Paper 5 Corporate & Management Accounting(Max Marks 100)
Objectives Part I: To provide knowledge and understanding of the concepts, principles and practices in Corporate Accounting and Indian and International Accounting Standards. Part II: To acquire knowledge and understanding of the concepts, techniques and practices of management accounting and to develop skills for decision making and to acquire knowledge of the concepts, principles and methods of valuation.
Part I: Corporate Accounting (60 marks) 1. Introduction to Financial Accounting. 2. Introduction to Corporate Accounting : Records of accounts to be maintained by a company. 3. Accounting for Share Capital : Issue of Shares; Forfeiture and Re-issue of Shares, Accounting treatment of premium, Buyback of Shares; Redemption and Conversion; Capital Redemption Reserve, Bonus Shares; Rights Issue, ESOPs, ESPS, Sweat Equity Shares; and Underwriting; Book Building. 4. Accounting for Debentures: Accounting Treatment, Debenture Redemption Reserve, Redemption of Debentures and Conversion of Debentures into Shares. Deferred Tax. 5. Related Aspects of Company Accounts: Accounting for ESOP, Buy-back, Equity Shares with differential rights, Underwriting and Debentures. 6. Financial Statements Interpretation: Preparation and Presentation of Financial Statements; Quarterly, Half yearly and Annual Financial Statement pursuant to Listing Regulations;Depreciation provisions and Reserves; Determination of Managerial Remuneration, Corporate Social Responsibility spend, various disclosures under the Companies Act, 2013, LODR & applicable accounting standards; Related party and segment reporting, Audit Queries; How to Read and interpret Financial Statements. 7. Consolidation of Accounts as per Companies Act, 2013 : Holding Company, Subsidiary Companies, Associate Companies and Joint Venture; Accounting Treatment and disclosures. 8. Corporate Financial Reporting : Requirements of Corporate Reporting; Recent trends in Financial Reporting. 9. Cash Flow Statements : Preparation and their analysis. 10.Accounting Standards (AS) : Applicability, Interpretation, Scope and Compliance; International Financial Reporting Standards ; Overview of AS, AS vs. Ind AS vs. IFRS. 11. National and International Accounting Authorities. 12. Adoption, Convergence and Interpretation of International Financial Reporting Standards (IFRS) and Accounting Standards in India.Case Studies & Practical Aspects.
Part II: Management Accounting and Valuation (40 marks) 13. An Overview of Cost: Importance and relevance of Cost Accounting; Material Cost, Labour Cost, Direct Expenses and Overheads, Cost Sheet. 14. Cost Accounting Records & Cost Audit under Companies Act, 2013 15. Budget, Budgeting and Budgetary Control: Preparation of various types of Budgets; Budgetary Control System; Zero Based Budgeting; Performance Budgeting 16. Ratio Analysis: Financial Analysis through Ratios 17. Management Reporting (Management Information Systems) 18. Decision Making Tools: Marginal Costing; Transfer Pricing 19. Valuation Principles & Framework: Conceptual Framework of Valuation, Valuation rules; Valuation of securities or financial assets; Approaches of Valuation - Assets Approach, Income Approach; Market Approach; Registered Valuer; IND AS Valuation 20. Valuation of Shares, Business and Intangible Assets: Regulatory Valuations; Companies Act; Insolvency and Bankruptcy Code; Income Tax Act; SEBI law; FEMA and RBI guidelines. 21. Accounting for Share based payments (IndAS 102) 22. Business and Intangible Assets 23. Methods of Valuation :Net Assets Valuation: Relative Valuation (Comparable Companies/Transactions); Discounted Cash Flow Valuation; Other Methods Case Studies & Practical Aspects