Faculty: MANOJ KUMAR PADHI

Course Name :

ACCOUNTING FOR MANAGERS

Code(Credit) : CUTM1199(3-0-1)

Course Objectives

1. To familiarise with the basic conceptual frame work of Financial Accounting i.e., from recording of transactions for Understanding and Interpreting of Financial Statements.
2. To provide the knowledge to the students about financial statements and principles underlying them and to develop their skills in reading Annual Reports.
3. To equip students with the skills required to understand cost statements/records and management accounting.

Learning Outcomes

1. Develop an awareness and understanding of the accounting process and fundamental accounting principles that underpin the development of financial statements (e.g. accrual accounting vs. cash accounting, definition, recognition, measurement and disclosure of assets, liabilities, revenues, expenses; inventory valuation methods and methods of depreciation).
2. Understand and interpret the nature and role of the principal financial statements (i.e., the Income Statement, the Statement of Financial Position, and the Statement of Cash Flows).
3. Understand and apply cost concepts and management accounting to analyse common business management decisions such as pricing a product and services.

Course Syllabus

Unit I: Fundamental Principles of Accounting
Accounting Environment of Business: Purpose of accounting, Links of accounting with every aspect of business, Cash based vs Accrual based accounting, Accounting Cycle, Financial Year, Difference between management accounts and statutory accounts
Concepts and Conventions of Accounting: Accounting as an Information System, Users of Accounting information (specifically the difference in financial information required by the Board, CXO levels, field level staff, stock exchanges, auditors and regulators etc.). Accounting Principles and Standards
Computerised Accounting (Learning to use Tally Package)
 
Unit II: Accounting Process
Basic Accounting Procedures: Balance Sheets items, P&L items, Accounting Equation, Transactions, Capital & Revenue Expenditure and Receipts, Classification of Accounts and Chart of Accounts (relevance to reporting)
The Accounting Process: The Journal, the Ledger, and the Trial Balance
Depreciation: Meaning Causes, Factors affecting depreciation, Methods of providing depreciation, Straight Line Method & Diminishing Balance Method
Inventory Valuation: Introduction, Determination of Cost, Valuation of Inventories (FIFO, LIFO, and Average Method)
 
Unit III: Understanding and Interpreting Financial Statements  Financial Statements:
Purpose, Minimum content and information, Vertical and Horizontal Financial Statement, Trading and Profit and Loss Account, Balance Sheet, and Cash Flow Statement, Content of Annual Report
 
Unit IV: Introduction to Cost and Management Accounting
Difference from financial accounting and reporting, concept of overheads and allocation principles, reconciling management and financial accounts, Classification of Costs; Cost Unit, Cost Centres, Preparation of Cost Sheet––
Marginal Costing: Marginal Cost and BEP Analysis
Project Details:

1. Project on Preparation of Financial Statement of a Small Business.
2. Project on Financial Statements of a company - From Annual Report like TCS, TVS Motor, Tata Steel, RIL, etc.
3. Project on study of Financial Statement Analysis through excel of different Companies like TCS, TVS Motor, Tata Steel, RIL, etc.
4. Project on Analysis of Budgetary Control Small Business

Books Recommended:

1. Financial Accounting -- A Managerial Perspective, R. Narayanswamy, PHI
2. Accounting for Management—Ashok Sehegal, Taxxman
3. Khan & Jain – Management Accounting, TMH
4. Horngreen, Datar, Foster- Cost Accounting, Pearson
5. Financial Accounting, Jain/Narang/Agrawal, Kalyani
6. Basic Financial Accounting for Management, Shah, Oxford

Session Plan

Session 1

Discussion of Course Contents and
Session Plan
https://www.youtube.com/watch?v=cT1KOvJ-izA

Session 2

Introduction to Accounting:  Role of accounting in an organization
https://www.slideshare.net/Kapooraditya12/introduction-to-accounts-38777855
https://www.youtube.com/watch?v=7TGwm5V2y3s

Session 3

Links of accounting with every aspect of the business - Accounting with Management, Economics, IT, Statistics, HR, Marketing and Production, Cash-based vs Accrual based accounting.
https://www.iedunote.com/accounting-relation-other-discipline
https://www.slideshare.net/spranyoto/finon-accrual-vs-cash-basis-accounting
https://www.youtube.com/watch?v=GEZZftO_VrE

Session 4

Accounting Cycle, Basic Accounting Terms, Accounting Year, Financial Year, Basic Accounting Terms.
https://www.slideshare.net/kulbeerbumrah/accounting-cycle-32450694
https://www.youtube.com/watch?v=WE6NZgwRMrY

Session 5, 6

Assignment for the students to list out 30 Assets, 15 Liabilities, 50 Expenses & Losses, and 15 Income & Gain.
Students' Presentation

Session 7

Accounting as an Information System, Users of Accounting information (specifically the difference in financial information required by the Board, CXO levels, field-level staff, stock exchanges, auditors and regulators, etc.
https://www.slideshare.net/Pulkitbordia/users-of-accounting-information-28518042
https://www.youtube.com/watch?v=O6clb2SEOTc

Session 8, 9

Balance Sheets items, and Profit & Loss Accounts items,
https://opentextbc.ca/principlesofaccountingv1openstax/chapter/prepare-financial-statements-using-the-adjusted-trial-balance/
https://www.youtube.com/watch?v=hrSUq4wcd0g&t=276s

Session 10

Project on Preparation of Chart of Account of Different Companies
Students' Presentation

Session 11

Accounting Equation, Double Entry System
https://courses.lumenlearning.com/vccs-acc211-17sp/chapter/the-basic-accounting-equation/
https://www.youtube.com/watch?v=66e9QbrkE4g

Session 12

Chart of Accounts (relevance to reporting)
https://www.investopedia.com/terms/c/chart-accounts.asp
https://www.youtube.com/watch?v=vsLiLg9bvKE&t=174s

Session 13

Project prepare balance sheet with account equation
Students' Assignment on Preparation of Balance Sheet with the help of Accounting Equation.

Session 14, 15, 16

The Accounting Process: The Journal, the Ledger, and the Trial Balance
https://www.learnpick.in/prime/documents/ppts/details/649/journal
https://www.youtube.com/watch?v=RPkBmOYCGSM

Session 17, 18

Assignment for the Students to find out the various pieces of information required to different users of Accounting.
Students' Presentation

Session 19, 20

The Accounting Process: The Journal, the Ledger, and the Trial Balance
https://www.youtube.com/watch?v=3_PfoTzSCQE#action=share
https://www.youtube.com/watch?v=3_PfoTzSCQE&t=156s

Session 21

Introduction to International Financial Reporting Standards (IFRS). Understanding Accounting Standards issued by the ICAI related to Disclosure of Accounting Policies.
https://www.slideshare.net/ruparajan1/ifrs-71213952
https://www.youtube.com/watch?v=M_su85HBgyM

Session 22, 23

Depreciation: Meaning Causes, Factors affecting depreciation, Methods of providing depreciation, Straight Line Method & Diminishing Balance Method
https://www.slideshare.net/vikasvadakara/depreciation
https://www.youtube.com/watch?v=6SY8s1_OEro

Session 24

Profit & Loss Accounts items- Revenue, Expenses, Operating and Non-operating, Profit/Gain, EBDITA, EBDIT, DBIT, EBT, EAT, etc.
https://www.slideshare.net/ashwinprince/profit-and-loss-account-76600151
https://www.youtube.com/watch?v=hrSUq4wcd0g

Session 25

Balance Sheets items- Types of Assets and Liabilities
https://www.slideshare.net/kamalEGA/ppt-on-balance-sheet
https://www.youtube.com/watch?v=K-1TOD4TkNA

Session 26

Preparation of Trading Account and Profit and Loss Account and Balance Sheet
https://www.learnpick.in/prime/documents/ppts/details/4030/final-accounts
https://www.youtube.com/watch?v=K-1TOD4TkNA

Session 27

Preparation of Trading Account, Profit & Loss Account, Balance Sheet with Practice Problems
Students' Presentation

Session 28, 29

Field studies for collecting the data for preparation of Financial Statement
Students' Presentation

Session 30

Preparation of Trading Account, 6 Profit & Loss Account, Balance Sheet in Excel
https://www.youtube.com/watch?v=tPmxNXHl-nY

Session 31

Preparation of Financial Statements: Preparing Trading Account, Profit & Loss Account and Balance Sheet with Adjustment
Students' Presentation

Session 32

Cash Flow Statement: Operating, Investment and Financing Activities
https://www.slideshare.net/hitesh447/cash-flow-statement-presentation
https://www.youtube.com/watch?v=Xy-yDw0gsgc

Session 33

Corporate Financial Statements, Financial Statements of a company
https://slidemodel.com/templates/financial-statements-powerpoint-template/
https://www.youtube.com/watch?v=KD_cL-6jmms

Session 34, 35

Project Financial Statements of a company
https://slidemodel.com/templates/financial-statements-powerpoint-template/https://www.youtube.com/watch?v=KD_cL-6jmms

Session 36

Content of Annual Report
Workshop on Case Study of Tata Steel Annual Report
Students' Presentation
https://www.slideshare.net/linusxa/contents-of-an-annual-report

Session 37

7Project on Financial Statements of a company - From Annual Report like TCS, TVS Motor, Tata Steel, RIL, etc.
Students' Presentation

Session 38, 39

7Marginal Costing, CVP Analysis and CVP Application in decision making;
https://www.slideshare.net/dhiraj.gaur/presentation-cvp-analysis-140908?next_slideshow=1
https://www.slideshare.net/Arifs18/applications-of-marginal-costing
https://www.youtube.com/watch?v=g6NOuFS6DcE

Session 40

7Project on CVP Application in decision making
Students' Presentation
https://nairaproject.com/projects/2589.html

Session 41

7Budgeting and Budgetary Control: Concept, Essentials of a Budget, Forecast Vs Budget, Budgetary Control, Objectives of Budgetary Control, Compare between Standard Costing and Budgetary Control, Organisation for Budgetary Control, Organisation Chart, Budget Centre, Budget Committee, Budget Manual, Advantages of Budgetary Control
https://www.slideshare.net/KajalSharma79/budget-budgeting-and-budgetary-control
https://www.youtube.com/watch?v=HBspBqK0BcI

Session 42

7Types of Budgets: Classification on the Basis of Time, Classification on the Basis of Function, Classification on the Basis of Capacity, Flexible Budget, Cash Budget
Practice Problem on the preparation of budget
https://www.slideshare.net/ranasingh0820/types-of-budgets-5773243
https://www.youtube.com/watch?v=bzosH81ocZY

Session 43

7Zero Base Budgeting (ZBB), important Aspects of ZBB, Steps Involved in ZBB, Advantages of ZBB
https://www.slideshare.net/drkulrajat/zero-base-budgeting-37415409
https://www.youtube.com/watch?v=DmP67cH03zM

Case Studies

Case Studies