Subject Code Name Credit

Financial Accounting and Analysis 2

(Earlier Financial Reporting and 30 hours
Analysis)

Course Objectives:
1. To get familiar with the basic concepts of corporate financial statements
2. To understand the components of the corporate financial statements and notes to
accounts
3. To understand the preparation and need of cash flow statement and its
interpretation
4. To learn the tools and techniques of financial statement analysis
5. To study the ethical issues in accounting

Course Outcomes:
At the end of the course students will be able to:
CO1: Understand the corporate financial statements in accordance with Indian
Accounting Standards
CO2: Apply the concepts in preparing the corporate financial statements including
balance sheet, statement of profit and loss and cash flow statement
CO3: Analyze the corporate financial statements with the techniques of Financial
Statement Analysis (FSA)
CO4: Evaluate the performance of the companies using FSA techniques
CO5: Create projected financial statements based on analyzed results and past financial
reports

No of
Unit No. Topics lecture
Hours
Introduction to Financial Accounting for Corporate Entities
1.1 Business & Activities
1 1.2 GAAP and IFRS 1.5

1.3 Financial Reporting and Disclosure of Financial Statements

 1.4 Annual Report, Objectives, and Its Components
1.5 Users of Annual Report
Statement of Profit and Loss and Balance Sheet and as per
Schedule III for IND AS
2.1 Statement of Profit and Loss
2.1.1 Format of Statement of Profit and Loss as per Schedule III
for IND AS
2.1.2. Items in Statement of Profit and Loss
2.1.3. Preparation and Analysis of Statement of Profit and Loss
2 9
from trial balance (Numerical with adjustments)
2.2 Balance Sheet
2.2.1 Format of Balance Sheet as per Schedule III for IND AS
2.2.2 Items in Balance Sheet and Classification of Assets,
Liabilities and Equity
2.2.3 Preparation and Analysis of Balance Sheet from trial
balance (Numerical with adjustments)
Statement of Cash Flow
3.1 Introduction
3.2 Need for Cash Flow Statement
3.3 Regulations related to Cash Flow Statement
3 9
3.4 Format of Cash Flow Statement
3.5 Preparation and Analysis of Cash Flow Statement (Numerical
without Adjustments)
3.6 Real Company Cash Flow Analysis from Annual Report
Financial Statement Analysis (FSA)
4.1 Introduction, Techniques of FSA
4.2 Common Size Statement Analysis (Numerical)
4.3 Comparative Analysis (Numerical)
4 9
4.4 Trend Analysis
4.5 Ratio Analysis - Liquidity Ratios, Solvency Ratios,
Profitability Ratios, Efficiency Ratios, Valuation Ratios
(Numerical)
 4.6 Inter-firm Comparison Analysis (Numerical)
4.7 Projected Financial Statements from Ratios (Numerical)
Ethical Issues in Accounting
5.1 Meaning of Window Dressing
5 1.5
5.2 Methods of Window Dressing in Accounting
5.3 Case discussion for corporate financial frauds

Total Hours 30

Pedagogy:
1. Case Studies
2. Lectures & PPT
3. Newspaper Articles, Actual Prospectus & Annual Reports, Articles from Journals &
Magazines

Textbook:
 Dr. Narender Ahuja, Dr. Varun Dawar, “Financial Accounting & Analysis”, Taxmann
Publications, ISBN-13:978-93-5071-643-4

Reference Books:

1. Sudhir S. Jaiswall, Asish K. Bhattacharyya, “Corporate Financial Statements Under

IND AS”, McGraw Hill, 2023, ISBN-13: 978-93-5532-459-7

2. Sanjay Dhamija, “Financial Reporting and Analysis”, Sultan Chand & Sons, 2020,
ISBN-13: 978-93-5161-180-6
3. N Ramachandra, Ramkumar Kakani, “Financial Accounting for Management”,
McGraw Hill, 2021, ISBN-13: 978-93-8981-173-5
4. Ambrish Gupta, “Financial Accounting for Management – An Analytical
Perspective”, 2022, ISBN-13: 978-93-560-6081-4
5. M. N. Arora, “Basic Financial Accounting”, Himalaya Publishing House, 2018
6. S. Ramanathan, “Accounting for Management”, 2014, Oxford University Press,
ISBN-13: 978-0-19-809331-2

Web Resources:

1. Schedule III for IND AS available at: Schedule III for Ind AS (wirc-icai.org)
Journals:
1. Journal of Accounting and Economics available at ScienceDirect

2. International Review of Financial Analysis available at ScienceDirect

3. Journal of Accounting Research available at Wiley Online Library

4. The Accounting Review available at American Accounting Association

5. Contemporary Accounting Research available at Wiley Online Library