For: IBA Academic Committee
By: Rustom Kavasji
Chairman, Accounting & Law, IBA, Karachi

To provide an senior executive perspective of advanced financial and management accounting
To learn techniques for analysis of financial information and improved decision making and value creation and measurement.
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Grading
• Class Participation / Assignments (30%)
– Qualitative
– Interactive
• Two written Case Analysis / Reports (20%)
• Home Assignments (10%)
• Mid Term (20%)
– Combination of case analysis and short questions
• Final Exam (20%)
– Combination of case analysis and short questions
– Comprehensive
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Course Outline & Calendar
Session Detail
1 Introduction
2 Understanding Costs, Expenses, & Financial Management
3 Understanding Financial Statements and Role of Revenue
4 Cost - Volume - Profit Analysis
5 Tactical Decision Making & Relevant Costing
6 - 7 Capital Budgeting – I & II
8 Transfer Pricing & Responsibility Accounting
9 Fiscal Planning, Budgeting, Control & Variance Analysis
10 Internal Control & Internal Auditing
11 Performance Measures & The Balanced Scorecard
12 Accounting Conventions regarding IAS, IFRS, GAAP, and Compliance
13 Activity Based Costing
14 Service Department Cost Allocations
15 - 28 Cases
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The Transfer Pricing Problem
Highlights transfer pricing as a key factor in competitiveness of textile exports and why calculation and determination of an accurate transfer price between the
Pakistani manufacturing operation and
Muscat is critical for Ammar’s successful entry into new markets
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Cost Volume Profit Analysis
Shows the usefulness of CVP as a
[planning and decision making tool for
Zulsham and an illustration of the nature of costs in the real world. Highlights key issues in CVP’s link to product pricing.
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Working Capital Management
Shows the effectiveness of good working capital and cash management in organizational growth. The case highlights good operational WC management as key in Dell’s success while also indicating some pitfalls along the way.
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Cost Allocations and Pricing
An excellent case study that illustrates the peril of poor management due to incorrect cost allocations and hidden costs, buried within lumped cost structures, in turn leading to poor product pricing and ineffective customer profitability analysis.
8

Accounting & ERP Systems
Illustrates the necessity for ERP and builds a case for an E-Enterprise. Shows the transformation of a conglomerate’s redundant information systems to the adoption of a state-of-the-art ERP system and the issues and challenges along the way in selection of a system.
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Accounting & Compliance
Illustrates the real world, real life challenges that face a team of banking executives as they are confronted between trade-offs and hard choices between sustaining profitability and remaining compliant with statutes and directives issued by the State Bank of
Pakistan.
10

Supply Chain Cost Management
Illustrates critical issues that inflate costs due to weakness and inefficiencies within the supply chain function of
Kincaid and highlights the critical importance of the procurement function in good supply chain management.
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For: IBA Academic Committee
By: Rustom Kavasji
Chairman, Accounting & Law, IBA, Karachi

To provide an overview of accounting and understanding of accounting flow for non accountants.
To enhance reading ability and understanding of financial information.
To learn techniques for analysis of financial statements for purposes of determining and selecting superior investment opportunities among large public sector corporations.
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Overview of Financial Statement Analysis

Review and understanding of Financial Statements

Objectives of Financial Statement Analysis
Sources of Financial Information

Sources of Financial Statements; Role of IFRS & GAAP

Detailed class practice of financial statement preparation

Challenges in Interpreting financial statements

Assessing quality of Financial Statements, Red Flags & Warnings
Annual Report Analysis

What are Annual Reports

Annual Report diagnosis; Regulatory framework; Chairman’s review

Auditor Report, Director’s report, Measurement, Notes to Accounts
Income Statement Analysis

IS - Revenue recognition, income taxes, deferred taxes,

IS - Extraordinary items, effect of change in accounting principles
14

Balance Sheet Analysis

BS - Consolidated statements, Reserves, commitments

BS - Contingencies, Changes in equity
Statement of Cash Flows

SCF - Review of Cash Flows and importance of Cash Flows

SCF - Detailed Analysis of Statement of Cash Flows
Analysis of Liquidity, Solvency, Profitability & Growth

Liquidity, Profitability, Solvency & Growth

Investor, Institutional Investors & Government
Presentations and Analysis of Financial Statements

Student presentations of financial statements of Pakistani Corporations
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Grading
• Class Participation / Assignments (30%)
– Qualitative
– Interactive
• Term Project (30%)
– Class Presentation (15%)
– Written Term Report (15%)
• Mid Term (15%)
– Combination of case analysis and short questions
• Final Exam (25%)
– Combination of case analysis and short questions
– Comprehensive
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Class Participation & Term Project
Class The Presenter / Group
1
2
3
• Corporate Executive seeking funding
• Investment Advisor approaching Client
• Equity Financial Analyst working for agency
Investors
Or
Clients
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Class Participation & Term Project
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1.
Select Annual Report of any public (i.e. shares traded on
KSE) company during FY’s 2010 – 2011
2.
Prepare a detailed analysis of the company for presentation in class. You must pick a company that you would invest in and prepare an overall analysis of why you would invest in that corporation for a minimum of 3 – 5 years.
3.
Multidimensional Analysis
• Industry Analysis
• Potential for future growth and success
• Liquidity
• Risk & Reward
• Competitor Analysis
4.
If possible interview top management or executives of that corporation ( optional but likely to enhance your score )
5.
Present & defend conclusions in class + written term report
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Class Participation & Term Project
Company
Selection
• First Come First Serve. Initial proposal to be submitted by the 5 th session of the course.
Presentations
• From session 16 onwards. The class and myself must be provided a photocopy of the annual report of your selected company, at least one
session before your presentation
Written
Report
• All written reports to be submitted by the 25 th session of the semester
All written submissions relating to term project must be printed not hand written
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