a To provide knowledge and understanding of the concepts, principles and practices in Company Accounts, Interpretation of Financial Statements.
b To provide conceptual clarity and practical aspects of financial management so as to develop skills in taking financial and investment decisions and in business strategies Level of Knowledge: Working Knowledge Detailed Contents
Part I : Corporate Accounting (60 Marks)
1. Introduction to Accounting:
*Bookkeeping
*Accounting Cycle
*Single / Double entry system
*Accounting Principles
*Accounting Concept & Convention
*Types of Account
*Journal l Ledger
*Trial Balance
*Final Account
2. Introduction to Corporate Accounting
*Records of accounts to be maintained by a company
*Preparation and Presentation of Financial Statements
*Schedule III of the Companies Act, 2013
*Disclosure Requirement
*True and Fair View of Financial Statements
*XBRL
3.Accounting Standards (AS)
*Applicability
*Interpretation
*Scope and Compliance
*International Financial Reporting Standards
*Overview of AS
*AS vs. Ind AS vs. IFRS
4. Accounting for Share Capital :
*Issue of Shares
*Forfeiture and Reissue of Shares
*Accounting Treatment of Premium
*Buy-back of Shares
*Redemption and Conversion
*Capital Redemption Reserve
*Bonus Shares
*Rights Issue
*ESOPs
*ESPS
*Sweat Equity Shares and Underwriting
*Book Building
5. Accounting for Debentures
*Accounting Treatment
*Debenture Redemption Reserve
*Redemption of Debentures and Conversion of Debentures into Shares
6. Related Aspects of Company Accounts
*Accounting for ESOP
*Buy-back
*Equity Shares with differential rights
*Underwriting and Debentures
7. Consolidation of Accounts
*Standalone and Consolidated Financial Statements
*Holding Company
*Subsidiary Companies
*Associate Companies and Joint Venture
*Accounting Treatment and disclosures
8. Financial Statement Analysis:
*Introduction
*Characteristics of good financial statements and its relevancy for better reporting
*Requirements of Financial Reporting and Recent trends
*Best Practices applicable to all companies
*Usage and features of ratios analysis
*Liquidity ratios l turnover ratio
*Leverage ratios
*Insolvency ratio and profitability ratio
*DuPont Analysis l Reading and Interpretation of Financial Statements
9. Cash Flows:
*Understanding the Statement of Cash Flows
*Identify the purpose of the statement of Cash Flows
*structure and interpretation of operating, investing and financing activities in Cash Flow statement
*Analyze information in the statement of Cash Flows to determine whether the firm is in its life cycle
*Examine additional uses of Cash Flow information
10. Forecasting Financial Statements:
*Build forecasts of future Balance Sheets, Income Statements and Statements of Cash Flows Part II : Financial Management (40 Marks)
11. Introduction:
*Nature
*Scope & Objectives of Financial Management
*Profit Maximization vs. Wealth Maximization
12. Time Value of Money:
*Introduction
*Concept of Time Value of Money – The power of compounding
*Significance and application of Time Value of money
*Concept of Annuity
*Understanding and application of Table used in Time value of money
13. Capital Budgeting:
*Compounding and Discounting techniques - Capital Budgeting Process
*Techniques of Capital Budgeting - Discounted and Non- Discounted Cash Flow Methods
*NPV
*Payback
*Profitability Index
*IRR l Economic Value Added (EVA)
*Capital Rationing
*Risk Evaluation and Sensitivity Analysis
14. Cost of Capital:
*Sources
*Meaning
*Factors Affecting Cost of Capital
*Methods for Calculating Cost of capital
*Weighted Average Cost of Capital (WACC)
*Marginal Cost of Capita
15. Capital Structure:
*Introduction
*Significance of capital structure
*Determinants of capital structure
*Capital structure planning and designing of optimum capital structure
*Capital Structure Theories
*EBIT- EPS Analysis
*Breakeven - EBIT Analysis
*Under / Over Capitalization
*Meaning
*Types l Determinants and Assessment of Working Capital Requirements
*Negative Working Capital
*Operating Cycle Concept and Applications of Quantitative Techniques
*Management of Working Capital – Cash Receivables Inventories
*Financing of Working Capital
*Banking Norms and Macro Aspects
*Factoring and Forfaiting
18 Security Analysis:
*Measuring of Systematic and Unsystematic Risk
*Fundamental Analysis (Economic, Industry and Company)
*Technical Analysis and Efficient Market Hypothesis
19. Operational Approach to Financial Decision
*An Overview of Costing
*Key Concepts
*Basics Principles of Costing
*Marginal Costing – Breakeven Point, Margin of Safety
