CORPORATE ACCOUNTING

FULLY SOLVED BOOK LASY 5 YEARS PAPERS SOLVED PLUS GUESS

3.3 CORPORATE ACCOUNTING

OBJECTIVE
The objective of this subject is to enable the students to have a comprehensive understanding about the provisions of
the Company‟s Act and Corporate Accounts.
Unit 1: COMPANY FINAL ACCOUNTS 20 Hrs
Statutory Provisions regarding preparation of Company Final Accounts – Treatment of Special Items – Managerial
Remuneration – Tax deducted at source – Advance payment of Tax – Provision for Tax – Depreciation – Interest on
debentures – Dividends – Rules regarding payment of dividends ( Theory only) – Transfer to Reserves – Preparation
of Profit and Loss Account and Balance Sheet as per Section 219(1)(b) (IV) and form 23AB. Abridged Profit and Loss
Account – Abridged Balance Sheet (Vertical Form).
Unit 2: FINANCIAL STATEMENTS ANALYSIS 10 Hrs
Analysis of financial statements – comparative statements, comparative income statement, comparative Balance sheet
– common size statements – Common size income statement, common size Balance Sheet – Trend percentages.
Reporting to management – Management Decision and Analysis.
Unit 3: VALUATION OF GOODWILL 8Hrs
Meaning – Circumstances of Valuation of Goodwill – Factors influencing the value of Goodwill – Methods of
Valuation of Goodwill - Average Profit Method – Super Profit Method – Capitalization of Super Profit Method –
Annuity Method – Capitalization of Profit Method.
Unit 4: VALUATION OF SHARES 8 Hrs
Meaning – Need for Valuation – Factors Affecting Valuation – Methods of Valuation – Asset Backing or Intrinsic
Value Method – Yield Method – Earning Capacity Method – Fair Value Method - Rights Issue and Valuation of
Rights Issue.