Financial Statement Analysis
Course Code : SL FI 611
Credit : 3
Objective
To enable students to understand, analyze and interpret the financial statements of all types of
business entity.
REFERENCE BOOKS
Financial Statement Analysis
Modern Accountancy
Financial Reporting Analysis, 11 e
International Accounting: A User Perspective
Comparative International Accounting, 8th e
Fundamentals of Financial Management, 11th e
Financial Statement Analysis & Security
Valuation
Detailed Syllabus
Understanding Financial Statement: Nature
and objectives of Financial Statements, Uses of
Financial Statements, form and content of
Financial Statements, users of Financial
Statements
Financial Reporting and Regulations:
Introduction to USGAAP, Introduction to
International Accounting Standards, Indian
Accounting Standards, Applicability of Various
Standards, Comparison and Harmonization
The Annual Report: Content of the annual
report, quality of financial reporting, reporting
regulation in India for different types of entities,
Directors report and auditors report
Financial Statements: The balance sheet – as
per companies act 1956, fixed assets, methods
of depreciation, investments, current assets,
loans and advances, methods of inventory
valuation, liabilities. The income statement –
requirements as per companies act, revenue
Sessions : 33
Semester : III/IV
AUTHOR / PUBLICATION
ICFAI
Mukherjee, A / Hanif, M
Gibson, Charles H. South-Western College Pub
- 2008
Saudagaran, Shahrokh M. CCH, Inc. - 2009
Noses, Christopher / Parber, Robert. Prentice
Hall - 2004
Brigham, Eugene F. / Houston, Joel F. South-
Western College Pub - 2006
Penman, Stephen H. McGraw-Hill - 2006
recognition, and profit and loss appropriation
account. Notes on accounts and additional
information to investors.
Window Dressing: Problems in Financial
Statements, Window Dressing, Understanding
how income statement is manipulated and
reworking profits, ethical issues in financial
reporting, recent scandals in financial reporting.
Analyzing Multinational Companies:
Currency translations, methods of translating
financial statements of a foreign entity, income
smoothing, methods of profit manipulation,
international taxation.
Auditing and Corporate Governance:
American model of corporate governance,
German model of corporate governance,
Japanese model of corporate governance,
Corporate governance in India, Audit
committee, corporate governance failure at
Enron, Issues in internal audit, Sarbanes Oxley
Act.
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Introduction to Financial Statement Topic of coverage Problem Solving
Analysis: Sources of information, tools and
statement of Banking ratios relevant for banks
techniques of financial statement, economy –
Companies
industry – company analysis, overview of ratio
analysis Business Problems on
Combinations and consolidations and
Analysis of financial statements of different consolidations accounting for
types of entities: Analyzing financial investments in associates
statements of Manufacturing companies, non- and financial reporting
profit organizations, trading companies, Utilities of interest in joint
companies, software companies, hotels, ventures
hospitals and biotech companies.
Analysis of Financial Statements of Banking Cases
Companies: Preparation of bank financial
statements, assets and liabilities of a bank,  Standard Chartered Bank: Accounting
revenues and expenses of a bank, analysis of Policies
banks performance.  Microsoft Accounting Policies
Analysis of financial statements of insurance  Wipro’s Accounting Policies
companies: Need for performance
measurement, principles of performance  Infosys Accounting Policies
measures, aligning measures throughout the
organization, types of performance measures,  Maruthi Udyog’s Accounting Policies
operational performance measures, overcoming  BNP Consolidated Accounting
implementation obstacles and challenges,
performance measures and rewards Suggested Schedule of Sessions
Business Combinations and consolidation:
No. of
Meaning and definition of important terms, Topic
Sessions
types of business combinations, consolidated
financial statements, inter - company Understanding Financial Statements 2
transactions and profit confirmations, minority Financial Reporting & Regulations 3
interest, changes in minority interest, The Annual Report 2
consolidated net income and consolidated Financial Statement 3
retained earnings, changes in ownership, push-
down accounting, accounting for investments in Window Dressing 2
associates, financial reporting of interests in Analyzing Multinational Companies 3
Joint Ventures Auditing & Corporate Governance 2
Introduction to Financial Statement
3
Problem Solving Analysis
Analysis of Financial Statements of
Topic of coverage Problem Solving 3
different types of entities
Analyzing Problems on translations Analysis of Financial Statements of
Multinational and treatment of 3
Banking Companies
Companies exchange differences Analysis of Financial Statements of
3
Analysis of financial Problems on analyzing Insurance Companies
statements of financial statements of Business Combinations and
different types of different types of entities 4
Consolidations
entities Total 33
Analysis of financial Problems on specific

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