Introduction
It is an introductory course on Financial Accounting. Accounting is the language of business.
Planning, controlling and reporting in business uses accounting and hence understanding
business, require understanding of accounting. Financial Accounting is used for reporting
results of the business to external stakeholders. This course aims at developing reasonable skills
to understand, evaluate and use financial information aimed at both managers and external
stakeholders. Accounting is based on a sound methodology. Understanding this methodology
is an essential for understanding accounts and business information. Emphasis in this course is
on achieving conceptual clarity in accounting. Since, fiscal year 2016-17 onwards India is
implementing Indian version of International Financial Reporting Standers (IFRS) called
IndAS in a phased manner. This course is proposed based on IndAS and referred to IFRS as
and when required.
Learning Outcomes/Course Objectives
At the end of the course, the students would be able to:
 Understand the construction of financial statements and measurement of revenues,
expenses, assets and liabilities.
 Understand the basics of financial statement analysis techniques.
Textbooks and Learning Materials
Text Book(s)

Financial Accounting for Management (Fourth Edition), Tata McGraw Hill
Education Pvt Ltd. New Delhi by N Ramachandran and Ram Kumar Kakani
(RK)
Reference Book(s)




Accounting Text and Cases, (13th Edition), Robert N Anthony, David F Hawkins and
Kenneth A Merchant, McGraw Hill
Financial Accounting: A Managerial Perspective (Fourth Edition), (2011) PHI
Learning Private Limited, New Delhi by R Narayanaswamy
Modern Managerial Accounting and Control by Sunder Ram Korivi, Himalaya
Publishing House
Financial accounting by Weygandt, Jerry J., Paul D. Kimmel, and Donald E. Kieso.
John Wiley & Sons.
Additional Reading(s)

International GAAP 2012: Generally Accepted Accounting Practice under International
Financial Reporting Standards (IFRS) [Paperback], Ernst & Young (Editor), Wiley
Publications
Other Resources (Journals, Internet Websites) (if any)
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Journals:
1.
2.
3.
4.
The Chartered Accountant by ICAI
Accounting Review
Journal of Business Finance and Accounting
Journal of Accounting Research
Web Resources:
 http://www.ifrs.org/Home.htm - International accounting Standards Committee
 www.icai.org
Evaluation Components/Assessment of Student Learning
Assessment Tool
Percentage
END-TERM EXAMINATION
50%
Assignments
Quizzes & Class Participation
25%
25%
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Session Plan
Session 1
Topic: Introduction to Financial Accounting
Financial Statements: Balance Sheet / Statement of
Financial Position
Read: RK Chapter 1, 2
Session 2
Topic: Financial Statements: Profit and Loss Account / Income
Statement
Read: RK Chapter 2, 3
Session 3
Topic: Financial Statements (Both): Balance Sheet & Profit and
Loss Account
Read: RK Chapter 2 & 3
Session 4
Topic:
a. Accounting recording process
b. Issues pertaining to Asset reporting, Inventory valuation &
Revenue Recognition
Read: RK Chapter 5, 8
Session 5
Topic: Financial Statements: Understanding and Analysis of Cash
Flow Statement
Read: RK Chapter 4
Session 6
Topic: Financial Statements: Understanding and Analysis of Cash
Flow Statement
Read: RK Chapter 4
Session 7
Topic: Financial Statement Analysis : Horizontal, Vertical, Trend
and Ratio Analysis
Read: RK Chapter 7
Session 8
Topic: Financial Statement Analysis : Ratio Analysis
Read: RK Chapter 7
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