Professional Competence Course Syllabus -Group1 (Paper 1)

1. Conceptual Framework for Preparation and Presentation of Financial Statements

2. Accounting Standards

An overview; standards setting process
Working knowledge of :

AS 1: Disclosure of Accounting Policies
AS 2: Valuation of Inventories
AS 3: Cash Flow Statements
AS 4: Contingencies and Events occurring after the Balance Sheet Date
AS 5: Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
AS 6: Depreciation Accounting
AS 7: Construction Contracts (Revised 2002)
AS 9: Revenue Recognition
AS 10: Accounting for Fixed Assets
AS 11: The Effects of Changes in Foreign Exchange Rates (Revised 2003)
AS 12: Accounting for Government Grants
AS 13: Accounting for Investments
AS 14: Accounting for Amalgamations
AS 16: Borrowing Costs
AS 19 Leases
AS 20 Earnings Per Share
AS 26: Intangible Assets
AS 29: Provisions, Contingent Liabilities and Contingent Assets.

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3. Company Accounts

1. Preparation of financial statements - Profit and Loss Account, Balance Sheet and Cash Flow Statement
2. Profit (Loss) prior to incorporation
3. Alteration of share capital, Conversion of fully paid shares into stock and stock into shares, Accounting for bonus issue, Accounting for employee stock option plan, Buy back of securities, Equity shares with differential rights, Underwriting of shares and debentures, Redemption of debentures
4. Accounting for business acquisition, Amalgamation and reconstruction (excluding problems of amalgamation on inter-company holding)
5. Accounting involved in liquidation of companies, Statement of Affairs (including deficiency/surplus accounts) and Iiquidator's statement of account of the winding up.

4. Financial Statements of Banking, Insurance and Electricity Companies

5. Average Due Date, Account Current, Self-Balancing Ledgers

6. Financial Statements of Not-for-Profit Organisations

7. Accounts from Incomplete Records

8. Accounting for Special Transactions

1. Hire purchase and instalment sale transactions
2. Investment accounts
3. Departmental and branch accounts including foreign branches
4. Insurance claims for loss of stock and loss of profit.

9. Advanced Issues in Partnership Accounts

Final accounts of partnership firms - Admission, retirement and death of a partner including treatment of goodwill; Dissolution of partnership firms including piecemeal distribution of assets; Amalgamation of partnership firms; Conversion into a company and Sale to a company.

10. Accounting in Computerised Environment

An overview of computerized accounting system-Salient features and significance, Concept of grouping of accounts, Codification of accounts, Maintaining the hierarchy of ledger, Accounting packages and consideration for their selection, Generating Accounting Reports.

Note : If either old Accounting Standards (ASs), Announcements and Limited Revisions to ASs are withdrawn or new ASs, Announcements and Limited Revisions to ASs are issued by the Institute of Chartered Accountants of India in place of existing ASs, Announcements and Limited Revisions to ASs, the syllabus will accordingly include / exclude such new developments in place of the existing ones with effect from the date to be notified by the Institute.