Financial Reporting &
Analysis
Prof. A P Dash
Term-1
Post-Graduate Diploma in Management (Executive)
(Batch: 2023-24)
NTPC School of Business, Noida
NSB –PGDM(E) –Executive Programme
Course Outline for Financial Reporting & Analysis (FRA) -2023
Instructor:
Prof. A P Dash
Course Objectives
Every organisation uses various types of resources to accomplish its one or more objectives. Accounting
is an information system that provides information about the amounts of these resources, the means of
financing them, and the results achieved through using them. This information is required by various
stakeholders like shareholders, employees, suppliers, financial institutions, customers, and statutory
agencies.
This Course enables the students to develop skills to prepare and understand various financial
statements viz. balance sheet, income statement and statement of cash flows, and to analyze and
interpret the data contained in these statements.
The course covers the framework of accounting concepts; mechanics related to preparation of balance
sheet, income statement and cash flow statement; computation of ratios and basic analysis of the annual
report. It also covers evaluating the managerial choices of alternative accounting practices in specific
areas and their impact on the financial statements. The discussion on such choices would also provide
opportunity to appreciate Indian Accounting Standards that are converged to International Financial
Reporting Standards (IFRS) referred to as “Ind AS.”
Pedagogy
The pedagogy would focus on self-learning by the students with inputs from the instructors on
explaining the concepts and their applications. The practice problems would be distributed to the
students.
Text Book
Accounting: Text & Cases by Anthony, Hawkins & Merchant, 13th Edition (AHM)
Evaluation
Class participation
Quizzes (3 Quizzes)
Individual Assignment
10%
30%
10%
Group Project
20%
Examination
30%
The contact details of the instructor are:
Prof. A P Dash, Telephone: 9650991299[apdash@nsb.ac.in]
Session Schedule
MODULE: UNDERSTANDING FINANCIAL STATEMENTS
Sessions 1-2
Introduction to the Course
Balance Sheet and Related Concepts
Reading:
AHM: Chapters 1 & 2
Case:
AHM: Chapter 2 - Lone Pine Café (A)
Practice:
AHM: Chapter 2 - Maynard Company (A)
Session 3
Income Statement (Profit and Loss Statement) and Related Concepts
Reading:
AHM: Chapter 3
Case:
AHM: Chapter 3 – Lone Pine Café (B)
Practice:
AHM: Chapter 3 – Maynard Company (B)
Session 4,5
Income Statement (Profit and Loss Statement) and Related Concepts
Reading:
(1) AHM: Chapter 3
(2) Schedule II of the Companies Act 2013: Useful lives to
compute Depreciation
Case:
Octane Service Station
Practice:
Samanvya Building, Space Architecture, Marathon Service Centre
(Note: sessions cover depreciation accounting, provision for bad debts and income tax
impact )
Session 6
Accounting Process: Accounting Entries, “T” Accounts, and Financial Statements
Reading:
AHM: Chapter 4
Case:
Model Demonstration Farm (B)
Session 7
Accounting for Manufacturing Activities and Inventory Valuation
Reading:
AHM: Chapter 6 (pp. 148-160)
Case:
AHM: Problem Nos. 6.5 and
6.6
Session 8-9
Cash Flow Statement
Reading:
AHM: Chapter 11
Case:
Chemalite (B)
Practice:
SAPL, Rajaneesh Company
MODULE: ANALYSIS OF FINANCIAL STATEMENTS
Session 10
Annual Report of a company
Reading:
AHM: Chapter 14
Discussion:
Annual report of NTPC (latest report to be downloaded from the
website)
Session 11-12 Analysis of Financial Statements
Reading:
AHM: Chapter 13
Discussion:
Financial Analysis of NTPC (to be distributed)
MODULE: FRAMEWORK OF GAAP & ACCOUNTING POLICY CHOICE DECISIONS
Session 13,14 Revenue Recognition – Construction Contracts
Reading:
Revenue Recognition and Reporting [9-101-050]
Case:
Charles Crowne Company (Booklet) (Use Cost
Method) Lead questions: Page 5 of the case
Session 15
Revenue Recognition
Reading:
Revenue Recognition and Reporting [9-101-050]
Case:
Microsoft Financial Reporting Strategy
[9-100-027]
Lead questions:
(1)
The Company follows a policy of deferring software revenues and writing off
software development costs as incurred. Compute the impact on operating income and
the balance sheet if:
a)
b)
c)
Microsoft capitalizes 40% of the software development costs (row 4 in
Exhibit 2) and writes it off over 2 years starting from the following year
Microsoft eliminates deferred revenue policy (row “Unearned Revenue” in
Exhibit 3)
Both (1) and (2).
(2) Why did Microsoft adopt these policies?
Session 16
Financial Modeling
Session 17, 18
Analysis of other Power utilities
Session 19, 20
Project Presentations
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