Financial Accounting for Management: An Analytical Perspective focuses on the analysis and interpretation of financial information for strategic decision making to enable students and managers to formulate business strategies for revenue enhancement, cost economies, efficiency improvements, restructuring of operations, and further expansion or diversification for creating and enhancing the shareholder’s value. Though the book has MBA, MFC and MBE students as its primary audience, managers in the corporate sector and students of CA, CWA, CS, CFA and CAIIB will find it equally useful because of its practical orientation.

Features

• Student friendly. Written in a lecture mode and conversational style. Classroom simulative.
• Case study – centric and analysis oriented. A practical business oriented analysis keeping in mind the real world financial practices of blue-chips corporates.
• Cases of 62 Indian corporates and MNCs covered.
• Enriched by author’s own industry experience, independent thinking and research on the subject resulting into providing a practitioner’s perspective and making the text thoroughly enjoyable.
• Thorough discussion on Conceptual Framework of Financial Statements and contemporary issues such as Generally Accepted Accounting Principles (GAAPs), Valuation of Assets Under Finance Lease, Intangible Assets, Amortisation , Asset Impairment, EPS Analysis, ESOP,s and Consolidated Reporting.
• Accounting Standards interwoven with the text throughout the book, in a non-technical language to the extent possible, instead of bundling them in a separate chapter with the objective of making their understanding more and more contextual and enjoyable.
• Thorough coverage of Significant Accounting Policies and Notes to Accounts, Auditors’ Report, Directors’ Report, Corporate Governance Report, Management Discussion and Analysis Report, Quality of Earnings, Window Dressing, and Information From Sources other than Corporate Annual Reports.
• A systematic, organised and integrated reading and understanding of financial statements and reports through the case of Nestle India Ltd., based on its external annual financial reporting.
• A model developed for a strategic analysis and interpretation of the annual report comprising an integration of financial, qualitative and quantitative information with the objective of giving recommendations to the management on strategic issues emanating out of analysis and suggesting more transparency in financial reporting.
• Nestle’s full annual report analysed as per the said model. Special emphasis laid on contemporary financial issues such as Segment Reporting, Related Party Disclosures, Earnings Per Share, Impairment Loss, Accounting for Taxes on Income and Contingency Provision and analysed threadbare.
• Innovative analytical techniques like Per Employee Analysis and Per Equity Share Analysis introduced.
• Detailed discussion on Global Financial Reporting.
• Coverage of emerging dimensions in financial reporting, that is, Value reporting™ comprising Intangible asset scorecard, Human resource accounting, Value-added statement, Brand valuation, Balance sheet including intangible assets, Economic Value-Added (EVA®) statement, Enterprise value and Current-cost-adjusted financial statements.
• Outstanding pedagogical features:
  • Chapter Openers
  • Chapter Objectives
  • Bird’s Eye View Box
  • Website Resource Box
  • Publication Resource Box
  • Before You Move Further, Stop! Box
  • Research in Financial Reporting
  • Examples of leading companies in the running text
  • Icons with illustrations
  • Chapter illustrations:
    • Case Studies
    • Corporate Financial Practices
    • Corporate Window Dressing /Creative Financial Practices
    • Exhibits
    • Numerical Illustrations
    • Analytical Illustrations
    • Integrated Project
    • Key Words
    • References
  • Chapter-end Exercises: All with Characteristic Icons
    • Case Studies
    • Integrated Group Projects
    • Numerical Exercises
    • Analytical Exercises
    • WAC (Written Analysis and Communication) Exercises
    • MOC (Managerial Oral Communication) Group Assignments
    • Vertical Balance Sheets and Profit and Loss Accounts
    • Capitaline Plus / CMIE Prowess Data Based Exercises
    • Open Exercises- ‘Widen Your Horizons’
    • Integration of Exercises Through Various Chapters

Contents
Part I: The Foundation

Measurement of Profit and Financial Position: I Business Transactions to Trial Balance

Measurement of Profit and Financial Position: II Trial Balance to Balance Sheet and Profit and Loss Account: Non Corporate Entities

Measurement of Profit and Financial Position: III Corporate Entities Part II: Concepts and Principles

Conceptual Framework of Financial Statements

Generally Accepted Accounting Principles Part III: Asset Valuation

Valuation of Tangible Fixed Assets

Depreciation on Fixed Assets

Valuation of Assets under Finance Lease and Intangible Assets, Amortisation and Asset Impairment

Valuation of Inventories

Valuation of Investments Part IV: Understanding Corporate Financial Statements and Other Financial Reports Included in Annual Reports

Corporate Balance Sheet

Corporate Profit and Loss Account

Notes to the Accounts and Significant Accounting Policies

Understanding and Constructing Corporate Cash Flow Statement

Other Financial Reports: I Auditors' Report and Directors' Report

Other Financial Reports: II Corporate Governance Report Part V: Financial Statement Analysis

Quality of Earnings: Window Dressing, Creative Financial Practices and Issues Related To Quality of Disclosures in Reported Earnings

Financial Statement Analysis and the Tool Kit of the Analyst: I Multi-Step, Horizontal, Vertical and Trend Analyses and Analytical Balance Sheet

Financial Statement Analysis and the Tool Kit of the Analyst: II Emerging Share (EPS) Analysis

Financial Statement Analysis and the Tool Kit of the Analyst: III Ratio Analysis

Analysis of Cash Flow Statement and Management Discussion and Analysis Report Part VI: Strategic and Integrated Managerial Analysis of Corporate Financial Statements and Other Financial Reports of Nestle India Ltd. Forming Part of Its Annual Report

Model for Strategic and Integrated Managerial Financial Analysis of Annual Report of Nestle India Ltd.

Strategic and Integrated Managerial Financial Analysis of Nestle India Ltd.Based on the Model Part VII: More on Financial Analysis

Innovative Techniques of Financial Statement Analysis

Analysis of Information from Sources Other Than Annual Reports and Inter-Company Comparison

Analysis of Group Performance: Consolidated Financial Reporting Part VIII: Contemporary Issues in Financial Reporting and Analysis

Global Financial Reporting

Emerging Dimensions in Voluntary Financial Reporting: Contemporary Analytical Techniques