Accounting for Decision Making

1. Accounting for Decision Making For: IBA Academic Committee By: Rustom Kavasji Chairman, Accounting & Law, IBA, Karachi

2. Course Objectives To provide an senior executive perspective of advanced financial and management accounting To learn techniques for analysis of financial information and improved decision making and value creation and measurement.

3. Grading • Class Participation / Assignments (30%) • Qualitative • Interactive • Two written Case Analysis / Reports (20%) • Home Assignments (10%) • Mid Term (20%) • Combination of case analysis and short questions • Final Exam (20%) • Combination of case analysis and short questions • Comprehensive

4. Course Outline & Calendar

5. Ammar Textiles The Transfer Pricing Problem Highlights transfer pricing as a key factor in competitiveness of textile exports and why calculation and determination of an accurate transfer price between the Pakistani manufacturing operation and Muscat is critical for Ammar’s successful entry into new markets

6. Zulsham Engineering Cost Volume Profit Analysis Shows the usefulness of CVP as a [planning and decision making tool for Zulsham and an illustration of the nature of costs in the real world. Highlights key issues in CVP’s link to product pricing.

7. Dell Computers Working Capital Management Shows the effectiveness of good working capital and cash management in organizational growth. The case highlights good operational WC management as key in Dell’s success while also indicating some pitfalls along the way.

8. The Dublin Shirt Company Cost Allocations and Pricing An excellent case study that illustrates the peril of poor management due to incorrect cost allocations and hidden costs, buried within lumped cost structures, in turn leading to poor product pricing and ineffective customer profitability analysis.

9. The IBETO Group Accounting & ERP Systems Illustrates the necessity for ERP and builds a case for an E-Enterprise. Shows the transformation of a conglomerate’s redundant information systems to the adoption of a state-of-the-art ERP system and the issues and challenges along the way in selection of a system.

10. The Chase Manhattan Bank Accounting & Compliance Illustrates the real world, real life challenges that face a team of banking executives as they are confronted between trade-offs and hard choices between sustaining profitability and remaining compliant with statutes and directives issued by the State Bank of Pakistan.

11. Kincaid Manufacturing Supply Chain Cost Management Illustrates critical issues that inflate costs due to weakness and inefficiencies within the supply chain function of Kincaid and highlights the critical importance of the procurement function in good supply chain management.

12. Analysisof Financial Statements For: IBA Academic Committee By: Rustom Kavasji Chairman, Accounting & Law, IBA, Karachi

13. Course Objectives To provide an overview of accounting and understanding of accounting flow for non accountants. To enhance reading ability and understanding of financial information. To learn techniques for analysis of financial statements for purposes of determining and selecting superior investment opportunities among large public sector corporations.

14. Course Content

15. Course Content (Continued)

16. Grading • Class Participation / Assignments (30%) • Qualitative • Interactive • Term Project (30%) • Class Presentation (15%) • Written Term Report (15%) • Mid Term (15%) • Combination of case analysis and short questions • Final Exam (25%) • Combination of case analysis and short questions • Comprehensive

17. Class Participation & Term Project The Presenter / Group Class Investors Or Clients

18. Class Participation & Term Project C L A S S P A R T I C I P A T I O N Attack Them! • Select Annual Report of any public (i.e. shares traded on KSE) company during FY’s 2010 – 2011 • Prepare a detailed analysis of the company for presentation in class. You must pick a company that you would invest in and prepare an overall analysis of why you would invest in that corporation for a minimum of 3 – 5 years. • Multidimensional Analysis • Industry Analysis • Potential for future growth and success • Liquidity • Risk & Reward • Competitor Analysis • If possible interview top management or executives of that corporation (optional but likely to enhance your score) • Present & defend conclusions in class + written term report I N V E S T O R S

19. Class Participation & Term Project All written submissions relating to term project must be printed not hand written