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Course Title
Financial Accounting
Course Outline
PGEXP, Term I, 2023-25 Batch
COURSE DESCRIPTION
Business concerns have a compulsion to grow in terms of their Top Line, Bottom Line and
Net Line [Net worth]. Growth is possible for an entity only when it knows to measure its
performance which requires the managers to know the art of writing, reading and inferring
the contents of the financial statements.
This course would enable the participants to answer the following questions
What are the accounting choices available for the firm in reporting inventories? Which is
the better method of reporting inventories? How to compare the firms that are following
different inventory accounting methods?
What are the accounting choices available for a firm in dealing with Bad Debts, Sales
Returns Expenses and Sales Discount? How to compare firms that are having differences
in dealing with these accounting items?
How should a firm report its investment in Monetary and Non-Monetary Assets?
What are the accounting alternatives available for a firm in recognizing its revenue? What
are the requirements of accounting standards for revenue recognition? When a particular
method of revenue recognition is suitable over the other methods?
What are the different methods of amortizing a non-monetary asset? How to compare
firms that are following different methods of amortization?
How to value intangibles? How to amortize the various types of intangibles?
What are the different types of cash flows? How does the direct method of preparing cash
flow statement differ from that of the indirect method? How to prepare the cash flow
statement under the direct method and under the indirect method?
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How to analyze the financial statements? What is the linkage among the financial
statements? What are the key ratios that need to be computed for an equity investor?
What are the useful ratios for a lender? How to measure the profitability of an entity?
How to assess the investment utilization of a firm? How to measure the working capital
efficiency of an entity? How to assess the liquidity and solvency position of an
organization? How to compute the overall financial performance of a firm? And How to
compare the financial performance of a firm?
What is the meaning of the terms “Deferred Tax Assets “and “Deferred Tax Liabilities”?
And How to deal with DTA & DTL in accounting?
1. To enable the participants to become familiar with the Concepts, Principles and Jargons
of Financial Accounting
2. To help the participants in understanding the accounting choices with regard to reporting
of various line items in the financial statements of an entity
3. To facilitate the participants to prepare the Financial Statements besides providing them
with the ability to read, analyze and interpret the contents of the Financial Statements
4. To assist the participants in understanding the relevance and usage of various accounting
standards with regard to the important line items of the financial statements
5. To inspire the participants to become value maximizing managers
Entrepreneurial Skills
5.2 Evaluate business plans
REFERENCES:
EVALUATION
The participants shall be evaluated on a continuous assessment mode using the following
components
+ Mid Term Examination [After the 10th session]
+ End Term Examination [After the completion of the course]
+ Quizzes [There would be two quizzes. First quiz shall be conducted after the 5th session and the
second quiz shall be conducted after the 15th session]
+ Assignment [Assignments to be submitted by the participants on group basis. The assignment
questions shall be communicated to the participants well in advance to the submission deadline.]
+ Class Room Participation [on a continuous basis]
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GRADING SCHEME
ACADEMIC DISHONESTY
i. It may be noted that any kind of copying/plagiarism by any student and/or malpractice in
examinations will be subject to strict disciplinary action under IIM Ranchi rules. If a
student is found guilty in any such case(s), it will be recorded in his/her personal file.
ii. The reports submitted by the students like Summer Project Reports/Term Papers/ Case
Study Report/ Project Report/CIS dissertation paper or any other report will go through
the anti-plagiarism software.
iii. In all cases where the software has reported more than 30% of plagiarism by a student or
group of students, there will be automatic conversion of the grade given in that
component into “F”.
iv. The faculty may even choose to report the matter to the PGP Committee which will
temporarily convert the course grade into “F” or an “I”, issue a show cause to the student
(s) and based upon the response of the student(s) assign any punishment or its
combination from the options below.
a.Expulsion from the Institute
b. Suspension for a specified period
c.“F” grade in the course concerned
d. Scaling down grades obtained in the specific subject
e.Repeating the course
f. Withdrawal of placement services
g. Suspension, withdrawal or made ineligible for scholarships
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Course Schedule
Session Topics to be covered in the course Book Chapter, Case and Readings