Financial Accounting A Managerial Perspective

Cover
Contents
1. Introduction to Financial Accounting
	Accounting as an Information System
	Financial, Cost and Management Accounting and their Interrelationships
	Finance Function and Accounting
	Accounting as an Academic Discipline
	Accounting as a Career and Profession
	Place of Accounting Officers in the Organisation
	Auditing and Internal Control
	Ethical Issues in Accounting
	Forms of Organisations and Their Effect on Accounting
	Accounting and Corporate Governance
	Summary
	Multiple Choice Questions
	Theory Questions
2. Accounting Concepts, Standards and IFRS
	Introduction
	Accounting Concepts and Convention
	Accounting Policies
	Generally Accepted Accounting Principles (GAAP)
	International Financial Reporting Standards (IFRS)
	Indian Accounting Standards (Ind AS)
	India’s Road Map to Convergence with IFRS
	Indian Government Accounting Standards (IGAS)
	Summary
	Multiple Choice Questions
	Theory Questions
	Research Assignments
	Interpreting Financial Reports
	Business Case
3. Presentation of Financial Statements: Balance Sheet
	Conceptual Basis of a Balance Sheet
	Capital and Revenue Expenditure and Receipts
	Classification of Items on a Balance Sheet
	Format of Balance Sheet
	Balance Sheet Equation
	Preparing Balance Sheet
	Summary
	Multiple Choice Questions
	Theory Questions
	Practical Problems
	Research Assignment
	Interpreting Financial Reports
	Business Cases
4. Preparation of Final Accounts: The Income Statements
	Introduction
	Format of Profit and Loss Account
	Profit and Loss Account of a Manufacturing Concern
	Appropriation of Profit
	Advantages of Profit and Loss Account
	Summary
	Multiple Choice Questions
	Theory Questions
	Practical Problems
	Research Assignments
	Interpreting Financial Reports
	Business Case
5. Mechanics of Accounting
	Introduction
	Classification of Accounts
	Double Entry System
	Overview of Accounting Cycle
	Preparing Journals
	Subsidiary Books
	Ledger
	Preparation of Trial Balance
	Accounting Errors and Their Rectification
	Bank Reconciliation Statement (BRS)
	Computerised Accounting
	Summary
	Multiple Choice Questions
	Theory Questions
	Practical Problems
	Research Assignments
	Interpreting Financial Reports
	Business Cases
6. Fixed Assets and Depreciation Accounting
	Introduction
	Cost of Fixed Assets
	Depreciation
	Method of Computing Depreciation
	Accounting Treatments for Transactions
	Impairment of Assets
	Summary
	Multiple Choice Questions
	Theory Questions
	Practical Problems
	Research Assignments
	Interpreting Financial Reports
	Business Cases
7. Inventory Valuation
	Introduction
	Record Keeping for Inventory
	Perpetual Inventory System
	Inventory Valuation/Measurement
	Methods of Valuation of Inventories
	Analysis of Inventories
	Summary
	Multiple Choice Questions
	Theory Questions
	Practical Problems
	Research Assignments
	Interpreting Financial Reports
	Business Cases
8. Corporate Accounts
	Introduction to Companies
	Types of Companies
	Shares and Share Capital
	Issue of Shares
	Share Issue: Payments in Instalment
	Buyback of Shares
	Debentures and Bonds
	Income Statement/Profit and Loss Account
	Balance Sheet
	Company Annual Report
	Summary
	Multiple Choice Questions
	Theory Questions
	Practical Problems
	Research Assignments
	Interpreting Financial Reports
	Business Case
9. Cash Flow Statement
	Introduction to Cash Flow Statement
	Cash and Cash Equivalents
	Cash Flow Activities
	Operating Activities
	Some Special Items
	Free Cash Flow
	Fund Flow Statement
	Analysis of Cash Flow Statement
	Preparation of Cash Flow Statement
	Summary
	Multiple Choice Questions
	Theory Questions
	Practical Problems
	Research Assignments
	Interpreting Financial Reports
	Business Cases
10. Financial Statement Analysis
	Introduction
	Techniques for Financial Statement Analysis
	Horizontal Analysis: Comparative and Trend Statements
	Vertical Analysis: Common Size
	Liquidity Ratios: Current and Quick Ratio
	Solvency Ratios: D/E, Interest Coverage
	Profitability Ratios: GP, NP, EBIT, EBDITA, EPS
	Return Ratios: ROI, ROE
	Turnover Ratios
	Analysis of Stock and Debtors
	Working Capital Management
	Stock Prices and Financial Data: P/E
	Summary
	Multiple Choice Questions
	Theory Questions
	Practical Problems
	Research Assignments
	Interpreting Financial Reports
	Business Cases
11. Investments
	Introduction
	Financial Instrument, Assets and Liabilities
	Joint Ventures
	Subsidiaries and Associates
	Consolidated Financial Statement
	Business Combinations
	Accounting for Investments
	Summary
	Multiple Choice Questions
	Theory Questions
	Research Assignments
	Interpreting Financial Reports
	Business Case
12. Contemporary Issues in Accounting
	Introduction
	Foreign Currency Accounting
	Creative Accounting
	Forensic Accounting
	Environmental Accounting
	Lean Accounting
	Human Resource Accounting
	Objectives of Human Resource Accounting
	HRA in India
	Inflation Accounting
	Responsibility Accounting
	Transfer Pricing
	Segment Reporting
	eXtensible Business Reporting Language (XBRL)
	Summary
	Multiple Choice Questions
	Theory Questions
	Research Assignment
	Business Cases
Reading an Annual Report
Glossary
Index