JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD

Course Objectives:

• To provide understanding of the concepts of Financial Reporting & Analysis.
• To highlight the importance of Accounting Process.
• To elaborate on the methods of inventory valuation.
• To elucidate the management of funds/ cash from operations of the company.
• To impart knowledge of various ratios, analysis and interpretation of financial statements.

Course Outcomes

Students will be able to

• Understand the Concepts and Principles of Accounting.
• Understand the Accounting Process in detail.
• Learn various aspects in depreciation, Inventory and Goodwill.
• Analyze the Working Capital and Flow of Funds and Cash into the Business
• Prepare, analyze and Interpret Financial Statements.

UNIT - I: Introduction to Accounting

Importance, Objectives and Principles, Accounting Concepts

and Conventions and The Generally Accepted Accounting Principles (GAAP), Their Implications on Accounting System, Double Entry System, Recording Business Transactions, Classification of accounts. Accounting cycle.

UNIT - II: The Accounting Process

Overview, Books of Original Record, Journal, Ledger, Trial

Balance, Classification of Capital and Revenue Expenses, Final Accounts Trading, P&L Account, Balance Sheet with Adjustments. Rectification of Errors. Accounting from Incomplete Records, Advantages and Disadvantages of Single Entry and Double Entry System and the Differences between the two, Preparation of Accounts, and Ascertainment of Profit from Incomplete Records, Accounting Treatment as per the Statement of Affairs Method and Calculation of Missing Figures.

UNIT - III: Valuation Models

Valuation of Assets, Tangible vs. Intangible Assets. Inventory Valuation

Methods of Inventory Valuation and Valuation of Goodwill, Methods of Valuation of Goodwill. Depreciation, Methods of Depreciation, their Impact on Measurement of Business Accounting.

UNIT - IV: Financial Statement Analysis-I

Statement of Changes in Working Capital, Funds from

Operations, Paid Cost and Unpaid Costs. Distinction between Cash Profits and Book Profits, Preparation and Analysis of Cash Flow Statement and Funds Flow Statement, Horizontal Analysis and Vertical Analysis of Company.

UNIT - V: Financial Statement Analysis-II

Analysis and Interpretation of Financial Statements,

Liquidity, Leverage, Solvency and Profitability Ratios, Valuation Ratios, Du Pont Chart, Accounting Standards Issued by ICAI, Focus on INDAS, International Financial Reporting Standards (IFRS).

Suggested Readings:

• S.N. Maheswari, S. K. Maheshwari, Sharad K. Maheshwari, Accounting for Management, Vikas Publishing House, 5e, 2022.
• Narayanaswamy. R, Financial Accounting: A Managerial Perspective, PHI Learning, 7e, 2022.
• Ambrish Gupta, Financial Accounting for Management, Pearson Education, 7e, 2022.
• Raj Kumar Sah, Financial Accounting, Cengage Learning, 2e, 2020.
• Dhanesh K. Khatri, Financial Accounting & Analysis, Tata McGraw-Hill Publishing Limited, 2015.
• V. Rajasekharan, R. Lalitha, Financial Accounting & Analysis, Pearson Education, 2015.  5 MBA SEMESTER – I