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Course Handout
Accounting For Managers (AFM)
Semester-I (June -October, 2015)
Course Overview
This course is designed to help you develop a framework for understanding financial statements and managerial reports by learning the
basic accounting principles, concepts and standards. At the end of this course, you will be capable of preparing and understanding financial
statements and you can use financial and management accounting information for taking business decisions.
Course Objectives
You will know what financial statements are and why the statements are important?
You will know how these financial statements are related?
You will be familiar with accounting terminologies, methods and various uses of financial statements.
You will appreciate the importance of accounting reports and you will be able to analyze these reports using various techniques.
Sessions
Topics
Teaching Objectives
Learning Outcomes
Introductory Session
Understanding and
appreciating why
accounting is important?
To introduce the
course and highlight its
significance and role in
a business career.
To differentiate
accounting Vs. nonaccounting
information
Cases
to
be Sources
Discussed
/Readings
Introduction
to
Framework given
by ICAI.
Case 1-2: Kim
Fuller
AHM
(Chptr-1)
3-4
5-7
8
3 | Page
Case 3-3:
Dispensers of
California, Inc.
AHM
(Chptr-2)
AHM
(Chptr-3)
Case 3-4:
Pinetree Motel
Case: Surendar
Pal
INTERNAL
9-10
11
12-13
14-16
17-19
5 | Page
To discuss the
difference between
Cash Flow Statement
cash flow and earnings
AHM
(Chptr-5)
AS-9
Knowledge of improper
ways that can be used to
inflate the operating
performances.
Learning and
appreciating about cash
flow statement being a
AHM
(Chptr-6)
AS-2
AHM
(Chptr-7)
Case:Asian
Paints
INTERNAL
AHM
7 | Page
To discuss the
preparation of cost
sheet and various
classifications of cost.
To discuss the ways of
cost allocation across
cost objects.
derivative of Income
Statement and Balance
Sheet.
11-2: Amerbran
Company
(Chptr-11)
AS-3
Infosys Annual
Report
Enables to understand
how cost structure plays
a vital role in
magnifying profits or
losses of a firm and
changes the level of
BEP.
Case 16-1:
Hospital Supply,
Inc.
AHM
(Chptr-14)
AHM
(Chptr-16)
Case: Pepe
Denim
Case 18-1: Huron
Automotive
Company
Case 18-2
California
INTERNAL
AHM
(Chptr-18)
Test III
Decisions Involving Alternative
Choices
Dropping a product line
Shut down / Subcontract
Acceptance of Special Order
To discuss the
considerable factors
associated with
strategic decisions of
the firm such as 'make
or buy' a product,
using case analysis
approach.
Enables to understand
the merits of ABC
Costing over other
methods.
Enables to identify the
important criteria while
evaluating alternatives
for decision making.
Creamery Inc.
Case 26-1:Import
Distributors Inc.
Case 26-2:
Forner Carpet
Company
AHM
(Chptr-26)
Instructor Details:
Name: Dr Pranati Mohapatra
Designation: Asst. Professor, Finance.
Academic Qualifications: M.com, MBA, PhD, FDPM (IIMA)
E-mail: pranatim@ibsindia.org
Consultation - Tuesday
Office: F-104, 1st Floor
Reading Material:
1. Accounting Text and Cases by Robert Anthony, David Hawkins and Kenneth Merchant (AHM), 13/e
2. Framework for Preparation and Presentation of Financial Statements Issued by ICAI
(http://www.mca.gov.in/XBRL/pdf/framework_fin_statements.pdf)
3. Accounting Standards (AS) Issued by ICAI (http://www.icai.org/post.html?post_id=8660)
Supplementary Reading Material:
1. Accounting for Decision Making by Belverd Needles, Marian Powers and Susan Crosson, Cengage Learning
2. Introduction to Financial Accounting by Charles Horngren, Gart Sundem, John Elliott and Donna Philbrick (9th Edition), Pearson
3. Introduction to Management Accounting by Horngren, Sundem, Stratton, Burgstahler and Schatzberg (14th Edition), Pearson
4. Financial Accounting for Business Managers by Ashish K Bhattacharyya (3rd Edition), PHI Learning
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Reach the class in time/before time. You will not be given attendance, if you arrive after the class starts.
Ensure that you read all the recommended materials and come to the class well prepared.
It is the responsibility of each student to maintain discipline in the class and add value to class room learning.
In the class discussion each student is expected to participate actively and contribute to individual and group learning.
Evaluation is based on active and intelligent participation.
If you will be found talking, chatting in mobile you will not be allowed to sit in the class.
Do not use any gadget in the class unless you are instructed to do so. Mobile phones should be switched off for the entire duration of the class.
You should not skip the classes unless it is an emergency. This is not the course that you can self teach.
No background of accounting, finance or economics is necessary for this course.
If you have any doubts, or you need any guidance regarding the subject you can consult the faculty.
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