Syllabus (COMMERCE)

Course Type: MAJ-6

Semester: 5

Course Code: BBCOMMAJ06T

Course Title: Corporate Accounting

(L-P-Tu): 5-0-1

Credit: 6

Practical/Theory: Theory

Course Objective: The course aims to: 1. Help learners to acquire conceptual knowledge of corporate accounting systems; 2. Impart the techniques of preparing the financial statements of companies. 3. Impart knowledge and technique of accounting treatment in the case of Company Merger and Reconstruction and also in case of holding company; 4. Impart knowledge about accounting treatments for liquidation of Companies.

Learning Outcome: After completion of the course, learners will be able to: 1. Understand the basic concepts of issue and valuation of share capital and debenture; 2. Prepare the financial statements (Profit & Loss A/C and Balance Sheet) for companies; 3. Ascertain the value of goodwill and shares using different methods; 4. Make necessary accounting treatments and adjustment in the case of Company Merger and Reconstruction and also in case of holding company 5. Prepare the Liquidator’s Final Statement of Account.

Subject: Corporate Accounting

Unit 1: Accounting for Share Capital and Debentures (Lectures: 8)

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: Company Final Accounts (Lectures:12 )

Introduction to Schedule-VI, Treatment of Tax, rules for and determination of managerial remuneration, Compulsory transfer to reserve, Dividend and applicable tax (out of current profit, out of past reserve), Preparation of Profit & Loss A/C and Balance Sheet.

Unit 3: Company Merger and Reconstruction (Lectures:15 )

Amalgamation, absorption and reconstruction-meaning, relevant standards and terms, Accounting in the books of transferor and transferee company (both merger and purchase), Inter-company transaction including inter-company shareholdings.

Internal reconstruction- meaning, provisions and accounting, surrender of shares, preparation of Balance Sheet after reconstruction.

Unit 4: Valuation of Goodwill and Shares (Lectures: 13)

Goodwill-Valuation using different methods, i.e. average profit, super profit, capitalization and annuity method.

Shares-Valuation using different methods- Intrinsic and Earning, Dividend yield, Earning-price, Cum-dividend, Ex-dividend, Majority and minority view and fair value.

Unit 5: Holding Company (Lectures: 20)

Meaning of Holding and Subsidiary Company, Relevant standard; Consolidation of Balance Sheet of Parent and Subsidiary; Minority interest, Basic principles of preparation of CBS with loss from subsidiary, Treatment for revaluation of assets of subsidiary, Inter co. the transaction, Holding of different securities, Dividend declared by the subsidiary company (Proposed, interim and final), Treatment of bonus shares issued or proposed to be issued by subsidiary company ( excluding shares acquired at different dates, cross and chain holding of shares).

Unit 6: Liquidation of Companies: (Lectures: 7)

Accounting for liquidation of Companies – Preparation of Liquidator’s Final Statement of Account.

Reading References:

Arulanandam & Raman, Corporate Accounting, Himalaya Publishing House.

Goyal, Bhushan Kumar, Fundamentals of Corporate Accounting, International Book House, New Delhi.

Goyal,.Ruchi, Corporate Accounting, PHI Learning.

Jain, S.P. & Narang, K.L., Corporate Accounting, Kalyani Publishers, New Delhi.Maheshwari, Joseph, Corporate Accounting, Mc-Graw Hill Education.

Maheshwari, S.N. & Maheshwari, S.K., Corporate Accounting. Vikas Publishing House.

Monga, J.R., Fudamentals of Corporate Accounting, Mayur Paper Backs, New Delhi.

Mukherjee, Amitabha & Hanif, Mohammed, Corporate Accounting, Mc-Graw Hill Education.Sehgal, Ashok, Fundamentals of Corporate Accounting, Taxman Publications.

Rajsekaran,Corporate Accounting, Pearson Education.

Shukla, M.C., Grewal, T.S. & Gupta, S.C., Advanced Accounts, S. Chand & Co.Goyal, V.K. &

Tulsian, P.C. & Tulsian, Bharat, Corporate Accounting, S.Chand & Co.

Compendium of Statements and Standards of Accounting, The Institute of Chartered Accountants of India, New Delhi.