Financial Accounting ( 2 Credits )
Course Title: Financial Accounting
Code No: CO 517
Area of Study: Core
Credit: 3
Course Objectives
This course aims to inculcate the basic understanding of financial accounting principles with a
view to develop students’ skill in analyzing and preparing financial statements.
Course Details
Unit I: Introduction to Financial Accounting LH 8 hrs.
Basic understanding of financial accounting. Forms of Organization. Business Activities:
Financing, Investing and Operating. Basic Rules for Recording and Posting. Financial Statements
and their Relationship. Ethics and Accounting. Business Decision Cases Analysis.
Unit II: Financial Reporting LH 12 hrs.
Objectives of Financial Reporting. Qualitative Characteristics of Financial Statements.
Procedure and Methods of Preparing Financial Statements: Multiple Step Income Statement,
Statement of Retained Earnings and Balance Sheet (reporting format). Other Financial
Reports: Auditors Report, Directors Report and Corporate Governance Report. Business
Decision Cases Analysis.
Unit III: Reporting and Interpreting Cash Flow Statement LH 12 hrs.
Purpose, Use and Structure of Cash Flow Statements. Preparing of Cash Flow Statements
under Indirect and Direct Method. Interpreting the Cash Flow Statement. Business Decision
Cases Analysis.
Unit IV: Analyzing Financial Statements LH 10 hrs.
Objectives of Financial Statement Analysis, Techniques of Financial Statement Analysis:
Horizontal Analysis, Vertical Analysis, Trend Analysis, Ratio Analysis and their Uses.
Business Decision Cases Analysis
Unit V: Contemporary Issues in Financial Accounting LH 6 hrs.
Generally Accepted Accounting Principles, International Financial Reporting Standards/Global
Financial Reporting, Foreign Currency Accounting, Inflation Accounting. Human Resource
Accounting, Environment Accounting
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References:
Porter, G.A., & Norton, C.L. (2011). Financial Accounting: IFRS Update. (6th Edition). New
Delhi: Cengage Learning India Private Limited.
Kimmel, P., Weygandt, J., & Kieso, D. (2010). Financial Accounting: Tools for Business
Decision Making. (5th Edition). New Delhi: Wiley India Private Limited.
Libby, R., Libby, P. A., & Short, D.G. (2011). Financial Accounting. (6th Edition) New Delhi:
Tata McGraw Hill Education Private Limited.
Powers, M., & Needles, B.E. (2011). Financial Accounting: A Case Based Approach. New
Delhi: Cengage Learning India Private Limited.
Dahal, R.K. (2012). Financial Accounting. (2nd Edition). Kathmandu: Khanal Publication
Private Limited.