Course

Unit 1

Accounting for Share Capital and Debentures, Issue, forfeiture and reissue of forfeited shares: concept & process of book building; Issue of rights and bonus shares; Buy back of shares; Redemption of preference shares; Issue and Redemption of Debentures

Unit 2

Final Accounts Preparation of profit and loss account and balance sheet of corporate entities, excluding calculation of managerial remuneration, Disposal of company profits

Unit 3

Valuation of Goodwill and Valuation of Shares Concepts and calculation: simple problem only

Unit 4

Amalgamation of Companies Concepts and accounting treatment as per Accounting Standard: 14 (ICAI) (excluding inter-company holdings). Internal reconstruction: concepts and accounting treatment excluding scheme of reconstruction. (Simple Problem only)

Unit 5

Accounts of Holding Companies/Parent Companies – Preparation of the consolidated balance sheet with one subsidiary company. Relevant provisions of Accounting Standard: 21 (ICAI). (simple problems only).

Notes:

1. The relevant Indian Accounting Standards in line with the IFRS for all the above topics should be
2. Any revision of relevant Indian Accounting Standard would become applicable

Course Objectives:

This course equips students with the knowledge to analyze corporate capital structures, prepare financial statements, and understand profit distribution. It explores valuation methods and dives into consolidated financial statements for holding companies, particularly focusing on those with one subsidiary company according to Accounting Standard 21 (AS 21).

Course Outcomes:

The students will be able to:

CO1: Understand capital structures and transactions for shares and debentures.

CO2: Gain knowledge about Preparing financial statements & analysing profit distribution for corporations.

CO3: Analyze methods for valuing intangible assets and company ownership.

CO4: Acquire knowledge to Prepare consolidated financial statements for holding companies (AS 21).

CO5: Understand consolidation for holding companies with one subsidiary company (AS 21)

Textbooks:

1. Shukla and Grewal – Advanced Accounts Vol 2 – S. Chand
2. Jain and Narang – Advanced Accounts Vol 2 – Kalyani Publishers
3. K. Paul – Accountancy Vol 2 – New Central Book Agency

Reference:

1. Jawahar La – Accounting Theory and Practice – Himalaya Publishing
2. L. S. Porwal – Accounting Theory – McGraw Hill
3. Robert Anthony, F. Hawkins & K. A. Merchant – Accounting Text and Cases – McGraw Hill)
4. S. N. Maheshwari – Corporate Accounting – Vikas Publishing House
5. Ashok Sehgal, Dr. Deepak Sehgal – Advanced Accounting – Taxmann