BCM3 BO4    CORPORATE ACCOUNTING

Lecture Hours per week: 6, Credits: 4

Internal: 20, External: 80, Examination 2.5 Hours

Objectives:

To help the students to acquire conceptual knowledge of the fundamentals of the corporate accounting and the techniques of preparing the financial statements.

 Module I

 

a.                   Redemption of Debentures:

Meaning- Writing off of Discount on issue and loss on issue of debenture- Methods of redemption- Annual drawings out of profit and capital (New regulation to be taught)- Debenture redemption reserve- Lump sum payment- Sinking funds and Insurance Policy (Theory only)- Purchase of own debentures- For cancellation, Investment and Reissue- Ex- interest and Cum-interest- Redemption by conversion- Journal Entries.

 

b.                  Redemption of Preference Shares:

Provisions for redemption- Sources used for redemption- Capital redemption reserve- Journal entries

c.                   Bonus Shares:

Cash Bonus- Capital bonus- provisions for the issue of bonus shares- Sources of bonus issue- Advantages of bonus issue- Journal entries.

d.                  Buy back of shares:

Meaning- Provisions for issue- Sources of buyback- Advantages of buyback- Book building - Journal entries.

e) Right Issue: Right of pre-emption – Calculation of value of right (30 Hours, 25 marks)

Module II

Banking Companies:

Meaning of banking- Slip system of ledger posting- Important terms used- Revenue recognition in banks- Rebate on bills discounted with problems- Interest on doubtful debts with problems- Non-Performing Assets- Classification- Provisions for NPA(problems)  - Final accounts of banking companies in the new form- Practical Problems. (18 Hours, 15 marks)

 

Module III

 

Accounts of Life Insurance:

Meaning of life insurance- Features- Types of life insurance- Important terms used- Adjusting entries- Calculation of Life fund with problems- Determination of profit of life business and net bonus payable- Problems- Preparation of final accounts of life business in the new form- Practical Problems.                                                      (18 Hours, 15 marks)

 

Module IV


Consolidated Financial Statements (Ind AS 110): Group Companies and Group Structures– need for consolidation – Calculation of pre-acquisition Calculation of profit- Post- acquisition profit- Calculation of Non-Controlling Interest – Calculation of Cost of Control (Goodwill ) or Capital Reserve- Preparation of Consolidated Balance Sheet without adjustments (simple problems)          (20 Hours, 15 marks)

Module V

Important Disclosure based accounting standards: Earnings per share(Basic and Diluted) Ind AS 33 – Segment Reporting Ind AS 108- Events after Reporting Period (Adjusting and Non adjusting) Ind AS 10- Related party transactions Ind AS 24 - Changes in accounting policies, accounting estimates and errors Ind AS 8- Interim Financial Reporting Ind AS 34.

(10 Hours, 10 marks) (Theory and problems may be in the ratio of 30% and 70% respectively) Reference Books:

1.                   Chintal Patel, Bhupendra Mantri, India Accounting Standards, Taxmann Publications.

2.                   T.P.        Ghosh,     Illustrated     Guide    to     India    Accounting     Standards,           Taxmann Publications.

3.                   M.C. Shukla, T.S. Grewal and S.C. Gupta, Advanced Accounts,          S.Chand&       Co., New Delhi.

4.                   S.N. Maheshwari and S.K. Maheshwari, Financial Accounting.

5.                   R.L. Gupta and Radhaswamy, Advanced Accounting, Sultan Chand &Sons, New Delhi.

6.                   Dr Goyal V.K., Financial Accounting, Excel Books, New Delhi.

7.                   Ashok Sehgal and Deepak Sehgal, Advanced Accounting, Kalyani      Publishers.

8.                   Jain and Narang, Financial Accounting, Kalyani Publishers.

9.                   B.S. Raman, Advanced Accountancy.

10.            P.C. Tulasian, Introduction to Accounting, Pearson Education.

 


TO ENABLE THE STUDENTS TO ACQUIRE KNOWLEDGE OF NUMERICAL EQUATIONS, MATRICES PROGRESSIONS,FINANCIAL MATHEMATICS AND DESCRIPTIVE STATISTICS.