Corporate Accounting


Introduction: An understanding of the accounting requirements for a corporate group and familiarity with the theory underlying the methods used to account for inter-company investments. To understand the principles of corporate accounting system and to learn how to prepare consolidated accounts for a corporate group.

Objectives: To enable the students to acquire the basic knowledge of the corporate accounting and to learn the techniques of preparing the financial statements.

Learning Outcome: After studying this course, the students should be able to:

·         define bookkeeping and accounting

·         explain the general purposes and functions of accounting

·         explain the differences between management and financial accounting

·         describe the main elements of financial accounting information – assets, liabilities,     revenue and expenses

·         identify the main financial statements and their purposes.

 

Unit1: Share Capital-Issues and Forfeiture of Shares:

  • Issue Of Shares at Par,
  • Premium and Discount;
  • Over-subscription & Under subscription;
  • Calls in Arrears and Calls In Advance;
  • Pro-Rata Allotment Forfeiture and Re-Issue Of Forfeited Shares,
  • Rights Issue, Redeemable Preference Shares- Issue and Redemption.

 

Unit 2: Issues for Preparing Financial Statements of Companies

  • Books of Accounts to be maintained by the company
  • Preparation of Financial Statements: Statement of Profit and Loss and Balance Sheet of corporate entities, as per Schedule III.

 

Unit 3: Valuation of Shares and Goodwill

  • Nature of Goodwill
  • Features of Goodwill
  • Types of Goodwill
  • Methods of Valuing Goodwill
  • Methods of Valuation of Shares

 

 

Unit 4: Amalgamation of Companies:

  • Concepts,
  • Accounting in the books of Vendor Company and Purchasing Company as per standard.
  • Internal Reconstruction and Revising Balance Sheet.

 

 

Unit 5: Accounting for Holding Companies:

  • Advantages of Holding Companies
  • Disadvantages of Holding Companies
  • Preparation of Consolidated Balance Sheet with one subsidiary company  

 

Transactions:

    Lectures/Class Assignment/ Case Study

 

Suggested Readings

1. Corporate Accounting: Hanif and Mukherjee Mcgraw Hills

2. Corporate Accounting: Jain and Narang Kalyani Publishers

3. Dr.S.N.Maheshwari Vikas Publication

4. T.S. Grewal S.Chand & Co, New Delhi