Financial Accounting- Session Plan

Financial Accounting involves the transactional dimension of book keeping as well

as the analytical dimension of using accounting information for managerial decision
making. Users of financial statements are many; banks need them to assess the
credit rating of the business, the government needs them for revenue assessment.
Investors use it for valuation and the business uses it for several operational as well
as strategic decision support.
Financial Accounting is a 3 credit course designed to make the participants
understand the dimensions of accounting with specific reference to accounting as
an information system for managers. The course intends to impart the following to
its participants:
1. Familiarize them with the basic concepts of accounting
2. Understand the importance of standards in understanding financial
statements
3. Analyze the components of a financial statement
4. Evaluate the performance of a business using financial statements
5. Compare financial performance both inter and intra business

PEDAGOGY:
Cases, mini cases and annual report discussion.

TEXT:
Accounting: Text and Cases, (12th Edition)
Robert N Anthony, David F Hawkins and Kenneth A Merchant (AHM)

EVALUATION

Class Participation
Quizzes
End-term Examination
Case Analysis / Presentation

10%
30%
40%
20%

SESSION SCHEDULE

MODULE 1: PREPARATION OF FINANCIAL STATEMENTS

Session 1:

The Nature and Purpose of Accounting

Reading:
AHM: Chapter 1: Basic Accounting Concepts: The Balance Sheet and
Income Statement

Session 2:

Balance Sheet

Reading:

AHM: Chapter 2: Basic Accounting Concepts: The Balance Sheet

Case:

Music Mart Inc (AHM, Page 48)

Sessions 3:

Income Statement An Introduction

Reading:

AHM: Chapter 3: Basic Accounting Concepts: The Income Statement

Case:

Dispensers of California Inc (ANM, Page 74)

Sessions 4:

Income Statement- Preparation

Reading:

AHM: Chapter 4: Accounting Records and Systems

Case:

AHM: Ribbons and Bows, Inc

Sessions 5:

Balance Sheet- Preparation

Reading:

AHM: Chapter 4: Accounting Records and Systems

Case:

Ribbons and Bows, Inc

MODULE 2: ACCOUNTING POLICIES AND MANAGERIAL CHOICES

Session 6

Revenue Recognition

Reading:

AHM: Chapter 5: Revenue and Monetary Assets

Case:

Stern Corporation (A)

Session 7

Issues in Revenue Recognition

Reading:

AHM: Chapter 5

Session 8

Accounting for Inventory

Reading:
Case:

Session 9
Reading:
Case:

Session 10

AHM: Chapter 6: Cost of Sales and Inventories

Lewis Corporation;

Accounting for Inventory

AHM: Chapter 6: Cost of Sales and Inventories
Morgan Manufacturing

Accounting for Depreciation

Reading:
Amortization

AHM: Chapter 7: Long-lived Nonmonetary Assets and Their

Case:

Stern Corporation (B)

Session 11

Accounting for Equity

Reading:

AHM: Chapter 9: Sources of Capital: Owners Equity

Case:

Innovative Engineering Company

Session 12

Sources of Capital- Debt

Reading:

AHM: Chapter 8: Sources of Capital: Debt

Session 13

Accounting for Debt

Reading:

AHM: Chapter 8: Sources of Capital: Debt

Case:

Norman Corporation (A)

Session 14

Review

MODULE 3

FINANCIAL STATEMENT ANALYSIS

Session 15

Understanding of Annual Report

Reading:

AHM: Chapter 14: Understanding of Financial Statement

Discussion:

Annual Report of Hindustan Unilever Limited

Session 16
Reading:
Discussion:

Session 17

Understanding of Cash Flow Statement

AHM: Chapter 11: The Statement of Cash Flows
Annual Report of Hindustan Unilever Limited (Cash Flow Statement)

Financial Statement Analysis

Reading:

AHM: Chapter 13: Financial Statement Analysis

Case:

Genmo Corporation

Session 18

Financial Statement Analysis

Reading:

AHM: Chapter 13: Financial Statement Analysis

Case:

Analyzing the Financial Statements of Hindustan Unilever Limited

Session 19
Session 20

Presentations
Quiz