Management Accounting – Financial Strategy and Reporting

Contents . . .

1. Financial Strategy formation — Modelling annual cash flow forecasts and other financial statements based on expected changes in values e.g. inflation, volume, margins and probabilities, expected values and sensitivity analysis. Hire purchase and leasing.
2. Measurement of income and capital — The problems of profit measurement and the effect of alternative approaches to asset valuation. The principle of substance over Form. The accounting treatment of good will, intangible and tangible assets.
   Inflation and its effect on financial statements.
   Impairment of fixed assets, brands and good will.
   Provisions and contingent liabilities and contingent assets.
   Foreign currency translation to include overseas transactions and investments in overseas subsidiaries.
3. Analysis of Financial Statements — Advance topics on interpretation of financial statements via the analysis of corporate reports. Ratios in the areas of performance, profitability, financial adaptability, liquidity, activity and gearing of business, segmental analysis; inter firm comparison.
4. Advanced investment appraisal — capital investment real options ( i.e. option to make follow – on investment, the option to abandon and the option to wait). Weighted Average Cost of Capital and its use; adjusting the WACC for changes in capital structure. Single period capital rationing for divisible and non – divisible projects.
5. Capital Assets Pricing Model (CAPM) — Advanced aspects of arbitrage pricing theory; risk adjustment using the certainty equivalent method; investment controls n practice.
6. Financial analysis and reporting — Disclosures, productivity and profitability reporting, performance measurement/development reports. Current issues in financial analysis and reporting.

Recommended Books

• Prentice Hall
  1. Financial Management and Policy
     • J. C. Van Horne
  2. Financial Statements Analysis – A New Approach
     • Lev Baruch
• Dryden Press
  1. Essentials of Managerial Finance
     • Weston and Brigham
• Richard D. Irwin
  1. Accounting Theory
     • Eldon S. Hendriksen
• Hol, Rinehart & Winston
  1. Accounting Theory
     • K. S. Most
• McGraw Hill
  1. Financial Accounting Theory – issues and Controversies
     • Zeff and Keller
• Irwin Mc Graw Hill
  1. Financial Statements Analysis : Theory, Application & Interpretation
     • Bernstei & Wild
• John Wiley
  1. Analysis and Use of Financial Statements
     • Write, Sondhi & Fried
• ICWAI
  1. Monthly Financial Reports for Operating Managers
     • G. R. Kulkarni
  2. Economic Value Added: A Tool for business planning
     • T. P. Ghosh
• World press
  1. Regulation of Corporate Accounting and Reporting in India
     • Bhabatosh Banerjee.
• Taxman
  1. Accounting Standards and Corporate Accounting Practices
     • T. P. Ghosh
• Snow White
  1. Manual of Accounting Standards
     • S. Agarwal

Other Relevant Books