Taxmann's Financial Accounting & Analysis – Guide to understanding the essential principles of accounting using financial statement analysis, supplemented by practical examples, etc.
About this ebook
• Preparation
• Use and Analysis of Financial Statements
• Supplemented by Real Life Examples and Scenarios
• Presented in a Concise, Simple and Comprehensive Manner
This book will be helpful for students and practitioners as it covers the course of PGDM/MBA taught in leading business schools in the country. Also, the level of discussion, illustrations, and exercises covered in each chapter are well attuned to professional courses such as Chartered Accountancy in India (ICAI) and the UK's Association of Chartered Certified Accountants (ACCA). Furthermore, this book's chapters have been aligned with the course content as prescribed by the majority of Indian universities for their Commerce/Accountancy courses.
The Present Publication is the Reprint July 2023 Edition, authored by Dr Narender L. Ahuja and Dr Varun Dawar. The structure of the book is as follows:
• [Introduction to Accounting] Chapter 1 introduces the need for accounting and briefly explains the difference between financial accounting and management accounting. It further focuses on the purpose of preparing profit and loss account and balance sheet and discusses the need to audit financial accounts.
• [Accounting Concepts, Conventions and Policies] Chapter 2 introduces the main accounting concepts and conventions. The chapter further focuses on the distinction between accrual and cash accounting systems and identifies the qualitative characteristics of financial statements.
• [Recording Transactions in the Journal and the Ledger] Chapter 3 discusses the accounting equation and double-entry accounting principles for recording transactions involving assets, liabilities, capital, expenses and revenues. It further identifies the steps in the accounting cycle and explains how to analyse transactions for journalising and ledger posting.
• [Trial Balance to Financial Statements] Chapter 4 introduces the readers to trial balance and its preparation, including the adjustment entries required for various items.
• [Inventory, Depreciation and Accounting Errors] Chapter 5 discusses the main cost formulae for inventory valuation. It further focuses on the primary methods for calculating depreciation, including its accounting treatment.
• [The Annual Report – Qualitative and Quantitative Disclosures] Chapter 6 discusses the general disclosures in an annual report in terms of the requirements of various bodies and highlights the structure and format of an annual report. This chapter helps readers understand the objectives of the Management Discussion and Analysis section and the significance of the Director's and Auditor's reports. This chapter aims to enable readers to understand the progress or health of the state of affairs of a company through its yearly document, the 'Annual Report'.
• [Analysing Financial Statements – I | Financial Ratios Analysis] Chapter 7 discusses the need for financial ratios analysis and covers various types of ratios such as liquidity ratios, profitability ratios and capital structure ratios and their use in carrying out inter-firm and inter-period comparison of performance.
• [Analysing Financial Statements – II | Horizontal, Common-size and Trend Analysis] Chapter 8 discusses the important yet simple techniques of horizontal, common-size and trend analysis, which are integral to financial ratios analysis.
• [Statement of Cash Flows] Chapter 9 introduces the readers to the cash flow statement, its importance and uses. The chapter further explains the methods of computing activity-wise cash flows and their analysis and interpretation.
• [Consolidated Financial Statements | Introduction, Balance Sheet Consolidation, Consolidated Profit & Loss Statement and Further Aspects] Chapter 10 and Chapter 11 discuss the meaning of parent-subsidiary relationship and objectives of consolidated financial statements. These chapters would help readers understand the basic principles of preparing the consolidated statements and enumerate differences between the treatment of pre-acquisition and post-acquisition profits for consolidation.
• [Consolidated Financial Statements – III | Vertical & Mixed Groups, Piecemeal Acquisitions and Associates] Chapter 12 introduces the readers to the consolidation of vertical and mixed groups and the consolidation of piecemeal acquisitions and associates.
• [Convergence of Indian Accounting Standards with IFRS] Chapter 13 discusses the need for uniformity and transparency in reporting standards and the roadmap for implementation of Indian Accounting Standards (Ind AS) to achieve convergence with IFRS (International Accounting Standards). The chapter further lists the major differences between the Indian GAAP (current Indian accounting standards), converged Indian accounting standards (Ind AS) and IFRS.
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About the author
Dr Narender L. Ahuja is Dean-Academics and Professor of Accounting & Finance at the Institute of Management Technology, Ghaziabad. Dr Ahuja is a Fellow/PhD from the Indian Institute of Management, Calcutta and has over 35 years of experience teaching accounting/finance courses to MBA/PGDM classes at high-ranking institutions, including IMT Ghaziabad, IIM Calcutta, XLRI Jamshedpur, Faculty of Management Studies (University of Delhi) and International Management Institute, New Delhi. Dr Ahuja has also been a faculty at the Institute of Chartered Accountants of India and served abroad as a Commonwealth (CFTC) Expert for a number of years, during which he taught the globally reputed professional accounting course ACCA of the UK with great success.
Dr Ahuja has extensive experience in executive training, case writing, research and publications. Author of three books, Dr Ahuja, has published in reputed journals and has presented research papers at several international conferences, including Harvard University (USA), Oxford University (UK), Greece, Israel and other places. Dr Ahuja has won international Case-writing competitions organised by London Business School, UK and CEEMAN-Emerald, Europe.
He has been a consultant/trainer to several public and private sector organisations. He has also served as a nominee Director on the Board of a public sector undertaking and Director of a management institute. Dr Ahuja's areas of interest include financial and management accounting, management control systems, corporate finance, international finance and bank management.
Dr Varun Dawar is an Assistant Professor in Accounting & Finance at IMT Ghaziabad. Dr Dawar has worked extensively in financial markets as an equity analyst and fund manager with firms like JP Morgan and Max Life Insurance Limited.
In his previous industry role, Professor Dawar had conducted in-depth fundamental research on Companies in Indian Banking and Oil and Gas Industry for approximately USD 4 billion in assets under management and provided buy/sell recommendations by analysing industry trends, company financial statements, creating financial models, interviewing all related company stakeholders and participating in industry conferences.
In his previous role, Dr Dawar was also responsible for managing USD 60 million fund (invested across equity and debt markets) and taking fundamental research-based investment calls concerning equity and debt investments in line with the fund's mandate and investor's risk appetite.
Dr Dawar's areas of interest include financial accounting, corporate finance and business valuation, with his research being widely published in journals of national and international repute.
