Corporate Accounting Syllabus
This course introduces students to the fundamental principles and practices of accounting for corporations. Topics covered include the accounting treatment for share capital, debentures, reserves and surplus, foreign currency transactions, amalgamation and internal reconstruction, cash flow statements, and financial statement analysis.
Learning Objectives:
Upon successful completion of this course, students will be able to:
- Explain the basic concepts of corporate accounting.
- Prepare the financial statements of a corporation, including the balance sheet, income statement, and cash flow statement.
- Account for the issuance and redemption of share capital and debentures.
- Account for reserves and surplus.
- Account for foreign currency transactions.
- Account for amalgamation and internal reconstruction.
- Prepare and interpret cash flow statements.
- Analyze financial statements.
Course Outline:
- Introduction to Corporate Accounting
- Definition and nature of corporate accounting
- Differences between corporate accounting and accounting for sole proprietorships and partnerships
- Regulatory framework for corporate accounting
- Share Capital
- Types of shares
- Issue of shares at par, premium, and discount
- Forfeiture and re-issue of shares
- Buy-back of shares
- Debentures
- Types of debentures
- Issue of debentures at par, premium, and discount
- Redemption of debentures
- Reserves and Surplus
- Types of reserves and surplus
- Accounting treatment for reserves and surplus
- Foreign Currency Transactions
- Spot and forward contracts
- Translation of foreign currency transactions
- Amalgamation and Internal Reconstruction
- Forms of amalgamation
- Accounting treatment for amalgamation
- Internal reconstruction and its accounting treatment
- Cash Flow Statements
- Importance of cash flow statements
- Preparation of cash flow statements using the direct and indirect methods
- Financial Statement Analysis
- Ratio analysis
- Common size statements
- Trend analysis
Course Requirements:
- Regular attendance and participation in class discussions
- Completion of all assigned homework and readings
- Midterm exam
- Final exam
Grading:
- Midterm exam: 30%
- Final exam: 40%
- Homework and readings: 30%
Textbook:
- "Principles of Accounting" by Horngren, Datar, and Rajan
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