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Financial accounting - IITMandi

By Prof. Puran Singh   |   IIT Mandi
Learners enrolled: 589
This course is intended for first time students of financial accounting at undergraduate or graduate level or those who have been exposed to financials terms but haven’t had a chance to learn in a structured manner. Through well-curated content that progressively builds on conceptual learning, the course will enable a student to read and analyze financial statements of a business. The focus is to train the student on principles of accounting that drive preparation and presentation of financial statements. At the end of this course, a student will be able to understand how financial data is generated and how it can be converted into useful strategic information for stakeholders in a business.

INTENDED AUDIENCE
Any Interested Learners
PREREQUISITES None
INDUSTRIES  SUPPORT     : None
Summary
Course Status : Upcoming
Course Type : Elective
Duration : 12 weeks
Start Date : 24 Jan 2022
End Date : 15 Apr 2022
Exam Date : 24 Apr 2022 IST
Category :
  • Management Studies
  • Minor in Management
Credit Points : 3
Level : Undergraduate/Postgraduate



Course layout

Week 1: A primer on business organizations and need for accounting:
             Lecture No:1.1 Introduction to Financial Accounting
                                 1.1.1Definition of accounting
                                 1.1.2Course contents
                                 1.1.3Preparation of financial statements: Accounting cycle
                                 1.1.4Decision making using financial statements
                                 1.1.5Accounting: An art or a science?
                                 1.1.6Environment of financial reporting
             Lecture No:1.2 Company form of business
                                 1.2.1What is a company?
                                 1.2.2Types of companies
                                 1.2.3Private company vs Public company
                                 1.2.4Visuals test to identify public companies
             Lecture No:1.3 Accounting as an information system
                                 1.3.1Business and information requirement
                                 1.3.2Stakeholders of a business
                                 1.3.3Information: Tip of accounting ice-berg
             Lecture No:1.4 Key accounting terms: Assets, Liabilities, Income, Expenses
                                 1.4.1Four key terms in accounting
                                 1.4.2Sources of funds
                                 1.4.3Use of funds
                                 1.4.4The sources vs The uses
                                 1.4.5Types of Assets
                                 1.4.6Types of Liabilities
                                 1.4.7 Types of Incomes
                                 1.4.8Types of Expenses
             Lecture No:1.5 Tutorial: Key accounting terms: Assets, Liabilities, Income, Expenses
                                 1.5.1Identifying the category and sub category of various accounting terms 
Week 2: Accounting equation, GAAP Principle and Fundamentals of double entry system:
             Lecture No:1.6  Accounting equation
                                 1.6.1What is the accounting equation?
                                 1.6.2Working of accounting equation
                                 1.6.3Example: accounting equation
                                 1.6.4Summary: accounting equation
             Lecture No:1.7 Walkthrough of Balance Sheet I
             Lecture No:1.8 Walkthrough of Balance Sheet II
             Lecture No:1.9 Walkthrough of Balance Sheet III
             Lecture No:1.10 Walkthrough of Income Statement 
             Lecture No:1.11 Generally Accepted Accounting Principles I
                                 1.11.1       Business Entity Concept
                                 1.11.2       Money Measurement Concept
                                 1.11.3       Going Concern Concept
                                 1.11.4       Accounting Period Concept
                                 1.11.5       Cost Concept
             Lecture No:1.12 Generally Accepted Accounting Principles II
                                 1.12.1       Conservatism Concept
                                 1.12.2       Accrual Concept
                                 1.12.3       Matching Concept
                                 1.12.4       Full Disclosure Concept
                                 1.12.5       Materiality
             Lecture No:2.0. Recap and way forward
             Lecture No:2.1 Types of accounts
                                  2.1.1What is an account?
                                  2.1.2What are types of accounts?
             Lecture No:2.2 Tutorial - Types of accounts
Week 3: Fundamentals of double entry system and Accounting Cycle: Journal Entries I:
             Lecture No:2.3 Debit and Credit
                                  2.3.1Claims of business
                                  2.3.2What is debit and credit
                                  2.3.3Misconception about debit and credit
             Lecture No:2.4 Tutorial - Debit and Credit
             Lecture No:2.5 Rules of debit and credit
                                  2.5.1Rules of Debit and Credit
                                  2.5.2Identifying receiver and giver
                                  2.5.3Identifying what comes in and goes out
                                  2.5.4Identifying incomes and expenses
             Lecture No:2.6 Entering transactions in Journal
                                  2.6.1Format of journal
                                  2.6.2Journalizing the transactions
                                  2.6.3Output of journalising
Week 4: Accounting Cycle: Journal entries II:
             Lecture No:2.7 Tutorial: Journal entries
             Lecture No:2.8 Key trends in journalizing
                                  2.8.1Assets Purchased/Sold
                                  2.8.2Liabilities Raised/ Paid back
                                  2.8.3Expenses paid or due and Incomes received or accrued
             Lecture No:2.9 Journalizing complex transactions
             Lecture No:2.10 Practice Problem I
             Lecture No:2.11 Practice Problem II
             Lecture No:2.12 Practice Problem III
             Lecture No:2.13 Summary: Journal entries
Week 5: Accounting cycle: Ledger Posting:
             Lecture No:3.0. Recap and way forward
             Lecture No:3.1 Introduction to Ledger
             Lecture No:3.2 Process of Ledger posting
             Lecture No:3.3 Balancing the accounts
             Lecture No:3.4 Debit and Credit Balances
             Lecture No:3.5 Tutorial - Identifying balances
             Lecture No:3.6 Practice Problem I
             Lecture No:3.7 Practice Problem II
             Lecture No:3.8 Practice Problem III
Week 6: Accounting cycle: Trial Balance and Final Accounts:
              Lecture No:4.0. Recap and way forward
              Lecture No:4.1 Introduction to Trial Balance
                                4.1.1Introduction to Trial Balance
                                4.1.2Why Trial Balance?
                                4.1.3Format of Trial Balance
              Lecture No:4.2 Preparation of Trial Balance
              Lecture No:4.3 Practice Problem I
              Lecture No:4.4 Practice Problem II
              Lecture No:4.5 Errors in Trial Balance
              Lecture No:5.0 Recap and way forward
              Lecture No:5.1 Introduction to Final Accounts
                                5.1.1What are Final Accounts
                                5.1.2Format of Final Accounts
                                5.1.3Format of Balance Sheet
              Lecture No:5.2 Tutorial - Identifying direct and indirect expenses
              Lecture No:5.3 Tutorial - Mapping operating and non operating items to direct and indirect items
                                5.3.1Tutorial - Mapping Expenses and Incomes
                                5.3.2Visual Mapping of Expenses and Incomes
              Lecture No:5.4 Preparation of Final Accounts
                                5.4.1Profit and Loss account
                                5.4.2Balance Sheet
              Lecture No:5.5 Tutorial - Preparation of Final Accounts
              Lecture No:5.6 Tutorial - Preparation of Trading Account
              Lecture No:5.7 Tutorial - Preparation of P&L Account
              Lecture No:5.8 Tutorial - Preparation of Balance Sheet
              Lecture No:5.9 Practice Problem
Week 7: Output of Accounting cycle: Final Accounts II:
              Lecture No:5.10 Adjustments in Final Accounts
              Lecture No:5.11 Transactions to be adjusted in Final Accounts
              Lecture No:5.12 Tutorial - Adjustments in Final Accounts
              Lecture No:5.13 Tutorial -Calculating Cost of Goods Sold
              Lecture No:5.14 Tutorial -Outstanding Expenses
              Lecture No:5.15 Tutorial - Prepaid Expenses
              Lecture No:5.16 Validating the learning - Balance Sheet
              Lecture No:5.17 Validating the learning - Income Statement
Week 8: Analysis of Financial Statements:
              Lecture No:6.0 Recap and way forward              
              Lecture No:6.1 Introduction to Financial Statement Analysis
                                 6.1.1Overview 
                                 6.1.2Types of Ratios
              Lecture No:6.2 Liquidity Ratios
                                 6.2.1Need for Liquidity ratios
                                 6.2.2Types of Liquidity ratios
              Lecture No:6.3 Tutorial - Liquidity Ratios
              Lecture No:6.4 Solvency Ratios
                                 6.4.1Need for Solvency  ratios
                                 6.4.2Types of Solvency ratios
              Lecture No:6.5 Tutorial - Solvency Ratios
              Lecture No:6.6 Profitability Ratios
                                 6.6.1Need for Profitability  ratios
                                 6.6.2Types of Profitability ratios
              Lecture No:6.7 Tutorial - Profitability Ratios
              Lecture No:6.8 Efficiency Ratios
                                 6.8.1Need for Efficiency  ratios
                                 6.8.2Types of Efficiency ratios
              Lecture No:6.9 Tutorial - Efficiency Ratios
Week 9: Analysis of Financial Statements II:
              Lecture No:6.10 Validating the learning - Walkthrough of RIL's Annual Report
              Lecture No:6.11 Online Resources for Financial Analysis
              Lecture No:6.12: Practice Problem: Liquidity Position
              Lecture No:6.13 Practice Problem – Solvency Position
              Lecture No:6.14 Practice Problem - Profitability Position I
              Lecture No:6.15 Practice Problem - Profitability Position II
              Lecture No:6.16 Practice Problem – Interpretation of Ratios
Week 10: Cash Flow Statement:
               Lecture No:7.0 Recap and way forward
               Lecture No:7.1 Types of Cash Flows
                                 7.1.1Inflows and Outflows
                                 7.1.2Types of cash flows
               Lecture No:7.2 Tutorial - Types of cash flows
               Lecture No:7.3 Walkthrough of Cash Flow Statement of RIL
               Lecture No:7.4 Profit and Loss Appropriation Account
               Lecture No:7.5 Cash flows from Operating Activities
               Lecture No:7.6 Tutorial - Changes in working capital
               Lecture No:7.7 Tutorial - Cash flows from Operating Activities
               Lecture No:7.8 Tutorial - Cash flows from Operating Activities
Week 11: Cash Flow Statement II:
               Lecture No:7.9: Cash flows from Investing Activities
               Lecture No:7.10: Tutorial - Cash flows from Investing Activities
               Lecture No:7.11 Cash flows from Financing Activities
               Lecture No:7.12 Tutorial - Cash flows from Financing Activities
               Lecture No:7.13 Preparing Cash Flow Statement
               Lecture No:7.14 Identifying hidden information
                                  7.14.1      Provision of tax
                                  7.14.2      Purchase or sale of fixed assets
                                  7.14.3      Provision of dividend
              Lecture No:7.15 Practice Problem
Week 12: CVP Analysis & Inventory Control
                Lecture No:8.1 Need of Break Even Analysis
                                  8.1.1        Need of Break Even Analysis
                                  8.1.2        Application of BEA
                                  8.1.3        Cost Volume Profit Analysis
                Lecture No:8.2 Understanding the nature of costs
                Lecture No:8.3 Contribution Margin
                                   8.3.1       Contribution
                                   8.3.2       Contribution per Unit
                                   8.3.3       Contribution Margin
                Lecture No:8.4 Tutorial - Contribution
                Lecture No:8.5 Break Even Point
                                   8.5.1        Break Even Point/ Level, Sales and Capacity
                                   8.5.2        Break Even point Calculator
                Lecture No: 8.6 Tutorial - Break Even Point
                Lecture No: 8.7 Tutorial - Break Even Point
                Lecture No: 8.8 Visualizing the Break Even Point
                Lecture No: 8.9 Tutorial - Break Even Analysis
                Lecture No: 8.10 Case - Break Even Analysis
                Lecture No:9.1 Theoretical foundation for economic order quantity
                Lecture No:9.2 Tutorial 
                Lecture No:9.3 ABC analysis
                Lecture No:9.4 Tutorial
                Lecture No:9.5 Stock accounting: LIFO, FIFO
                Lecture No:9.6 Tutorial

Books and references

1. R. Narayanaswamy, Financial Accounting – A Managerial Perspective, PHI, latest edition
2. P. C. Tulsian, Financial Accounting, Tata McGraw Hill, latest edition

Instructor bio

Prof. Puran Singh

IIT Mandi
Dr. Puran Singh is Associate Professor of Finance at Indian Institute of Technology, Mandi in Himachal Pradesh. He has over a decade of experience working with financial statements in varied capacities that range from an analyst to an instructor. He has years of experience in teaching courses on Financial and Accounting to undergraduate, graduate and executive levels. He holds a PhD in Finance from University Business School, Panjab University, Chandigarh. He has worked with organizations that include Indian School of Business, BITS-Pilani and IIT Mandi Catalyst.

Course certificate

The course is free to enroll and learn from. But if you want a certificate, you have to register and write the proctored exam conducted by us in person at any of the designated exam centres.
The exam is optional for a fee of Rs 1000/- (Rupees one thousand only).
Date and Time of Exams: 24 April 2022 Morning session 9am to 12 noon; Afternoon Session 2pm to 5pm.
Registration url: Announcements will be made when the registration form is open for registrations.
The online registration form has to be filled and the certification exam fee needs to be paid. More details will be made available when the exam registration form is published. If there are any changes, it will be mentioned then.
Please check the form for more details on the cities where the exams will be held, the conditions you agree to when you fill the form etc.

CRITERIA TO GET A CERTIFICATE

Average assignment score = 25% of average of best 8 assignments out of the total 12 assignments given in the course.
Exam score = 75% of the proctored certification exam score out of 100

Final score = Average assignment score + Exam score

YOU WILL BE ELIGIBLE FOR A CERTIFICATE ONLY IF AVERAGE ASSIGNMENT SCORE >=10/25 AND EXAM SCORE >= 30/75. If one of the 2 criteria is not met, you will not get the certificate even if the Final score >= 40/100.

Certificate will have your name, photograph and the score in the final exam with the breakup.It will have the logos of NPTEL and IIT Madras .It will be e-verifiable at nptel.ac.in/noc.

Only the e-certificate will be made available. Hard copies will not be dispatched.

Once again, thanks for your interest in our online courses and certification. Happy learning.

- NPTEL team


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