Accounting for decision Making

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Accounting for decision Making

• 1st Session
• D.V. Ramana

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Accounting

• Shareholders Perspective

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Organisation

• Form of Organisation
• Sole Tradership
• Partnership
• Joint Stock Company
• Society
• Trust
• Cooperative
• Govern dept.
• Ownership of organisation
• Shareholders
• Small group of individual
• Government

4
Company

• Management of organisation
• Board of Directors
• Executive Body

• Ownership
• Management
• Availability (regulatory )
• Subject Matter for our classes
• LISTED COMPANY

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Prelude for Course

• Select a listed Company (NSE or BSE)
• Download the latest Annual Report and keep it
  with you.

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Accounting

• Financial Accounting
• Cost Accounting
• Management Accounting
• Accounting for Decision Making

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Frame work

• Business Decisions
• Financial Transactions
• Financial Items
• Financial Statements
• Financial Statement Analysis

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Business Decisions

• Financing Decisions
• Raising Capital through sale of shares
• Raising capital through loan
• Repaying loan
• Investment Decisions
• Within the company
• Outside the company
• Operating Decisions
• Pricing
• Salary Employee Remuneration
• Declaring holidayclosing operation
• Capacity level

• Collect a set of economic news items and classify
  them into
• FD
• ID
• OD

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Financial Transactions /Financial Items

• Financial Items
• Incomes
• Expenses
• Assets (Property)
• Liabilities (Obligations)

• Rent
• Rent Received Income
• Rent Paid Expense
• Rent due but not received Asset
• Rent due but not paid Liability

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Financial Statements

• Balance sheet
• Income statement
• Cash Flow Statement

• BD
• FT
• FI
• FS

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Financial Accounting

• Financial Accounting is the process of converting
  BD into FS
• Process is governed by GAAP
• GAAP Generally Accepted Accounting Principles

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Financial Accounting

• The process of converting BD into FS can be
  understood through
• Rules of Debit and Credit or
• Accounting Equation

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ADM

• Focus Joint Stock Company
• Collect the FS of a listed company
• Understand Buiness Decisions though the Financial
  statements
• BD FI - FS
• BD FD/ID/OD
• FI I/E/A/L
• FS BS/IS/CFS
• Financial Accounting Accounting Equation

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Work to Do

• Collect the AR of a listed company
• Read it
• Make of a list of financial transactions from
  Newspapers
• FD
• ID
• OD

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• ramana_at_ximb.ac.in

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