SBM-NMIMS: COURSE TEACHING PLAN
Assurance of Learning AOL Specific
Course Code
Course Title
Course
Instructor/s
Financial and Management Accounting
Dr C Dasgupta; Dr S Mazumdar; Dr. S Wats; Prof S Pani; Dr H Gwalani
Credit Value 3.0
Programme MBA Trimester I
& Trimester
Pre-requisite
Foundation: Module on Financial Accounting
CLO 1) Appreciate the presentation of financial business information and data in logical,
structured and professional manner (PLO 5c)
Learning
Objectives
CLO 2) Construct Balance Sheet, Income Statement and Cash Flow Statement; understand
the inter-linkages between the three statements (PLO 3a)
CLO 3) Apply different costing frameworks to support managerial decision making (PLO
2b)
CLO 4) Build profit plans, evaluate performance; and suggest corrective measures across
functional areas of business (PLO 3c)
At the end of the course, students should be able to
Learning
Outcomes
(Must be
connected to
Learning
Objectives)
1) Evaluate how a business transaction will impact the financial performance and financial
position of a company
2) Construct the financial statements for a business given information on monetary
transactions over a period.
3) Use management accounting information to recommend appropriate decisions.
4) Build budgets and analyse variances to support planning and decision-making
This course introduces financial and managerial accounting. It emphasizes the analysis and
evaluation of accounting information in the processes of planning, decision-making, and
control, from the perspective of investors as well as managers.
Course
Description
The financial accounting module provides an understanding of basic accounting concepts and
principles, as well as the structure of income statement, balance sheet, and statement of cash
flows. Financial accounting is relevant to shareholders, creditors, managers and other users
of financial information.
The management accounting module focuses on accounting information and frameworks to
support internal decisions, primarily for planning and control purposes. Such internal
decisions could include pricing of products and services, new product introduction and
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discontinuation, making or outsourcing, and typically require detailed information at the
product and service level.
Specific
assessment
methods
Class
Participation
Individual
Assignment
Mid Term Exam
Evaluation
Pattern
3
Credit
AOL
Instruments
(*)
CLO
1
CLO
2
CLO
3
CLO
4
20
10
Rubric
10
20
Embedded
Questions
Group Field
Project
Final Exam
10
Rubric
10
40
Embedded
Questions
20
20
Total
100
30
20
20
10
20
Note: The individual assignment and the mid-term exam pertain to Financial Accounting.
Group Field Project Report pertains to Management Accounting and is due after session 15.
The final exam pertains to Management Accounting.
Topics / Sub -topics
Sessions
Chapter detail
/ Article Reference / Case
Studies
Pedagogy adopted for class
engagement
Learning Outcomes
session wise
Module I: Financial Accounting
Balance Sheet
Classifying assets,
liabilities, and owners’
equity
1
Case: Lone Pine Café (A)
(AHM, Case 2-3, Pg. 51)
Case discussion
Learning Outcomes
Reading: Chapter 2 (RK)
Balance Sheet (pg. 36-66)
Constructing Balance
Sheet
Self-Learning
Chapter 2 (RK), Discussion
Questions 1 to 7 (Pg. 78-79)
Chapter 2 (RK), Numerical
Problems 1 to 5 (Pg. 79-83)
Profit and Loss
Statement
Case: Lone Pine Café (B)
(AHM, Case 3-1, Pg. 80)
Classifying income and
expenses
Reading: Chapter 3 (RK)
Profit and Loss Statements
(Pg. 98-136)
To learn how to create a
Balance Sheet
Reconcile assets, liabilities,
and equity
Case discussion
Learning Outcomes
2
Constructing Profit and
Loss statement
To learn how to create a Profit
and Loss statement
Self-Learning
Chapter 3 (RK), Discussion
Questions 1 to 7 (Pg. 143145)
Chapter 3 (RK), Numerical
Problems 1 to 5 (Pg. 145149)
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3
Preparation of Accounts Case: Campus Pizzeria Inc. Case discussion
(AHM, Pg 91)
Learning Outcomes
Constructing Profit and
Reading: Chapter 5 (RK):
Accounting Records (Pg. 234- To learn how to create Profit
Loss statement and
273)
and Loss statement & balance
balance sheet;
sheet
Accounting mechanics
Familiarisation with
accounting mechanics
Revenue Recognition
Recognition of revenues
according to Ind AS 115
4
Accounting for
receivables and bad debt
Case: Hamilton
Corporation (A)
Case discussion
Learning Outcomes
Reading: Chapter 3.8 (RK)
Possible Future Expenses (Pg. To understand the recording
110-112),
and reporting of receivables;
methods used to account for
Self-Learning
uncollectible receivables and
Chapter 9.17 (RK) Revenue estimate bad debts
from contracts with customers
(Pg. 521-525)
Inventory
Valuation Case: Lewis Corporation
and Reporting
(AHM, Case 6-2, Pg 177)
Case discussion
Learning Outcomes
5
Implications of different
valuation methods on
income statement and
balance sheet
Reading: Chapter 3, (RK)
3.11 Methods of Inventory
Valuation (Pg. 127-132)
Chapter 8, 8.2 Accounting for
inventories (Pg. 439-446)
Ind AS 2 Inventories
Self-Learning
Self-Learning Review
Question 2 & 4 – Chapter 8(Pg. No 471 & 472)
Property, Plant and Case: Hamilton
Equipment (PPE) and Corporation (B)
Depreciation Policy
Chapter 8 (RK)
Recording, expensing,
8.1 Depreciation and
and reporting nonamortization accounting (Pg.
current assets
430 – 439)
6
Methods of calculating
depreciation
Ind AS 16 Property,
Plant and Equipment
7-8
Statement
Flows
of
Understand the impact of
different inventory valuation
methods on cost of goods sold,
closing stock and reported
profit
Case discussion
Learning Outcomes
Learn to estimate depreciation
expense, profit/loss on sale of
machinery and preparing assets
schedule
Self-Learning
Chapter 8 (RK), Discussion
Questions 1, 6,7 (Pg. 470)
Chapter 8 (RK), Numerical
Problems 1(a, b) (Pg. 471)
Chapter 8 (RK), Multiple
Choice questions 1-2, (Pg.
486)
Cash Caselet: Lori Crump
Case discussion
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Understanding inflow and
outflow of funds under
the broad categories of
Operating,
Investment
and Financing.
9
Case:
Continental Learning Outcomes
Equipment Company
To learn how to prepare cash
Reading: Chapter 4 (RK): The flow statements; reconcile CFO
Cash flow Statement (Pg. 165- with Profit
198)
Ind AS 7 Statement of
Cash Flows
Self-Learning
Chapter 4 (RK), Discussion
Questions 1 to 5 (Pg. 209)
Chapter 4 (RK), Numerical
Problems 1 to 5 (Pg. 209214)
Familiarisation with
Corporate Annual
Report
Reading: Annual report of
Berger Paints Ltd
Management Discussion
and Analysis/Directors’
Report; Auditors’
Report; Balance sheet;
Statement of changes in
equity; Profit and Loss
statement, Cash Flow
statement, Notes to
accounts
Participant centered learning
through discussion of annual
reports.
Learning Outcomes
Summarize and wrap up the
financial accounting module
by looking at financial
accounting and corporate
reporting in action. Appreciate
the wealth of information and
data provided in financial
reporting and disclosure.
Module II: Management Accounting
Understanding of Cost Caselets on cost
and
Managerial classification and cost sheet:
Accounting
 Skoda Octavia
How Management
 Godrej Office
Accounting supports
Equipments
decision making pricing, performance
Reading: Chapter 1 and 2
evaluation, contracting,
(HDR) (Pg. 1-4, 8-16 and 35product planning,
59)
budgeting.
10-11
Difference between
Financial Accounting and
Management Accounting
Cost Classification and
its use in decision
making - Prime costs,
overheads, variable costs,
fixed costs, mixed costs,
step variable costs,
factory Costs, cost of
production, cost of sales.
Self-Learning
Chapter 2 (HDR) Solved
Examples Pg. 64- 70, 75-79
Case discussion and problem
solving.
Learning Outcomes
To understand Cost
classification between fixed vs
variable, direct vs indirect,
Works/factory cost vs cost of
production vs cost of sales
To understand how cost
classification is used in
managerial decision based on
cost analysis
Chapter 2 (HDR) Exercises
Pg. 82- 84
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Cost sheet and estimated
cost sheet.
Cost-Volume-Profit
Analysis
Case: Hallstead Jewelers
(HBS) - 107060-PDF-ENG
Case discussion
Learning Outcomes
Understanding CostVolume-Profit analysis
Reading: Chapter 3 (HDR)
(Pg. 87-109)
Developing and using the
CVP equation
Self-Learning
12
Breakeven point, Margin
of safety, Contribution,
PV Ratio
Introduction of new
product and servicefeasibility study-profit
analysis and break-even
analysis
13
Chapter 3 (HDR) Solved
Examples Pg. 114- 115, 121131
Caselet: Better and Better
Limited
Make-or-buy,
outsourcing decisions,
Decision to drop a
product, Decision from
among alternatives,
Product mix decisions
Self-Learning
Relevant Costing
Relevant costs, Decision
making involving
relevant cost, opportunity
cost, sunk cost,
incremental cost
How to use breakeven analysis
to explore changes in
business?
Chapter 3 (HDR) Exercises
Pg. 138-139
Marginal Costing and
Relevant Costing
Cost-Volume-Profit
analysis and Break-even
analysis,
Resource constraintsLimiting factor decisions
To allow the students to
determine the level at which
the company must operate to
break even.
Case discussion
Learning Outcomes
Reading: Chapter 3 (HDR)
(Pg. 87-94)
Chapter 3 (HDR) Solved
Examples Pg. 114- 115, 121131
Chapter 3, (HDR) Exercises
Pg. 138-139
Case: TransWestern
Airlines
To practice CVP analysis for
decision making with
additional constraint situations
To familiarize with decisions
involving marginal costs,
relevant cost, opportunity cost
etc.
Case discussion
Learning Outcomes
Reading:
Chapter 11 (HDR) (Pg. 582591, 603-607)
To learn to identify relevant
information for managerial
decision making
14
Introduction of new
product and servicefeasibility study-profit
analysis and break-even
analysis
Self-Learning
To learn to apply relevant
information in context of:
Chapter 11 (HDR) Solved
Examples Pg. 616-617, 621633

Introduction of new
products and services

revenue and profit
maximization
Chapter 11 (HDR) Exercises
Pg. 638-643
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Costing Systems
Overhead absorption
under traditional method
Case: Camelback
Communications (HBS) – 9185-179
Case discussion
Reading: Chapter 5 (HDR)
(Pg. 201 - 207)
To explain:
 Why an adequate costing
system is important for
any organization?
 Why over-aggregation of
cost systems reports
result in incorrect product
costs?
Self-Learning
Chapter 5 (HDR) Solved
Examples (Pg. 232- 241)
15
Chapter 5 (HDR) Exercises
Pg. 265-266
Learning Outcomes
To show that the products that
a firm chooses to sell can be
altered by the type of cost
system it has.
To understand how direct
labor-based cost systems work
and how they fail?
16
Overhead absorption
under Activity Based
Costing
Case: Destin Brass
Products Co (HBS) – 9-190089
Application in
manufacturing set up;
ascertainment of cost
Reading Chapter 5 (HDR)
(Pg. 209-226)
Self-Learning
Chapter 5 (HDR) Solved
Examples, Pg. 241-245, 251264
Chapter 5, (HDR) Exercises
Pg. 267, 269-272
Case discussion
Learning Outcomes
To understand the relationship
between the costs and prices.
To appreciate the difference
between a conventional cost
accounting system and a more
modern cost accounting
system.
To appreciate activity-based
costing system.
Budgeting
Caselet: David Ltd
Case discussion
Master budgets as a tool
for planning and control;
budgeting process, whatif analysis; operational
and financial budgets
Reading: Chapter 6 (HDR)
(Pg. 273-302)
Learning Outcomes
17
Types of budgets: Sales
budget, Production
budget, Material usage
budget, Material
purchase budget,
Manpower budget
Self-Learning
To prepare various kinds of
budgets for an organisation.
Chapter 6 (HDR), Solved
Examples, Pg. 306-312,326332
To understand the interlinkage
of the different Budgets in the
organization.
Chapter 6 (HDR), Exercises
Pg. 332-334, 335(6.36)-338
To prepare Budget keeping in
mind the targeted profit of the
organization.
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Flexible Budgeting and
Variance analysis
Evaluation of various
budget related concepts
– preparation of the
flexible budget
18-19
Quantity and price
variances for material
and labour
Variance Analysis
Caselet: Greek Art
Reading: Chapter 7 (HDR)
Pg. 339-352; 355-359
Self-Learning
Case discussion and problem
solving
Learning Outcomes
To learn to prepare a flexible
budget.
To understand the concept of
variances.
Chapter 7 (HDR) Solved
Examples Pg. 363-377 (716 to 7-26), Pg. 385-389
(7-30 to 7-31)
To analyse budgeted and
actual data for material, labor,
and overhead deviation.
Variance analysis for
decision making
Case: Waltham Motor
Division (HBS) – 9-184-169
Case discussion
Profit reconciliation
using flexible budget for
performance evaluation
Reading: Chapter 7 (HDR)
(Pg. 339-346)
Learning Outcomes
Self-Learning
20
Chapter 7 (HDR) Solved
Examples Pg. 363-364
Chapter 7 (HDR) Exercises
Pg. 390 (7.33)
Reading List
and
References
To understand the importance
of evaluating actual
performance against budgets.
To learn to present and analyse
a profit reconciliation
statement for managerial
decision making.
Textbook
Financial Accounting
Financial Accounting for Management by N Ramachandran and Ram Kumar Kakani, 5th
Edition, McGraw Hill, 2020 (RK)
Management Accounting
Datar, S.M., & Rajan, M. (2017). Horngren’s Cost Accounting: A Managerial Emphasis. 16th
ed. Pearson. (HDR)
Reference Text
Anthony R.N, Hawkins D.F, Merchant K.A., Singh P. (2020). Accounting Text and
Cases: The Financial Accounting Chapters, 13th Edition, McGraw Hill Education
(India) Pvt. Ltd. (AHM)
Reference Coursera Course
Accounting: Principles of Financial Accounting, offered by IESE Business School,
University of Navarra
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Faculty Office Hours (Weekly)
Dr C Dasgupta
Thursdays
3.30 pm to 4.30 pm
8th Floor, East wing,
Cabin – E 854
Dr S Mazumdar
Thursdays
3.30 pm to 4.30 pm
8th Floor, East wing,
Cabin – E 855
Dr. S Wats
Thursdays
3.30 pm to 4.30 pm
8th Floor, East wing,
Cabin – E 830
Prof S Pani
Thursdays
3.30 pm to 4.30 pm
8th Floor, East wing,
Cabin – E 852
Dr H Gwalani
Thursdays
3.30 pm to 4.30 pm
8th Floor, East wing,
Cabin – E 829
Prepared by Faculty Team
Area
&
Program chairpersons
Approved by Associate Deans
Approved by Dean SBM
Sticker for date of receipt and attachments rubic and project guidelines
Individual Assignment (Financial Accounting Module)

The objective of the individual assignment is to familiarize students with how companies from
different sectors report their financial statements in compliance with the Indian accounting
standards.

Students are expected to read the following Ind-AS after the relevant session:
Ind-AS
Topic
Ind-AS 1
Presentation of Financial Statements
Related to
Sessions
1-4
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Ind-AS 115
Revenue from Contracts with Customers
5
Ind-AS 2
Inventories
6
Ind-AS 16
Property, Plant and Equipment
7
Ind-AS 7
Statement of Cash Flows
8

After reading the Ind-AS, students are expected to go through the MD&A, Auditor’s Report,
Financial Statements, Accounting Policies and Notes to Accounts sections of the Annual Reports
of the following 3 companies and prepare notes on how the companies are complying with the
Ind-AS mentioned above:
1. Maruti Suzuki
2. Infosys
3. Interglobe Aviation

The students have to submit a brief report on the Ind-AS and their application by the 3 companies
mentioned above by the end of the 10th session. In addition, the faculty may call few students in
each session to share their understanding of the relevant Ind-AS for the 3 companies.
Assessment Rubric for the Assignment
Diligence and
application
Excellent
Satisfactory
Needs Improvement
Diligently prepared,
well - summarised &
demonstrates good
application
Diligently prepared
and well-summarised
Weak in terms of
diligence or
presentation
(3-4 marks)
(1-2 marks)
(Out of 5 marks)
Maintaining integrity
and timeliness
(5 marks)
Timely preparation &
submission of
plagiarism free report
Report has plagiarism
and not submitted in
time
(4-5 marks)
(2-3 marks)
(Out of 5 marks)
Group Field Project Report Submission (Management Accounting Module)





The objective of the group assignment is to help students to assimilate and apply concepts
related to cost ascertainment that are covered in sessions 10-15.
This is designed as a field activity. It is envisaged as an opportunity for students to interact
with small scale firms, cross pollinate with discussions in classroom, get some exposure to the
challenges faced by firms in their efforts to classify costs.
This is envisaged as a group activity to allow discussion and debate between group members
on field observations.
Students work in defined timelines and submit a field project report.
Broad scope of the project includes:
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o


Identification:
 Identify any small-scale organization/partnership firm / proprietorship
involved in manufacturing or services. Firms solely involved in trading
activity cannot be selected.
 Understand the workflow process of the organization.
 Identify the product/service and the cost unit for cost ascertainment.
o Data Collection:
 Collect the cost and revenue data from the organization from primary /
secondary sources.
o Classification:
 Identify all costs into a) Direct or Indirect; b) Fixed or Variable
 Construct a basic cost sheet using information in (a) above
 Calculate the break-even point using information in (b) above
 Identify the difficulties faced in carrying out the above and how did you
resolve them (assumptions / additional information that was used)
All submissions will undergo similarity checks.
Late Submissions will attract negative marking.
Assessment Rubric for the Project Report
Identifying direct and
Indirect costs and Cost
Sheet preparation
(Out of 5 marks)
Excellent
Satisfactory
Needs Improvement
All / Most costs are
correctly classified
with appropriate
assumptions. Cost
sheet with detailed
information regarding
various stages of costs
prepared.
Substantial costs
correctly classified.
Assumptions not
clearly elucidated.
Cost sheet is prepared
some information
missing.
Incorrect classification
of costs, errors in cost
sheet preparation.
(1-2 marks)
(3-4 marks)
(5 marks)
Identifying Fixed and
Variable costs and
Breakeven analysis
(Out of 5 marks)
All / Most costs are
correctly classified
with appropriate
assumptions. Break
even analysis
incorporates quality
discussion on the
firm’s operations.
Substantial costs are
correctly classified
with appropriate
assumptions. Break
even analysis
incorporates
satisfactory discussion
on the firm’s
operations.
Incorrect classification
of costs, with weak
breakeven analysis.
(1-2 marks)
(5 marks)
(3-4 marks)
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