IL4004 Management Accounting and Financial Management Syllabus:

IL4004 Management Accounting and Financial Management Syllabus – Anna University PG Syllabus Regulation 2021

COURSE OBJECTIVES:

 To enable students to understand accounting mechanism and interpretation of financial statements and to comprehend nuances involved in costing, preparation of budgets and making investment decisions.

UNIT I INTRODUCTION

Basics of accounting – Management Accounting – Financial accounting – cost accounting – comparison of Financial accounting, cost accounting and management Accounting – generally accepted Accounting principles – Accounting standards – Accounting cycle.

UNIT II FINANCIAL ACCOUNTING

Salient features of Balance Sheet and Profit and Loss statement, cash flow and Fund flow analysis (Elementary), working capital management, ratio analysis – Depreciation.

UNT III COST ACCOUNTING

Cost accounting systems: Job Costing, process costing, allocation of overheads, Activity based costing, variance analysis – marginal costing – Break even analysis.

UNTI IV BUDGETING

Requirements for a sound budget, fixed budget – preparation of sales and production budget, flexible budgets, zero based budgets and budgetary control.

UNIT V FINANCIAL MANAGEMENT

Investment decisions – Investment appraisal techniques – payback period method, accounting rate of return, net present value method, internal rate of return and profitability index method-cost of capital.

TOTAL: 45 PERIODS

COURSE OUTCOMES:

 Ability to prepare and interpret financial statements,
 Understand the basic principles of Accounting.
 Understand the cost Accounting and costing techniques.
 Ability to prepare draft budgets and make sound investment decisions.
 Understand the process of financial management, method of investment.

TEXT BOOKS:

1. Khan. M.Y. & P.J. Jain, “Management Accounting”, Tata McGraw Hill, 2011.
2. Narayanaswamy. R., “Financial Accounting – A Managerial Perspective”, PHI Learning, New Delhi, 2011.
3. James, C. Van Horne, “Fundamental of Financial Management”, Pearson Education, 2012

REFERENCES:

1. Jan Williams, “Financial and Managerial Accounting –The basis for business decisions”, Tata McGraw Hill, 2010.
2. Horngren, Surdem, Stratton, Burgstahler, Schatzberg, “Introduction to Management Accounting”, PHI Learning, 2011.