Description

Financial Accounting

 

TYBCOM Semester V

 

Syllabus

 

1. Preparation of Final Accounts of Companies
Relevant Provisions of Companies Act related to Preparation of Final Account (excluding Cash Flow Statement)
Preparation of Financial Statements as per Companies Act (excluding Cash Flow Statement)
AS 1 in relation to Final Accounts of Companies (Disclosure of Accounting Policies)
Adjustment for –
1. Closing Stock
2. Depreciation
3. Outstanding Expenses and Income
4. Prepaid Expenses and Pre-received Income
5. Proposed Dividend and Unclaimed Dividend
6. Provision for Tax and Advance Tax
7. Bill of Exchange (Endorsement, Honour, Dishonour)
8. Capital Expenditure included in Revenue Expenditure and vice versa e.g. – Purchase of Furniture included in Purchases
9. Unrecorded Sales and Purchases
10. Good Sold on Sale or Return Basis
11. Managerial Remuneration on Net Profit Before Tax
12. Transfer to Reserves
13. Bad Debt and Provision for Bad Debts
14. Calls in Arrears
15. Loss by Fire (Partly and fully insured goods)
16. Goods Distributed as Free Samples
17. Any other adjustments as per the prevailing accounting standard

2. Internal Reconstruction
Need For Reconstruction and Company Law Provisions
Distinction Between Internal and External Reconstructions
Methods including alteration of Share Capital, Variation of Shareholder Rights, Sub-division, Consolidation, Surrender and Re-issue / Cancellation, Reduction of Share Capital with relevant Legal Provisions and Accounting treatment for same.

3. Buy Back of Shares
Company Law / Legal Provisions (including Related Restrictions, Power, Transfer to Capital Redemption Reserve Account and Prohibitions)
Compliance of Conditions including Sources, Maximum Limits and Debt Equity Ratio. Cancellation of Shares Bought Back (excluding Buy Back of Minority Shareholding)

4. Investment Accounting (w.r.t. Accounting Standard – 13)
For Shares (Variable Income Bearing Securities)
For Debentures / Preference Shares (Fixed Income Bearing Securities)
Accounting for Transactions of Purchase and Sale of Investments with Ex and Cum Interest Prices and Finding Cost of Investment Sold and Carrying Cost as per Weighted Average Method (Excluding Brokerage)
Columnar Format for Investment Account

5. Ethical Behaviour and Implications For Accountants
Introduction, Meaning of Ethical Behaviour
Financial Reports – What is the Link Between Law, Corporate Governance, Corporate Social Responsibility and Ethics ?
What does the Accounting Profession mean by the Ethical Behaviour ?
Implications of Ethical Values for the Principles versus Rule based Approaches to Accounting Standards
The Principal based Approach and Ethics
The Accounting Standard Setting Process and Ethics
The IFAC Code of Ethics for Professional Accountants
Ethics in the Accounting Work Environment – A Research Report
Implications of Unethical Behaviour for Financial Reports
Company Codes of Ethics
The Increasing Role of Whistle-Blowing
Why should Student Learn Ethics ?