Post-Graduate Diploma in Management-Dual Country Program

(PGDM- DCP)

Course Title – Financial Accounting

Course Faculty: Dr T P Ghosh

Chamber consultation hours: 3.00-5.00 PM every Tuesday
Or with prior appointment

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 Course Syllabus – PGDM Dual Country Program

Course Title: Financial Accounting Instructor: Dr T.P.Ghosh

Office : Faculty Block Telephone : 04 -4227244 ( Extension 120)
Office Hours: Tuesday & Wednesday
E-mail tpghosh@imtdubai.ac.ae
3-5 PM
Classroom: As per Time Table Timing: As per Time Table
Credits: 2 Term/Year: I

I. Course Description

The Course provides a comprehensive introduction to financial accounting process leading to

preparation and presentation of financial statements and financial statement analysis. It
is divided into three stages:
Stage 1 : Basic understanding of financial accounting
Stage 2 Understanding Financial Statements and process of corporate financial reporting
Stage 3 Financial Statement Analysis

In the first stage fundamental principles of accounting , analysis of transaction and events and
creation of accounting records will be discussed. The second stage contains preparation and
presentation of financial statements. In the third stage, various tools of financial statements are
applied to corporate financial statements with a view to analyse profitability, liquidity, leverage
and efficiency.

This course covers current practices in corporate financial reporting and fundamental issues
relating to asset valuation and income determination. The emphasis is on financial statement
analysis and interpretation of financial disclosures to help improve risk assessment, forecasting,
and decision‐making. It does not carry out in-depth analysis of financial reporting standards.

The course utilizes a combination of lectures, case discussions and analyses, numerical exercises,
and independent reading. The illustrations used in the course will provide an opportunity to
integrate the abstract tools learned and apply them in a practical context.

II. Course Objectives

i. Understanding the relationship between the accounting information and the underlying
economic transactions and events generating them.
ii. Analysing the accounting process and techniques of the preparation and presentation of
the financial statements including consolidated financial statements, segment report and
interim financial results.
iii. Understanding the accounting information disseminated through various components of
financial statements and the underlying accounting policies.

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iv. Understanding Fair Value measurement principles of IFRS/ Ind AS
v. Developing expertise to interpret and analyse financial statements.

III. Course Learning Outcomes

On completion of the course students will be able to:

i. describe the role of accounting information system and its limitations.
ii. expalin various components of corporate financial statements , namely , income
statement, statement of other comprehensive income , balance sheet and cash flow
statement and purposes thereof;
iii. apply the processes of recognition, measurement and disclosure of accounting
information in the preparation of general purpose financial statements;
iv. work individually and in a group to solve problems and communicate understanding
of issues relating to the preparation of financial statements;
v. locate and analyze financial data from annual reports of corporations
vi. analyse and interpret case information and be able to develop a convincing argument
to present their views on relevant accounting issues;
vii. evaluate firm profitability using revenue based , asset based and capital based ratios
including per share analysis, common-size analysis, percentage change analysis, and
alternative measures of income.
viii. evaluate short-term liquidity risk, long-term solvency risk, credit risk and bankruptcy
risk of a firm and efficiency of asset use.
ix. Predict share price using forecast EPS and P/E Ratio

IV. Textbook and Other Major References

Williams/Haka/Bettner/Carcello, Financial Accounting, 17E, mcgraw-hill

Other References

Financial accounting in an Economic Context, 6th Edition, by Jamie Pratt, Wiley, 2005.

Financial Accounting: An Introduction to Concepts, Methods, and uses, by Stickney and

Weil, Thomson, South-Western.
C) Suggested website for accessing periodical financial statements and annual reports:
International Accounting Standards Board : www.iasb.org
Financial Accounting Standards Board ( USA) : www.fasb.org
Accounting Standards Board ( India) : www.icai.org
www.sec.gov/edgar.shtml (For companies in USA)
www.annualreportservice.com (For select companies in different countries including
USA)
www.sebiedifar.nic.in (For companies in India)
www.moneycontrol.com

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 www.nseindia.com

V. Pedagogy

The course sessions will typically comprise a mixture of lecture, problem solving , analysis of
financial statements of companies, and presentations by students.

Students are expected to actively participate in the class work , submit all assignments as per
due date and take quizzes as per schedule. Analytical skill of the students are planned to be
developed through case study and project covering financial statement analysis and a session of
assignment solution in examination condition. They required to participate in the guest lecture(s)
to be organized on the contemporary development on the subject. Also they will be required
present the case study and project , and discussion take home assignment in the class.

The assignment, case study and project should be submitted as per the specified time line
mentioned in the session plan.

It is to be noted that internal assessments will not be repeated.

VI. Course Evaluation

Your grade will be based on the following:

Activity Percentage Type

Assignment (10) 10% Group

Each assignment comprises of 2 short questions or 1

long question

Submission in Sessions 3,4,5,6,7,9,11,13,15,17

AACSB Assignment in examination condition 10% Individual
Session 16
Quiz (10) 10% Individual

Each quiz comprises of 5 MCQs

Sessions 2,3,4,5,6,7,8,9,10,11
Case Study (1) 10% Group

Presentation by Group in Sessions 14,15,17

Students are required submit presentation file only

Group Project : Analysis of corporate financial 10% Group
statements

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Presentation by Group in Sessions 18-20

Students are required to prepare presentation file

comprising of 5-7 slides and a project report in the
prescribed format.

Class work (10) 10% Individual

Each classwork comprises of 1 short question

Sessions 2-11
Final Examination ( 2 hours) 40% Individual
Total 100%

VII. Course Delivery Plan

Session Topic/ Activity Reference to Text Activities

1 Book Chapters
and Other
resources
Text Book
1 Introduction to Financial Reporting
Chapter 1
Company form of business and importance
of Financial reports
Annual and interim financial statements
Consolidated and stand-alone financial
statements
Users of financial statements and their
information needs

Elements of financial statements – assets,

liabilities, equity , income and expense

Accounting equation

2 Identification of elements of financial Class Work 1

statements Quiz 1

Double entry book keeping - Debt credit

principles

Linking elements of financial statements to

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 various components of financial statements

Chapters 4 & 9 Class Work 2

Transaction Analysis Submission of
3 Creation of accounting records Assignment 1
Journal , Ledger & Cash Book Quiz 2

Chapter 5 Class Work 3

Trial Balance
Submission of
4 Accruals and deferrals
Assignment 2
Quiz 3

Depreciation – Straight line and reducing Class Work 4

balance methods Submission of
5
Assignment 3
Inventory Valuation - FIFO , weighted Quiz 4
average and retail methods

Income Statement
Class Work 5
Various profit measurement concepts : Gross
6 Submission of
profit
Assignment 4
Operating profit
Quiz 5
Profit before tax
Profit after tax
Earnings Before Interest, Tax Depreciation
and Amortization
( EBITDA)

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 Fair Value Measurement Class Work 6
7 Application of mark to market principle Submission of
Statement of Other Comprehensive Income Assignment 5
Earnings Per Share Quiz 6
Basic and diluted earnings per share
Balance Sheet
Presentation by current and non-current
Class Work 7
8-9 classification
Quiz 7
Deferred taxation

Statement of Cash flows Class Work 8

Purpose of reporting cash flows Quiz 8
10-11 Distinction between accrual profit and cash Submission of
profit Assignment 6
EBITDA and Cash profit
Segment reporting Class Work 9
Quiz 9
12
Analysis of segment profit of diversified
companies
Financial Statement Analysis Class Work 10
13 Common Size statement Quiz 10
Trend analysis Submission of
Assignment 7

Profitability analysis Chapter 14

14
Case Study
Sales based profitability
presentation
Asset based profitability
Capital based profitability

15 Solvency and Liquidity Analyses

Debt Equity ratio Submission of
Equity to Total Asset Ratio Assignment 8
Current Ratio
Quick ratio Case Study
presentation

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 AACSB
16 Efficiency Analysis
Assignment in
Turnover ratios
Examination
condition outside
class hours
All three sections
together

Submission of
17 Shareholders’ Ratios Assignment 9
Dividend payout ratios
Price – Earning multiples Case Study
Price – Revenue multiples presentation
EV/EBITDA analysis

Project
18 Consolidation – principles and methods presentation

Submission of
Equity method accounting – Consolidation Assignment 10
19 of Joint Ventures and Associates Project
presentation

Project
20 Review presentation

VIII. Rules for late submissions of assignments in this course

Late submissions will attract penalties

IX. Assessment Rubrics

Assessment rubrics will be provided in the Blackboard.

X. Plagiarism Policies

(As mentioned in the Policy & Procedures Manual of IMT Dubai)

Plagiarism is considered a serious academic offense leading to serious academic
sanctions. IMT uses Blackboard to detect Plagiarism. Plagiarism is the use of someone
else’s ideas, words, projects, artwork, phrasing, sentence structure or other work without
properly acknowledging the ownership (source) of the property (item). It takes many
forms and includes the following:

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 Using someone else’s words without putting these words in quotation marks.
 Using unique, original ideas, phrases, sentences, paragraphs, etc. from a single source
or a variety of sources such as a text, journal, web page, electronic source, design,
artwork etc. in one’s work without citing (all) the source(s).

For a student found plagiarizing, the punishment can be a failing grade in the assignment
without the right to redo the assignment up to a failing grade in the course.

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