1.3 Accounting For Managers: 1. General Information

1.
3 ACCOUNTING FOR MANAGERS

1. GENERAL INFORMATION
Credits 4
Hours per week 4
2 PERSPECTIVE OF THE COURSE

Decision making is the core function of a manager. A potential manager must be exposed to
the skill of sourcing information and make timely and apt decisions. One document that
provides ample information for many decisions is ‘Annual Report’. The Annual report, a
report prepared by the Management of the company to its owners (the shareholders)
informing them about the performance of the company over the preceding financial year,
the reasons and analysis for performance, gives adequate information for both insiders of
the company and outside stakeholders. However, the big challenge is how to read and
understand the report and how to elicit information for making decisions. This course
captures the fundamental aspects of financial statements, its analysis and interpretation
and techniques for managing cost.
3 COURSE OBJECTIVES AND OUTCOMES

OBJECTIVES
To enable the students gain knowledge about concepts, principles and techniques of
accounting
To enable the students use financial and cost data in planning, decision making and
control
OUTCOMES
Financial statements – concepts, conventions and standards that influence

preparation of financial statements
Identifying problem areas in business through various techniques of financial
statement analysis
- Managing cost – that is, controlling and reducing cost
Recent developments in Accounting and its relevance
4 COURSE CONTENT AND STRUCTURE
MODULE ONE: CONCEPTUAL BASIS FOR ACCOUNTS 6 HOURS
1 Introduction, Meaning and definition, understanding forms of Business Organizations,

Basic framework of Accounting, objectives and purpose of Accounting information,
users of Accounting information, Branches of Accounting, Basic terminology, Fraud and
Ethical Issues in accounting.
MODULE TWO: ORIENTATION TO FINANCIAL STATEMENTS 8 HOURS
2 Income statement, Balance sheet and notes to accounts – Terms and Jargons in
financial statements, Accounting concepts and conventions and GAAP.
MODULE THREE: MEASURING AND REPORTING ASSETS, LIABILITIES AND 8 HOURS
3 EQUITY
Current Assets, Inventory valuation, Cost formulas (AS-2) Fixed Assets Cost of
Acquisition (AS-10), Depreciation methods (AS-6), Liabilities and its classification.
MODULEFOUR: ANALYZING AND INTERPRETING FINANCIAL STATEMENTS 14 HOURS
4 Objectives of financial statements analysis, sources of information, standards of

comparison, Quality of earnings, window dressing, Beating window dressing,
Techniques of financial statement analysis, Analyzing financial statements using Ratio
Analysis and Du-Pont Model and Cash flow statement, understanding annual reports
and earnings releases.
MODULE FIVE: ORIENTATION TO COST ACCOUNTING 12 HOURS
5 Meaning of Costs, Classification of Costs- mainly based on elements, functions and

behavior. Cost Management – Techniques for controlling and reducing cost – Marginal
Costing, Cost-volume-profit analysis, Budgetary Control.
MODULE SIX: CONTEMPORARY ISSUES IN ACCOUNTING 8
HOURS
6 IFRS, Human Resource Accounting, Forensic Accounting, Environmental Reporting,Corporate

Social Reporting, Target Costing, Life Cycle Costing.
5 PEDAGOGY 6 TEACHING AND LEARNING

RESOURCES
a) Lectures.
a. www.icai.org/students/Bos-knowledge-
b) Demonstrations.
portal.
Practical Exercises – Individual and b. www.icmai.in
Group
Journal of Accounting
Case Studies.
Indian Journal of Accounting
The Chartered Accountant.
7 RECOMMENDED READINGS
ESSENTIAL READINGS
Narayanaswamy R, Financial Accounting- A managerial perspective, PHI Learning

Pvt Ltd 2014.
Gupta, Ambrish, “Financial Accounting for Management – An Analytical
Perspective”;
Pearson Publications
Ramachandran and Kakani- Financial Accounting for Management, Tata McGraw
Hill.
4. Vijaykumar M P., “First Lessons in Financial Reporting”, Snow White Publications
Chandra, Prasanna, “Finance Sense – Finance for Non-finance Executives”, Tata

McGraw Hill
6. Agarwal, V. Rakesh, “Systematic Approach to Cost Accounting”, Bharat

Publications REFERENCES
Tulsian and Tulsian, “ Financial Reporting”, S.Chand
2. Kishore, M. Ravi, “Advanced Cost Accounting and Cost systems”, Taxmann

Publications
Ramachandran, and Kakani, “How to Analyze Financial Statements”, Tata McGraw
Hill
Palat, Raghu, “How to Read Annual Reports and Balance Sheets”, JAICO Publishing
House
Dash A.P., “Financial Wisdom – Finance for Non-Finance Executives”, Biztantra

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1.

3 ACCOUNTING FOR MANAGERS

Hours per week 4

2 PERSPECTIVE OF THE COURSE

3 COURSE OBJECTIVES AND OUTCOMES

Financial statements – concepts, conventions and standards that influence

MODULE ONE: CONCEPTUAL BASIS FOR ACCOUNTS 6 HOURS

1 Introduction, Meaning and definition, understanding forms of Business Organizations,

MODULE TWO: ORIENTATION TO FINANCIAL STATEMENTS 8 HOURS

MODULE THREE: MEASURING AND REPORTING ASSETS, LIABILITIES AND 8 HOURS

MODULEFOUR: ANALYZING AND INTERPRETING FINANCIAL STATEMENTS 14 HOURS

4 Objectives of financial statements analysis, sources of information, standards of

MODULE FIVE: ORIENTATION TO COST ACCOUNTING 12 HOURS

5 Meaning of Costs, Classification of Costs- mainly based on elements, functions and

6 IFRS, Human Resource Accounting, Forensic Accounting, Environmental Reporting,Corporate

5 PEDAGOGY 6 TEACHING AND LEARNING

Narayanaswamy R, Financial Accounting- A managerial perspective, PHI Learning

4. Vijaykumar M P., “First Lessons in Financial Reporting”, Snow White Publications

Chandra, Prasanna, “Finance Sense – Finance for Non-finance Executives”, Tata

6. Agarwal, V. Rakesh, “Systematic Approach to Cost Accounting”, Bharat

2. Kishore, M. Ravi, “Advanced Cost Accounting and Cost systems”, Taxmann

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