Foundations of Accounting & Finance

ABOUT THE COURSE: It is the foundation course for those intending to learn about Accounting & Finance. It is also a part of the set of functional disciplines of Business Management and one is expected to master it as a part of their preparation to work as managers. As the title indicates, the subject matter is “Accounting and Finance”. The terms here refers to accoutning and finance function as practiced by business organizations. The course is “accounting” in the sense that it deals with information regarding revenue, cost, assets and profit. The course is “managerial” in the sense that it focuses on using information intelligently as a manager. It is a course on appreciation of “accounting & finance” appreciation rather than one in methodology per se.INTENDED AUDIENCE: Any body who wants to gain basic knowledge in Accounting and Finance INDUSTRY SUPPORT: All the EMBA students enjoy this course. A techie moving to a managerial level will appreciate this course.

Week 1:

Conceptual Basis of Financial Accounting
• Concepts and Interactions of Financial Statements
• Terminologies in Financial Accounting

Week 2:

• Financial Statements: Balance sheet
• Financial Statements: Income Statement
• Financial Statements: Cash flow Statement

Week 3:

• Financial Statement Analysis
• Reading financial statements
• Financial Ratios

Week 4:

• Conceptual basis of Cost Accounting,
• Cost behaviour,
• Elements of cost and preparation of cost statement
• Cost Classification
• Direct & Indirect cost
• Overhead allocation / absorption
• Traditional Method, Primary and Secondary Distribution
• Activity Based Costing

Week 5 :

• Cost-Volume-Profit Analysis
• Contribution Margin,
• Break-Even Point
• Marginal Costing,
• Operating Leverage
• Decision making using Marginal Costing

Week 6:

• Performance Evaluation
• Budgeting
• Flexible Budget
• Production Budget
• Sales Budget
• Master Budget
• Variance Analysis

Week 7:

• Introduction to Corporate Finance
• Time Value of Money
• Discounted Cash Flows

Week 8:

• Valuing Bonds
• Valuation of Stocks as Investments

Week 9:

• Valuing Projects NPV and IRR
• Valuing Projects Risk Analysis

Week 10:

• Risk, Return and the Capital Asset Pricing Model

Week 11:

• Cost of Debt, Equity, WACC
• Capital Budgeting,
• Capital Market Efficiency
• Capital Structure and Cost of Capital

Week 12:

• Dividends and other Payouts
• Course Summary