Our experience in teaching commerce subjects, especially Accountancy, is in the form of this book in your hands. This book “Corporate Accounting” is prepared for the New SEP syllabus requirements of Third Semester BBA.
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: Issues of Shares and Buy Back
Issue of Shares –Initial Subscription, Right Issue, Private Placement, IPO, FPO, Book Building, Prospectus, Red herring Prospectus, Issue of Bonus Shares, Reasons for issuing bonus shares. Legal Framework, Relevant provisions of the Companies Act, 2013. (Students are advised to go through some of the IPO documents which is available in the public domain.) Buyback of shares – Meaning, Objectives & Legal framework for buyback under the Companies Act, 2013 (concept only). Illustrations.
MODULE – 2: Underwriting of Shares
Introduction – Meaning and Definition of Underwriting – Importance of Underwriting in Raising Capital – Types of Underwriting: Firm Underwriting, Conditional Underwriting, and Sub-Underwriting – Calculation of Liabilities and Commission: Gross Liability and Net Liability, Marked Applications and Unmarked Applications, Proportionate Liability in Syndicated Underwriting – Accounting for Underwriting: Treatment of Underwriting Commission in the Company’s Books. Preparation of Statement of Underwriters Liability. Illustrations.
MODULE – 3: Valuation of Shares
Introduction – Meaning and need for valuation of shares – Factors affecting value of shares – Methods of share valuation – Illustration on Intrinsic Value Method, Yield Method, Earning Capacity Method and Fair Value Method. Rights Issue and Valuation of Rights Issue, Valuation of Warrants.
MODULE – 4: Profit Prior to Incorporation
Introduction – Meaning – Concept of profit (or Loss) Prior to the date of Incorporation – Pre-incorporation vs. post-incorporation periods – calculation of apportionment ratios – Sales ratio – Time ratio – Weighted ratio – treatment of capital and revenue incomes and expenditures – Ascertainment of pre-incorporation and post- incorporation profits by preparing statement of Profit and Loss (Vertical Format) as per schedule III of Companies Act, 2013.
MODULE – 5: Financial Statements of a Company as per Companies Act 2013 – Schedule III
Statutory Provisions regarding maintenance of Accounts by Company Section 128, 129, 134. Fundamental Accounting assumption- Going Concern, Accrual, consistency.; Annual Returns under Section 92, (Form AOC-4 & MGT-7A) Preparation of financial statements of companies as per schedule III to companies act,2013 –, Illustrations. Schedule 7 to Companies Act of 2013 for understanding the rate of depreciation on key assets such as, Plant and Machinery, Furniture’s and fixtures, Office equipment, vehicle, buildings, Intellectual properties and intangible assets.
