Module 1 Financial Accounting - Dr. Varadraj Bapat Dr. Varadraj - PowerPoint PPT Presentation

Financial Accounting and Analysis Module 1 Financial Accounting - Dr. Varadraj Bapat

Dr. Varadraj Bapat  M.Com.  Cost Accountant 1992  Chartered Accountant 1995  Ph.D. 2005, IIT B, Powai, Mumbai Contact Information: varadraj@som.iitb.ac.in 9892413119/ FB/ Twitter Financial Accounting - Dr. Varadraj Bapat

Dr. Varadraj Bapat  Teaching Interests  Financial Accounting, Cost Accounting, Indian Financial and Business Models  Research Interests  Financial Disclosure, Financial Inclusion, Bankruptcy Prediction, Portfolio Management, Corporate Governance, Environmental Accounting Financial Accounting - Dr. Varadraj Bapat

 Research Output (papers in last 3 yrs)  Bankruptcy Prediction (3), Accounting Standards (2), Financial Inclusion (2), Portfolio Management (2) and Corporate Governance (1) = Total Listed in ABDC Journals (10) Financial Accounting - Dr. Varadraj Bapat

Dr. Varadraj Bapat  Other Interests  Education, ABVP, Integral Humanism  Yoga, BrahmaVidya Financial Accounting - Dr. Varadraj Bapat

Dr. Varadraj Bapat Yogasth https://www.facebook.com/yogastha.iitb Think India https://www.facebook.com/thinkindiaofficial Think India’s Social Internship Opportunity Anubhooti Financial Accounting - Dr. Varadraj Bapat

About this course  The course will cover Financial Accounting  Cost Accounting and Financial Management is dealt in a different course Financial Accounting - Dr. Varadraj Bapat

About this course  Assignments, Internal + TET  Class participation  Groups (of 5)  Assignments – Annual Report, One company in group Financial Accounting - Dr. Varadraj Bapat

About this course  Text Book: Financial Accounting: A Managerial Perspective Author/Editor: Bapat and Raithatha Publisher: TMH ISBN No: 1-25- 900488 Financial Accounting - Dr. Varadraj Bapat

About this course  Video Course  https://www.youtube.com/watch?v=eU Mwwp5zDW0  http://nptel.ac.in/courses/110101003/2 Financial Accounting - Dr. Varadraj Bapat

Session Contents  Need to Know About Accounting  What is Accounting?  Financial Accounting, Cost Accounting and Management Accounting Financial Accounting - Dr. Varadraj Bapat

Session Contents  Financial Accounting and Financial Management  Finance and complexity of organisation  Financial Statements - Balance Sheet, Income Statement  Annual Report Financial Accounting - Dr. Varadraj Bapat

“Why do I need to learn about finance … I am very good in my own area of specialization ” How would you react to the above statement? Financial Accounting - Dr. Varadraj Bapat

The job content Management & Finance As Expertise you mo ve up .. Functional Expertise Financial Accounting - Dr. Varadraj Bapat

Accounting  Language of Business  Performance is reported and evaluated in financial terms  Knowledge is useful for personal investment and tax planning as well Financial Accounting - Dr. Varadraj Bapat

Accounting  It is not necessary to become accountant  But its very useful if every one understands the accounting and financial concepts and terminology properly Financial Accounting - Dr. Varadraj Bapat

Need to Learn Accounting  Reporting to stakeholders  Data for planning, organisation, control of business  Leads to increase in efficiency of business / Profit maximization  Personal Investment/ Taxation Financial Accounting - Dr. Varadraj Bapat

Streams of Accounting  Financial Accounting, Cost Accounting and Management Accounting  the similarities and difference in these three streams of accounting Financial Accounting - Dr. Varadraj Bapat

Financial Accounting  Recording of Financial Transactions  Reporting of Financial Results  Preparation of Financial Statements  Targeted to External Users Financial Accounting - Dr. Varadraj Bapat

Cost Accounting  Recording of Costs  Analysis of Costs  Preparation of Cost Statements  Targeted to Internal Users Financial Accounting - Dr. Varadraj Bapat

Management Accounting  Recording of Financial & other data  Analysis of Financial and other information  Preparation of Statements for Managerial Decisions Financial Accounting - Dr. Varadraj Bapat

Management Accounting  Targeted to Internal Users - All levels of Management  This is a broader concept encompasses Financial and Cost Accounting Financial Accounting - Dr. Varadraj Bapat

Meaning of Management Accounting  Any form of accounting which enables a business to be conducted more efficiently can be regarded as Management Accounting. (Institute of Chartered Accountants of India- ICAI)  Management Accounting is the Financial Accounting - Dr. Varadraj Bapat

application of professional knowledge and skill in the preparation of accounting information in such a way as to assist management in the formation of policies and in the planning and control of operations of undertaking. (International Capital Market Association, London- ICMA) Financial Accounting - Dr. Varadraj Bapat

Financial Management  Managerial Accounting and Financial Management: Relationship  Financial Management deals with raising and utilization of funds  Raising of funds may include Cost of Capital, Capital Structure Financial Accounting - Dr. Varadraj Bapat

Financial Management decisions, Capital Markets, IPOs and so on  Financial Management deals with raising and utilization of funds  Utilization of funds may include Capital Budgeting, Portfolio Management, Working Capital Management and so on Financial Accounting - Dr. Varadraj Bapat

Managerial V/s Financial Accounting Accounting System (accumulates all accounting data) Managerial Accounting Financial Accounting Information for decision Published financial making, and control statements and other of an organization’s financial reports. operations. External Internal Users Users Financial Accounting - Dr. Varadraj Bapat

Complexity of Organisation  Finance and complexity of organisation  As the organizations grow, they become complex  Ownership and Management are separated Financial Accounting - Dr. Varadraj Bapat

Financial Statements  What are they?  Which are important Financial Statements?  What purposes do they serve? Financial Accounting - Dr. Varadraj Bapat