ICFAI BUSINESS SCHOOL, IFHE, HYDERABAD

MBA SEMESTER–I
Course Handout (AY 2021 – 2022)

Course Accounting for Managers Total Credits 3

Name of the Faculty Member Dr. Pavana Jyothi Room No F007
Email Id [email protected] Mobile No 9951752725
Consultation Hours

Course
Description
The course focuses on the detailed understanding of accounting concepts and principles along with their relevance in the changing global business
environment. It relates these concepts to the preparation of various financial statements, like Statement of profit and loss, Balance Sheet and the Cash Flow
Statement as per the present regulatory requirements. It also involves the calculation of Unit Cost and the preparation of cost sheet and quotations. It covers
the break-even analysis and decision-making alternatives for the short term, emphasizing on the evaluation and selection of a feasible alternative for the
business.

Course Objectives The course is designed to…….

1) Giving conceptual knowledge required for preparation Statement of Profit and loss, Statement of changes in equity, Balance sheet and Cash flow
statement as per the latest regulatory requirements.
2) Discuss the relevant accounting standards (Ind AS)
3) Provide an understanding of costs and preparation of cost sheet for enhancing the analytical skills.
4) Provide conceptual knowledge for decision-making alternatives for the short term, emphasizing on the evaluation and selection of a feasible alternative
for the business.

Learning Outcomes At the end of the programme the student shall be able to …………………..
1) Understand and improve the conceptual knowledge of bookkeeping system, concepts of Accounting, Accounting standards and cost concepts.
2) Prepare Statement of Profit and loss, Statement of changes in equity, Balance sheet and Cash flow statement as per the latest regulatory requirements
for reporting purpose.
3) Understand the various regulations like Schedule (iii) of Companies Act and Ind AS

4) Help in understanding the various costs and prepare cost sheet

5) Helps in critically analyzing the available alternatives for decision-making and select feasible alternative for the business.
 Recommended Text Book Edition Author Publisher
Financial Accounting for Management 6th Edition Ambarish G Pearson publishers
Suggested Readings
1. Framework for Preparation and Presentation ICAI Website ICAI
of Financial Statements (Issued by ICAI)
2. Accounting for Management – Text & Cases 3nd
Edition SK Bhattacharyya and John Dearden Vikas publishing House
3.Accounting Standards Ind AS ,ICAI ICAI Website https://www.icai.org/post.html?post_id=7543 ICAI

Digital Tools: MCA and ICAI Websites

Software: MS Office especially MS Excel
Databases:

Detailed Course Curriculum

Articles Digital/ Swayam/NPTEL/YouTu
(A)/Cases Software be Video Links
Sessio Session Learning Chapter
Topic Key Concepts (C)/ Reports Tools
n No Outcomes Reading
(R)/Technica
l Notes (T)
(1) Understanding Introduction and Scope of
and appreciating Accounting -
meaning of https://www.youtube.com/
accounting watch?v=UxfPGWlxgHQ
(2) What kind of &list=PLOzRYVm0a65d4
Need of accounting-
information is DQntP-1Rl-
differentiating
required for PAOITrQXLX&index=2
Overview of accounting and non-
1 accounting Chapter-1&7
Accounting accounting
purpose?
information-users of
(3) Why accounting
financial statement
is important?
(4) Various users of
accounting
information
 (1) Definition of Accounting Concepts
accounting https://www.youtube.co
(2) Accounting m/watch?v=vHlpdy5Ww
concepts : Sg&list=PLPjSqITyvDe
1. Money UTeAOGhip_ubjN3y8oq
Measurement T13&index=2
Concept,
2. Entity Concept,
3. Going Concern
Concept,
4. Cost Concept,
Fundamentals
Def of accounting- 5. The Dual Aspect Chapater-1
2-3 of accounting
accounting concepts. Concept &2
concepts
6. Accounting
Period Concept
7. Conservatism
Concept,
8. Realization
Concept,
9. Matching
Concept
10. Consistency
11. Materiality

(1) Understand Journal

different types of https://www.youtube.com/
Personal, real, and accounts like watch?v=lzCx064WwDs&
nominal accounts personal, real, list=PLPjSqITyvDeUTeA
and nominal OGhip_ubjN3y8oqT13&in
Recording of
4-5 Rules of debit and accounts Chapater-1 dex=6
transactions
credit (2) Rules of debit and
credit for these
Journal accounts
(3) Journalizing the
transactions.
Classifying (1) Understand the Ledger
6 Chapter-2
the Ledger method of https://www.youtube.com/
 transactions preparation of watch?v=iJ5QeFBPC78&li
ledger st=PLPjSqITyvDeUTeAO
Ghip_ubjN3y8oqT13&ind
ex=8
Cash Book.
Purchase Book.
Sales Book.
Purchase
Return Book. (1) Able to prepare
Subsidiary
7 Sales Return Book. various subsidiary Chaper-6
books
Trade books
Receivable Book.
Trade
Payable Books
Journal Proper.
(1) Understand Inventory Valuation
various types of https://www.youtube.com/
inventory like watch?v=hKiDyflnBDU&l
RM, WIP and ist=PLOzRYVm0a65d4D
Finished goods Indian QntP-1Rl-
FIFO (2) Able to calculate Accounting PAOITrQXLX&index=14
Inventory ICAI
8 Weighted average inventory using Chapter-12 Standard (Ind
valuation Website
method FIFO and AS) 2
weighted average
methods
(3) Understand the
accounting
standard
Tangible and (1) Understand the Depreciation
intangible assets difference https://www.youtube.com/
between tangible Indian watch?v=D55DYxwBD0
Depreciation
Depreciation and and intangible Chapter- Accounting M&list=PLOzRYVm0a65
9 and
amortization assets 9,10&11 Standard (Ind ICAI d4DQntP-1Rl-
amortization
(2) Necessity of AS) 16 Website PAOITrQXLX&index=13
Methods of depreciation
depreciation (3) Various methods
 of depreciation
like SLM and
WDV

10 NCP 1
Framework Financial Statements
for the https://www.youtube.com/
Preparation watch?v=wQ0hrdmoVu4&
(1) Ascertainment of ICAI
and list=PLOzRYVm0a65d4D
Trial balance the Arithmetical Website
Presentation QntP-1Rl-
Accuracy of Financial PAOITrQXLX&index=3
Trial balance Statement of profit (2) Understand Statements in
and loss requisite format of Chapter- accordance
11-12 Format of statement of profit 4,5&18 with Indian
Financial Statement of and loss Accounting
statement changes in equity (3) Statement of Standards
changes in equity
Balance sheet (4) Balance sheet MCA
Schedule 3 of
Website
Companies
Act 2013(as
amended)
13-15 Numerical
(1) Understand how to
read annual report
(2) Letter to
shareholders
(3) Directors Report
Familiarity with the
Annual report
annual reports of (4) Financial Chaptaer-
16-17 Annual Report of Tata Steel
companies, its Highlights 14&15
2020-2021
purpose and content (5) Management
discussion analysis
(6) Notes to financial
statements
(7) Auditor’s report
(8) Corporate
 governance report
Cash Flow Statement 1
(1) Learning and https://www.youtube.com/
Overview and
appreciating about watch?v=U3K5iXBeR7o&
purpose of cash flow
cash flow list=PLOzRYVm0a65d4D
statement
statement being a QntP-1Rl-
Preparation of Cash
derivative of PAOITrQXLX&index=15
flow statement:
Income Statement
Operating activities
of profit and loss Indian Cash Flow Statement 2
Investment activities
Preparation and Balance Sheet. Accounting https://www.youtube.com/
Financing Activities ICAI
18-21 and analyzing (2) Learning how and Chapter-20 Standard (Ind watch?v=yanekrOo1xU&li
Analyzing cash Website
cash flows why a company AS) 7 st=PLOzRYVm0a65d4DQ
flows
can be cash rich yet ntP-1Rl-
Direct method
unprofitable and PAOITrQXLX&index=16
versus Indirect
vice-versa.
method
(3) Able to prepare
Non-Cash
cash-flow
transactions
statement for a
company.

22 NCP 2
Cost Classification
(1) Cost information
https://www.youtube.com/
(2) Different types of
Cost Cost, types of costs, Lecture watch?v=X3c4XOmP7AE
23 costs
classification elements, Notes &list=PLOzRYVm0a65f5
nj6Vw0jusG92KjTCq_z5
&index=3
(1) Understand the Cost Sheet
total cost and cost per unit https://www.youtube.com/
Unit cost
of goods produced. watch?v=3BwME4KWY-
Prime cost
(2) Learn to break-up of Case: Pepe Y
Works cost Lecture
24-26 Cost sheet total cost into different Denim
Cost of production Notes
elements of cost. (CRC)
Cost of sales
(3) Able to compare
profit
the cost of current period
with that of the
 corresponding previous
period.

(1) Understand how CVP Analysis

Fixed, variable and
fixed and variable https://www.digimat.in/npt
semi variable
costs behave el/courses/video/11010100
Costs
(2) Break even 3/L27.html
Cost behavior analysis
Break-even point Lecture
27-29 and (3) Using CVP https://www.digimat.in/npt
Notes
management analysis to plan el/courses/video/11010100
Margin of safety
future sales, costs 3/L35.html
and profits.
Desired level of
profitability
30 NCP 3 (PROJECT EVALUATION)
Decisions Involving Application of Marginal
Alternative Choices: Costing
Make or Buy; https://www.youtube.com/wa
To be able to decide based tch?v=mOfUg6K0E2U&list=
Decision Dropping a product
31-33 on the alternative choices PLLy_2iUCG87D6w12QCX
making- line; Shut down /
available. DGfaEa-r_eVY33&index=49
Subcontract;
Acceptance of
Special Order
Marks: 20 The learning’s
Digital Tools: 1. Understand the content of the
Software: MS Excel annual reports
2. To calculate and verify the
Databases: Annual Report Annual numbers in financial statement
To understand the financial statements of a company with the help report of with the help of notes to
Project Work accounts and schedules.
of annual reports the
company
Objective: The project is intended to make the students understand
and thoroughly study the contents of the annual report. They should
study the quantitative reports like statement of profit and loss, Balance
sheet, statement of changes in equity and cash flow statements. In
addition, they should also go through the qualitative reports like
directors’ report, management discussion analysis, audit and corporate
governance report.
Statement of profit and loss:(5marks)
To explain how the following calculations with the help of numbers
from the annual reports
Revenue from operations and total revenue
Cost of material consumed
Employee benefit expenses
Depreciation and amortization
E.P.S and diluted E.P.D
Balance sheet (5 marks)
To explain how the following calculations with the help of numbers
from the annual reports
Shareholders’ funds
Noncurrent liabilities
PPE
Trade receivables and payables
Cash and cash equivalents
Cash flow statement(5 marks)
To explain how the following calculations with the help of numbers
from the annual reports
Cash flows from
1.Operating activities
1.Investment activities
3.Financing activities
 Other reports (5 marks)
To study and comment on the following reports
Directors’ report
MDA
Auditors report and Corporate governance report
The report should be a comprehensive one. Plagiarism is strictly
prohibited. The group has to make a presentation. Marks for the project
will be awarded based on a) the quality of the content in the report b)
class presentation

Component Test-1 Test-2 CP Project Term End Exam Total

Weightage (%) 15 15 10 20 40 100
Time of Evaluation ( Session) 10 22 1- 30 30 - -
Uploading of Marks ( Session) 13 24 33 33 - -

Expectations from Students

a. Students must report to the respective sessions well before the announced time. Latecomers will not be permitted to join the class after the scheduled time.
If late, the attendance for that session will be marked as absent.
b. Read the Case Study / material well prior to the class discussion. He/she is also expected to read the chapter indicated in the course plan as the faculty
directs.
c. In the class discussion student is expected to participate actively and contribute to individual and group learning. Evaluation is based on active
participation.
d. Evaluation is a continuous process at IBS. Every student needs to be aware of the timelines given in the section below. Absence from these evaluations
will mean non awarding of marks in that particular component
e. Each faculty has been given a scheduled consultation hour. Utilize this time to meet the faculty and clarify doubts if any, seek explanations and get
mentored if needed.