FINANCIAL STATEMENT ANALYSIS AND REPORTING ( MBADS1-123 )

FINANCIAL STATEMENT ANALYSIS AND REPORTING

Subject code – MBADS1-123

Course Objectives

The main aim of this course is:
1. To acquaint the students regarding various accounting concepts and its application in
managerial decision making.

2. To understand financial statements of cash flow and balance sheets.
3. To understand the appropriate accounting tools and techniques of financial accounting and
   management accounting for preparing and analyzing financial statements.
4. To make students understand about the financial reporting.

Course Outcomes

After the completion of this course students will be able to:
1. Identify and utilize value-relevant information contained within financial statement.

2. Explain the relationship between strategic business analysis, accounting analysis and
   financial analysis
3. Understand the impact of financial reporting choices on the usefulness of reported earnings
   to predict future performance.
4. Conduct applied business research (including locating, critically interpreting and evaluating
   firm-specific financial information);

UNIT–I (20 Hrs)
Accounting – Accounting as an Information System, Concepts, Convention and Principles of
Accounting, Role of Accountant in an Organization, Branches of Accounting: Financial, Cost
and Management Accounting and Their Inter-Relationships, Introduction of Accounting
Standards.
Financial Statements – Need of Financial Statement, Nature, Objectives, Uses and Limitations
of Financial Statement, Stakeholders of Financial Statements

UNIT–II

Readings of Financial Statements: Income Statement, Balance Sheet, Statement of Retained
Earnings, Fund Flow Statement, Cash Flow Statement,
Cost Analysis: Marginal Costing, Break Even Analysis, Standard Costing, Variance Analysis,
Introduction to Budgets and its Types.

UNIT-III
Analysis of Financial Statements with Managerial Perspective
Techniques of Financial Statement Analysis: Common Size Statements, Comparative
Statements, Trend Analysis and Ratio Analysis (Liquidity, Leverage, Solvency, Turnover
Ratio, Market Ratio and Profitability Ratio), Du Pont Analysis.
Analysis of Firm Performance: Time Series Analysis and Cross-Sectional Analysis,

UNIT-IV
Financial Reporting System – Content of Annual Reports, Quality of Financial Reporting,
Consolidated Financial Statements, Indian Financial Reporting System, Ethical Issues in
Financial Reporting (Window Dressing, Quality of Earnings, Financial Scams etc.)