Course : Executive Accounting

Course Code : BMKT12274

Credit Value : 4

Status : Compulsory

Level : Level 1

Semester : Semester I

Overall Learning Outcomes : At the end of the session students should be able to;

  1. identify the regulatory requirements of financial statement preparation of an organization
  2. recognize the main components of final accounts of an organization with particular notes and the standards applicable
  3. align the financial information of an organization from source documents to final accounts
  4. describe the difference between profitability and cash flow and the methods to improve and control cash flow in a business
  5. recognize the importance of different cost accounting methods to organizations
  6. differentiate standard costing to that of budgeting.
  7. describe standard costing from standard setting and variance calculation angles.
  8. illustrate different approaches to budgeting and construct basic budgets.

Course Content         :

Topic No

Topic

Learning Outcomes

Teaching and Learning Method

Method of Assessment

01. Financial Accounting for Executives

1.1

Overview of financial accounting

At the end of the session students should be able to;

  1. identify the basic concepts and underlying principles of financial accounting
  2. describe the process of financial accounting through each stage of the accounting cycle (source documents, journal, ledger and financial statements)
  3. discuss the uses of financial statements relating to the parties who are using accounting information for business decision making
  4. discuss the characteristics that make accounting information useful


Lectures

Buzz Groups

Case study discussions

End Semester Examination

1.2

Regulatory framework of accounting and Sri Lanka Accounting Standards

At the end of the session students should be able to;

  1. identify the regulatory framework of accounting (including Companies Act other related Acts, and tax regulations)
  2. discuss important accounting standards related to final accounts and their applicability
  3. comply the requirements of accounting standards into different components of financial statements
  4. analyze final accounts information by focusing on relevant financial notes and accounting standards


Lectures

Class room discussions based on annual reports

Class room presentations

End Semester Examination


1.3

Financial Statement Modeling

At the end of the session students should be able to;

  1. recognize the main components of a set of financial statement of an organization
  2. prepare the relevant notes that relate to final account preparation using MS Excel
  3. align the components and the notes of financial statement to prepare the income statement and the balance sheet
  4. prepare the total set of final accounts of a company using MS Excel
  5. develop an understanding on essential adjustments when preparing financial statements of a company


Lectures

Practical sessions with MS Excel,

Discussions based on Annual Reports

Written assignment

End Semester Examination


1.4

Statement of Cash Flows

At the end of the session students  should be able to;

  1. differentiate between the profit and the cash flow of an organization
  2. explain the purpose and uses of statement of cash flows
  3. determine and report cash flows from operating, investing and financing activities
  4. prepare a statement of cash flow by using direct method
  5. calculate the cash effects of a wide variety of business transactions
  6. prepare a statement of cash flow by using indirect method
  7. explain the difference between beginning and ending cash balances of an organization









Lectures

Case study based buzz groups

End Semester Examination

02. Management Accounting for Executives

2.1

Introduction to cost accounting

fundamentals

At the end of the session students should be able to;

  1. identify different cost terms (including; cost center, cost unit, composite cost unit, basic elements of costs)
  2. recognize different cost classifications (including; direct and indirect, production & non-production, fixed & variable, product & period, relevant & irrelevant, controllable & non-controllable) and their classification purposes
  3. discuss relating material costs to production and inventory issues using FIFO, LIFO, or AVCO
  4. discuss relating labour costs (including; time based, piece based, incentive based) to products or services
  5. discuss relating overheads to end products or services using absorption costing, marginal costing and activity based costing (distinguishing salient features of each method in comparison to each other is expected)
  6. align the right cost accounting fundamentals under appropriate business circumstances


Lectures

Class room discussions

Group written assignment

End Semester Examination


2.2

Standard Costing

At the end of the session students should be able to;

  1. describe standard costing and differentiate standard costing to that of budgeting
  2. identify information to be recognized in setting standards (including; price or quantity standard)
  3. recognize challenges in modern business environment in setting standards and achieving standards
  4. analyze end period price and quantity variance calculations (including; material, labour, overheads, sales)
  5. observe and reproduce standards and variances for non-complicated manufacturing or service operations


Lectures

Buzz groups

Group written assignment

End Semester Examination


2.3

Budgetary planning and control

At the end of the session students should be able to;

  1. identify purposes of budgeting (including; planning, control, performance evaluation, motivation, communication and coordination)
  2. discuss different planning options of budgeting (top-down, bottom-up, negotiable, incremental, zero based, rolling)
  3. recognize the normal budgetary planning process and discuss likely differences in budgetary planning under different types of organizations.
  4. prepare basic budgets such as sales, production, material, labour, overheads, and cash
  5. explain how feedback controlling is undertaken at the end of the planning period


Lectures

MS excel based budget preparation









Group written assignment

End Semester Examination


Recommended Reading       :

  1. Anthony R., Hawkins D. and Merchant K. (2007), “Accounting”, 12th edition, McGraw Hill Publishing.
  2. Curran.M.(2005), “Accounting Fundamentals”, 7th Edition,Mcgraw-Hill College.
  3. Finney H.A. (2009), General Accounting, Prentice-Hall.
  4. Godwin N.H., Alderman C.W. and Sanyal D. (2012), “Financial Accounting”, Cengage Learning India.
  5. Hoffman. F., Pacsy. V.A. and Flashner.E.A. (2005), “Accounting Fundamentals”, 5th Edition, Glencoe/Mcgraw Hill Post-Secondary.
  6. Wijewardena H. (2011) “Financial Accounting in Sri Lanka”, 2nd Edition, Wijaya Publishing.
  7. Wood F. and Sangster A. (2012), “Frank Wood's Business Accounting”, Volume 2, Pearson Education, Limited.

Website referencing              :

  1. http://www.maaw.info/IntroToMAAW.htm
  2. http://www.kln.ac.lk/library/02-periodicals-section.htm
 

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