Objective : To provide a comprehensive understanding about conceptual and technical foundations on which financial information base is built and to give insights into making use of it for decision making.

1. The nature need and scope of Financial Accounting: Concepts and Conventions and their implications on the data generation.

2. Double Entry Accounting System: Definition of transaction and accounts: Classification of accounts Accounting equations - static and dynamic - and their use. Process of accounting - Books of original entry, ledger, trial balance and final accounts.

3. Measuring Business Income: Distinction between Capital and Revenue: Matching Revenue and Expenditure; The role of accounting policies Depreciation and inventory valuation on reporting income.

4. Understanding Terminal Accounts: Income Statement: Balance Sheet: Provisions of Company's Act, 1956 relating to the preparation and presentation of final accounts of companies. Guidelines for disclosure.

5. Taxation and Tax Planning: Corporate tax rates and tax structure: The effect of Income Tax on business decisions: Tax avoidance and evasion: Tax Planning; Tax shelters; Carry forward and set off of losses.

6. Financial Analysis : The scope and purpose of financial analysis : Financial statement analysis - Horizontal, vertical and Ratio analysis; Ratio Analysis - Liquidity, Activity, Debt, Coverage and Profitability ratios; Return on Investment Model for performance evaluation; Predictive power of financial ratios; Common size and Index analysis; Inflation and financial analysis; Applications of financial analysis; Problems in financial statement analysis - Balanced Score Card.

7. Funds flow analysis: concepts of funds; ascertaining funds from operations; other sources of funds; Uses of funds; Preparation and analysis of funds flow statement and cash flow statement.

8. Preparation and analysis of proforma financial statements.

Note: A few cases may be discussed in teaching this paper.




Suggested Readings:
1. Walter B. Megis, Charles E. Johnson and Robert F. Meigs: 1996, Accounting The Basis for Business Decisions; 10th Ed., McGraw Hill.
2. Bhattacharya S.K. and Deardon John: Accounting for Management; Vikas. Theory, Weilley Eastern Ltd.,
3. Ghosh P.K., Maheswari G.C., and Goyal R.N. : Studies in Accounting Theory, Weilley Eastern Ltd.,
4. Basu S.P. and Das. M.: Practice in Accounting, Rabindra Library, Calcutta.
5. Gupta R.L. and Radhaswamy: Advanced Accounting, Sultan Chand and Sons, New Delhi.