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:
- 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
Lectures/Class Assignment/ Case Study
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
- Teacher: arindam sinha