Foundations of Accounting & Finance Course | IIT Madras | Prof. Arun Kumar

Course Details

Master the Language of Business: Foundations of Accounting & Finance

In today's complex business world, financial literacy is not just for accountants—it's a fundamental skill for every manager, entrepreneur, and professional. The Foundations of Accounting & Finance course, offered by the prestigious Indian Institute of Technology Madras (IIT Madras), provides a comprehensive and accessible gateway to mastering this essential language of business. Designed as a 12-week journey, this course demystifies core financial concepts and equips you with the analytical tools needed for intelligent decision-making.

Your Guide: Prof. Arun Kumar Gopalaswamy

This course is led by Prof. Arun Kumar Gopalaswamy, a Professor of Finance at IIT Madras. Prof. Gopalaswamy brings a unique and valuable perspective to the subject, with deep academic expertise in Corporate Governance complemented by extensive real-world experience. For nearly a decade, he has been actively involved in evidence-based impact assessment across diverse development sectors including microfinance, skill development, women empowerment, and digital literacy. His work in peri-urban and rural settings across India, as well as systematic reviews across South Asia, ensures the course content is grounded in practical, real-world application, not just theory.

Who Should Take This Course?

This course is meticulously designed for a broad audience seeking to build or solidify their financial acumen:

• Aspiring & Current Managers: A core functional discipline for any business management role.
• Tech Professionals Transitioning to Management: Ideal for engineers and tech experts moving into leadership positions.
• Postgraduate & Undergraduate Students in Economics, Management, and related fields.
• Entrepreneurs & Business Owners who need to understand their company's financial health.
• Any Professional looking to gain a foundational understanding of accounting and finance principles to make better business decisions.

Course Philosophy: Appreciation Over Methodology

This is a course on appreciation. Rather than training you to become a bookkeeper, it focuses on helping you intelligently use financial information as a manager. You will learn how to interpret financial statements, analyze costs, evaluate investments, and understand the financial implications of strategic decisions. The goal is to empower you to ask the right questions and understand the answers provided by financial data.

Detailed 12-Week Course Layout

Part I: Financial Accounting (Weeks 1-5)

Lay the groundwork by understanding how business transactions are recorded, summarized, and presented.

• Weeks 1-3: Introduction to Financial Accounting, Corporate Finance, and the preparation of core statements—Income Statement, Balance Sheet, and the Cash Flow Statement (Direct Method). Concepts include double-entry bookkeeping, accruals, depreciation, and the accounting equation.
• Weeks 4-5: Deep dive into the Cash Flow Statement (Indirect Method) and Financial Statement Analysis. Learn Ratio Analysis to assess profitability, liquidity, efficiency, and leverage, giving you the tools to evaluate a company's performance and financial health.

Part II: Cost / Management Accounting (Weeks 6-9)

Shift focus to internal decision-making. Learn how costs behave and how to use this information to manage and strategize.

• Weeks 6-7: Introduction to Cost Classification, preparation of Cost Sheets, and Overhead Allocation methods, including modern techniques like Activity-Based Costing (ABC).
• Weeks 8-9: Apply cost information for critical Decision-Making: make-or-buy, product mix, key factor analysis, and break-even analysis. Learn Budgeting principles and Variance Analysis to control operations.

Part III: Corporate Finance (Weeks 10-12)

Explore how companies fund their operations and create value. This section connects accounting information to financial strategy.

• Week 10: Foundations of Corporate Finance, the crucial Time Value of Money (TVM), and Bond Valuation.
• Week 11: Stock Valuation, techniques for Capital Investment Decisions (NPV, IRR, Payback), and introduction to Risk and Return concepts.
• Week 12: Synthesize knowledge with Portfolio Theory, calculate the Cost of Capital (WACC, CAPM), and understand high-level decisions regarding Capital Structure and Dividend Policy.

Recommended Textbooks

Why This Course is Essential for Your Career

Whether you are an EMBA student, a technical expert eyeing a management role, or a professional seeking to understand the financial drivers of your organization, this course is your foundation. It translates complex financial data into actionable business intelligence. By completing this 12-week program from IIT Madras, you won't just learn accounting rules—you'll develop the financial fluency required to lead, manage, and make decisions with confidence. Enroll today and start building your foundational pillar of business expertise.

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