balance
 Accruals and Deferrals
o Adjusting entries
o Accounting principles
o Effects of the adjusted entries
o Reporting Financial Results
 Preparing financial statements
 Closing the temporary accounts
 Post closing trial balance
Chapter 4: Management and Cost Accounting
o Brief introduction to cost and management accounting
o Basic cost concepts and cost behavior
o Job and Process Costing System
o Activity costing — another way to measure costs
o Short-run alternative choice decisions
o Budgeting — operating budget, cash budget
o CVP Analysis
Chapter 5: Financial Management
o Introduction to financial management
o Financial ratios and financial statement analysis
o Long-run decisions
o Capital budgeting

Teaching Methods
 Lecture

2
  Group discussion
 Case study review
 Problem demonstration
 Debates and Discussions
 Book Review
Assessment Methods
 Assessment item 1: Case Study group assignment ……………….….…. 30%
 Assessment item 2: Term paper with presentation selected from list of topics to be
provided by the instructor …………............….… 20%
 Final exam covering all the topics handled ………………….….…..……. 50%
 Total ------------------------------------------------------------------------------- 100

Reading Materials
Required

Bhata, B.S. (2001). Management Accounting. New Delhi: Deep and Deep.

Recommended

 Bernsein, Leopold, A. (2000). Analysis of Financial statements. New Delhi: Tata

McGraw-Hill.

 Decoseter, D.(1998). Accounting for Managerial Decision Making. New york: Willey
and Son.

 Garison, Noreen (2000). Managerial Accounting Boston: McGraw-Hill.

 Hilton R. (1999). Managerial Accounting. Boston: McGraw-Hill.

 Lynch, R. (2004). Accounting for Management. New-Delhi: Tata-McGraw-Hill

 Singh, YP. (2002). Effective Accounting Management. New Delhi: Anmol

 Webster, William, H. (2004). Accounting for Management. New Delhi: Tata McGraw-
Hill