MYRA School of Business

Transcription

1 MYRA School of Business Post Graduate Diploma in Management AY TERM: I Course Name: Financial Reporting and Analysis Course Code: MyC Course Description: In every business, accounting information is required by the insiders (Managers, Controlling owners) as well as outsiders (Banks, investors regulatory body like SEBI etc.). Accounting is a system that provides information about the resources used and the outcomes obtained through using them. The accounting information is documented and summarized in financial statements to report the corporate performance. The managers find it useful in decision making; investors in valuing the share prices and banks for lending purposes. Here, in this course we will learn about financial accounting for reporting and managerial purposes. A case based discussion approach is used to help us in building views and understand theory and practice of Financial Accounting. 2. Course This course has following objectives 1. To enable the participants compatible while reading and interpreting accounting information. 2. To highlight the difference between rule and management discretion while treating and discussing the accounting policies for measuring the revenues, inventory, assets depreciation, liability and income taxes. 3. To develop competence level of the participants to analyze financial statements. To enable participants provide insights about company doings and intentions, i.e. firm behavior, by doing an analysis of financial statements and reports, using appropriate techniques. Subject code: MyC102 Page 1

2 The audience of this course is first year PGDM participants. This course is spread into three modules across a total of 24 sessions. Each session is of 90 minutes. The first module explains the accounting process and accounting principles which are essential in the grounding of financial statements. Second module provides insights about accounting policies and standards. In essence, this module emphasizes the rules versus managerial choices/discretion while measuring the items like revenues, inventory, assets depreciation, liability and income taxes. Third module emphasize upon the tools available to analyze financial statements. The three modules are inter-linked and build stage-wise foundation in financial accounting for learning managers. In the first module we learn how to prepare the financial statements while the second module develops an understanding on how a manager reflects accounting numbers through using the trade-offs between the policies and managerial discretions. The third module helps you to make meaningful interpretation of the financial statements and understand the past and present financial status of a company. To attend the sessions and taking full use of the course, a participant is required to be well prepared before coming to the class. Our pedagogy includes the lectures, case discussion and annual report discussions. For the sessions based on case discussion, it is mandatory to submit the case summary in advance. Also, during sessions an active participation by each one of you is expected. The deadline of case summary submission is - 9:00 A.M, same day session scheduled. Late submissions will not be included in evaluation. 3. Instructor and Contact information Dr. Pankaj Gupta (PG) Room No- 5 pankaj.gupta@myra.ac.in , Extension Course elements 4.1 Credit values Verbal and Written Skills Medium of instruction is English. Please, refer the MYRA plagiarism policy. A direct F will be allocated in the component if found plagiarism in submissions. Subject code: MyC102 Page 2

3 5. Reading and Materials Accounting: Text and Cases (AHM)-13TH Edition - Robert N. Anthony, David F. Hawkins, Kenneth A. Merchant, Publisher Tata McGraw-Hill. 6. Learning and Teaching Activities 6.1 Course schedule and structure Module 1: Preparation of Financial Statements Module To explain the basic principles underlying the preparation of financial statements and to go through the entire accounting process quickly to establish an overview. Sessions and Session 1: Session 2: Session 3: Session 4 &5: Overview of Financial Accounting and Control Generating an overview of Financial Accounting and Control Balance Sheet To explain how to prepare the balance sheet and the importance of each underlying principle. AHM: Chapter 2: Basic Accounting Concepts: The Balance Sheet Nursery live dot com & Nursery live dot com: One year later Income Statement To explain how to prepare the income statement of a firm and the underlying principles in accrual accounting. AHM: Chapter 3: Basic Accounting Concepts: The Income Statement Seshan S (2001) Mansa Building IIMA No. F&A-0089R. Indian Institute of Management Case Repository. Income Statement- Merchandising firms To introduce the system of double-entry bookkeeping and to explain its elements viz. preparation of journal, the ledger and the trial balance. AHM: Chapter 4: Accounting Records and Systems Subject code: MyC102 Page 3

4 Desai P (2002) Irrigation Equipments Limited IIMA No. F&A Indian Institute of Management Case Repository. Session 6: Income Statement Service firms To explain how the costs are accrued in the service firms and preparation of classified financial statements. Healy P (2001) Reporting Income for Dot-coms HBS No Boston, MA: Harvard Business School Publishing. Session 7 & 8: Quiz Exam and Revision Module II: Accounting Policies and Managerial Choices Module To discuss important accounting policies and standards which are required for measuring the revenues, expenses, assets and liabilities. Sessions and Session 9: Session 10: Session 11: Revenue Recognition To explain the revenue recognition methods used when the critical event and measurability conditions for revenue recognition are not satisfied at the point of sale. AHM: Chapter 5: Revenue and Monetary Assets AHM: Case 5 2: Grennell Farm Accounting for Inventory To explain different classification of inventory and how to measure the value of inventory under different methods as well as explaining accounting standard regarding Inventory. AHM: Chapter 6: Cost of Sales and Inventories Bruns W J, Bruns S M & Marmeling S (2008). Merrimack Tractors and Mowers, Inc.: LIFO or FIFO? HBS No Boston, MA: Harvard Business School Publishing Accounting for Depreciation To understand how to measure the depreciation expenses for long-lived assets under different methods as well as explaining the relevant accounting standard. Subject code: MyC102 Page 4

5 Session 12: Session 13: Session 14: Session 15: Course Outline 2018 AHM: Chapter 7: Long-lived Nonmonetary Assets and Their Amortization Bruns W J (2004). Depreciation at Delta and Singapore Airlines (A) HBS No Boston, MA: Harvard Business School Publishing Accounting for Long Lived Assets To evaluate the three models of accounting for long-lived assets (cost, revaluation and fair value models) and to conclude on a major financial reporting decision. AHM: Chapter 7: Long-lived Nonmonetary Assets and Their Amortization Riedl E (2008). Land Securities Group [A] Inc. HBS No Boston, MA: Harvard Business School Publishing. Accounting for Equity and Liability To understand the accounting and financial reporting for owners equity. AHM: Chapter 9: Sources of Capital: Owners Equity Hawkins D, & Madera F (2005) Kemp Foods Corporation Inc. HBS No Boston, MA: Harvard Business School Publishing Accounting for Leases To understand when to capitalize a lease and how to report in the financial statements. Palepu K (1996). A Note on Comdisco s Lease Accounting Inc. HBS No Boston, MA: Harvard Business School Publishing. Accounting for Income Taxes To understand the situations in which deferred tax arise as asset or liability and how to report in the financial statements. Harmeling S S (1993). Taxing situations: Two cases on income taxes and Financial Reporting. Inc. HBS No Boston, MA: Harvard Business School Publishing. Mid-term Exam Session 16: Session 17 &18: Course revision Subject code: MyC102 Page 5

6 Module III: Understanding and Analysis of Financial Statements Module To examine the information contained in corporate annual & quarterly reports, assess the performance from different stakeholders viewpoints and to understand the limitations of the accounting data. Sessions and Sessions 19 & 20: Cash Flow Statement To explain how to prepare the cash flow statement including cash flows from operating, investing and financing activities and also to calculate the cash from operations by indirect method AHM: Chapter 11: Statement of Cash Flows Davila A (1995), Chemalite, Inc. Inc.HBS No. [B] Boston, MA: Harvard Business School Publishing Sessions 21 & 22: Understanding of Annual Report To explain how to understand the corporate financial statements in prescribed format as well as significant account policies apart from directors report, auditors report and the management discussion. AHM: Chapter 14: Understanding Financial Statements Discussion: Latest Annual Report of Tata Motors Ltd. Session 23 & 24: Financial Statement Analysis To explain how analyze the corporate financial statements from the viewpoint of various stakeholders about the performance of the company and its financial condition. AHM: Chapter 13: Financial Statement Analysis Analyzing the Financial Statements of Tata Motors Ltd Class discipline and etiquettes Follow the deadlines and sessions schedule. During sessions, personal talks, use of mobile is prohibited. It is mandatory to maintain 85% attendance. No proxies please. Those who fail to complete this norm won t be allowed to sit in the final exam. This is not allowed to leave the class room when session is going on. Non adherence to the above would attract penalty and serious action. Subject code: MyC102 Page 6

7 7. Learning Outcomes After finishing this course, following outcomes are expected: 1. Participants have developed a foundation for the specialization in Finance & Accounting domain. 2. Participants have sound understanding of the financial statements and annual reports. 3. Participants are capable to think from various stakeholders (controlling shareholders, public investors, employees, financial analysts, banks, and acquirer) point of view and put forward their opinion and insights in this course & other finance electives. 8. Evaluation 8.1. Component and weights 1 Case study analysis and class Participation 20% 2 Quiz and Mid-term Exam 30% 3 Final exams 50% 8.2. Grade Conversion Lettering grade Points A/A A B B B C C C D F TBD Please, note who score less than C+ will be asked to improve the score repeating the final exam. As per policy, there are maximum two chances be given to improve. Failing to improve in first attempt will be asked to repeat the course next year. Repeat the course is second and last chance to improve score. Subject code: MyC102 Page 7

8 Depending upon the class performance a cutoff will be decided to disclose the list of students who fail (F) in the course. Those who will get the grade letter F will be asked to repeat the course next year. 9. Academic dishonesty and Plagiarism Any student found responsible for dishonest practice (for example, copying, the use of unauthorized material in tests, etc.) in relation to any piece of work submitted for assessment shall be subjected to MYRA s dishonest practice regulations which may result in various penalties, including forfeiture of marks for the piece of work submitted, a zero grade for the paper or, in extreme cases, exclusion from the MYRA. Plagiarism is a form of dishonest practice. Plagiarism is defined as the copying or paraphrasing of another s work, whether intentionally or through failure to take proper care, and presenting it as one s own. In practice, this means plagiarism includes any attempt in any piece of submitted work to present as one s own work, the work of another (whether of another student or published authority). Any student found responsible for plagiarism shall be subject to the MYRA s dishonest practice regulations as outlined above. Even if all work sourced from others is acknowledged, the extent of other s work included in a piece of submitted work may be such that the work cannot be considered as one s own. Any submitted work may be put through safeassign which can detect any replication from any source on the internet, other assignments and printed material. 10. Missed academic work 10.1 Mid-term Examination Where students miss a regularly scheduled mid-term or class participation for legitimate reasons as determined academic office, the weight for that test/participation will be distributed across other evaluative components of the course at the discretion of the instructor. Documentation explaining such an absence must be provided within 5 working days upon returning to school. To document absences for health related reasons, please provide the relevant medical certificate. As per MYRA s policy, a student may submit a maximum of two medical certificates in a year and after which the student will have to be accompanied by responsible guardians or parents to school for justification of absence. Subject code: MyC102 Page 8

9 To document absences for reasons other than health related students are requested to provide other relevant documented proof for absence. Students unable to write a mid- term at the posted exam time due to the following reasons: religious; representing school at an academic or varsity athletic event; conflicts between two overlapping scheduled mid - term exams; or other extenuating circumstances, have the option of applying for special exam arrangements. Such requests must be made to the office of Academic affairs at least 10 working days before the scheduled exam along with acceptable documentation. Instructors cannot themselves allow students to unofficially write make - up exams/tests. Adjudication of the request must be handled by Office of Student affairs. If a mid - term exam is missed without a valid reason, students will receive a grade of zero (0) for that component Final term examination Failure to write an approved deferred examination at the pre - scheduled time will result in a failure for that examination, except in the case of exceptional circumstances where documentation has been provided and approved. Upon approval, no credit will be given for the course, and the notation N.C. (no credit) will be placed on the student s transcript. Students receiving no credit for a required course must repeat the course. Optional or elective courses for which no credit is given may be repeated or replaced with another course of equal credit value. Requests for a second deferral or rescheduling of a deferred examination will not be considered. Any student who is unable to write a final examination because of illness is required to submit the Application for Deferred Final Examination and a statement from a doctor certifying illness on the date of the examination. Students who write examinations while ill will not be given special consideration after the fact. In such cases, the request for a deferred examination privilege must be made in writing to the office of student affairs within five business days of the missed examination. Special examination arrangements may be made for students unable to write at the posted exam time due to compelling reasons (for example religious or work related reasons) provided documentation produced to the office of academic affairs is approved by the Senior Associate Dean. Note: A fee of INR 5000 will be charged for a re-exam/deferred exam. Subject code: MyC102 Page 9