SHARDA SCHOOL OF BUSINESS STUDIES

EXECUTIVE MBA PROGRAMME

SUBJECT: ACCOUNTING FOR MANAGERS

COURSE CODE: MBE213
Brief Profile

I am Management Postgraduate (MBA) in Finance 2 year’s Full time, along with Masters in

Commerce & equipped with Professional qualification of Company Secretary CS, having

membership of the Institute of Company Secretaries, ICSI Membership No- ACS 47499.

Presently in the final stage of submission of my Ph.D thesis in the Corporate Governance

domain. I have a mixed flair of over 14 years of work experience in Corporate & Academics

with renowned corporate houses such as Mohan Meakins Ltd, NIIT Ltd, KPMG

,Cambridge English Language Assessment, at various Finance, Accounts, Secretarial

positions & with the reputed Universities & Educational Institutions like NIIT University,

G.L Bajaj Group of Institutions, & Sharda University.

 SYLLABUS & COURSE CONTENT

School: SSBS Batch: 2023-25

Program: Current Academic Year: 2023-24
Executive MBA
Branch: Semester: I
1 Course Code MBE123
2 Course Title Accounting For Managers
3 Credits 3
4 Contact 3-0-0
Hours
(L-T-P)
Course Status Core/compulsory
5 Course The course aims to provide students with a solid understanding of how accounting information can
Objective be used for effective managerial decision-making in organizations. It equips students with skills to
analyze financial data, evaluate costs and revenues, and apply accounting techniques in decision-
making.

6 Course After completion of this course, the student will be able to

Outcomes CO1: Analyze and interpret financial data
CO2. Assess costs and revenues.
CO3: Apply accounting techniques in decision-making
CO4: Perform cost-volume-profit analysis
CO5: Utilize budgeting for planning and control
CO6: Apply decision-making tools
7 Course The course "Accounting for Managerial Decisions" focuses on the utilization of accounting
Description information for effective decision-making within organizations. Students will develop a
comprehensive understanding of managerial accounting concepts, principles, and techniques.

8 Outline syllabus CO
 Mapping
Unit 1 Introduction to Financial Accounting
A Nature of Accounting, Branches of Accounting, Types of ownership- Capital Structure , CO1, CO2
GAAP Concepts and Conventions, Accounting Cycle,

B Recording of transactions: journalizing, ledger CO1, CO2

posting, preparation of Trial Balance.

C Preparation of Companies Financial Statements: as per Revised Schedule III Income CO1, CO2
Statement Balance Sheet Accounting for Depreciation, Accounting for Dividend and
Retained Earnings, Statement of changes in equity.

Unit 2 Analysis of Financial Statements

A Comparative Financial Statement: Trend Analysis, CO1, CO2

B Inter Firm Comparison Common Size, Ratio Analysis CO2, CO4

C Cash flow Statement as Per AS-3. CO2, CO4

Unit 3 Introduction to Cost & Management Accounting
A Cost Classification, Preparation of cost sheet. Marginal CO1, CO3
Costing and Cost Volume Profit Analysis

B Valuation of Inventory, Variance Analysis – Material and Labour CO3, CO4

C Budgeting-Fixed & Flexible CO3, CO6

Unit 4 Depreciation
A Concept of depreciation; Causes of depreciation; Depreciation, depletion, CO1, CO3,
amortization, and dilapidation; Depreciation accounting CO4
B Methods of recording depreciation; Methods for providing depreciation; Depreciation CO1, CO3,
of different assets; Depreciation of replacement cost CO4
 C Depreciation accounting as per accounting standard; Depreciation accounting; CO4, CO6
Provisions and reserves
Unit 5 Latest Development Trends & Practices
A Introduction to financial Software for analysis: Excel and Prowess CO5, CO6
B Human Resource Accounting CO5, CO6
C Inflation Accounting IFRS Framework,. CO5, CO6
Mode of Theory
examination
Weightage CA MTE ETE
Distribution 25% 25% 50%
Text book/s* Jain & Naranag, “Advanced Accounts”, Jain Book Agency, 18th Edition,
Reprint(2014)
Jaisawal, K.S., Financial Accounting, (Both in Hindi & English
Version),Vaibhav LaxmiPrakashan. (2010)
Gupta, R. L. & Radhaswamy, M., Financial Accounting: Sultan Chand and sons.
Shukla, M.C., Grewal T.S. & Gupta, S.C., Advanced Accounts: S. Chand &Co
Other Maheshwari S.N. & Maheshwari S. K, “A text book of Accounting
References forManagement”,Vikas Publication, 10th Edition (2013)
 SESSION-1

UNIT-1

Unit 1 Topics

- Nature of Accounting - Branches of Accounting - Types of ownership

A. Introduction to Financial - Capital Structure - GAAP Concepts and Conventions - Accounting
Accounting Cycle

B. Recording of transactions - Journalizing - Ledger Posting - Preparation of Trial Balance

- Income Statement - Balance Sheet - Accounting for Depreciation -

C. Preparation of Companies Accounting for Dividend and Retained Earnings - Statement of Changes
Financial Statements in Equity
 SIGNIFICANCE OF ACCOUNTING FOR MANAGERS

 Knowledge of finance and accountancy is important for individuals for several reasons, whether
they are managing their personal finances or pursuing a career in business or finance. Here are
some key reasons why this knowledge is important for a person:

 Financial Literacy: Understanding finance and accountancy provides individuals with the essential
skills to manage their personal finances effectively. This includes budgeting, saving, investing, and
making informed decisions about expenditures.

 Financial Independence: Financial knowledge empowers individuals to take control of their

financial future. It allows them to make sound financial decisions, reduce debt, and work towards
financial independence and stability.

 Investment and Wealth Building: With financial and accountancy knowledge, individuals can make
informed investment decisions. They can grow their wealth over time through investments in stocks,
bonds, real estate, and other assets.

 Debt Management: Knowledge of finance and accountancy is crucial for managing debt, including
mortgages, loans, and credit card balances. It helps individuals understand interest rates,
repayment schedules, and strategies to reduce and eliminate debt.
 Retirement Planning: Understanding finance is essential for planning and saving for retirement. It
enables individuals to calculate how much they need to save, choose appropriate retirement
accounts, and invest wisely to secure their financial future.

 Tax Planning: Knowledge of accountancy helps individuals optimize their tax strategies. They can
take advantage of deductions, credits, and tax-advantaged accounts to minimize their tax liabilities.

 Risk Management: Financial literacy allows individuals to assess and manage risks in their financial
lives, such as insurance coverage for health, property, and life. It helps them protect their assets and
family in times of need.

 Career Opportunities: For those pursuing careers in finance, accounting, or business, a strong
foundation in these fields is essential. It opens up a wide range of job opportunities and career
growth prospects.

 Business Ownership: If an individual owns or plans to start a business, financial and accounting
knowledge is crucial for managing the company's finances, bookkeeping, financial reporting, and
making strategic decisions.
 Economic Decision-Making: On a broader scale, finance and accountancy knowledge allows
individuals to understand economic policies, banking systems, and global financial markets. This
understanding can help them make informed decisions in a complex and interconnected world.

 Financial Well-Being: Ultimately, knowledge of finance and accountancy contributes to a person's

overall financial well-being. It enables them to set and achieve financial goals, maintain a stable
financial situation, and adapt to changing economic circumstances.

 Financial Security: In times of economic uncertainty, individuals with financial knowledge are
better equipped to weather financial storms. They can develop emergency funds, diversify their
investments, and make adjustments as needed to maintain financial security.

 Confidence and Peace of Mind: Knowing that one has the skills and knowledge to manage their
finances and make informed financial decisions provides a sense of confidence and peace of mind. It
reduces financial stress and anxiety.

 In summary, knowledge of finance and accountancy is important for individuals because it

empowers them to take control of their financial well-being, make informed decisions, pursue career
opportunities, and achieve their financial goals. It is a fundamental life skill that contributes to both
personal and financial success.