Trimester I

SEMESTER  AND YEAR: TRIMESTER 1 AND 2020                      COURSE CODE: 18EPG102

                                         TITLE OF THE COURSE: ACCOUNTING FOR MANAGERS

 Accounting is one of the most important aspects of the finance function which is in fact one of the very vital areas of functions of management. In today’s globalized economy, joint stock form of business organizations (JSCs) contribute and occupy in a large manner in any economy. Thus the knowledge on accounting practices of any business organization in general and that of joint stock companies becomes very much essential for the management graduates and business executives and managers.  Thus this course aims to create a good understanding of the financial statements and the other components of the Annual Report of a company as per the Companies Act 2013. It also focuses on various tools for analysis and interpretation of financial statements of a company like ratio analysis, and cash flow analysis. In addition, it also introduces to the students, the tools for decision making such as cost-volume profit analysis and the applications of marginal costing. Since, cost control and cost reduction have assumed greater significance in view of the recent recession elsewhere in the world and the consequent slowdown in our own country, understanding cost concepts, costing methods and techniques, dissemination of costing information have become integral part of reporting. Hence, the subject also covers the various elements of cost, the methods and techniques of costing, with reference to different industries and also the costing techniques such as activity based costing.

SYLLABUS

UNIT I: INTRODUCTION TO ACCOUNTING:

Introduction to accounting – Meaning, definition, Branches of Accounting, Objectives of accounting, Users of accounting information, Basic Concepts, and conventions of Accounting, GAAP, Accounting Standards, IFRS,IND-AS, Double entry system of accounting, Accounting Equation, Capital and Revenue items and Depreciation -Accounting Mechanism:  Journal, Ledger, Trial balance, Preparation of Journal, Ledger and Trial balance,

 

UNIT II: FINANCIAL STATEMENTS OF COMPANIES:

Introduction – Meaning - Special Features of Joint Stock Companies Features - Advantages and Disadvantages of joint stock companies - Capital Structure of Joint Stock Companies - Kinds of Shares and Debentures, Statutory Books of Accounts – Final Accounts of Joint Stock Companies - Meaning of financial statements - Statutory Provisions regarding preparation and Components of Financial Statements of Joint Stock Companies - Provisions relating to financial statements under Indian Companies Act 2013 - Various items in Statement of Profit and Loss and Balance Sheet - Treatment of various special items and adjustments in preparation of final accounts of Joint Stock Companies - Preparation of Statement of Profit and Loss and Balance Sheet in accordance with the provisions of the Companies Act 2013 – Reading and understanding the Annual Report of the companies

 

UNIT III: ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS:

Introduction, Meaning of Financial statement analysis - Need for financial statement analysis – Tools for financial statement analysis - Ratio Analysis – Meaning of ratio, classification of ratios, Liquidity ratios, capital structure or solvency ratios, turnover or activity ratios, Profitability ratio - Advantages and Limitations of ratio analysis – computation and interpretation of ratios

 

UNIT IV: CASH FLOW STATEMENT:

Introduction – Meaning, Definition of need for cash flow statement - Legal requirement of cash flow statement – Classification of business activities – Financing, Operating and Investing activities – Preparation of Cash flow Statement as per AS3

 

UNIT V: COSTING:

Introduction to Cost Accounting–Meaning and definition of cost accounting – Methods and techniques of costing – Cost sheet – Preparation of cost sheet - Marginal Costing – Cost-Volume Profit Analysis - Break Even Point – Margin of Safety