POST GRADUATE PROGRAM IN MANAGEMENT (AY 2024-25)

COURSE PLAN

Course Code PGPCFC103 Term I

Title of the Course: Financial Reporting and Analysis Credit: 4.0
Course Prerequisites NIL Email ID [email protected]
[email protected]
Faculty Facilitator (s) Prof. Neelam Rani; Prof. Vishakha Contact No. NR -9958934508
Bansal, Prof. C.P. Gupta VB -9990149149

COURSE DESCRIPTION:
Financial Reporting and Analysis is a very practice-oriented discipline and superior learning is achieved by
applying concepts to real life examples. The course assumes no prior knowledge of accounting. The initial pace
is fast and assumes that students from non-accounting background have attended the bridge course. The
course will be delivered with a strong user perspective.

COURSE OBJECTIVES:
1. To develop participant’s ability to understand accounting principles and the process that results in
financial statements.
2. To enhance participant’s ability to understand and analyze implications of flexibility in accounting
rules.
3. To enhance participant’s skill set to identify the purpose and to analyze the information in the financial
statements.
4. To enhance participant’s knowledge on global practices.

PEDAGOGY / TEACHING METHODOLOGY:

The course will be delivered through a mix of lectures, case discussions and problem solving using real life
financial statements. Group assignments will be given at the end of each session and questions will be asked
individually. These questions will be a part of class participation.
EVALUATION:
COMPONENT WEIGHT %
Case Study Analysis 15
Group Activity 15
Quiz 10
Mid Term 20
End Term 40
TOTAL 100

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TEXT BOOKS:
 Wild J. J., Singh P. (2022) “Financial Accounting”, 10 th Edition, Mc Graw Hill. (Referred to as WS,
hereafter)

ADDITIONAL BOOKS / READINGS:

 Narayanaswamy R. (2016), “Financial Accounting: A Managerial Perspective”, 6th Edition, Prentice Hall
India Publication.
 Robert N. Anthony, David F. Hawkins, Kenneth A. Merchant, Prakash Singh (2020), “Accounting: Text
and Cases” Volume I Revised and Updated, 13th Edition, McGraw Hill India.
 Robert Libby, Patricia Libby, Frank Hodge (2020) “Financial Accounting”, 10th Edition, Mc Graw Hill.

The following professional journals contain articles on current topics in accounting: The Chartered Accountant;
Accountancy; Journal of Accountancy.
The following academic journals contain research papers in accounting: Journal of Accounting and Economics;
Journal of Accounting Research; The Accounting Review; The Review of Accounting Studies; Contemporary
Accounting Research.

IMPORTANT GUIDELINES TO THE PARTICIPANTS:

1. Go through the 'Syllabus' in the MOODLE section of the web-site(http://iims.eportal/).
2. Get your schedule and try to pace your studies as close to the timeline as possible.
3. Check your course update on Moodle regularly. After every session, group assignment for next session
would be available under each session number.
4. Keep updated with the posts, assignments and examinations conducted on the Moodle
5. Be regular, so that you do not suffer in any way
6. Academic Dishonesty, Class attendance, Etiquettes: As per PGP handbook.

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COURSE LEARNING OUTCOMES (CLOs)
At the end of the course a participant is expected to accomplish the following course learning outcomes (CLO).
Alignment of CLO with the Program Goal/Objectives and Assessment of the learning outcomes of the course is
presented below.

Course Learning Outcome Program Objective (PO) Assessment Tool(s)

(CLOs)
CLO1: Be able to understand the PO1a: The participants should be Quiz (10)
underlying principles, concepts able to analytically examine the Mid Term (10)
and accounting policy choices. Managerial Problem using their
domain knowledge

CLO2: Be able to measure and PO1b: The participants should End Term (40)
analyze the financial develop critical thinking abilities to Mid Term (10)
performance and position of an understand, analyze and
organization. communicate innovative
alternatives for decision making.

PO2a: The participants should Group Project (15)

CLO3: Be able appraise different contribute individually and as a
decision-making situations by team player
using techniques of financial
statement analysis.

Case Study Analysis (15)

CLO4: Be able to examine PO3a: The participants should be
various ethical and sustainability able to recognize ethical issues in
different global business contexts.
reporting issues and their
impact on different
stakeholders.

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SCHEDULE OF SESSIONS:

Module I: The Financial Accounting Framework, Basic Accounting Concepts, Accounting Records & Systems
(Covered in Chapters 1 to 3 of the Text Book)
Module Objective: To familiarize the participants with the financial accounting framework, and to get a hands-
on experience of processing business transactions and preparing financial statements.

Session 1: Introduction
Objective: To get an understanding of the course, accounting information, the profession of accounting, the
principles underlying the disclosures in financial reports, organizations which oversee the profession and the
big picture of financial statements and related disclosures.
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 Reading(s)
1. Chapter 1 of WS
2. Session slides and handouts
3. Annual Report of Corporates.

Sessions 2: Accounting Records & Systems

Objective: Learning hands-on about the transaction analysis, accounting process and the adjusting
& closing process; introducing computer-based accounting systems and internal controls.
Readings
1. Chapter 3 and 5 of WS
2. Session slides and handouts

Session 3: Basic Accounting Concepts: The Balance Sheet

Objective: To introduce the basic concepts of accounting relating to the balance sheet.
Readings:
1. Chapter 3 of WS
2. Session slides and handouts
3. Balance sheet of Corporates
Case(s): The Garden Place (HBS case UV0098-PDF-ENG)
In-Class Exercise: As given by the Instructor
Practice Assignment: As given by the Instructor

Session 4&5: Basic Accounting Concepts: The Income Statement

Objective: To introduce the basic concepts of accounting relating to the Income Statement
Readings:
1. Chapter 3 of WS
2. Session slides and handouts
3. Income Statement of Corporates
Case(s): The Garden Place_ One year Later HBS case UV0759-PDF-ENG
In-Class Exercise: As given by the Instructor
Practice Assignment: As given by the Instructor

Module II: Measuring and Financial Reporting of Assets, Liabilities and Equity

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Module Objective: To examine and understand the accounting policy choices that managers make for
measuring assets, liabilities and equity and their effect on expected profits and how managers make those
choices.

Session 6: Revenue & Monetary (Financial) Assets

Objective: Using the concept of accrual accounting, understand the timing and magnitude of revenue
recognized in various real-life contexts; the accounts receivable resulting from revenue, analysis of financial/
monetary assets; estimating and recognizing bad debts.
Readings
1. Session slides
2. Chapter 6 of WS
Case assignment: Accounting for Revenues (HBS)
In-class exercise: As given by the Instructor
Practice Assignment: As given by the Instructor

Session 7: Cost of Sales & Inventories

Objective: Using matching concept, determining the cost of sales/service; to understand various methods
used for inventory valuation and their impact on profits and taxes and finally the disclosure requirements for
inventory, cost of sales/service and gross profit.
Readings
1. Session slides (will be uploaded on Moodle before the session)
2. Chapter 4 of WS
In-class exercise: As given by the Instructor
Practice Assignment: As given by the Instructor

Sessions 8&9: Long-lived Non-Monetary Assets and their Amortization (Non-Current Assets)
Objective: To determine the cost of acquisition of long-lived assets, to calculate depreciation and appreciate
the difference between accounting depreciation and tax depreciation, to account for investment property,
intangible assets and natural resources.
Readings
1. Session slides
2. Chapter 7 of WS
In-class exercise: As given by the Instructor

Session 10: Financial and Operating Liabilities

Objective: To distinguish between operating and financial liabilities, definite and estimated liabilities, to
understand the impact and disclosure of contingent liabilities, to account for debentures, mortgages and
leases and to understand off-balance sheet financing arrangements, to understand Fair Value Accounting.
Readings
1. Session slides
2. Chapter 8 and 9 of WS

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 Case(s): Fair Value Accounting at Berkshire Hathaway- HBS Case 119-030

Session 11&12: Equity

Objective: To understand the components of capital stock, to learn to account for transactions involving share
capital, to understand the components of statement of changes in equity, stock-based employee benefits and
earnings Per Share,
Readings
1. Session slides
2. Chapter 10 of WS
In-Class exercises: As given by the Instructor

Session 12: Other Items that Affect Net Income and Owners’ Equity
Objective: To familiarize the participants with other items that affect net income such as nonoperating
income, pension and other post-retirement benefits, deferred income taxes, foreign currency transactions and
translations and derivatives.
Readings
1. Session slides
2. Chapter 8 &10 of WS
In-class Exercise: As given by the instructor
Practice Assignment: As given by the Instructor

Sessions 13 & 14: Statement of Cash Flows

Objective: To understand the purpose and structure of cash flow statement, to compute net cash flows from
operating, investing and financing activities, to interpret the difference between net income and net cash from
operations
Readings
1. Session slides
2. Chapter 11 of WS
In-class Exercises: As given by the Instructor

Module III: Analyzing and Interpreting Financial Statements

Module Objective: To learn to apply tools and techniques of financial statement analysis
Sessions 15 & 16: Financial Statement Analysis
Objective: To apply the tools of horizontal analysis, vertical or common size analysis, trend analysis and ratio
analysis and interpret the results in the business context and economic conditions of the period of operations
while critically evaluating estimates and judgements made by management.
Readings
1. Session slides
2. Chapter 13 of LLH
Case: Anandam Manufacturing Company: Analysis of Financial Statements (W16204-PDF-ENG)

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 In-class Exercise: Application of the analysis tools to Financial Statements.

Sessions 17: Consolidated Statements

Objective: To understand how firms make operating investments for business purposes through subsidiaries,
joint ventures and associates in order to expand their operations, to become familiar with the process of
consolidation of financial statements and interpretation of the same.
Readings
1. Session slides
2. Industry and Background Note: Introduction to accounting for Intercorporate Investments
(W15360-PDF-ENG)
3. Appendix A of LLH

Sessions 18: Understanding Financial Reports

Objective: To learn to synthesize the numbers with the narratives in the annual report including Directors’
Report, Management Discussion & Analysis, Auditors’ Opinion, Corporate Governance report and Notes to
Accounts; to become familiar with the objective and content of Integrated Reports.
Readings
1. Session slides
2. Chapter 5 of LLH

Session 19 & 20: Contemporary topics and presentations

CONSULTATION TIME FOR PARTICIPANTS

Name of the Faculty Timing
Prof. Neelam Rani With prior appointment
Prof. Vishakha Bansal With prior appointment
Prof. C.P.Gupta With prior appointment