Course Catalogue

Module                       : ACT 202: Accounting for Managers-I

Programme                : BBA

Credit Value              : 12

Prerequisite                : Module 101: Accounting Principles

 

General Objectives:

  • To acquaint student with basics of Corporate accounting and Financial Analysis
  • To introduce student to accounting standards in the preparation and presentation of accounting information.

 

Learning Outcomes:

Upon successful completion of the module, student is expected to:

  • interpret accounting as source of information for decision making;
  • explain the need of accounting standards and its development process as a means to preparation and presentation of relevant accounting information;
  • Prepare Financial Statements of Companies within the existing accounting standards; and
  • Analyze the Financial Information of the companies for managerial decision making.
  • Classify and calculate cash flows from operating activities investment

 

CONTENT

Unit- I:  Final Accounts of Companies (AS-4)                                                               (10 Hours)

Introduction, Preparation and Presentation of Final Accounts of Companies, Balance Sheet of a Company, Profit and Loss Account, treatment for taxation, bonus and dividend to shareholders, managerial remuneration, acquisition of business and profit prior to incorporation, Statutory report (Indian Accounting Standards will be used for this unit as regard to the preparation of financial statements and presentation of the information until AASBB issues Bhutanese GAAP)  

 

Unit- II: Funds Flow Statement                                                                                      (10 Hours)

Introduction, Purpose, use of funds flow statement and its limitations, statement of changes in financial position, preparation of funds flow statement, calculation of funds from operation activities, projected fund flow statement

 

Unit- III:  Cash Flow Statement                                                                                     (10 Hours)

Introduction, definition of cash, classification of cash flows, calculation of cash flows from operating activities, disclosure requirements, calculation of cash flows from investing activities, calculation of cash flows from financing activities, objectives of cash flow statement. (Indian Accounting Standards will be used for this unit as regard to the preparation of cash flow statements and presentation of the information until  AASBB issues Bhutanese GAAP)  

 

 

 

 

Unit- IV: Earnings Per Share (AS-20)                                                                             (5 Hours)

Introduction, Basic EPS and Diluted EPS (Indian Accounting Standards will be used for this unit as regard to the preparation of cash flow statements and presentation of the information until  AASBB issues Bhutanese GAAP)

  

 Unit- V: Financial Statement Analysis                                                                          (15 Hours)

Meaning, Objectives and Limitations of financial statement analysis; Tools and Types of Financial statement analysis; Comparative and Common size financial statements; Introduction to ration analysis; classification of ratios, solvency ratios, liquidity ratios, activity ratios, profitability ratios, Interrelationships among ratios and preparation of financial statements.

 

Teaching Strategies

  • Lecture
  • Short Case study
  • Demonstration

Assessment

  • Assignments/Project Work /Presentation        30 %
  • End-Semester Exam                                        70 %

                                                                    Total 100 %

Essential Texts          

  1. Sehgal A and Sehgal D, Introduction to Financial Accounting, (2008) Taxman Publication, New Delhi, India   
  2. Williams, JR, Haka, SF & Bettner, MS, Financial & Managerial Accounting the basis for business decisions, (2008), Tata McGraw Hill, New Delhi, India       

 

References

  1. Ghosh, T.P., Accounting and Finance for Managers, Taxman Publication, New Delhi, India
  2. Stice, Financial Accounting: Reporting and Analysis,(2007), Cengage Learning Pvt. Ltd, New Delhi,  India