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Financial Accounting for Managers, 2/e, 2nd Edition

Book Description

With the introduction of the Companies Act 2013, financial accounting and reporting has undergone a major shift in India.. For instance, The Ministry of Corporate Affairs has announced the revision of the schedule for the convergence of Indian accounting standards with the IFRS and has also made Cash Flow Statements and Consolidated Financial Statements mandatory . Hence, this edition of &ldquoFinancial Accounting for Managers" has been suitably revised and adapted to incorporate these changes.

Table of Contents

  1. Cover
  2. Title page
  3. Contents
  4. About the Author
  5. Dedication
  6. Preface
  7. 1 INTRODUCTION TO ACCOUNTING
    1. 1.1 What Is Accounting?
    2. 1.2 Users of Financial Accounting Information
    3. 1.3 Financial Accounting versus Management Accounting
    4. 1.4 Need for Accounting Principles—GAAP and Accounting Standards
    5. 1.5 Accounting Cycle
    6. 1.6 Financial Statements
    7. 1.7 Accounting Environment
  8. 2 GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND ACCOUNTING STANDARDS
    1. 2.1 Nature of Generally Accepted Accounting Principles
    2. 2.2 Need for Accounting Standards
    3. 2.3 Globalization of Accounting Standards
  9. 3 ACCOUNTING CYCLE
    1. 3.1 Accounting Process
    2. 3.2 Journal Entry
    3. 3.3 Classification
    4. 3.4 Summarization
    5. 3.5 Financial Statements
  10. 4 STATEMENT OF PROFIT & LOSS
    1. 4.1 GAAP Revisited
    2. 4.2 Format of statement of Profit and Loss
    3. 4.3 Various Measures of Profit
    4. 4.4 Appropriation of Profit
    5. 4.5 Abnormal Items
    6. 4.6 Earnings per Share
    7. 4.7 Key Differences between Existing AS and Converged Ind AS
  11. 5 BALANCE SHEET
    1. 5.1 GAAP revisited
    2. 5.2 Format of Balance Sheet
    3. 5.3 Shareholders’ Funds
    4. 5.4 Government Grants
    5. 5.5 Liabilities
    6. 5.6 Assets
    7. 5.7 Contingent Liabilities and Commitments
    8. 5.8 Key Differences between Existing AS and Converged Ind AS
  12. 6 ACCOUNTING FOR REVENUE AND ACCOUNT RECEIVABLES
    1. 6.1 Revenue
    2. 6.2 Timing of Revenue Recognition
    3. 6.3 Key Differences between Existing AS and Converged Ind AS
  13. 7 ACCOUNTING AND VALUATION OF INVENTORY
    1. 7.1 Meaning of Inventory
    2. 7.2 Inventories and the Financial Statements
    3. 7.3 Key Differences between Existing AS and Converged Ind AS
  14. 8 ACCOUNTING FOR FIXED ASSETS AND DEPRECIATION
    1. 8.1 Operating Expenses versus Capital Expenses
    2. 8.2 Key Differences between Existing AS and Converged Ind AS
  15. 9 CASH FLOW STATEMENT
    1. 9.1 Need for Cash Flow Statement
    2. 9.2 What is Cash?
    3. 9.3 Cash Flow Statement
    4. 9.4 Cash Flow from Operating Activities
    5. 9.5 Cash Flow from Investing Activities
    6. 9.6 Cash Flows from Financing Activities
    7. 9.7 Special Points
    8. 9.8 Cash Flows at Different Stages of Life cycle
    9. 9.9 Key differences between existing AS and converged Ind AS
  16. 10 CONSOLIDATED FINANCIAL STATEMENTS
    1. 10.1 Scope of Consolidation
    2. 10.2 Consolidated Financial Statements
    3. 10.3 Key Differences between Existing AS and Converged Ind AS
  17. 11 DISCLOSURES IN ANNUAL REPORTS
    1. 11.1 Disclosures Under the Companies Act, 2013
    2. 11.2 Disclosures under Listing Agreement
    3. 11.3 Disclosures under Accounting Standards
    4. 11.4 Voluntary Disclosures
    5. 11.5 Key differences between existing AS and converged Ind AS
  18. 12 ANALYSIS OF FINANCIAL STATEMENTS
    1. 12.1 Common Size Statements
    2. 12.2 Indexed Financial Statements
    3. 12.3 Ratio Analysis
  19. 13 FINANCIAL SHENANIGANS
    1. 13.1 Financial Shenanigans
    2. 13.2 Motivations for Financial Shenanigans
    3. 13.3 Opportunities for Financial Shenanigans
    4. 13.4 Financial Shenanigans Techniques
    5. 13.5 Regulatory Reactions
    6. 13.6 How to Detect Financial Shenanigans?
    7. 13.7 Prevention of Financial Shenanigans
  20. Notes
  21. Acknowledgements
  22. Copyright
  23. Back Cover