Indian Institute of Management Ranchi

Course Title
Financial Reporting and Analysis (Financial
Accounting)
Course Outline
PGP, Term I, 2023-25 Batch

INSTRUCTOR AND CONTACT INFORMATION

Instructor(s) Prof. Jagan Kumar Sur Prof. G. Naresh

E-mail jagan.kumar@iimranchi.ac.in naresh.g@iimranchi.ac.in

Office Faculty Block 2, Faculty Block 2,

Room No. 606, 6th Floor Room No. 403, 4th Floor
Consultation Hours 4 pm to 6 pm – All working 4 pm to 6 pm – All working Days
Days

COURSE DESCRIPTION

Business concerns have a compulsion to grow in terms of their Top Line, Bottom Line and Net
Line [Net worth]. Growth is possible for an entity only when it knows to measure its
performance which requires the managers to know the art of writing, reading and inferring the
contents of the financial statements.

This course would enable the participants to answer the following questions

• What are the accounting choices available for the firm in reporting inventories? Which is
the better method of reporting inventories? How to compare the firms that are following
different inventory accounting methods?
• What are the accounting choices available for a firm in dealing with Bad Debts, Sales
Returns Expenses and Sales Discount? How to compare firms that are having differences
in dealing with these accounting items?
• How should a firm report its investment in Monetary and Non-Monetary Assets?
• What are the accounting alternatives available for a firm in recognizing its revenue? What
are the requirements of accounting standards for revenue recognition? When a particular
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method of revenue recognition is suitable over the other methods?
• What are the different methods of amortizing a non-monetary asset? How to compare firms
that are following different methods of amortization?
• How to value intangibles? How to amortize the various types of intangibles?
• What are the different types of cash flows? How does the direct method of preparing cash
flow statement differ from that of the indirect method? How to prepare the cash flow
statement under the direct method and under the indirect method?
• How to analyze the financial statements? What is the linkage among the financial
statements? What are the key ratios that need to be computed for an equity investor? What
are the useful ratios for a lender? How to measure the profitability of an entity? How to
assess the investment utilization of a firm? How to measure the working capital efficiency
of an entity? How to assess the liquidity and solvency position of an organization? How to
compute the overall financial performance of a firm? And How to compare the financial
performance of a firm?
• What is the meaning of the terms “Deferred Tax Assets “and “Deferred Tax Liabilities”?
And How to deal with DTA & DTL in accounting?

Course LEARNING OUTCOMES

1. To enable the participants to become familiar with the Concepts, Principles and Jargons
of Financial Accounting
2. To help the participants in understanding the accounting choices with regard to reporting
of various line items in the financial statements of an entity
3. To facilitate the participants to prepare the Financial Statements besides providing them
with the ability to read, analyze and interpret the contents of the Financial Statements
4. To assist the participants in understanding the relevance and usage of various accounting
standards with regard to the important line items of the financial statements
5. To inspire the participants to become value maximizing managers

ALIGNMENTS OF INTENDED PROGRAM & COURSE LEARNING OUTCOMES

Course Learning Outcome Program Level Outcome Assessment Tool(s)

CLO 1: To enable the participants Analytical Acumen Embedded Question(s) in mid-
to become familiar with the 2.1 Identify appropriate term, end-term, quizzes, class
Concepts, Principles and Jargons methodology to analyze room participation and group
of Financial Accounting business problems assignment.
CLO 2 & 3: To help the Critical Thinking Embedded Question(s) in mid-
participants in understanding the 1.1 Demonstrate term, end-term and group
accounting choices with regard to understanding of business assignment.
reporting of various line items in problems
the financial statements of an 1.2 Evaluate alternative
entity approaches to solve
business problems
To facilitate the participants to
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prepare the Financial Statements
besides providing them with the
ability to read, analyze and
interpret the contents of the
Financial Statements
CLO 4: To assist the participants Critical Thinking Embedded Question(s) in mid-
in understanding the relevance 1.1.Demonstrate term, end-term, quizzes, class
and usage of various accounting understanding of business room participation and group
standards with regard to the problems assignment.
important line items of the 1.2.Evaluate alternative
financial statements approaches to solve
business problems
CLO 5: To inspire the Analytical Acumen Embedded Question(s)
participants to become value 2.1 Identify appropriate quizzes, class room
maximizing managers methodology to analyze participation and group
business problems assignment.

Entrepreneurial Skills
5.2 Evaluate business plans

REQUIRED COURSE MATERIALS AND READINGS

TEXT BOOK (TB):

Financial Accounting – Information for Decisions (Latest edition) by John J. Wild, McGraw Hill
education (hereafter referred as JW) [CONNECT PLATFORM]

REFERENCES:
Financial Accounting: A Managerial Perspective: R. Narayanaswamy, PHI
Learning Private Limited, Delhi, 6th Edition, 2018 (RN)
Indian Accounting Standards (Ind AS) issued by ICAI (relevant standards
only) Companies Act, 2013 IFRS (relevant portions only)

EVALUATION

The participants shall be evaluated on a continuous assessment mode using the following
components
+ Mid Term Examination [After the 10th session]
+ End Term Examination [After the completion of the course]
+ Quizzes [There would be two quizzes. First quiz shall be conducted after the 5th session and the
second quiz shall be conducted after the 15th session]
+ Assignment [Assignments to be submitted by the participants on group basis. The assignment
questions shall be communicated to the participants well in advance to the submission deadline.]
+ Class Room Participation [on a continuous basis]
+ Practice Problems [Individual submission - will be posted weekly on the Connect Platform]
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GRADING SCHEME

Component Mode Duration Weightage

Mid Term Exam Closed Book 1.5 hours 30%
(Compulsory)
Closed Book
End Term Exam 2 hours 30%
(Compulsory)
Closed Book
Quizzes Maximum of 15 minutes 10%
Individual and Group
Assignments & Case Assignments 15%
Study Submissions
Class Participation In-class Contribution 5%
(Individual)
Practice Problems Individual (Connect Weekly Submissions 10%
Platform)
Total 100%

ACADEMIC DISHONESTY
i. It may be noted that any kind of copying/plagiarism by any student and/or malpractice in
examinations will be subject to strict disciplinary action under IIM Ranchi rules. If a student
is found guilty in any such case(s), it will be recorded in his/her personal file.

ii. The reports submitted by the students like Summer Project Reports/Term Papers/ Case
Study Report/ Project Report/CIS dissertation paper or any other report will go through the
anti-plagiarism software.

iii. In all cases where the software has reported more than 30% of plagiarism by a student or
group of students, there will be automatic conversion of the grade given in that component
into “F”.

iv. The faculty may even choose to report the matter to the PGP Committee which will
temporarily convert the course grade into “F” or an “I”, issue a show cause to the student
(s) and based upon the response of the student(s) assign any punishment or its combination
from the options below.
a. Expulsion from the Institute
b.Suspension for a specified period
c. “F” grade in the course concerned
d.Scaling down grades obtained in the specific subject
e. Repeating the course
f. Withdrawal of placement services
g.Suspension, withdrawal or made ineligible for scholarships
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Course Schedule
Topics to be covered in the course Book Chapter, Case and Readings
Session
1-2 Introducing Financial Statements Chapter 1 (JW)
3-4 Chapter 2 (JW)
Financial Statements and the Accounting HBS Study Note: A conceptual framework of Financial
System Reporting, Hawkins D (2005) 9-11-118
5-7 Adjusting Accounts for Financial Chapter 3 (JW)
Statements HBS Study Note: The Mechanics of Financial
Quiz 1 Accounting. Hawkins D & Jacob Cohen J.D. (2006), 9-
101-119
8-9 Reporting and Analyzing Inventories Chapter 5 (JW)
10 Reporting and Analyzing Cash, Fraud Chapter 6 (JW)
and Internal Control John A Humphrey et. al. (2012), Young Man
Inc.,W12109, Richard Ivey School of Business
MID TERM EXAMINATION
11 Reporting and Analyzing Receivables Chapter 7 (JW)
12 Reporting and Analyzing Long-Term Chapter 8 (JW)
Assets
13 Reporting and Analyzing Current Chapter 9 (JW)
Liabilities
14 Reporting and Analyzing Long-Term Chapter 10 (JW)
Liabilities
15 Reporting and Analyzing Equity Chapter 11 (JW)
Quiz 2
16-17 Reporting and Analyzing Cash Flows Chapter 12 (JW)
18-20 Analyzing and Interpreting Financial Chapter 13 (JW)
Statements Case Study: Thumbs-Up Video (HBS) 9-189-193
HBS Study Note: Financial Statement Analysis- -David
Hawkins 9-195-177
HBS Study Note: Financial Statement and Ratio analysis
– Paul M. Healy and Jacob Cohen J.D. 9-101-029
END TERM EXAMINATION