Our experience in teaching commerce subjects, especially Accountancy, is in the form of this book in your hands. This book “Advanced Corporate Accounting” is prepared for the Bangalore University, SEP syllabus requirements of Fourth Semester B.Com.
Being student friendly is the unique feature of this book. The subject matter has been presented systematically, which can enable the reader to master the topics covered, without any additional guidance. Most later provisions have been incorporated in this book.
Contents –
MODULE 1: AMALGAMATION OF COMPANIES
Meaning and Types of Amalgamation: Amalgamation in the nature of merger, Amalgamation in the nature of purchase – Relevant Accounting Standards: AS-14 (or Ind AS 103) – Methods of Accounting: Pooling of interest method, Purchase method – Purchase Consideration – Types of PC – Lump sum, Net Assets, Net Payment, and Shares method – Ledger accounts in the books of Transferor and Incorporation Entries in books of Transferee Company – Preparation of Balance Sheet after Amalgamation – Treatment of Inter-company Transactions, Debts and Unrealized Profits. Illustrations.
MODULE 2: INTERNAL RECONSTRUCTION
Meaning and Need for Internal Reconstruction – Methods: Alteration of Share Capital -Reduction of Share Capital (legal provisions under Companies Act) – Accounting Entries for: Writing off accumulated losses and fictitious assets, Revaluation of assets and liabilities, Reorganization of share capital – Preparation of Capital Reduction Account and Reconstructed Balance Sheet – Legal Procedures & Compliance Requirements. Illustrations.
MODULE 3: REDEMPTION OF DEBENTURES
Meaning and Types of Debentures – Terms of Redemption: At par, at premium, or at discount – Redeemable at fixed time or by drawing lots – Methods of Redemption: Lump Sum Payment, Instalment Basis, Sinking Fund Method – Journal Entries for Redemption – Debenture Redemption Reserve (DRR) and Investment (DRI) – Treatment of Loss on Issue of Debentures – Purchase of Own Debentures for Cancellation. Illustrations.
MODULE 4: LIQUIDATION OF COMPANIES
Meaning and Types of Liquidation (Compulsory, Voluntary, Creditors’ Voluntary) – Legal Provisions Related to Liquidation under Companies Act – Preparation Liquidator’s Final Statement of Account – Calculation of Liquidator’s Remuneration – Treatment of: Preferential Creditors, Secured Creditors, Calls on Contributories – Order of Payment in Liquidation. Illustrations.
MODULE 5: HOLDING COMPANY ACCOUNTS
Concept of Holding and Subsidiary Companies – Legal Requirements under Companies Act, 2013 – Need and Objectives of Consolidation – Key Concepts: Cost of Control / Goodwill / Capital Reserve, Minority Interest, Pre- and Post-acquisition Profits, Elimination of Intragroup Transactions and Unrealized Profits – Consolidated Profit & Loss Statement – Preparation of Consolidated Balance Sheet under AS 21. Illustrations.
