INDIAN INSTITUTE OF MANAGEMENT KOZHIKODE

Executive Post Graduate Programme in Management

Course Outline

Course Code and Course Title EPGP-105, Financial Accounting (FA)

Course type Compulsory
Pre-requisites (if any)
Course Credit 2 (20 hours)
Total no. of sessions 8
Session Duration 150 minutes
Quarter I
Year and Batch EPGP-11 2019-20, Ist year
Sections (if any) Sec A

Instructor Dr Sudershan Kuntluru

Contact Details sudershan@iimk.ac.in;
Office Ext: 250
Consultation Hours Any time with prior appointment

Introduction

It is an introductory course on Financial Accounting. Accounting is the language of business.

Planning, controlling and reporting in business uses accounting and hence understanding
business, require understanding of accounting. Financial Accounting is used for reporting
results of the business to external stakeholders. This course aims at developing reasonable
skills to understand, evaluate and use financial information aimed at both managers and
external stakeholders. Accounting is based on a sound methodology. Understanding this
methodology is an essential for understanding accounts and business information. Emphasis
in this course is on achieving conceptual clarity in accounting. Since, fiscal year 2016-17
onwards India is implementing Indian version of International Financial Reporting Standers
(IFRS) called IndAS in a phased manner. This course is proposed based on IndAS and
referred to IFRS as and when required.

Learning Outcomes/Course Objectives

At the end of the course, the students would be able to:

 Understand the construction of financial statements and measurement of revenues,
expenses, assets and liabilities.
 Understand the basics of financial statement analysis techniques.

Textbooks and Learning Materials

Text Book(s)

 Financial Accounting for Management (Fourth Edition), Tata McGraw Hill

Education Pvt Ltd. New Delhi by N Ramachandran and Ram Kumar Kakani
(RK)

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Reference Book(s)

 Accounting Text and Cases, (13th Edition), Robert N Anthony, David F Hawkins and
Kenneth A Merchant, McGraw Hill
 Financial Accounting: A Managerial Perspective (Fourth Edition), (2011) PHI
Learning Private Limited, New Delhi by R Narayanaswamy
 Modern Managerial Accounting and Control by Sunder Ram Korivi, Himalaya
Publishing House
 Financial accounting by Weygandt, Jerry J., Paul D. Kimmel, and Donald E. Kieso.
John Wiley & Sons.

Additional Reading(s)

 International GAAP 2012: Generally Accepted Accounting Practice under

International Financial Reporting Standards (IFRS) [Paperback], Ernst & Young
(Editor), Wiley Publications

Other Resources (Journals, Internet Websites) (if any)

Journals:

1. The Chartered Accountant by ICAI

2. Accounting Review
3. Journal of Business Finance and Accounting
4. Journal of Accounting Research

Web Resources:
 http://www.ifrs.org/Home.htm - International accounting Standards Committee
 www.icai.org

Evaluation Components/Assessment of Student Learning

Assessment Tool Percentage

END-TERM EXAMINATION 50%

Assignments 25%
Quizzes & Class Participation
25%

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Session Plan

Session 1 Topic: Introduction to Financial Accounting

Financial Statements: Balance Sheet / Statement of
Financial Position
Read: RK Chapter 1, 2

Session 2 Topic: Financial Statements: Profit and Loss Account / Income

Statement / Statement of Comprehensive Income
Read: RK Chapter 2, 3

Session 3 Topic: Financial Statements (Both): Balance Sheet & Profit and
Loss Account
Read: RK Chapter 2 & 3

Session 4 Topic:
a. Accounting recording process
b. Issues pertaining to Asset reporting, Inventory valuation &
Revenue Recognition
Read: RK Chapter 5, 8

Session 5 Topic: Financial Statements: Understanding and Analysis of Cash

Flow Statement
Read: RK Chapter 4

Session 6 Topic: Understanding and Analysis of Annual Report

Suggested Reference: The Annual Report

Session 7 Topic: Financial Statement Analysis : Horizontal, Vertical, Trend

and Ratio Analysis
Read: RK Chapter 7

Session 8 Topic: Financial Statement Analysis : Ratio Analysis

Read: RK Chapter 7

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