Today, I received on Call from a student who is residing in Ajmer (Rajasthan). She is doing
Company Secretary course and for her study, she need accounting notes. Like this student, there are lots of other students who are also doing same course also need accounting notes. So, for your help, I am publishing accounting notes on the basis of this course syllabus.
Recently, I checked CS syllabus 2010, after visiting official site of Institute of Company Secretary of India (
http://www.icsi.edu/ ) . In this CS new syllabus, CS course has been divided in to three major parts. First is Foundation programme, second is executive programme and third is professional programme part. When I studied what is included about accounting in these courses, I found everything about accounting in these parts.
{ Note : I can't write everything about CS accounting in one page but here, I am including internal links of pages which will be helpful for you for reading and collecting everything about accounting. If there is no internal link, it means either, I have to publish content or I have not to update}
1. Foundation Programme
PAPER 3 : FINANCIAL ACCOUNTING
Level of knowledge : Basic knowledge
Objective : To familiarize and develop an understanding the skills of
accounting principles for effective recording of business operations of
an entity.
Detailed Contents :
1.
Introduction to accounting
2.
Recording of transactions
3.
Preparation of bank reconciliation statement
4.
Rectification of errors
5.
Preparation of final accounts (non-corporate entities)
6.
Accounting for depreciation
7.
Accounting for bills of exchange
8.
Accounts of non-profit organizations
9.
Single entry accounts - preparation of accounts from
Incomplete records
10.
Accounting for consignments and joint ventures
11.
Partnership accounts – simple problems
12.
Insurance claims
2. Executive Programme
PAPER 2 : COMPANY ACCOUNTS, COST AND MANAGEMENT
ACCOUNTING
Level of knowledge : Working knowledge.
Objectives :
(i) To provide working knowledge of accounting principles and
procedures for companies in accordance with the statutory
requirements.
(ii) To acquaint the students with cost and management
accounting techniques and practices.
Detailed contents :
Part A : Company Accounts (50 Marks)
1.
Accounting standards -
relevance and significance;
national and
international accounting standards.
2. Accounting for share capital transactions - issue of shares at par,
at
premium and at discount;
forfeiture and re-issue of shares;
buy-back of
shares; redemption of preference shares;
rights issue.
3.
Issue of debentures - accounting treatment and procedures;
redemption of debentures; conversion of debentures into shares.
4.
Underwriting of issues ;
acquisition of business ;
profits prior to
incorporation ;
treatment of preliminary expenses.
5. Preparation and presentation of final accounts of joint stock
companies as per company law requirements;
bonus shares.
6.
Holding and
subsidiary companies -
accounting treatment and
disclosures; consolidation of accounts.
7.
Valuation of shares and
intangible assets.
Part B : Cost And Management Accounting (50 Marks)
8.
Cost accounting –
objectives of
costing system; cost concepts and
cost classification; management accounting – nature and scope; role
of management accountant, tools and techniques of management
accounting; distinction between financial accounting, cost accounting
and management accounting.
9. Elements of cost :
(i)
Material cost – purchase procedures, store keeping and
inventory control, fixing of minimum, maximum and re-order
levels,
ABC analysis, pricing of receipts and issue of material
and accounting thereof; accounting and control of wastage,
spoilage and defectives.
(ii)
Labour cost – classification of
labour costs, payroll
procedures, monetary and non-monetary
incentive schemes;
labour turnover and remedial measures;
treatment of idle time
and
overtime.
(iii) Direct expenses – nature, collection and classification of direct
expenses and its treatment.
(iv)
Overheads – nature, classification, collection,
allocation,
apportionment, absorption and control of overheads.
3. Professional Programme
PAPER 3 : FINANCIAL, TREASURY AND FOREX
MANAGEMENT
Level of knowledge : Expert knowledge.
Objectives :
(i) To provide conceptual clarity about the management tools
and techniques used in financial planning, analysis, control
and decision making.
(ii) To provide knowledge of derivatives, forex and treasury
management to enable the candidates to tackle practical
situation with ease.
Detailed contents :
1. Nature and
Scope of
Financial Management
Nature,
significance,
objectives and
scope of financial management;
risk-return and value of the firm;
financial distress and
insolvency;
financial sector reforms and their impact on financial management;
functions of finance executive in an organisation; financial management
– recent developments.
2. Capital Budgeting Decisions
Planning and control of capital expenditure;
capital budgeting process;
techniques of capital budgeting-
discounted and
non-discounted cash
flow methods, choice of methods;
capital rationing; risk evaluation and
sensitivity analysis,
simulation for risk evaluation;
linear programming
and capital budgeting decisions.
3. Capital Structure Decisions
Meaning and
significance of capital structure; capital structure vis-avis
financial structure;
capital structure planning and designing; optimal
capital structure; determinants of capital structure; capital structure
and valuation -
theoretical analysis; EBIT – EPS analysis;
cost of capital;
factors affecting cost of capital, measurement of cost of capital,
weighted average cost of capital, marginal cost of capital; risk and
leverage (
Operating and
financial) ; measures of leverage, leverage effects on shareholders
returns.
4. Sources of
Finance
Equity, non-voting preference shares; debentures and
bonds;
company deposits; term loans from
financial institutions and banks;
international finance and syndication of loans; euro-issues and
external commercial borrowings; FCCB;
internal funds as a source
of finance;
dividend policy and retention of profits; bonus shares;
deferred payment arrangements; corporate taxation and its impact
on corporate financing; financing cost escalation.
5.
Dividend Policy
Introduction; types, determinants and constraints of dividend policy;
different dividend theories — Walter’s Model, Gordon’s Model and
Modigliani-Miller Hypothesis of dividend irrelevance;
forms of dividend;
dividend policy - practical considerations and legal constraints;
corporate dividend practices in India; statutory framework.
6.
Working Capital Management and Control
Working capital -
meaning,
types,
determinants; assessment of working
capital requirements - operating cycle concept and applications of
quantitative techniques;
management of working capital -
cash,
receivables,
inventories; financing of working capital; banking norms
and macro aspects of working capital management.
7. Security Analysis and Portfolio Management
Security analysis - fundamental approach, technical approach and
efficient capital market theory; portfolio management -
meaning,
objectives; portfolio theory – traditional approach; modern approach -
CAPM model.
8. Financial Services
Meaning, significance and scope of financial services ; types of financial
services – merchant banking, leasing and hire purchase,
venture
capital,
mutual funds, factoring and forfeiting, securitisation of debt,
loan syndication, custodial and corporate advisory services, credit
rating.
9. Project Planning and Control
Project Planning and preparation of project report; project appraisal
under normal, inflationary and deflationary conditions; project appraisal
by financial institutions – lending policies and appraisal norms by
financial institutions and banks; loan documentation and loan
syndication, project review and control;
social cost and benefit analysis
of project.
10. Derivatives and Commodity Exchanges
Concept of derivatives; financial derivatives and commodity derivatives;
types of derivatives - forward contracts, futures contracts, options;
participants in futures and options market, Index based derivatives
and security based derivatives; derivatives and exposure management,
currency forwards, currency futures, currency options and currency
swaps and interest rate risk management; derivative markets in India;
commodity exchanges in India.
11.
Treasury Management
Meaning, objectives, significance,
functions and scope of treasury
management; relationship between treasury management and financial
management; role and responsibilities of chief finance executive; tools
of treasury management; internal treasury controls; environment for
treasury management; role of information technology in treasury
management; liquidity management, regulation, supervision and control
of treasury operations, implications of treasury on international banking.
12. Forex Management
Nature, significance and scope of forex management;
foreign exchange
market and its structure; foreign exchange rates and its determination;
exchange rate quotes; types of exchange rates; forex trading; currency
futures and options; foreign exchange risk exposures and their
management; exchange rate forecasting; risk in foreign exchange
business.
13. Recent Developments in Financial, Treasury and Forex
Management
14. Practical Problems and Case Studies.
