The objective this course is to develop a conceptual understanding of financial accounting system and their application in business.
Course Outcome (COs):
Course |
Learning outcome (at course level) |
Learning and teaching strategies |
Assessment Strategies |
|
Paper Code |
Paper Title |
|||
AAF-115 |
Financial Accounting |
Upon successful completion of this course, the student will be able to:
CO 20: Explain the need and objectives of Accounting standards. CO 21: Develop skills in Recording Transactions and Events of Business. CO 22: Generalize skills among the students in the field of Preparation of financial statements and the uses of Results. CO 23: Make Consolidated Financial Statements & Preparation of Accounts from Incomplete Records. CO 24: Facilitate to prepare Financial Statements: Importance, purpose, interpretation, and analysis of financial statements & Ratio Analysis. |
Approach in teaching: Explanations, Discussion, Solving Questions, Project, Field Trip
Learning activities for the students: Field activities, Presentation, Giving tasks |
Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects. |
Introduction: Accounting standards and its relevance;
Financial Reporting context and purpose, important elements of financial reports; Financial Statements and its scope and purpose for external reporting, users’ and stakeholders’ needs.
Regulatory framework: legislation andregulation, reasons, limitations, duties and responsibilities of thosechargedwith governance.
Characteristics of financial information;uses and principles of double-entry and accountingsystems, including maintenance of accounting records andsources of accounting information; ledger accounts, books of prime entry, andjournals
Recording of transactions and events related to sales and purchases, cash, inventory, tangible non-current assets; Intangible non-current assets and amortization; Accruals and prepayments; Receivables and payables; Provisions and contingencies; Capital structure and finance costs
Preparation of trial balance; Correction of errors; Control accounts and reconciliations; Bank reconciliations statement; Suspense accounts
Preparation of financial statements: Statements of financial position; Statements of profit or loss and other comprehensive income, including disclosure notes; events after the reporting period;
Depreciation Accounting: Introduction, meaning and definition, methods of recording depreciation;
Consolidated Financial Statements:Preparation of consolidated financial statements for Subsidiaries and Associates
Preparation of Accounts from Incomplete Records (Single Entry System): Nature of Incomplete Records, Limitations of the Single Entry System, Ascertainment of Profit or Loss, Difference between Double Entry System and Single Entry System
Cash flow Analysis: Introduction, Concept of Cash, Use of Cash Flow Analysis, Construction of Cash Flow Statement
Financial Statements: Importance, purpose, interpretation and analysis of financial statements, Ratio Analysis: Meaning and classification of ratio- Liquidity ratio, Activity ratios, Profitability ratios, Leverage ratios and Investment ratios.
Note- The candidate shall be permitted to use battery operated pocket calculator that should not have more than 12 digits, 6 functions and 2 memories and should be noiseless and cordless