Addis Ababa University

College of Business and Economics

Graduate Programs

Course Title: Financial & Managerial Accounting (AcFn-631/AcFn-6021) Credit/Contact Hours: 2

Instructors: Alem Hagos (PhD) Degefa Duressa (PhD)
Kelifa Sirmola (PhD) Sewale Abate (PhD) Tefferi Ghebray (DBL)

COURSE DESCRIPTION

The course aims to expose students to the nature of accounting information and its uses from various
decision-making perspectives. Besides, it provides a sound ground in the application of accounting
concepts and techniques and considers ethical and corporate governance issues associated with the
provision of accounting information. The topics chosen are a mix of financial and managerial accounting.
The financial accounting topics cover basics of financial statements, their analysis and the concepts and
procedures that underpin their preparation. The managerial accounting topics, on their part, include cost
and cost behavior, product costing and information for planning, controlling and decision making.

COURSE OBJECTIVE

Upon completion of this course, students should be able to:

 use accounting information to monitor problems and opportunities affecting a business,
 explain the purpose, content and format, of financial statements and the methods used by
accountants to prepare these statements and related disclosures which are governed by regulatory
requirements and relevant accounting standards,
 explain the implications of financial reports and their role in the development of effective
governance mechanisms,
 analyze and interpret financial statements to extract information about past operations and to
develop expectations about future outcomes,
 explain the role of management accounting information in managerial decision-making and
apply basic management accounting techniques, and
 identify and explain accounting issues that arise in the workplace and their implications for
business behaviour and resource allocation decisions.

TEACHING AND LEARNING METHODS

Delivery of the course will be highly interactive involving

 Lectures – the ideas and concepts found in particular topic will be discussed and illustrated.
 Problem demonstration – selected problems/questions will be assigned to and exercised by
students and then demonstrated by the instructor to reinforce concepts and enhance learning.
 Seminar/student group presentation – presentation and discussion of topics, problems and cases
as assigned to group of students.
 Case study – involves reviewing problems to make students aware of ethical and governance
issues related to financial reporting and their effects on decisions of business stakeholders.

COURSE CONTENTS

Part-I Financial Accounting

Chapter-1 Accounting: Information for decision making (Chapter 1 of Williams et al., 2018)
Chapter-2 Basic financial statements (Chapter 2 of Williams et al., 2018)
Chapter-3 Financial statement analysis (Chapter 14 of Williams et al., 2018)
Part-II Management Accounting

Chapter-4 Basic cost concepts and cost behavior (Chapter 2 of Hilton & Platt, 2020)
Chapter-5 Cost-volume-profit analysis (Chapter 7 of Hilton & Platt, 2020)
Chapter-6 Budgeting and performance measurement (Chapters 9 & 11 of Hilton & Platt, 2020)
Chapter-7 Managerial decisions (Chapter 14 of Hilton & Platt, 2020)

ASSESSMENT
 Continuous assessment-1
 Continuous assessment-2
 Final assessment
Group work and presentation……….……....…….. 20%
Test-1 (covering the first three chapters)……….… 10%
Test-2 (covering chapters 4 & 5)………………..… 10%
Test-3 (covering the last two chapters)……………. 10%
Final exam covering all chapters…….…………….. 50%

TEXTBOOKS

Williams, J.R., Haka, S.F., Bettner, M.S., & Carcello, J.V. (2018). Financial & managerial accounting:
The basis for business decisions. NY: McGraw-Hill.
Hilton, R.W., & Platt, D.E. (2020). Managerial accounting: creating value in a dynamic business
environment. NY: McGraw-Hill.

REFERENCES

BPP. (2016). ACCA Paper F2: Management Accounting. (5th ed.). London: BPP Learning Media Ltd.
BPP. (2016). ACCA Paper F5: Performance Management. (9th ed.). London: BPP Learning Media Ltd.
BPP. (2016). ACCA Paper PI: Governance, Risk and Ethics. (9th ed.). London: BPP Learning Media
Ltd.
Collier, P. M. (2003). Accounting for Managers: Interpreting accounting information for decision-
making. NJ: John Wiley & Sons, Ltd.
Duska, R.F., Duska, B.S., & Ragatz, J. (2011). Accounting ethics. (2nd ed.): NJ: Wiley-Blackwell.
Helfert, E.A. (2001). Financial Analysis Tools and Techniques: A Guide for Manager. NY: McGraw-Hill
Companies.
IASB. (2018). Conceptual Framework for Financial Reporting. Retrieved October 14, 2018 from
http://eifrs.ifrs.org/eifrs/PdfAlone?id=21922&sidebarOption=UnaccompaniedConceptual.
Kimmel, P.D.K., Weygandt, J.J., & Kieso, D.E. (2016). Financial Accounting: Tools for Business
Decision Making. (8th ed.). NJ: John Wiley & Sons, Inc.
Lee, T.A. (2007). Financial Reporting and Corporate Governance. (2nd ed.). JA: John Wiley & Sons,
Ltd.
Palepu, K.G., Healy, P.M., & Peek, E. (2013). Business analysis and valuation: IFRS Edition. (3rd ed.).
Hampshire: Cengage Learning EMEA.
Rezaee, Z. (2018). Corporate Governance in the Aftermath of the Global Financial Crisis, Volume IV:
Emerging Issues in Corporate Governance. NY: Business Expert Press.
Weygandt, J.J., Kimmel, P.D. & Kieso, D.E. (2015). Financial Accounting: IFRS Edition. (3rd ed.).
MA: John Wiley & Sons, Inc.
Weygandt, J.J., Kimmel, P.D., Kieso, D.E. & Aly, I.A. (2018). Managerial Accounting:
Tools for Business Decision-Making. (5th Cdn ed.). MA: John Wiley & Sons, Inc.
Wild, J.J., Ken, W.S., & Barbara, C. (2018). Financial and Managerial Accounting: Information for
Decisions (7th ed.). NY: McGraw-Hill Education.