دانلود کتاب Financial Accounting

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Cover Contents 1. Business Organization and Accounting Risk Appetite and Structure of Business Firms Types of Business Entity Limited Liability Company—Most Talked About form of Business Organization Capital of a Firm—The Backbone Sources of Capital for a Company Non-Conventional Sources of Finance Publicly Traded Company and Fund-Raising Mechanism Corporate Democracy—Separation of Ownership and Management Return on Equity Shares Valuation of Firm Corporate Financial Reporting Structure and Components of Financial Statements Internal vs External Control in the Working of a Company Financial Statement Framework—Story of a Fisherman Key Terms Final Recap Review Questions Answers 2. Financial Accounting—Framework Art and Science of Managing Monetary Transactions Accrual System of Accounting Concept of Accounting Year and Accruals Accounting Concepts and Conventions—An Overview Computerized Accounting System Accounting Equation—Fundamental Accounting Identity Double-Entry System of Accounting Debit–Credit Rules—Rules for Maintaining Books of Accounts Posting to General Ledger Accounts Preparation of Trial Balance Elements of Financial Statements—Assets, Liabilities, Income and Expenses Financial Statements—Final Accounts Accounting Policy and Accounting Standards Concerning Financial Statements Capital Maintenance Key Terms Final Recap Review Questions Answers Case 3. Classifi cation of Assets and Liabilities Classifi cation of Assets and Liabilities Assets Classifi cation of Assets Under India GAAP Current Liabilities Non-Current Liabilities Accruals, Provision and Contingent Liabilities Classifi cation of Liabilities—Indian GAAP Measurement Principles Valuation Practice for Assets and Liabilities Capital Expenditure, Revenue Expenditure and Fictitious Assets Analysis of Monetary Transaction Key Terms Final Recap Review Questions Answers Case 4. The Accounting Cycle Books of Accounts Accounting Cycle General Principles of Accounting Segmentation of Journal—Subsidiary Books Bank Reconciliation Statement General Ledger Posting Rules Trial Balance—Mathematical Accuracy of Books of Accounts Closing Entries—Closing Ledger Accounts Opening Entries Key Terms Final Recap Review Questions Answers Case 5. Completion of Accounting Cycle Introduction Rectifi cation of Errors Accrual System and Adjustments Disposal of Assets Tax Expenses on Taxable Income vs on Accounting Income Closing Entries—Closing Ledger Accounts Preparation of Manufacturing Account, Trading Account and Profi t and Loss Account Preparation of Balance Sheet Opening Entries Comprehensive Income Key Terms Final Recap Review Questions Answers Case 6. Final Accounts of a Limited Liability Company Introduction Revenue Recognition—General Principles Measurement of Revenue Sale of Goods Consideration in the Form of Cash Collectibility of Revenue Service Revenue Franchise Fees Construction Contracts and Revenue Recognition Accounting for Government Grants—Accounting Standard (AS-12) Repayment/Refund of Grant Revenue Recognition and Indian Gaap Accounting for Employee Benefi ts—Accounting Standard (AS-15) Accounting for Borrowing Costs—Accounting Standard (AS-16) Recognition of Borrowing Cost and Indian GAAP Preparation of Company Final Accounts—Final Accounts of Limited Liability Company Final Accounts Divisible Profi ts Dividend—Procedure of Dividend Payment Interest Out of Capital—Interest on Capital Provisions vs Reserves—Revenue Reserves and Capital Reserves Corporate Dividend Tax Capitalization of Profi ts and Reserves—Issue of Bonus Shares Managerial Remuneration Key Terms Final Recap Review Questions Answers Case 1 Case 2 7. Financial Statement Analysis—Ratio Analysis Accounting Policies Features of Accounting Policies and Quality of Earning Earning Management Black Holes—Red Flags Assessing the Liquidity of the Firm—Liquidity Ratios Assessing Solvency—Solvency/Leverage Ratios Assessing Operating Management Effi ciency—Sales-Based Profi tability Ratio Measuring Overall Performance in Relation to Investment— Investment-Based Profi tability Ratios Indicator of Overall Financial Performance Capital Market-Related Ratio Assessing the Effi ciency in Using Resources—Turnover Ratio Stakeholders and Inferences from Calculated Ratios Common Size Statement—Intra-Firm Comparison Comparative Analysis Using Ratio Trend Analysis—Vertical Financial Performance Evaluation Precaution while Using Financial Ratios—Limitation of Ratio Analysis Distress Analysis—Discriminant Analysis Key Terms Final Recap Review Questions Answers Case 1 Case 2 8. Fund Flow Analysis Introduction Defi nition Conceptual Background Sources and Application of Funds Comprehensive Items—Whether These Lead to Flow of Funds or Not Mechanism for Preparing Fund Flow Statement Stakeholders and Fund Flow Statement Modus Operandi to Carry Out Interpretation from Fund Flow Statement Fund Flow Analysis of L&T Ltd.—A Case Key Terms Final Recap Review Questions Answers Case 9. Cash Flow Statement: Preparation and Analysis Cash Flow Statement Estimation of Cash Flow from Operating Activities Estimation of Cash Flow from Investing Activities Estimation of Cash Flow from Financing Activities Final Reporting of Cash Flow Statement Stakeholders and Cash Flow Statement Modus Operandi to Carry Out Interpretation from Cash Flow Statement Key Terms Final Recap Review Questions Answers Case 10. Inventory—Accounting and Reporting Issues Inventory Physical Verifi cation of Inventory Methods for the Cost Measurement of Inventory Inventory Valuation System Valuing Inventory From Accounting Perspective—Accounting Standard (AS-2) Inventory and Reporting in Final Accounts Misreporting for Inventory and Effect on Profi ts Key Terms Final Recap Review Questions Answers Case 11. Accounting for Capital Expenditure— Fixed Assets and Other Assets under Indian Accounting Standards Captial Expenditure—Different Types of Assets Property, Plant and Equipment—Features and Recognition Initial Recognition of Property, Plant and Equipment—Fixed Assets Discount, Rebate, Damages and Penalty Claimed Subsequent Expenditure on Property, Plant and Equipment—Fixed Assets Subsequent Measuremet of Property, Plant and Equipment—Fixed Assets Property Plant and Equipment—Fixed Assets and Indian GAAP Depreciation on Property, Plant and Equipment—Fixed Assets Depreciation on Property Plant and Equipment—Fixed Assets and Indian GAAP Retirement of Property, Plant and Equipment—Fixed Asset Disclosure—Property, Plant and Equipment (Fixed Assets) Intangible Assets—Meaning, Features and Identifi cation Intangible asset—Recognition and Initial Measurement Internally Generated Intangible Asset Intangible Asset—Subsequent Expenditure Intangible Asset—Subsequent Measurement (Measurement After Initial Recognition) Amortization Derecognition of Intangible Assets—Retirement and Disposal Intangible Assets—Disclosure And Indian GAAP Impairment of Assets—Concept, Measurement and Recognition Indicators of Impairment Cash-Generating Units (CGU) and Impairment Loss Calculation of Present Value Reversal of an Impairment Loss Current Assets Investments Key Terms Final Recap Review Questions Answers Case 12. Accounting for Liabilities and Accounting Standards What are Liabilities? Initial Recognition and Measurement of Financial Liabilities Subsequent Measurement of Financial Liabilities Derecognition of Financial Liabilities Provisions—Introduction, Initial Recognition and Measurement Provisions—Subsequent Measurement and Use Special Issues About Provisions Restructuring Disclosure Contingent Liability Post-Retirement Employee Benefi ts—Measurement of Liability—Accounting Standard AS-15 Recognition and Measurement of Liability—Post-Retirement Employee Benefi ts Key Terms Final Recap Review Questions Answers Case 13. Financial Engineering, Including Foreign Exchange Transaction and Accounting Issues Introduction Financial Instruments—Finanical Assets, Financial Liabilities and Equity: As- 30, As-31 And IAS-32 Derivative Financial Instruments Financial Instruments—Presentation Recognition and Measurement of Financial Instruments—IAS-39 Financial Instruments—Disclosure—Indian GAAP (AS-32) and IAS-32 Derecognition of Financal Instruments—AS-30 and IAS-39 Continuing Involvement in Transferred Asset and Accounting Effect Accounting For Non-Cash Collateral in A Transfer of Financial Asset Derecognition of Financial Liabilities—AS-30 and IAS-39 Reclassifi cation of Financial Asset and Financial Liability Gains and Losses From Financial Instruments Impairment and Uncollectibility of Financial Assets Accouting for Futures Contracts/Transactions Accounting for Option Contracts Securitization Accounting for Hedging Accounting for Option Contracts, Futures Contracts and Hedging—Indian GAAP Financial Instruments and Foreign Exchange Rates Changes in Foreign Exchange Rates Recognition of Exchange Differences Forward Exchange Contracts Use of a Presentation Currecny Other Than The Functional Currency Consolidation of A Foreign Operation Tax Effects of Exchange Differences Forward Exchange Disclosure—Foreign Currency Transaction Effect of Changes in Foreign Exchange Rates—Indian GAAP vs IAS Key Terms Final Recap Review Questions Answers Case 14. Accounts of Limited Liability Companies: Shares and Debentures Introduction Capital of a Company Layers of Capital Accounting for the Issue of Shares Forfeiture and Reissue of Shares Presentation of Items in the Balance Sheet Alteration of Share Capital—Share Split and Consolidation Buy Back of Securities Bonus Shares Rights Issue Issue of Preference Shares Redemption of Preference Shares Issue of Debentures Redemption of Debenture Redemption by Creating Debenture Sinking Fund—Debentrure Redemption Reserve Fund SEBI Guidelines Regarding Issue of Debentures Key Terms Final Recap Review Questions Answers Case 15. Accounting for Merger, Amalgamation and Acquisitions Introduction Accounting for Business Combination Identifi cation of Acquirer Fundamental Accounting Principles Reverse Acquisition Demerger or Spin-off Accounting for Business Combination—Amalgamation and Indian GAAP (AS-14) Purchase Consideration Methods of Accounting for Amalgamation Treatment of Balance of Profi t and Loss Account on Amalgamation Treatment of Reserves Slump Sale Under Indian Income Tax Act Amalgamation and Demerger Under the Income Tax Act, 1961 Key Terms Final Recap Review Questions Answers Case 16. Consolidated Financial Statement Consolidated Financial Statements Insignifi cant Infl uence vs Signifi cant Infl uence Signifi cant Infl uence vs Control Accounting For Investment in Associates Accounting for Joint Venture Consolidated Financial Statements Consolidation Procedure Disclosure in Consolidated Financial Statements Consolidated Financial Statements—Indian GAAP Key Terms Final Recap Review Questions Answers Case 17. Accounting Standards and IFRS International Accounting Standards Accounting Standard Setting in India International Financial Reporting Standards (IFRS) IFRS Implementation—Convergence between GAAP and IFRS Indian GAAP vs IFRS Key Terms Final Recap Review Questions Answers Case 18. Accounting for Leases Introduction Classifi cation of Lease Lease-Related Terms—IAS-17 Finance Lease in the Financial Statements of Lessee Operating Lease in the Financial Statements of Lessee Finance Lease in the Financial Statements of Lessor Operating Lease in the Financial Statements of Lessor Accounting of Lease for Manufacturer or Dealer–Lessor Sale and Leaseback Transactions Comparison of IAS-17 and AS-19 Key Terms Final Recap Review Questions Answers Case 19. Reporting Financial Performance and Corporate Governance Introduction Diclosure in Corporate Financial Reports—Annual Report Disclosure Quality Segment Reporting Identifying Reportable Segments Related Party Disclosure Discontinuing Operations Earning Per Share (EPS) Global Reporting Initiatives Corporate Responsibility—Corporate Social Responsibility Key Terms Final Recap Review Questions Answers Case Appendix I: Window Dressing—Creative Accounting and Forensic Accounting Appendix II: Case Studies Appendix III: Recent Changes in Regulations ( Amended schedule VI to companies Act 1956 and Ind-AS) Model Question Paper-I Model Question Paper-II Index