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
- Sehgal A and Sehgal D, Introduction
to Financial Accounting, (2008) Taxman Publication, New Delhi, India
- Williams, JR, Haka, SF & Bettner,
MS, Financial & Managerial Accounting the basis for business
decisions, (2008), Tata McGraw Hill, New Delhi, India
References
- Ghosh, T.P., Accounting and
Finance for Managers, Taxman Publication, New Delhi, India
- Stice, Financial Accounting:
Reporting and Analysis,(2007), Cengage Learning Pvt. Ltd, New Delhi,
India