Course Outline Financial Accounting Fall 2013 Study Approach:You shouldnot approach the material in this course as one

of memorizing rules or particular solution techniques. It seeks to help you develop your analytical skills with respect to the identification and use of decision-relevant accounting information. In-classexamples, self-study problems, assignments and quizzes are designed to help you understand and apply the key concepts.The examination questions will test your understanding of those concepts, but may often do so by posing problems orconceptual questions that differ from those you have seen before. Home Preparation: Students are advised to study applicable topics in advance at home to consolidate their understanding in class. There may be quizzes from advance reading

Study Text: Assignments: Assignments should be submitted according to the schedule given. Assignments should be prepared on separate sheets of paper The front page of each assignment should contain the following information in the same order: -Course Title -Name of the student -Assignment number -Number of pages -Class & Section -Date prepared -Date submitted The assignments should be submitted to class CR before the start of the class, who should ensure to submit them together to the teacher at the very start of the class. No student should submit or write assignments in the class timings. No assignment shall be accepted once the class starts If an assignment is late, the same can be submitted with next assignment and shall be marked late The assignments shall be marked on completeness and timely submission. Correctness is not the sole parameter for marking, though the same can be taken into account. For every late or incomplete assignment, 25% each of that assignment marks shall be deducted Checked assignments shall be returned back to the students who should keep them until semester end. It is the responsibility of each student to keep track of their assignments and hold them until semester end. Students may be required to submit their marked assignments duly filed / stapled in order, towards the end of the semester. Quizzes: Quizzes may be announced or unannounced A total of seven quizzes shall be marked and best five shall be taken into account forgrading. However, there may be more than seven quizzes in total and marked ones shall be picked randomly or at teachers discretion.

A quiz may be at the start of the class to evaluate your advance home reading or it may be at the end of the class to test your attentiveness and understanding of the session concerned or from past studied material

Term Report: A group term report is included in your course. For this report, groups of three students each shall be formed. Further guidelines on the term report shall be included in the instructions to the term report which shall be handed over to you in the third week, Insha Allah. Grading Plan: Class Assignments Quizzes Term Report Mid Terms Final Exam Total 10 10 10 30 40 100

Get to me:My email: msumer@iba.edu.pk

Session

Topic

Chapter 1:Welcome to the World of Accounting:

1 Accounting Definition, Accounting Equation, Financial versus Managerial Accounting, Users and their objectives, Financial Accounting Objective.

Chapter 2:Information Processing:

Financial Statements (BS, IS and SCF) 2 Recording Process Concept (Debit/Credit, General Journal, General Ledger and Trial Balance). Related cases will be solved. Chapter 3: Income Measurement: Accrual Basis of Accounting (Timing, types, recognition and classification of revenues and expenses) 3 Main Principles (Matching, Materiality, Consistency and Conservatism) Accounting Policies, estimates and errors. Related cases will be solved. Chapter 4:The Reporting Cycle Identify, Analyze Transactions, Journal Entries 4 Posting of Ledger, Trial balance, Financial Statements Closing Entries(closing income statement items), After-Closing trial Balance

Chapter 4:Accounting Cycle: Adjusting entries concept

Trial balance phase adjusting entries, Balance Sheet items adjusting entries 5 Income statement items adjusting entries, Error items adjusting entries

Chapter 4:Accounting Cycle: Closing

Closing of Temporary Accounts, Generation of Financial Statements Related cases will be solved.

Financial Statements:
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Income Statement Balance Sheet Cash Flow

Midterm Examination Chapter 7: Accounts Receivable:

Estimating Bad Debt Expenses under different methods 7 Quality of A/R Accounts Receivable turnover and average collection period Related cases will be solved.

Chapter 8: Inventory Management: (Part 1)

Valuation of Inventories

Measurement of Cost of Goods Sold, Issues in inventory Management Related cases will be solved.

Inventory Management: (Part 2) Periodic and Perpetual inventory systems 9 Related cases will be solved

Chapter 10: Property, Plant and Equipment & Depreciation:

10 Acquisition, disposal and depreciation of assets Gains or losses on sale of assets Impairment Testing Related cases will be solved. Chapter 12: Current Liabilities Typical Current Obligations Contingent Liabilities Payroll Related cases will be solved Chapter 13: Long Term Obligations Long-Term Notes Annuities Bonds Payable Effective-Interest Amortization Methods Related cases will be solved Financial Analysis and Statement Cash flow Analysis of cash flow statements 12 Preparation of cash flow statements based on the direct and indirect method Analysis of financial statements Calculation and analysis of profitability, liquidity and leverage ratios Related cases will be solved.

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