FORE School of Management, New Delhi

Course Outline
Programme: PGDM FM 3
Name of the Course: Financial Reporting and Analysis Credit: 3.0
Term: III Academic Year: 2020-21
Faculty: Dr. Ambrish Gupta Office Contact No.: 41242434
Classes starting 27th January, 2021. Email: ambrish @ fsm.ac.in

Introduction
This course is an extension and advanced version of the financial accounting course taught in the 1 st
term. Financial Reporting today, globally, is no more limited to balance sheet, statement of profit and
loss and statement of cash flows. The growing pressure of the capital market and globalization of
financial reporting has virtually made the corporate public entities bare themselves in relation to
financial issues affecting the investors. This course seeks to sensitize the students with the
advancements in and emerging dimensions of financial reporting in India as well as internationally.
The course should enable them identify the strategic issues and more transparent disclosures to make
necessary decision making towards creating more value for the shareholders. The whole course is
based upon real life cases of leading Indian corporates. Even for illustrations, in most cases corporate
case lets have been used. The real life case studies are meant to ensure greater student engagement as
students in this course are coming with corporate experience.

Objective
At the end of this course the students should be able to:
1. Appreciate the vast gamut of advancements taking place in the field of corporate financial
reporting, its purpose, implications and impact on the businesses and their stakeholders.
2. Analyze the various financial reports and key management strategies for assessing their specific
impact on shareholder value.
3. Develop competencies in creating and enhancing the value of the enterprise both tangible as well
as intangible.

Text Book (TB):

Financial Accounting for Management: An Analytical Perspective by Dr. Ambrish Gupta, Pearson
Education, 6th edition 2018.

Kindle book: https://www.amazon.in/Financial-Accounting-Management-Gupta-Ambrish-

ebook/dp/B07FKP8N2S

References:
There is no single book available covering the entire curriculum. Therefore, large number of reference
material will be used from various sources, such as:
A. Books:
1. Soundview Executive Book Summaries (USA): The EVA Challenge by Joel M. Stern and
John S. Shiely (John Wiley).
2. Brand Valuation, John Murphy, Business Books Ltd., London.
B. Other publications:
1. Related IFRS converged Indian Accounting Standards (IND ASs) issued by the ICAI.
Available at www.mca.gov.in
2. Corporate Annual Reports, Financial/Qualitative reports published by Business Magazines,
Economic News Papers and Corporate Research Reports, etc.
3. Companies’ websites, Other websites: www.sternstewart.com, www.sebi.gov.in, www.nse-
india.com, www.bseindia.com, www.icai.org, www.mca.gov.in
4. A financial database as available in the library

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Pedagogy
A mix of Lectures, In-class illustrations with practice problems, Case studies, case Lets, Quizzes,
Presentations by the Students, Small-Group Assignments/ Projects and etc. Group learning highly
recommended. Students will be provided up-to-date handouts also on many topics.on

Evaluation Components and Weightage

Evaluation Components (tentative) Weightage in Marks

Quiz 1/Class presentation 10 %
Midterm exam 20%
Quiz 2 10%
Group project 20%
End Term Exam. 40 %
Total 100 Marks

Session Plan

Session Session Theme Additional Question to

No. Reading/Cases explore/Learning
outcome*
1 About this course……….Mandatory vs. Voluntary reporting
1-2 Unit 1: 1. Chapter 11 (TB) Reporting substance over form.
Reporting and Analyzing 2. IND AS 116/17
Off balance sheet items: 3. Case: TeleVista
Leases. Mobile Ltd. (Case
center)
3 Unit 2: 1. Chapter 13 (TB) Fair value gain/loss on
Advanced issues in fair 2. IND AS 109 derivatives (cash flow hedges)
value reporting of 3. Case lets on and impairment of financial
financial instruments: impairment: ----CEAT,: assets as per fair value
1. Impairment of Asian Pints, Ashok measurement.
financial assets
Leyland
2. Gains/losses on
Derivatives
4-5 Unit 3: 1. Chapter 15/16 (TB) 1. Purpose, interlinkages and
Quality of reported 2. Cases: significance of these
earnings: Window  Pawan Hans (Case reports.
dressing and analyst Centre) 2. Understanding window
 Havells India dressing and its
adjustments.
significance in evaluating
1. Auditors’ report,  9 new cases
financial reports.
2. Directors’ report, 3. Case lets:
 Indo-Rama (Ch. 15)
 Liberty Shoes (Ch. 16)
 Others from Ch. 15/16
6 Unit 4: 1. Chapter 15 (TB) Purpose, interlinkages and
Management’s discussion 2. Case: significance of these
and analysis report, Havells India report/statement.
Chairman’s Statement
7 Unit 5: 1. Chapter 15 (TB) Understanding Financial frauds
Financial frauds and 2. Case: Nestle and role of Corporate
Corporate governance 3. Case let: Sun Pharma governance in ensuring
report financial discipline
8 Unit 6: 1. Chapter 15 (TB) Understanding social

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 Corporate social 2. Case: Havells India responsibility of business and
responsibility reporting its financial implications
QUIZ 1
9-10 Unit 7: 1. Chapter 23 (TB) Analyzing group performance
Consolidated financial 2. IND AS 28, 110, as a single unit
reporting: Expansion and Cases: Reliance
diversification through Industries (Case
subsidiary companies Centre), ICICI Bank
associates and joint
ventures
MID TERM EXAM
11-12 Unit 8: 1. IND AS 108 Individual analysis of
Operating segments 2. Case-ITC (case performance of different
reporting: Operations Centre), Titan business lines
diversification
13 Unit 9: 1. IND AS 34 Keeping reporting to the
Interim financial 2. Case-Bharat investors on a continual basis:
reporting: Continuous Electronics, Colgate information symmetry
evaluation through
quarterly results
14 Unit 10: 1. IND AS 24 Assessment of the impact of
Reporting related party 2. Case: Nestle RPTs on financial performance
transactions and position
15-16 Unit 11: 1. Social media: Company Going beyond the published
Corporate financial websites
communication: Investor 2. Cases: ITC. Reliance,
presentations/earnings Colgate,
call/ Media releases
/interactive analysis tool
QUIZ 2
17-18 Unit 12: 1. Chapter 24 (TB) 1. Understand and appreciate
Emerging dimensions of 2. The EVA Challenge the trends in voluntary
corporate voluntary 1. Case: Hindustan reporting practices.
reporting: Unilever (Case Centre). 2. Understand and analyze
Shareholder value: 2. Case on IR implications of EVA for
Economic value added, shareholder value and
Enterprise value, MVA, related issues
Total shareholder return,
Integrated Reporting,
19-20 Unit 13: 1. Chapter 24 (TB) Ascertainment of brand value
Emerging dimensions of 2. Brand Valuation, John in financial terms and its impact
corporate voluntary Murphy on financial reporting
reporting: 3. Case: on select
Valuation and reporting corporate.
of brands
20 Debriefing
Note: Chapter numbers refer to those in the text book.

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For official use: -
As Benchmarked with course content in previous year, the contents of this course: (Please mark the
right option below)
(a) Is totally new
(b) Has not changed at all
 Has undergone less than/equal to 20% change
(c) Has undergone more than 20% change

Faculty Signature: ______Dr. Ambrish Gupta_________8th January, 20221

Area Chair Signature: _____________

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