CS Accounting Notes

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 10.Preparation of accounts from Incomplete records 11. Accounting for consignments 12.  joint ventures 13. Partnership accounts – simple problems 14. 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 2.  National and;  international accounting standards 3.  Accounting for share capital transactions 4.  Issue of shares at par, at premium and at discount 5.  Forfeiture and re-issue of shares 6.  Buy-back of shares 7.  Redemption of preference shares 8. Journal Entries of Redemption of Preference Shares 9.  Rights issue 10.  Issue of debentures - accounting treatment and procedures 11. Redemption of debentures 12. Conversion of debentures into shares 13. Underwriting of issues 14.  Acquisition of business  15.  Profits prior to incorporation  16.  Treatment of preliminary expenses 17. Preparation and presentation of final accounts of joint stock companies as per law 18. Bonus shares 19. Holding & subsidiary companies - accounting treatment and disclosures; consolidation of accounts 20. Valuation of shares & intangible assets

Part B : Cost And Management Accounting (50 Marks)

1.  Cost accounting & objectives  2.  Costing system 3.  Cost concepts 4.  Cost classification 5.  Management accounting 6.  Nature and scope of Management Accounting 7.  Role of management accountant 8.  Tools and techniques of management accounting 9.  Distinction between financial accounting and cost accounting 10. Distinction between financial accounting and management accounting 11. Elements of cost 12. Material cost 13. Purchase procedures 14. Store keeping 15. Inventory control 16. Fixing of minimum, maximum and Re-order levels 17. ABC analysis 18. Receipts for Cost Calculations 19. Accounting and control of wastage, spoilage and defectives 20.  Labour cost  21.  Labour costs 22. Payroll procedures 23.  Incentive schemes 24. Labour turnover and remedial measures 25. Treatment of idle time and overtime. 26. Direct expenses 27. Nature, collection and classification of direct expenses 28. Accounting Treatment of Direct Expenses 29. Overheads  30. Classification of Overheads 31. 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 :

(A) Financial Management

1. Financial Management Basics  Nature of Financial Management Scope of Financial Management Significance of Financial Management  Objectives of Financial Management Risk-Return Value of Firm Financial Distress   Insolvency  Functions of finance executive in an organization Recent Development of Financial Management 2. Capital Budgeting Decisions Meaning of Capital Expenditure Planning and control of capital expenditure  Capital budgeting   Capital Budgeting Process Techniques of capital budgeting Discounted Cash Flow Methods  Non-discounted Cash Flow Methods   Capital rationing Risk evaluation Sensitivity analysis  Simulation for risk evaluation Linear programming and capital budgeting decisions 3. Capital Structure Decisions Meaning and significance of capital structure Capital structure Vs financial structure  Capital structure planning and designing Optimal capital structure  Determinants of capital structure  Capital structure and valuation Theoretical analysis  EBIT Analysis  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 Leverage  Financial Leverage   Leverage Ratio Analysis Leverage effects on shareholders returns 4. Sources of Finance Meaning of Finance Equity Non-voting preference shares  Debentures   bonds Company deposits  Term loans from financial institutions and banks;  International finance  Syndication of  loans  Euro-issues External commercial borrowings  FCCB  Internal funds as a source of finance  Retention of profits  Bonus shares  Deferred payment arrangements  Corporate taxation   Impact of Corporate Taxation on corporate financing  Financing cost escalation 5. Dividend Policy Dividend  Types of Dividend Meaning of Dividend Policy  Determinants of Dividend Policy Constraints of Dividend Policy Different dividend theories Walter’s Model  Gordon’s Model Modigliani-Miller Hypothesis of dividend irrelevance Forms of dividend; Practical considerations of dividend policy Legal constraints of Dividend Policy 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 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 of Capital Market  Efficient capital market theory   Portfolio management - meaning,  Objectives of Portfolio Management  Portfolio theory – traditional approach; modern approach  CAPM model. 8. Financial Services  Meaning of financial services  Significance of financial services  Scope of financial services  Types of financial services  Merchant banking,  Leasing and hire purchase  Venture capital  Mutual funds  Factoring and forfeiting  Securitization of debt  Loan syndication  Custodial and corporate advisory services  Credit rating 9. Project Planning and Control  Project Planning  Preparation of project report  Project appraisal  Loan documentation  Loan syndication  Project review and control;  Social cost and benefit analysis of project 10. Derivatives and Commodity Exchanges  Concept of derivatives   Financial derivatives  Commodity derivatives  Types of derivatives   Forward contracts  Futures contracts Types of Future Contracts  Options   Index based derivatives  Security based derivatives;  Derivatives and exposure management Currency forwards Currency futures Currency options  Currency swaps  Interest rate risk management  Derivative markets in India  Commodity exchanges in India

(B) Treasury Management

1.  Meaning of  Treasury Management 2.  Functions of Treasury Management 3.  Objectives of Treasury Management 4.  Scope of Treasury Management 5.  Relationship between TM and FM 6.  Role and responsibilities of chief finance executive 7.  Tools of treasury management 8.  Internal treasury controls 9.  Environment for treasury management 10. Role of information technology in treasury management 11. Liquidity management 12. Regulation, supervision and control of treasury operations 13. Implications of treasury on international banking 14. Recent Developments of Treasury Management

(C) Forex Management

1. Meaning and Nature of Forex Management 2. Significance of Forex Management 3. Scope of Forex management 4.  foreign exchange market  5. Structure Forex Market 6. Foreign exchange rates 7.  Determination of Forex Rates 8. Exchange rate quotes; 9.  Types of exchange rates; 10. Forex trading; 11. Currency futures and options; 12. Foreign exchange risk exposures and their management; 13. Exchange rate forecasting; 14. Risk in foreign exchange business. 15. Recent Development of Forex Management