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VISION

“To be the Preference in Value Optimization for Business”

MISSION STATEMENT
“To develop strategic leaders through imparting quality education and training in
Management Accounting, to continually set and upgrade professional standards
and to conduct research, bringing value-addition to the economy”

SYLLABUS - 2005

Estd. 1951

Institute of Cost and Management Accountants of Pakistan


(Constituted under Cost & Management Accountants Act 1966)
Head Office: ST-18/C, Block-6, Gulshan-E-Iqbal, Karachi-75300
Telephone: (92- 21) 9243900,1,2 & 4 Fax: (92- 21) 9243342 Website: www.icmap.com.pk
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

List of Course

Code Stage-1
S-101 Fundamentals of Financial Accounting
S-102 Business Economics
S-103 Business Laws
S-104 Business English
Stage-2
S-201 Fundamentals of Cost and Management Accounting
S-202 Management and Marketing
S-203 Business Mathematics & Statistics
S-204 Introduction to Information Technology
Stage-3
S-301 Financial Accounting
S-302 Business Taxation
S-303 Cost and Management Accounting - Performance Appraisal
S-304 Presentation & Communication Skills
Stage-4
S-401 Advanced Financial Accounting & Analysis
S-402 Integrated Management
S-403 Corporate Laws & Secretarial Practices
Stage-5
S-501 Financial Reporting
S-502 Management Accounting Decision Making
S-503 Risk Management and Audit
Stage-6
S-601 Strategic Financial Management
S-602 Information Systems and I.T. Audit
S-603 Management Accounting - Business Strategy

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

STAGE-1 financial statements manually and through computer.

S-101 - FUNDAMENTALS OF FINANCIAL iii. Outcomes:


ACCOUNTING On completion of this course, students should be able to:
apprehend and explain the fundamental accounting
i. Introduction: principles and concepts,
This course basically deals with the Fundamentals record transactions in journal,
of Financial Accounting. The students are expected prepare ledger accounts, trial balance,
to learn an understanding of accounting concepts, prepare bank and cash accounts, bank reconciliation
principles, procedures and systems for preparation statements and petty cash statements,
of financial statements, computer-based accounting make year-end adjustments, prepare adjusted trial
application, accounting treatment of current assets balance,
and liabilities, tangible and intangible assets. prepare profit and loss account and balance sheets
Students should become adept at classifying from adjusted trial balance,
problems, situations and applying the required prepare manufacturing accounts,
accounting principles. calculate depreciation by using different methods,
prepare bad debts accounts and provision for doubtful
debts,
ii. Objectives:
To provide the students with:
compute inventory by using different valuation
an applied knowledge of accounting principles,
methods,
concepts and skills of accounting, and preparing

INDICATIVE GRID:
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION – A
1. Accounting Concepts and Principles (IAS 1,2, & 18) 20%
2. Accounting Procedures and Systems
SECTION-B
3. Control Accounts
4. Inventory Accounting
5. Accounts Receivable
6. Accounting for Bills of Exchange
7. Payroll Accounting 60%
8. Cash Control
9. Tangible Non-Current Assets (IAS–16 including Revaluation of Assets)
10. Intangible Non-Current Assets (including IAS – 38 portion only)
11. Rectification of Errors
12. Computer based Accounting Systems
SECTION-C
13. Preparation of Financial Statements of a Sole Proprietor (trading, service & 20%
manufacturing concern)
TOTAL 100%
Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

CONTENTS underlying accounting statements, the impact of


International Accounting Standards as applicable
SECTION – A
in Pakistan. (IAS 1,2, & 18).
1. Accounting Concepts and Principles
Definition and scope of financial accounting; basic
2. Accounting Procedures and Systems
Principles of double-entry book-keeping; accrual-
principles of accounting; concepts and conventions
based accounting system, adjusting, closing and
reversing entries, methods of keeping and

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

presenting books of prime entry (cash book, petty 9. Tangible Non-Current Assets (IAS-16 including
cash book, sales journal, purchase journal, Revaluation of Assets)
purchase and sales return journals etc); principal Recognition and measurement of tangible non-
and subsidiary ledgers, trial balance. current assets; distinction between and application
of principles of capital and revenue expenditures,
SECTION-B concept of depreciation; methods and recording of
depreciation; change of method; revision of life of
3. Control Accounts an asset; accounting for disposal and exchange of
Receivable control accounts; payable control tangible non-current assets; application of IAS-16.
accounts, errors of control accounts (including
subsidiary ledger) and reconciliation of control 10. Intangible Non-Current Assets (including IAS-38
accounts and subsidiary ledger. Portion only)
Nature and composition of intangible assets;
4. Inventory Accounting accounting treatment of intangible assets of
Nature and classes of inventories, periodic and goodwill and research and development; methods
perpetual inventory systems, periodic and of goodwill computation; impairment of goodwill
perpetual inventory system; requirements and (concept and recording entry); capitalization of
application of IAS-2. development cost; amortization development cost
(concept and recording entry); application of IAS-
5. Accounts Receivable 38 in respect of research and development and
Receivables and its subsidiary ledger; recording goodwill.
bad debts and its recovery; estimation of allowance
for bad and doubtful debts (both income statement 11. Rectification of Error
and balance sheet approaches of estimation). Type and corrections of errors not affecting trial
balance; corrections of errors affecting trial balance
6. Accounting for Bills of Exchange including suspense accounts.
Recording bills of exchange, endorsements and
discounting of bills, accommodation bills. 12. Computer-based Accounting Systems
Computer-based application in accounting;
7. Payroll Accounting advantages of computer-based systems, ways of
Objectives of payroll accounting; internal control achieving Internal controls in a computer-based
over payroll, gross earnings of employees, accounting system.
computing gross earnings; calculation and
recording of payroll taxes and deductions; SECTION- C
maintenance of payroll journal; accounting for
payroll taxes. 13. Preparation of Financial Statements of a Sole
Proprietor (both trading & manufacturing
8. Cash Control concern)
Preparation of petty cash statement and Elements and components of Financial
maintenance of petty cash system; preparation of Statements in accordance with format of IAS-1;
bank reconciliation statement; cash receipts and Financial Statements (balance sheet, income
payments accounts. The purpose, requirements statement and cash flow statement) of sole
and process of internal audit relating to cash proprietor in respect of trading; reference to
control; financial control, errors and frauds. basic financial ratios (liquidity ratios only).

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

CORE READINGS

TITLE AUTHOR PUBLISHER

Frankwood Business Accountancy Frankwood Pearson Education Ltd, England


Accounting Principles Jerry. J John Willey & Sons. Inc., England
IASB International Accounting Standards Board,
London.
IFRSs/IASs
Accounting: The Basis for Business Robert F. Meigs, Irwin McGraw-Hill, New York
Decision Jan R. Williams,
Susan F. Hakar,
Mark S. Bettner
Jack L. Smith

Accounting Principles Jack L. Smith McGraw-Hill Company Inc.,


New York

Financial Accounting Fundamentals PBP Professional Business Publications,


Lahore.

ADDITIONAL READINGS

An Introduction to Accountancy S.N. Maheshwari Vikas Publishing House,


New Delhi.

Advanced Accounting S.P. Jain Kalyani Publisher,


New Delhi.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

STAGE-1 
identify and explain types of internal and external
economies,
S-102 - BUSINESS ECONOMICS 
explain law of demand and causes of change in
i. Introduction: demand other than change in price,
This course is designed to focus on fundamentals of 
describe types of elasticity of demand,
economic concepts, and develop understanding and determinants and measurement of elasticity and
skill of the students, in order to enable them to law of supply, elasticity,
identify and correlate various economic issues, to 
explain the cost of production,
cost and management accounting for taking 
distinguish between implicit costs and explicit
managerial decisions. costs,

explain how under perfect competition the
ii. Objectives: equilibrium price of a commodity is equal to its
This course enables the students to: marginal cost and average cost of production,
identify how a market economy functions, 
explain the functioning of a market economy,
develop an understanding of the economic 
explain how the price system works by applying
environment, under which business operates, appropriate economic concepts and principles,
develop the economic analysis for the guidance 
identify macro-economic concepts to explain the
and information of decision-makers, and measurement and determination of national
identify the economic factors, influencing the income,
behaviour and performance of firms and industries. 
explain inflation and its causes,
iii. Outcomes: 
differentiate between domestic and international
On completion of this course, students should be trade,
able to: 
explain the problems and performance of industrial
explain the basic concepts of scarcity choice, sector in Pakistan and to
describe the consumer behaviour and its analysis, 
explain foreign private investment and its impact
differentiate between small and large-scale on Pakistan economy.
production,
INDICATIVE GRID:
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION-A
MICRO-ECONOMICS
1. 1. Nature and Scope of Economics
2. 2. Consumer Behaviour and its Analysis
3. Demand, Supply and Price Determination 40%
4. Scale of Production
5. Cost and Revenue
6. Market Structure, Price and Output Determination
SECTION-B
MACRO-ECONOMICS
7. Concept of National Income
8. 8. Keynes Theory of Employment and National Income 30%
9. 9. Money Banking and Finance
10. 10. International Trade
SECTION-C
ECONOMY OF PAKISTAN
11. Growth, Structure and Performance of Pakistan Economy
12. Agriculture Sector 30%
13. Industrial Sector
14. Foreign Trade and Economic Assistance
TOTAL 100%
Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

CONTENTS SECTION- B
SECTION-A MACRO- ECONOMICS.
MICRO-ECONOMICS
7. Concept of National Income
Circular flow of national income. Concepts of national
1. Nature and Scope of Economics
income GDP, GNP, NNP, NI at factor cost and PI.
Basic concepts- economic wants and allocation of
Methods to measure national income Difficulties and
scarce resources. Natural resources, labour capital
importance.
and enterprise. Production possibility frontier and
concept of opportunity cost. Key features of market,
planned and mixed economy-merits and demerits.
8. Keynes Theory of Employment and National
Income
Consumption saving and investment function.
2. Consumer Behaviour and its Analysis
Investment multiplier, acceleration, inflationary and
Utility-kinds and aspects. Cardinal and ordinal
deflationary gaps, taxation, budget.
approaches of utility. Law of diminishing marginal
utility. Indifference curve analysis and consumer
equilibrium. Price effect, income effect and
9. Money Banking and Finance
Nature and functions of money, quantity theory of
substitution effect.
money; inflation- its causes , effects and measures to
control. Functions of commercial banks, credit
3. Demand, Supply and Price Determination
creation and role of commercial banks in economic
Demand- Determinants of demand, law of demand,
development of Pakistan. Functions of central bank ,
shift in demand, elasticity of demand, measurement
monetary policy and role of central bank in the
of elasticity of demand. Percentage and total outlay
economic development of Pakistan. Brief introduction
methods. Brief description of cross and income
of money and capital market.
elasticity of demand. Determinants and importance
of elasticity of demand. Supply stocks and supply.
Determinants of supply, law of supply, shift in supply.
10. International Trade
Balance of trade and balance of payment, causes of
Elasticity of supply-Determinants of elasticity of
adverse balance of payment and methods to correct
supply. Market equilibrium-surplus and shortage
them. Exchange rate determination. Protectionism or
conditions. Consumer and Producers surplus.
barriers to free international trade. Arguments in
favor or against protection. WTO.
4. Scale of Production
Production function. Small and large scale
production- advantages and disadvantages. Internal SECTION- C
and external economies of scale. Laws of returns. ECONOMY OF PAKISTAN
(Special emphasis on law of diminishing returns).
Very brief introduction of returns to scale. 11. Growth, Structure and Performance of Pakistan
Economy
5. Cost and Revenue Growth and structure of economy- overview of
Average, marginal and total cost. Marginal, average economic policies in Pakistan.
and total revenue in perfect and imperfect
competition. Concept of implicit and explicit cost. 12. Agriculture Sector
Role of agriculture in economic development;
6. Market Structure, Price and Output Determination performance and problems of agriculture sector;
Characteristics of perfect and imperfect competition needs and types of agriculture credit; problems and
(monopoly, oligopoly and monopolistic competition) solutions of rural credit, case for and against
in short run and long run. Price discrimination in agriculture tax. Role of ZTBL in the supply of rural
monopoly. credit. Agriculture marketing, its problems and
measures for its improvement.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

13. Industrial Sector 14. Foreign Trade and Economic Assistance


Overview of industrial sector of Pakistan; Exchange rate and convertibility of Pak rupee;
performance and problems of industrial sector; devaluation and its impact on Pakistan’s economy;
causes of industrial backwardness; privatization of forms of foreign economic assistance, cost and
state-owned enterprises; needs and types of benefit of foreign economic assistance; foreign
industrial credit. private investment and its impact on Pakistan’s
economy.

CORE READINGS

TITLE AUTHOR PUBLISHER


Economics David Begg / Stanley Fischer & McGraw Hill Book Co.
Rudiger Dornbusch Europe Shoppenhanaers Road,
Maidenhead, Berkshire SL6 2QL,
England.
Economics Paul A. Samuelson and William D. McGraw-Hill Companies, Inc. 1221
Nordhaus Avenue of the Americas, New York, NY
10020.
Economics Campbell R. McConnell/Stanley L. McGraw-Hill, Co. Inc.,
Brue Princeton Road, S-1 Hightslown,
NJ 08520, New York.
Economics for Business PBP Professional Business Publications,
Lahore.
Economy of Pakistan Prof. Dr. Khawaja Amjad Saeed Distributed by Oxford University Press,
Karachi.
Pakistan Economic Survey Finance Division, Economic Government of Pakistan.
(Latest) Advisor Wing
Economy of Pakistan 2004-2005 Saeed Nasir and Kamal Haider -----
ADDITIONAL READINGS

TITLE AUTHOR PUBLISHER


Pakistan: Economic and Social Prof. Dr. Khawaja Amjad Saeed Institute of Business Management, G.P.O.
Statistics Box No. 1164, Lahore.
Micro Economics 4th Edition David N. Hyman McGraw-Hill, Co. Inc., Princeton Road,
S-1 Hightslown, NJ 08520, New York.
Macro Economics 4th Edition David N. Hyman McGraw-Hill, Co. Inc., Princeton Road, S-
1 Hightslown, NJ 08520, New York.
Modern Economic Theory Kewal Krishan Dewett/Adarsh Shyam Lal Charitable Trust, Ram Nagar,
Chand New Delhi-11055.
Issues in Pakistan’s Economy S. A. Zaidi Oxford University Press, Karachi.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

STAGE-1 valid contract performance, discharge, breach


of contract and damages for breach of
BUSINESS LAWS (S-103) contract, contract of bailment,
describe how an agency is created,
i. Introduction: differentiate between contract of Indemnity
This course is designed to focus on the important and Guarantee,
topics of Business Laws, governing the operational explain the classes of agent and describe the
aspects of business. A thorough study of this agent’s duty to the principal and principal’s
course will develop students’ knowledge and ability duty to agent,
to comprehend the salient features of business identify and explain the rights and liabilities of
laws easily. parties to a contract, when principal is
disclosed or undisclosed,
ii. Objectives: describe the ways when an agency is
To provide the students with a knowledge of terminated,
business laws, enabling them to: explain the kinds of contract of sales,
formulate various business plans helpful for differentiate between hire-purchase contract
operational and long-term decisions-making, and deferred payment sale,
advise the management on the financial and identify and explain the conditions of sale of
non-financial implications of business laws, for goods, transfer of property, transfer of title of
the effective operations of the business. goods, performance of the contract of sale,
identify and explain various laws contained in
iii. Outcomes: Partnership Act, 1932,
On completion of this course, students should identify and explain the provisions contained in
be able to: Negotiable Instruments Act, 1881.
identify and describe the sources of business Identify and explain the provisions enunciated
laws, in Industrial Relations Act, 2008, Workmen’s
identify and explain various aspects of Compensation Act, 1923 and West Pakistan
contracts such as communication, acceptance Industrial and Commercial Employment
and revocation of proposals, essentials of (Standing Order) Ordinance, 1968.
INDICATIVE GRID:
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION - A
1. Introduction to Legal System of Pakistan 10%
SECTION-B
BUSINESS LAWS
2. The Contract Act, 1872
3. Sale of Goods Act, 1930
4. Partnership Act, 1932 60%
5. Negotiable Instruments Act, 1881
6. TRIPS and TRIMS
SECTION- C
INDUSTRIAL LAW
7. Industrial Relations Act, 2008
8. West Pakistan Industrial and Commercial Employment (Standing Order) Ordinance, 1968.
9. Factories Act 1934 / Workmen’s Compensation Act 1923 30%
10. Social Security Ordinance, 1965
TOTAL 100%
Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

CONTENTS acceptance and revocation; void agreements; Free


consent, Coercion, Undue Influence, Fraud, Mistake,
SECTION -A
Misrepresentation; flaws in capacity; quasi –
1. Introduction to Legal System in Pakistan contracts; contingent contracts; contracts which must
a. Definition and sources of law be performed; time and place for performance;
b. Interpretation of Statutes (Acts and Ordinances) performance of reciprocal promises, appropriation of
c. Structure of Subordinate and Superior Courts payments; contracts which need not be performed;
d. Legal Maxims anticipatory breach of contract; actual breach of
contract; remedies of breach of contract; doctrine of
LEGAL MAXIMS frustration; various discharges of contracts; Bailment;
1. Maxims expressing fundamental legal principles; contract of indemnity and guarantee; Principal and
a) Ubi jus ubi remedium – There is no wrong agent; creation of agency; kinds of agents; duties
without a remedy. and rights of an agent; duties and rights of principal
b) Ignorantia Facit Excusat - Ignorantia Juris Non scope, extent and kinds of agent’s authority; liabilities
Excusat – Ignorance of fact excuses, Ignorance of principal to third party; personal liability of agent
of law does not to third party; termination of agency.

2. Maxims Relating to the Mode of Administering 3. Sale of Goods Act, 1930


Justice. Contract of sale and its kinds; formalities of the
a) No man is to be a judge in his own cause. contract of sale; subject matter of contract of sale;
the price, conditions and warranties; transfer of
3. Maxims Relating to Property. property as between seller & buyer; the Doctrine of
a) Nexo Dat Quod non Habet - No one gives what “nemo dare potest quod non-habet” and its
he does not possess. exceptions; the Doctrine of “caveat emptor”,
b) Sic utere tus utalienum non laedas - Enjoy your performance of the contract of the sale; rights of un-
own property in such a manner as not to injure paid seller; suits for breach of the contract of sale;
that of another person. auction sale.
4. Maxims Relating to Contracts & Torts 4. Partnership Act, 1932
a) Caveat Emptor - Let the Buyer Beware. Essentials and the nature of partnership; kinds of
b) Ex turpi causa non oritur actio / Ex dolo malo partnership; general duties of partners; qualified
non oritur actio - A contract founded upon an duties of partners; rights of partners; liabilities of
illegal or immoral consideration cannot be partners; the Doctrine of implied authority; the
enforced. Doctrine of holding out; admission of a minor to the
c) Respondeat Superior – Let the principal be held benefits of partnership; re-constitution of a firm
responsible. (incoming & outgoing partners); modes of dissolution
5. Maxims Expressing Rules Founded on Public of a firm; registration of firm; effect of non-
Policy registration.
a) Salus populi est suprema lex – Regard for the 5. Negotiable Instruments Act, 1881
public welfare is the highest law. Promissory note; bill of exchange; cheques; inland
b) Vigilantibus, Non Dormientibus jura Subveniunt - instruments; foreign instruments; ambiguous
The law assists those who are vigilant, not to instruments; inchoate stamped instruments; parties
those who sleep over their rights. to negotiable instruments; liabilities of parties;
negotiation of instruments and its kinds; presentment
SECTION- B of instruments; discharge from liabilities on
BUSINESS LAWS negotiable instruments; presumptions as to
2. The Contract Act, 1872 negotiable instruments.
Difference between Contract and agreement; Void,
voidable and enforceable agreements;
Elements/ingredients of a contract; proposal;

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

6. TRIPS and TRIMS SECTION- C


Laws relating to TRIPS and TRIMS including
INDUSTRIAL LAW
intellectual property rights, Trade marks Act and
Copy Right Act. 7. Industrial Relations Act, 2008
Trade unions; workers’ participation and dispute
resolution, labour courts, National Industrial
6.1 Introduction
a) Concept of Intellectual Property
Relations Commission; authorities, decisions,
b) Intellectual Property Rights
settlements and awards, penalties and procedures,
c) Necessity of Intellectual Property Rights
causation and remoteness of damage.
Protection
d) International Intellectual Property 8. Standing Order
Organizations West Pakistan Industrial and Commercial
e) Future of Intellectual Property Rights Employment (Standing Order) Ordinance, 1968.
9. Factories Act 1934 / Workmen’s Compensation
6.2 Intellectual Property Rights Laws in Pakistan Act 1923:
a) The Copyright Ordinance, 1962 Provisions regarding health and safety, working
b) The Registered Designs Ordinance, 2000 hours including rest intervals, working holidays and
c) The Registered Layout-Designs of Integrated overtime, employment of women and children etc.
Circuits Ordinance, 2000 Workman’s Compensation Act 1923, provisions
d) The Patents Ordinance, 2000 regarding definitions, employers’ liability for
e) The Trade Marks Ordinance, 2001 compensation, amount of compensation, methods of
f) The Merchandise Marks Act, 1889 calculating wages, review, commutation and
g) The Trade Marks (Invalidation and Summary distribution of compensation, report of fatal
Registration) Act, 1950 accidents, and medical examination etc.
h) The Electronic Transaction Ordinance, 2002
i) Section relating to infringement of Trade, 10. Social Security Ordinance, 1965.
Property and other Marks in the Pakistan Provincial Social Security Ordinance 1965:
Penal Code, 1860. provisions, regarding definitions, amount and
6.3 International Treaties, Agreements Conventions, payment of contributions, records and returns,
Protocols And Regulations, Etc. (Only benefits including sickness and maternity
Introduction) benefits, death grants, disablement pension etc.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

CORE READINGS
TITLE AUTHOR PUBLISHER
Vikas Publishing House,
Business Law M.C. Kuchhul
New Delhi.
(A Manual of) Mercantile Law M. C. Shukla S. Chand & Co., Ram Nagar,
New Delhi 110055, India.
Bare Acts Govt. of Pakistan Publications Division, Govt. of Pakistan.
Mercantile Law Luqman Baig Ghanzanfar Academy Pakistan,
30, Urdu Bazar Karachi
Mercantile and Industrial Laws in Pakistan Prof. Dr. Khawaja Institute of Business Management,
Amjad Saeed G.P.O. Box No. 1164, Lahore.
Labour Code M. Shafi / P. Shafi Bureau of Labour Publications,
8, Business Centre, Mumtaz Hasan
Road, P.O. Box 5833, Karachi – 74000.
ADDITIONAL READINGS
Elements of Mercantile Law N.D. Kapoor Sultan Chand & Sons,
New Delhi.
Mercantile Law and Industrial Law Q. A. Wadud Sun-rise Publishing Qazi Villa, A/17-2-
B, National Cement, Housing Society,
Rashid Minhas, Road, Gulshan-e-Iqbal
Karachi 75300.
The Intellectual Property, Intellectual Property G.M. Chaudhry Federal Law House, Main Plaza,
laws in Pakistan and international Treaties on Chaudhry M. Zafar Chandni Chowk, Murree Road,
IPRs Iqbal Rawalpindi.
Broom’s Legal Maxims Herbert Broom Sweet and Maxwell London
Pakistan Law House, Karachi.
Handbook of Legal Terms & Phrases Judicially M. Ilyas Khan Pakistan Law House, Karachi.
Defined.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

STAGE-1  listen and comprehend various situations of


business environment,
BUSINESS ENGLISH (S-104)  develop their writing and speaking skills in
i. Introduction different business situations.
Business English consists of the following three iii. Outcomes
sections: On completion of the course, students should be
(a) English Grammar and Usage, able to:
(b) Reading and Writing,  know the correct use of grammar,
(c) Listening and Speaking.  listen, understand and speak English correctly
and fluently,
ii. Objectives
 write business letters, pre’cis and reports
This course enables students to:
correctly,
 write and speak grammatically correct English,
 give presentation on a given business situation
effectively.
INDICATIVE GRID
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION – A 30%
1. English Grammar and Usage
SECTION – B 40%
2. Reading and Writing
SECTION – C 30%
3. Listening and Speaking
Total 100%
Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

CONTENTS SECTION – B
SECTION – A 2. Reading and Writing
Reading comprehension of paragraphs and
1. English Grammar and Usage
articles. Writing essays; informal letters, report,
Structure of a sentence, subject and predicate,
and preics.
correct use of articles, parts of speech; use of
auxiliaries (can, could, shall, will, should, would, SECTION – C
etc).; prepositions; tenses; direct and indirect
3. Listening and Speaking
narration; active and passive; prepositional
In the class rooms, the students must be given
combinations and verbal phrases, antonyms and
different business situations for learning
synonyms, words often confused and misused,
presentation skills and situations can be such as:
pairs of words, phrases and clauses; types of
talking about responsibilities at work, receiving
sentences; (affirmative/negative, interrogative,
visitors, seeking information, sales negotiations
exclamatory, imperative), kinds of sentences,
etc; participation in group discussions; expressing
(simple, complex, compound), synthesis of
effectively in meetings and interviews; making
sentences, punctuation.
effective presentation.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

CORE READINGS
TITLE AUTHOR PUBLISHER
Mastering English Grammar S. H. Burton Macmillan Education Ltd.,
Houndmills, Basingstoke,
Hampshire RG21 2XS and London.
Understanding and Using English Grammar Betty Schramfer Azar Pearson Longman ESL
St. Laurent, Quebec
Canada - H4S 1R3
English for Business Studies 3rd Edition L. Gartside Pitman Publishing Ltd.,
128, Long Acre, London
WC2E 9AN U.K.

Sadler Hayllar Powell Macmillan Education,


Language Three & Four 627 Chapel Street,
South Yarra,
Victoria 3141.

ADDITIONAL READINGS

A Quick English Reference J.S. Hooper Oxford University Press, Karachi.

High School English Grammar and P.C. Wren / H. Martin S. Chand & Company Ltd 7361, Ram
Composition Nagar, New Delhi - 110055

Note: Teachers and students are encouraged to use authentic materials from newspapers, magazines and electronic
media to develop reading, writing, listening and speaking skills.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

STAGE-2  apply cost methods and techniques for


preparing and presenting information for
FUNDAMENTALS OF COST AND decision-making and cost control, and
 prepare standard costs and variances.
MANAGEMENT ACCOUNTING (S-201)
iii. Outcomes:
i. Introduction:
On completion of this course, students should be
This course is designed to make the students
able to:
familiar with the application of basic methods and
 understand cost concepts, objectives, scope,
techniques of cost and management accounting.
cost flow and classification,
The course deals with the cost concepts, cost
 prepare cost of production report and cost
classification and cost flows, material, labour,
statement under process cost accounting
factory overhead costing, marginal costing,
system and job order costing system,
standard costing and budgeting.
respectively,
 understand and explain material, labour,
ii. Objectives:
factory overhead costing and control,
To provide the students with an appropriate
 calculate and interpret material, labour,
knowledge of Cost and Management Accounting to
overheads variances,
enable them to:

INDICATIVE GRID
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION - A
INTRODUCTION
1. Concept and Scope of Cost Accounting 20%
2. Cost Classification and Flows

SECTION - B
COST ACCOUNTING
3. Material Costing and Control
4. Labour Costing and Control 50%
5. Factory Overhead Costing and Control
6. Costing Systems

SECTION - C
INFORMATION FOR PLANNING AND CONTROL
7. Standard Costing 30%
8. Marginal Costing and Break-even analysis

TOTAL 100%
Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

CONTENTS accounting v/s financial accounting, Costing


department and its relationship with other
SECTION –A
departments, Role of cost accounting in a
INTRODUCTION management information system, Uses of cost
1. Concepts and Scope of Cost Accounting data.
Definition and concept of cost, Cost object, Cost
elements, Sources and uses of cost data, Cost

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

2. Cost Classification and Flows and under applied factory overhead and its
Direct and indirect cost, Product and period cost, disposal, Departmentalisation of overhead,
Controllable and uncontrollable cost, Fixed and Allocation, apportionment and reapportionment of
variable cost, Semi-variable and step fixed cost, overhead costs, Repeated distribution and
Cost flow, Statement of cost of goods algebraic method for reciprocal, service
manufactured and sold. department costs.
SECTION – B 6. Types of Costing Systems
Establishment of cost accounting system,
COST ACCOUNTING
Principles of double entry system of costing,
3. Material Costing and Control Integrated and interlocking cost accounts, Chart of
Procedure of material procurement, Two-bin account and coding for costing, Introduction to
system, The use of FIFO, LIFO and weighted process costing, Incomplete process and concept
average for material, valuation and the pricing for of equivalent units, Format of process account and
material issue, Stock taking and perpetual cost of production report Job order costing,
inventory, Treatment of differences between Operation / service costing
physical and book stock, Economic order quantity,
Effect of quantity discount on EOQ, Reorder level,
SECTION - C
safety stock and maximum stock, ABC Control. INFORMATION FOR PLANNING AND CONTROL
4. Labour Costing and Control 7. Standard Costing
Direct and indirect labour, Productivity and Preparation of standard cost, Material price and
efficiency, Remuneration methods, Straight piece usage variances, Labour rate and efficiency
rate and differential piece rate, Incentive wage variances, Variable overhead expenditure and
plan, Group bonus, Time sheet and job cards, efficiency variances, Fixed overhead budget and
Overtime and idle time, Payroll, Labour turnover volume variances.
rate.
8. Marginal Costing and Break-even Analysis
5. Factory Overhead Costing and Control Marginal cost and contribution margin, Contribution
Classification and collection of overhead, margin to sales ratio (C/S ratio), Break-even in
Predetermined overhead applied rate, Factory units and value, Margin of safety ratio (M/S ratio),
overhead cost: planned, applied and actual, Over Break-even graph

CORE READINGS

TITLE AUTHOR PUBLISHER


Cost Accounting F. Usry, H. Hammer & Adolph South Western Publishing Co.,
Matz Cincinnaci, Ohio, U.S.A.

Cost Accounting T. Lucy DP Publications, Aldyne Place,


142-144 Uxbridge Road, Shepherds Bush
Green, London W12 8AW.
Management Accounting PBP Professional Business Publications, Lahore.
Fundamentals
ADDITIONAL READING
Cost & Managerial Accounting Jack Gray & Don Ricketts McGraw-Hill Company Inc., Princeton Road,
S-1 Hightslown, NJ08520, New York.
Management and Cost Accounting Colin Drury Thomson Learning, High Holborn Ouse,
50-51 Bedford Row, London
Cost Accounting Charles T. Horngren, Srikant M. Prentice Hall of India, New Delhi.
Datar George Foster

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

STAGE-2  understand the techniques for strategic


marketing management to promote
MANAGEMENT AND MARKETING (S-202) business.
i. Introduction:
This course consists of management, human
iii. Outcomes:
On completion of this course, students should be
resource management, change management,
able to:
operations management and marketing
 explain the various functional areas of an
management. This will help the students to identify,
organisation,
correlate and apply these concepts to other core
 assess various means for introducing
subjects of Professional stages for decision-
change,
making.
 examine and analyse the problems
associated with quality in an organisation,
 examine the career planning activities of an
ii. Objectives:
This course enables the students to:
organisation,
 appreciate the theoretical approaches of
 make available chain management as a
organisational management,
strategic process, and
 visualise and analyse business model of an
 evaluate and describe the marketing
organisation,
concepts, and the role of technology in
 understand methods and procedures to
modern marketing.
manage the people, and
INDICATIVE GRID:
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION-A
MANAGEMENT
1. Introduction to Organisations and Management
2. Management Process 50%
3. Understanding Groups & Teams
4. Human Resource Management
SECTION-B
MARKETING MANAGEMENT
5. Introduction to Marketing Management
6. Product and Services Strategy 50%
7. Pricing Products: Pricing Considerations Approaches and Pricing Strategies
8. Advertising, Sales Promotion and Public Relations
9. Distribution Channels and Logistics Management
10. Other Topics in Marketing Management
TOTAL 100%
Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the
examination.

CONTENTS iii. Definition of an Organization


iv. External Environment of an organization
SECTION-A
v. Internal Environment of an organization
MANAGEMENT vi. Linkage between Individual, Group, and
1. Introduction to Organisations and Management Structures within an organization.
i. Definition of Management
ii. Roles of a Manager

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

2. Management Process
SECTION - B
2.1 Planning and Decision-Making
The definition of planning; types of plan; the
MARKETING MANAGEMENT
planning process; planning tools and techniques; 5. Introduction to Marketing Management
Managerial ethics and decision Making process. Marketing defined, needs, wants, exchange,
transactions and relationships, markets, 4P’s of
2.2 Organizing and Managing Change marketing; Market Segmentation; levels of market
Defining organizational structure and design; segmentation; evaluating and selecting market
factors affecting organizational design; forms of segment; market targeting; positioning product in
organizational design; application of organizational the market.
design; sources of power; line and staff authority;
effective delegation; decentralization and 6. Product and Service Strategy
centralization; Management and Organizational What is a product and product life cycle. The
Change; the forces of change; need of change; the product service continuum; levels of product;
change process; resistance to change. Lewin’s product classifications: consumer products,
three step change modes; reorganization (merger industrial products, organisations, persons, places
and acquisition); restructuring; rightsizing. and ideas; individual product decision; product
attributes: branding, packaging, labelling, product
2.3 Controlling and Decision Making support services; product line decisions; product
Concept of control; types of control,; inventory mix decisions; services marketing; nature and
Management; Demand and Capacity Management; characteristics of a service.
TQM & ISO Systems, Business Process Re-
engineering; Six Sigma and Kaizen. 7. Pricing Product: Pricing Considerations
approaches and Pricing Strategies
3. Understanding Groups and Teams General pricing approaches: cost-based pricing,
value-based pricing, and competition-based
3.1 Difference between groups and teams;
pricing; new-product pricing strategies; market-
understanding group behavior and group decision-
making process; groups and teamwork; turning skimming pricing, market-penetration pricing;
product mix pricing strategies: product-line pricing,
groups into effective teams;
optional-product pricing, captive-product pricing,
by-product pricing, product bundle pricing; price-
3.2 Leadership
adjustment strategies: discount and allowance
Managers verses leaders; contemporary theories
pricing, segmented pricing, psychological pricing,
of leadership; contemporary issues in leadership;
promotional pricing, geographical pricing,
developing and managing effective teams
international pricing; price changes; initiating price
changes, responding to the price changes.
3.3 Motivating Employees
Concept of motivation; currents issues in 8. Advertising, Sales Promotion and Public
motivation; from theory to practice.
Relations
Major decisions in advertising: organising for
advertising; setting objectives; setting the
4. Human Resources Management
The human resource management process;
advertising budget; advertising strategy;
human resources planning; recruitment and
advertising evaluation; international advertising
selection; orientation; performance appraisal; (in
decisions; sales promotion: rapid growth of sales
MBO); employees training; compensation and
promotion; setting sales-promotion objectives;
benefits; the human resources environment;
selecting sales-promotion tools; developing the
competition influences; labor relation influences;
sales-promotion programme, public relations;
legal and regulatory influences; Global major public relations tools.
influences; technological, economic and social
influences.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

10. Distribution Channels and Logistic physical distribution and marketing logistics; goals
Management of the logistics functions; integrated logistics
The nature of distribution channels; why are management.
marketing intermediaries used? Distribution
channel functions, number of channel levels; 10. Other Topics in Marketing Management
channel behaviour and organisation; vertical Marketing research; Marketing in the Digital Age;
marketing systems, horizontal marketing systems, major Forces shaping the digital age; marketing
hybrid marketing systems; physical distribution and strategy in the digital age; E-marketing domains;
logistics management: nature and importance of conducting e-commerce.

CORE READINGS

TITLE AUTHOR PUBLISHER

Strategic Management John Thompson CIMA London.


10th Edition
Management Stephen P. Robins and Mary Prentice Hall International Inc.,
6th Edition Coulter New York.

Principles of Marketing Philip Kotler and Gary Armstrong Prentice Hall International Inc.,
8th Edition New York.

Strategic Management Fred R. David Prentice Hall International Inc.,


7th Edition New York.

Organisational Management and PBP Professional Business Publications,


Information Systems Suite # 3, 5 Third Floor, Taj
Arcade, 73-Jail Road,
Lahore.

ADDITIONAL READINGS

HR. Management Manual _ Penguin Books, New Delhi, India.


(Managers Pocket Guide Series)
HRM/HRD: Personnel Management Prof. Dr. Khawaja Amjad Saeed Institute of Business Management,
G.P.O. Box No. 1164,
Lahore.
Management: Text & Cases Prof. Dr. Khawaja Amjad Saeed Institute of Business Management,
G.P.O. Box No. 1164,
Lahore.
Marketing Cases Prof. Dr. Khawaja Amjad Saeed Institute of Business Management,
G.P.O. Box No. 1164,
Lahore.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN


use and interpret mathematical and statistical
STAGE-2 methods, and
BUSINESS MATHEMATICS & 
present the results of quantitative nature, in a
suitable form for taking business decisions.
STATISTICS (S-203)
iii. Outcomes:
i. Introduction: On completion of this course, students should be
This course comprises basic concepts and able to:
techniques of mathematics & statistics. A thorough describe and demonstrate the use of
knowledge in the areas of basic mathematics and mathematical and statistical techniques,
presentation of data, is an essential skill for understand the proper use of formulae and
management accountant. The management ratios,
accountant should understand statistical concepts, describe reasonableness in the computation of
because of the need to estimate the uncertainties answer,
of business decisions. This course also gives basic understand and apply techniques for
understanding of mathematical techniques applied summarising and analysing data,
for, forecasting in corporate planning and Financial describe and demonstrate the use of
Management. probability, in case of involvement of risk and
uncertainty,
ii. Objectives: describe and apply financial mathematical
To provide the students with the basic knowledge techniques, and
of mathematics and statistics to enable them to: describe and demonstrate forecasting
techniques.
INDICATIVE GRID:
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION-A
BUSINESS MATHEMATICS
1. Preliminaries
2. Mathematical Functions
3. Differentiation
4. Optimisation: Application 50%
5. Integral Calculus
6. Matrix Algebra
7. Sequence And Series
8. Mathematics of Finance
SECTION-B
STATISTICS
9. Probability Theory 25%
10. Probability Distributions
11. Decision-Making
12. Statistical Forecasting
SECTION-C
OPERATIONAL RESEARCH
13. Network Analysis 25%
14. Linear Programming
15. Optimisation
TOTAL 100%
Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

CONTENTS 8. Mathematics of Finance


Concepts of Interest rate, Simple and Compound
SECTION-A
Interest, singe-payment computations, Present
BUSINESS MATHEMATICS value, Nominal and Effective Interest Rates.
1. Preliminaries Concept of Annuities and Their Future Value,
Factorization, Equations, Inequalities, Absolute Annuities and their present value, Mortgages,
Value Relationships. Quadratic Equation and Cost-Benefit Analysis, Discounted Cash Flow, Net
Nature of Roots, Mid-Points, Two Point Formula, Present Value.
Distance Formula, Rectangular Co-ordinate SECTION-B
System BUSINESS STATISTICS
2. Mathematical Functions 9. Probability Theory
Functions, Domain Range Relationship, Restricted Introduction to sets and set operation,
Domain and Range, Univariate, Bivariate and permutations and combinations, Basic probability
Multivariate Functions. Value of the Functions. concepts, Statistical dependence and
Graph Representation of the Functions, Type of independence, Rues of Probability (Additive and
Functions (Constant, Linear, Rational, Multiplicative). Conditional Probability, Marginal
Combinations, Composite, Polynomial, etc.), Probability, Joint Probability.
Applications of the Linear Functions, Break-Even
Models (Analysis)
10. Probability Distribution
Probability Distributions, Measures of Central
3. Differentiation Tendency, Statistical Dispersions, Normal and
The Limit and Introduction, Average rate of Binomial Distributions.
change, Concepts of derivative and differentiation,
Basic Rules of Differentiation. Instantaneous-rate
11. Decision-Making
Sampling Methods (Probability and Non-Probability
of change. Partial Derivatives and Mixed Partial
Sampling), Sampling Distribution of Mean),
Derivatives
Estimation (Confident Innerves) for single
4. Optimisation: Application population mean, Test of hypothesis (t & z test) for
Derivatives, Maxima and Minima, Curve Sketching, single population mean, Chi-Squire Test, Concept
1st and 2nd Derivative Tests, Restricted-domain of Sample Size.
considerations revenue, Cost and profit
applications, additional applications
12. Statistical Forecasting
Linear Correlation Coefficient, Coefficient of
5. Integral Calculus Determination, Linear regression model, Least
Concepts of Anti-derivatives, Integration, Rules of square methods, semi-average, moving average,
Integration, Definite and indefinite integrals. Index Number (Simple and Weighted).
Application of Integral Calculus.
SECTION-C
6. Matrix Algebra
Concept of Matrices, Addition, Subtraction,
OPERATIONAL RESEARCH
Multiplication, Inverse of Matrices, Solution of 13. Network Analysis
linear equation with the help of Matrices (up to Critical Path Analysis (CPM), Gantt Charts
three variables), The Determinant and its Analysis of network, crashing program evaluation
Properties. Cramer’s Rule, Gaussian Elimination and network analysis, activity-on-arrow and
Method, Method of Elimination. Slope Intercept activity-on mode diagrams, probabilities network.
form, selected applications
14. Linear Programming
7. Sequence and Series Optimisation by linear programming using
Concept of Sequence and Series, Arithmetic And graphical and simplex methods. Sensitivity
Geometric Progression and its business Analysis.
applications. Arithmetic and Geometric Means etc.
15. Optimisation
Linear and non-Linear Optimisation.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

CORE READINGS
TITLE AUTHOR PUBLISHER
Quantitative Techniques T. Lucy DP. Publications Ltd.,
Aldine place, 142-144 Uxbridge Road
Shepherds Bush, Green, London W12 8AW.
Introduction to Statistics Ronald E. Walpole Macmillan Publishing Co. Inc. New York.
Applied Mathematics for Business, Frank S. Budnick McGraw-Hill Company Inc., Princeton
Economics & the Social Sciences. Road, S-1 Hightslown, NJ08520, New York.
Business Mathematics PBP Professional Business Publications, Lahore.
ADDITIONAL READING
Business Mathematics Mirza Muhammad Hassan Farooq Kitab Ghar, 32-33 Urdu Bazar,
& Muhammad Ali Mirza Karachi.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

STAGE-2 describe some of the major components of a


computer system and explain their
INTRODUCTION TO INFORMATION relationships to one other,
TECHNOLOGY (S-204) explain computer system’s CPU and memory,
explain several types of input and output
i. Introduction: devices and their functions,
This course is designed to focus on the theoretical describe multimedia, benefits and its
and practical aspects of computer skill. The applications,
students will be provided with practical and understand the difference between application
theoretical coaching facilities to gain knowledge software and system software,
within the framework of the course. explain the different functions and differences
ii. Objective: of operating system,
To provide the essential IT knowledge related to describe the low-level and high-level
business systems, irrespective of their work languages,
primary domain and role. describe the role of utility programme,
describe different communication protocols,
iii. Outcomes: describe the local area network, wide area
This course will cover both theoretical and practical network and other types of network,
aspects of IT knowledge. On completion of this
describe some security issues involved with
course student will be able to have knowledge of
computer network usage.
following theoretical and practical topics:
(b) Practical Training
(a) Theoretical Knowledge
Ability to use
explain the basic knowledge of IT,
- Word processor package,
explain the characteristics of computers and - Spread-sheet package,
its classification, - Presentation package,
- Internet and E-mail.
INDICATIVE GRID
SYLLABUS CONTENT AREA WEIGHTAGE
1. Theory (30 hours) - Introduction
- Hardware
- Software 50%
- Networks
2. Practical (30 hours) - Microsoft Windows
- Microsoft Word
- Microsoft Excel
- Microsoft PowerPoint 50%
- Internet
- Accounting Package
TOTAL 100%

Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

CONTENTS (Switch, routers, and modem), Security issues (Viruses,


Firewall and unauthorised access), Digital signatures,
1. THEORY
Bluetooth, Security issues (Computer viruses,
unauthorised access and firewall), Biometric devices.
Module: Introduction (02 hours)
Fundamental characteristics of computers,
Classification of computers, Components of a computer 2. PRACTICAL
system, Networks, Computer Security, Internet. Microsoft Windows (02 hours)
The start menu, Manipulating windows, Copy Files,
Module: Hardware (10 hours) Moving Files, Deleting Files, Create folder, Search files,
customised your desktop.
Central Processing Unit (CPU) & Memory
Control unit, Arithmetic logical unit, registers, Memory
(RAM and ROM), Types of RAM (SRAM and DRAM),
Microsoft Word (04 hours)
Editing, format, insert, view and file menu commands in
Cache Memory, Registers, Data-bases, Ports (Serial,
word-processor, Paragraph/page/character formats.
Parallel and USB)
Letters, reports, standard templates, user-defined
templates, Mail merge using data from spread-sheets
Input and Output
and/or tables, formatting, borders, size of columns,
Keyboards, Mouse, Electronic Pens, Touch-Screens,
rows, captions, table of contents, table of figures and
Track-ball, Touch-pad, Digitiser, Scanners, Digital
index, page layout, print formatting, Linking and
Cameras, Voice Recognition, Kinds of outputs
embedding spread-sheet, presentation and other
(Softcopy and Hardcopy), Display Devices (CRT and
integrated package documents, slide master,
Flat Panel), Screen clarity (Resolution, Dot pitch and
presentation package, Drawing toolbox: Shapes, lines,
Refresh rate), Video display adopters, Printers (impact
text boxes, aligning, distributing, grouping, flipping
and Non-impact), Plotters, computer output microfilm
objects. Slide animation commands. Inserting chart,
and microfiche.
table, picture word processor and spread-sheet.
Storage and Multimedia
Magnetic Disk Systems, Floppy Disks, Hard Disks,
Optical Discs (CDs, DVDs), Magnetic Tape Systems,
Microsoft Excel (10 hours)
File, edit, view, insert, format menu commands:
Online Storage, Smart Cards, Flash Memory Devices,
Print/page set up, custom header/footer, Absolute,
What Is Multimedia, Advantages and Disadvantages of
relative addressing, cell labelling. Formulae, copying
using Multimedia, Multimedia Applications.
formulae. Use of different types of functions. Cell
formatting, bordering, alignment, number. Data types,
Module: Software (08 hours)
formats, conversion Tools: Sorting, filtering. Linking
Definition of software, Classification of software
worksheets, pivot table, paste special Import/export of
(Application software and System software), Definition
data from/to word processors, databases, text-files.
of operating system, different type of operating
Data format conversion problems charts: Bar charts,
systems, functions of operating systems, Processing
pie charts, formatting. Suitability, conditional formatting.
techniques for increasing efficiency (multi-tasking,
multi-threading, multi-processing, time-sharing, virtual
memory and spooling), Programming languages (Low-
Microsoft PowerPoint (04 hours)
Create Slide, Edit Slide, Insert Slide, Run Slide Show,
level languages and high-level languages), Complier,
Insert Pictures, Add Animation, Slide Transitions,
Interpreter, generation of languages, Procedural and
Formatting Slides, Add Sounds, Slide Colour Scheme,
non-procedural languages, Utility programmes
Using video clips and audio files, Enter text in your
(compression software, diagnostic programmes, back-
slides, Insert and resize a digital image or clip art
up utilities and disk-defragmentation).
(online, from PowerPoint), Apply a design template,
Draw lines, Draw and colouring shapes, Create 3D
Module: Network & Security Issues (10 hours)
shapes, Create Charts / tables, Add narration.
Definition of network, Topologies, Types of networks
(LAN, WAN, VAN, MAN and VPN), Communication
Internet (02 hours)
Accessing Internet, Intranet, Extranet, Internet
Protocols (Ethernet, Token Ring, TCP/IP and WAP),
OSI models, Transmission Mediums, Transmission Addresses, Surfing the web, Using bookmark and the
history list, Searching the web, E-mail, Sending e-mails,
Direction, Transmission Mode, Network Devices

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

receiving e-mails, managing e-mails, Connectivity accounting. The students will learn how to post, retrieve
issues, How to block spamming (Unwanted e-mails). and manage the books electronically and design
reports as per managements’ requirements. It gives a
Accounting Packages (08 hours) comprehensive coverage to the software with hands-on
Under accounting package, a Peachtree Accounting training. By the end of the course, students will be
Software will be practically taught. The accounting comfortable with the package and can meet various job
package through coverage of Peachtree software gives requirements of the professional managers, while
a thorough introduction to the concepts of computerised taking decision based on financial reporting.

CORE READINGS

TITLE AUTHOR PUBLISHER

Computer Fundamentals (Concepts, Pradeep K.Sinha Professional Business Publication


Systems & Applications) Priti Sinha Suite # 3, 5 Third Floor,
Taj Arcade
73-Jail Road, Lahore

Computer, 8/E H.L Capron Prentice Hall International Inc.

A Complete book on Information Dr. Rajesh Trehan Cyber tech (CCT)


Technology
MS Office 2000 Gini Courter Sybex
Annette Marquis

ADDITIONAL READINGS

TITLE AUTHOR PUBLISHER

Network Security (Second Edition) Chris Brenton Sybex


Camreon Hunt

CISA Manual CISA Information Systems Audit and


Control Associations, Inc., 3701
Algonquin Road,
Suite 1010
Rolling Meadows, Illinois,
60008 USA.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

STAGE-3  prepare receipts and payments accounts and


financial statements of non-profit
FINANCIAL ACCOUNTING (S-301) organisations,
 prepare financial statements from incomplete
i. Introduction: records,
This course covers specialised accounting as well  understand the procedures to be followed in
as preparation of financial statements, according to formation of companies,
local laws and International Accounting Standards  identify and explain accounting treatment of
as applicable in Pakistan. expenses, incurred during the course of
]

ii. Objectives: formation of a company,


To provide the students with a knowledge of  identify and explain reasons for profit
accounting enabling them to: appropriation,
 prepare financial statements for different types  identify and explain reasons why any loss/gain
of business such as joint venture, is debited or credited to retained earnings,
consignments, Royalties, Branches /  prepare and present financial statements of
Departments, Partnership, Non-profit companies, according to local laws and
organisations and Sole-proprietorship, International Accounting Standards, with
 prepare financial statements of companies as appropriate notes,
per requirements of the companies ordinance  explain potential matters that should be
1984 and IASs as applicable in Pakistan, and considered, while making a regulatory
 compute and interpret working capital ratios framework for published accounts,
and analyse various items of current assets  describe the role of the International
and liabilities, to highlight the current financial Accounting Standards,
position of the companies.  prepare a statement of changes in Equity,
 compute working capital ratios for business
iii. Outcomes: sectors,
On completion of this course, students should be
 prepare cash management models, identify
able to:
and choose the most appropriate model,
 prepare accounts and financial statements of
 appraise debtors and creditors policies and
joint venture, consignment, royalties,
methods of inventory management
partnership, branches and departmental types
of businesses,
INDICATIVE GRID:
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION-A
1. Accounting for Joint Venture
2. Accounting for Consignments 30%
3. Accounting treatment of Royalties
4. Branch & Departmental Accounting
SECTION-B
5. Accounting for Partnership concerns
6. Preparation of Financial Statements from Incomplete Records 30%
7. Financial Statements of Non-Profit making organizations
SECTION-C
8. Company Formation & Retained Earnings
9. Preparation of Company Financial Statements in accordance with International
Accounting Standards (IAS – 1) 40%
11. Financial Statements (Balance Sheet & Income Statement) of a single company in
accordance with 4th & 5th schedule of Companies Ordinance 1984.
12. Computation of basic financial ratios (analysis not required)
13. Application of IFRs / IASs (IAS 1, 8, 10, 16)
TOTAL 100

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

CONTENTS 7. Financial Statements of Non-Profit Making


Organizations
SECTION-A
Preparation of receipt & payment summary;
1. Accounting for Joint Venture preparation of income and expenditure account
Accounting treatment when separate books of and balance sheet.
accounts are maintained, and when separate
books are not maintained; Memorandum recording SECTION-C
methods.
8. Company Formation & Retained Earnings
2. Accounting for Consignments Formation of public and private Companies as per
Nature and operation of the consignment; Companies Ordinance 1984; concept and nature of
accounting for the completed and incomplete shares and share capital; types of shares and
consignments including losses (normal and share capital; recording of issue of shares against
abnormal both) and stock valuations. cash and for consideration other than cash;
concept of partly and fully paid shares; share splits;
3. Accounting Treatment of Royalties right issue of shares; bond shares (stock dividend);
Preparation of journal entries and accounts; purchase of own shares (treasury stock); sources
minimum rent account; shortage account; and of retained earnings; retained earnings
royalty suspense account. Accounting treatment of appropriation to dividends and reserves; concept
sub-leases. and types of dividends and reserves; accounting
for dividends, reserves and reserve funds.
4. Branch & Departmental Accounting
Operation of a branch; accounting systems for 9. Preparation of Company Financial Statements in
branches (including dependent and independent accordance with International Accounting
branches) and head office; reciprocal accounts and Standards ( IAS – 1 )
inter-branch transactions; preparation of combined Requirements of relevant, IFRSs / IASs; forms
statements for head office and branches; and contents of the Financial Statements as per
departmental accounting, working paper for IAS-1.
combined statements.
10. Financial Statements (Balance Sheet & Income
SECTION-B Statement) of a single company in accordance
with 4th & 5th schedule of Companies
5. Accounting for Partnership Concerns Ordinance 1984.
Formation of partnership; distribution of profits Requirement of 4th & 5th schedule of Companies
among partners; changes in partners’ ratios, Ordinance 1984; balance sheet, profit and loss;
admission of a partner; retirement and death of a statement of changes in owners’ equity and notes
partner; dissolution of firm; conversion of to the accounts.
partnership into a company.
11. Computation of Basic Financial Ratios
6. Preparation of Financial Statements from (analysis not required)
Incomplete Records
Preparation of income statement and balance 12. Application of IFRs / IASs
sheet from incomplete record. IAS 1, 8, 10, 16.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

CORE READINGS

TITLE AUTHOR PUBLISHER

Frank Wood’s Business Accounting Frank Wood/Alan Sangster Pearson Education Ltd, England.

International Accounting,
International Financial Reporting International Accounting Standards Board, 30 Cannon
Standards (IFRSs/IASs) Standards Board Street London EC4M 6XH,
United Kingdom.

Professional Business
Financial Accounting and Tax Principles PBP Publications,
Lahore.

An Introduction to Accountancy S.N.Maheshwari/S.K Maheshwari Vikas Publishing House, (Pvt)


Ltd.,
576, Masjid Road, Jangpura,
New Delhi.
R. L. Gupta
Advanced Accountancy Sultan Chand & Sons,
Publishers 23, Daryaganj, New
Delhi.

ADDITIONAL READING

Accounting: The Basis for Business Robert F. Meigs / Walter B. McGraw-Hill Publishing Company
Decisions Meigs Inc.,
New York.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

and companies, trading profit and capital


STAGE -3 gains, and indirect taxes such as sales tax,
customs duty and central excise duty,
BUSINESS TAXATION (S-302)  describe features of the direct and indirect
taxes,
i. Introduction:  describe record-keeping, filing and tax
This course covers Income Tax Ordinance, 2001, payment requirements of principal types of
the Income Tax Rules, 2002 and other Tax Laws taxation, relating to business,
such as the Sales Tax Act, 1990, Customs Act,  differentiate between tax avoidance and tax
1969 and Federal Excise Act, 2005, as amended evasion,
to date.  compute for recommendations to the
management on issues, pertaining to tax
ii. Objectives: liabilities of company or firm, arising from
To provide the students with an in-depth income generation and capital gains,
knowledge of Tax Laws, enabling them to apply in  recommend on minimising or deferring tax
decision-making process in different business liabilities for individuals or company, by using
situations. exemptions,
 compute and advise on tax liabilities of
iii. Outcomes: individuals, arising from income receipts,
On completion of this course, students should be capital gains, business or professions and
able to: other sources, and
 identify and interpret principal types of  identify foreign tax obligations, situations and
taxation, such as direct taxes on individuals, apply appropriate methods for relieving from
income, business individuals, Association of such tax.
persons, registered and unregistered firms

INDICATIVE GRID
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION-A
1. Income Tax Law
1.1 Income Tax Ordinance 2001, as amended up-to-date covering 50%

SECTION-B
1.2 Income Tax Rules 2002
20%
SECTION-C
2. Other Tax Laws:
2.1 Sales Tax Act 1990
2.2 Customs Act 30%
2.3 Federal Excise Act and Rules
2.4 Capital Value Tax
TOTAL 100%

Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

CONTENTS
The Income Tax Ordinance 2001, as amended
SECTION-A up-to-date covering
Definitions; charge to tax; tax on taxable income
1. INCOME TAX LAW
(computation of income from salary, property,
1.1 INCOME TAX ORDINANCE, 2001
SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

business, capital gains, other sources, exemptions, payment, statements of tax collected or deducted.
losses, deductible allowances, tax credits); Income tax recovery rules, registration of income
common rules (general, tax year, assets); tax practitioners, and recognised terminal benefits
provisions governing persons (concept, individuals, funds.
AOP, companies); special industries (insurance, oil
SECTION-C
& gas and other mineral deposits); international
(geographical source of income, taxation of foreign 2. OTHER TAX LAWS:
source of income of residents, taxation of non- 2.1 The Sales Tax Act 1990
residents, double taxation); anti-avoidance;
Chapter No. I, II, III, IV, V VII, VIII and IX of the
minimum tax; procedures (returns, assessments,
appeals, collection and recovery of tax, payments
Act, as amended up-to-date covering;
and deductions, refunds, records and audit, definitions; scope and payment of tax;
penalty, offence and prosecutions, additional tax); registration; book-keeping and invoicing
administration (general, transitional advance tax requirements; returns; offences and penalties,
provisions, miscellaneous); Schedules (first appeals and recovery of arrears.
schedule, second schedule, third schedule, sixth
schedule, seventh schedule). Special provisions 2 .2 Customs Act
regarding depreciation, initial allowance, Chapter V, VI, X, XI, XVII and XIX of Customs Act,
intangibles, pre-commencement expenses, as amended up-to-date covering; levy of
scientific research expenditures, employees exemption from and repayment of customs duties;
training and facilities, profit on debt, financial costs drawbacks; clearance of goods for home
and lease payment, bad debts, provisioning consumption; warehousing; offences and
regarding consumer loans, profit on non- penalties; appeals and revisions.
performing debts, transfer to participating reserve
and tax accounting. Nature and areas of tax 2.3 Federal Excise Act And Rules
management; deduction of tax at source; advance Federal Excise Act, 2005. Sections 2 to 19, 31, &
payment of tax; minimum tax; importance of tax 33 to 39.
management, while claiming allowance; Federal Excise Rules, 2005. Rules 7 to 10, 15 to
exemptions deductions and tax credits; filing of 17, & 32 to 34.
returns of income; defaults and penalties.
2.4 Capital Value Tax
Section 7 of the Finance Act 1989 as amended
SECTION-B
1.2 INCOME TAX RULES, 2002 up-to-date.
Definitions related to the rules; heads of income; - Notifications, rules general orders and
income of residents; tax of non-residents; transfer circulars, issued under the above-mentioned
pricing; records and books of accounts;
laws.
certificates; advance tax collection or deduction,

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

CORE READINGS

TITLE AUTHOR PUBLISHER


Complete Income Tax Law Sheikh Asif Salam S. A. Salam Publications, Lahore.
(Latest Edition)

Introduction to Income Tax Huzaima Bukhari & Lahore Law Publications.


Ordinance, 2001 & Income Tax Dr. Ikramul Haq
Rules, 2002

Sales Tax, 1990 Tariq Najeeb Choudhry Tariq Najeeb Corporation, Lahore.

Central Excise Act 1944 and Tariq Najeeb Choudhry Tariq Najeeb Corporation, Lahore.
Rules

Customs Act, 1969 __ Government of Pakistan.

Income Tax Law plus Practical Azim Academy,


Problems with Solution Prof. Dr. Khawaja Amjad Saeed 21-Urdu Bazar, Lahore.

Synopsis of Taxes in Pakistan Mirza Munawar Hussain Iqbal Brothers, Lahore.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

 explain how standards are set or revised in


STAGE-3 manufacturing or service industries,
COST AND MANAGEMENT  compute and interpret material, labour,
overhead and sales variances,
ACCOUNTING – PERFORMANCE  prepare reports showing direct materials
APPRAISAL (S-303) quantity and price variances and direct labour
efficiency and rate variances,
i. Introduction:  explain why a company prepares master
There are certain cost, revenue and profit centres, budget,
which need frequent performance measurement  describe the components of master budget,
for control purposes. This enables the  explain the inter-relationship between the
management to identify any deviation from the components of an operating budget and a
planned activities. This course is confined to such financial budget,
cost techniques that enable the management  explain the role of computerised financial
accountant, to identify the said deviations and planning models in the budgeting process,
report to the management for taking remedial  explain how the JIT philosophy has changed
action. manufacturing environment,
 describe the criterion for selecting a cost
ii. Objectives: driver, when preparing a flexible budget,
To provide the students with a detailed knowledge  calculate overhead budget, spending,
of Cost and Management Accounting, to enable efficiency and volume variances,
them to:  explain how flexible budget is used to control
 use the present and traditional approaches of manufacturing and non-manufacturing
cost accounting in different contexts, and activities,
 apply the cost and management accounting  describe the causes for changes in gross
techniques, and evaluate the desired results in profit,
the light of the outcomes.  compute sales volume variance, cost volume
variance and sales mix variances,
iii. Outcomes:  describe the need for uniform cost accounting,
On completion of this course, students should be  design and install costing system and cost
able to: reports of a manufacturing company,
 apply direct and absorption costing
 distinguish between the meaning of a joint approaches in job, batch and process cost
product and a by-product, systems, and
 describe the appropriateness of two  prepare ledger accounts according to context:
acceptable methods of accounting for by- direct or absorption-based in job, batch or
product in the determination of the cost of the process systems including all related
joint products, accounts.
 describe two acceptable methods of allocating
cost to joint products and the cost of initial
producing department,

INDICATIVE GRID:
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION – A
COST ACCOUNTING SYSTEMS AND TECHNIQUES
1. Marginal and Absorption Costing
2. Activity Based Costing 30%
3. Process Costing
4. Effect of JIT
5. Uniform Costing

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

SECTION – B
STANDARD COSTING AND VARIANCE ANALYSIS
6. Setting Standard Cost
7. Variance Analysis and Profit Reconciliation 30%
8. Interpretation of variances
SECTION - C
BUDGETING AND BUDGETARY CONTROL
9. Preparation of Budget 30%
10. Zero Based Budgeting and Activity Based Budgets
11. Budgetary Control
SECTION-D
PERFORMANCE MEASUREMENT AND TRANSFER PRICING
12. Divisional Performance Measurement 10%
13. Transfer Pricing
TOTAL 100%

Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

CONTENTS
6. Setting Standard Cost
SECTION-A Establishing cost standards, Direct material
COST ACCOUNTING SYSTEMS AND TECHNIQUES standards, direct labour standards, Overhead
standards, Basic cost standards, ideal standards
1. Marginal and Absorption Costing and currently attainable standards, Purposes of
Marginal costing and absorption costing, Effect of standard costing.
both systems on profit and inventory valuation,
Profit reconciliation. 7. Variance Analysis and Profit Reconciliation
Computation of cost and sales variances, Mix and
2. Activity Based Costing yield variances, Idle time variances, Recording
Emergence of ABC systems, Comparison of standard costs in the accounts, Reconcile standard
traditional and ABC systems, Designing ABC profit and actual profit using absorption and
system, ABC in service organisations, Pitfalls marginal costing systems, Accounting disposition
in using ABC information. of variances.
3. Process Costing 8. Interpretation of Variances
Adjustment of WIP at start: FIFO and average Interpretation of variances, interrelationship,
method, Normal, abnormal losses and significance, Planning and operational variances,
Criticism of standard costing.
abnormal gain, Adjustment of scrap value of
lost units, Addition of units, Joint and by-products, Accounting for spoilage, rework and scrap.
SECTION - C
4. Effect of JIT Production
BUDGETING AND BUDGETARY CONTROL
The benefits of just in time production, Total
quality management, Theory of constraints 9. Preparation of Budget
and throughput accounting, Throughput Theory of budgeting, Administration and
accounting (TA) ratio, Accounting entries for a stages in the budgeting process, Functional
JIT manufacturing system (Back flush). Budgets, Projected income statement and
balance sheet, Cash budget, The budgeting
5. Uniform Costing
process in non-profit organisations, Flexible
SECTION – B
and Fixed Budgets, Rolling budget.
STANDARD COSTING AND VARIANCE ANALYSIS

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

10. Zero Based Budgeting and Activity Based PERFORMANCE MEASUREMENT AND TRANSFER
Budgets PRICING
Incremental approaches of budgeting, Zero 12. Divisional Performance Measurement
based budgeting- merits and pitfalls, Activity Cost centre, revenue centre, profit centre and
based budgeting approach. investment centre, Methods of measuring
11. Budgetary Control divisional performance, Return on capital
Feedback and feed-forward controls, Budget employed, Residual income, Divisional
variances and their causes, Responsibility performance reporting.
centres and budgeting, Behavioural 13. Transfer Pricing
implications of budgeting and budgetary Transfer pricing methods, Pricing at cost, Standard
control. cost plus mark-up, Market prices, Dual pricing,
Negotiated prices, Capacity constrained, Goal
SECTION - D congruence.

CORE READINGS

TITLE AUTHOR PUBLISHER

Cost & Managerial Accounting Jack Gray & Don McGraw-Hill Company Inc.,
Ricketts Princeton Road,
S-1 Hightslown,
NJ08520, New York.
Managerial Accounting Ray H. Garrison & Eric South Western Publishing Co.
W. Noreen USA
Management and Cost Accounting Colin Drury Thomson Learning,
High Holborn Ouse,
50-51 Bedford Row, London
Management Accounting Performance PBP Professional Business Publications,
Evaluation Lahore.

ADDITIONAL READING

Cost Accounting Charles T. Horngren / Prentice Hall of India (Pvt) Ltd.,


A Managerial Emphasis George Foster & Srikant M. New Delhi 110001,
Datar India.
Cost Accounting Adolph Matz / Milton F. South Western Publishing Co.,
Usry Cincinnati, Ohio,
U.S.A.
.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

describe the role of effective communication in


STAGE-3 business,
PRESENTATION AND COMMUNICATION describe the characteristics, process and
SKILLS (S-304) importance of communication in business;
identify the steps in the communication
i. Introduction: process,
This course is designed to give more emphasis describe communication barriers and how to
on improving and developing the presentation overcome them,
and communication skills of the students. They
are expected to develop and improve their verbal identify some of the common sources of
and non-verbal communication capabilities. misunderstanding that occur in written and
oral intercultural communication,
ii. Objectives: explain the importance of speaking and
To provide the students with theoretical and listening effectively, when communicating
practical knowledge of verbal and non-verbal face-to-face with people from other cultures,
presentation and communication skills, enabling
them to: describe the communication role of electronic
learn and understand theoretical and practical mail and Internet technologies in designing
approaches of managerial communication, business messages,
learn and understand the concepts identify and demonstrate the methods and
methodologies, and techniques for an effective procedures for writing letters, memos and
presentation, while developing and refining other brief messages,
their own abilities. describe the various steps involved in the
process of report writing,
iii. Outcomes: describe the steps involved in presentation
On completion of this course, students should be skills.
able to: Compose their CV’s
apply the concepts to real business scenario
Perform well in the interviews
and sharpen their business communication
Play significant role in meetings
and problem-solving skills,

INDICATIVE GRID
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION – A 20%
1. Business Communication
SECTION – B 50%
2. Business Letters
3. Business Reports
SECTION – C 30%
4. Presentation Skills
TOTAL 100%

Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

CONTENTS 3. Business Report


Meaning and classification of business reports,
SECTION – A
preparation before writing reports, main parts of
1. Business Communication the report, organisation and outline of report body,
Effective communication in business; its definition, visual aids, short reports, suggestions for short
characteristics, process, forms, channels and reports, informational memorandum reports,
importance, different kinds of communication; its analytical memorandum reports with graphs,
features, elements, concepts; verbal and non- informational and analytical letter reports, formal
verbal communication; process of preparing reports, working plans, prefatory parts,
effective business messages; planning steps; basic documentation and other notes, supplementary
organisational plans; beginnings and endings; parts, presentation of the formal reports.
composition of the message; effective
communication principles; styles of SECTION – C
communication; 7C’s of communication, gestures;
manners; presentations and follow-up or
4. Presentation Skills
Common myths about presentational ability;
feedback. Interviewing skills, listening skills,
difference between speech and presentation;
organising and conducting meetings, business
categories presentations according to their
group discussions, communication within and
purpose; analysis of the audience before making a
outside the organization, structure of the
presentation; evaluating the appropriateness of the
organization, open communication climate,
setting and venue of presentation; the steps in
communication barriers, interpersonal
planning a presentation; some common symptoms
communication, intercultural communication,
of stage fright and measures to overcome it;
ethical communication, legal aspects of
developing an introduction, a body and a close for
communication, the role of technology in
a formal presentation; some do’s and don’ts of
communication.
verbal and non-verbal communication; selecting,
designing and using appropriate visual aids;
SECTION – B
handling audience questions effectively; delivering
2. Business Letters a short formal presentation on an assigned topic,
Types of business letters; writing styles; informal interviews, meetings.
(friendly) letters; business or formal letters; writing
a note/ memo/circulars, direct request inquiries Note: The class room activities should be
claims and requests for adjustments; requests designed to give students the maximum chance to
regarding routine business or public causes; get proficiency in communication and presentation
invitations; preparing proposals/feasibilities, skills. They should be encouraged to take part in
documentation, orders; reservations; favourable group discussions, mock interviews, holding
replies; unsolicited favourable messages; request; meetings and other class room presentations.
sales letters; evaluating, achievements; market They should be taught to make effective and
research; making preliminary career decisions; accurate use of audio and visual aids. They
resume and job application letter. should learn the use of non verbal cues in an
effective way.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

CORE READINGS

TITLE AUTHOR PUBLISHER

Excellence in Business Communication Join V Thill Courtland L Bove’s Prentice-Hall International Inc.
Upper Saddle River, New
Jersey
Model Business Letters L. Gartside Financial Times Prentice Hall
Pearson Professional
Education
ADDITIONAL READINGS
Communication for Business (A Practical Approach) Shirley Taylor Pitman Publishing
128 Long Acre,
London WC2E 9AN
Effective Business Communication Herta A. Murphy / Herbert W. McGraw-Hill Company Inc.
Hildebranot & Jane P. Thomas Princeton Road, S-I
Hightslown,
NJ08520, New York.
i-Business Communication and Report Writing Mr. K. M. Siddiqi Al-Hamd Academy, Karachi
ii-Presentation Skills
iii-Functional English

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

STAGE-4 
prepare, analyse, interpret financial statements
of entities under specific situations.
ADVANCED FINANCIAL ACCOUNTING
iii. Outcomes:
AND ANALYSIS (S-401)
On completion of this course, students should be
able to:
i. Introduction:
prepare accounts and financial statements in
This course is designed to concentrate on
connection with amalgamation, absorption,
preparation of financial statements, evaluation and
liquidation, reconstruction, banks and financial
interpretation of financial analysis under different
institutions,
business situations. This will help management
evaluate financial statements of an entity and
take appropriate decision on the basis of financial
provide analysis and comments on its
comments and recommendations of management
performance,
accountant.
discuss the treatment of taxation as per IAS-12,
explain and demonstrate the accounting
ii. Objectives:
treatment of investments and long-term
To provide the students with a thorough knowledge
liabilities,
of advanced aspects of financial accounting to
preparation of accounts and financial statements
enable them to:
of construction companies, and
select and apply appropriate accounting
discuss various issues of business ethics.
techniques and procedures to specific
circumstances, and

INDICATIVE GRID:
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION - A
1. Group / Consolidated Financial Statements (Balance Sheet & Income Statement) in
accordance with relevant IFRs / IASs.
[simple groups including subsidiaries & associates]
2. Cash Flow Statement of a Single Company (consolidated cash flow statement is not required)
3. Corporate Financial Analysis (including IAS 33) 50%
4. Amalgamation, Absorption and Reconstruction
5. Final Statement of Liquidator
SECTION - B
6. Accounting for Leases ( IAS – 17 )
7. Accounting for Taxation IAS – 12 (for a single company)
8. Accounting for Construction Contracts ( IAS – 11 ) 50%
9. Accounting of Insurance Company, Banks & Financial Institutions
10. Accounting treatment of Financial Instruments (Basic understanding of relevant IFRs / IASs)
11. The measurement of Income & Capital (IAS – 18, 29 )
12. Ethical requirements from an Accountant
TOTAL 100%

Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

CONTENTS accordance with relevant IFRs / IASs. [simple


groups including subsidiaries & associates
SECTION-A
Definition of holding, subsidiary and associated
1. Group / Consolidated Financial Statements undertaking; preparation of company accounts and
(Balance Sheet & Income Statement) in consolidated financial statements as per IAS-27.
SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

2. Cash Flow Statement of a Single Company 7. Accounting for Taxation IAS – 12 (for a single
(consolidated cash flow statement is not company)
required) Treatment of current taxation and deferred
Preparation of the cash flow statement, including taxation; entries related to corporate tax in
relevant notes for an individual company, in accounting records as per IAS-12.
accordance with IAS 7.
8. Accounting for Construction Contracts (IAS–11)
3. Corporate Financial Analysis (including IAS 33) Preparation of contract account (profit and loss
Ratio analysis techniques, segment analysis, account and balance sheet) as per IAS-11.
common size analysis and reporting the result;
limitations of ratio analysis; analysis of 9. Accounting of Insurance Company, Banks &
financial statements and comments on the Financial Institutions
performance and position of an entity as per Legal provisions and prudential regulations;
IAS –33; principles of substance in preparation of accounts and financial statements of
Insurance Companies, banks and financial
measurement of income & capital in
Institutions.
accordance with IAS – 1.
10. Accounting Treatment of Financial Instruments
4. Amalgamation, Absorption, Liquidation and
(Basic understanding of relevant IFRs / IASs)
Short-term and long-term investments; investments
Reconstruction
Amalgamation by forming a new company; in shares; bonds and funds; convertible bonds and
amalgamation by absorption; amalgamation by debentures; debentures; debentures conversion
forming a holding company; reconstruction of into shares; redeemable capital Term Finance
companies. Legal aspects of mergers and Certificates (TFCs); (IAS 21, 28, & IFRS 7)
acquisitions.
11. The Measurement of Income & Capital (IAS–18,
5. Final Statement of Liquidator 29)
Statement of affairs and deficiency or surplus
account; liquidator’s final statement of account. 12. Ethical Requirements from an Accountant
The nature of ethics: difference between
SECTION-B philosophical and professional approach, concepts
6. Accounting for Leases (IAS– 17) of integrity, obligation, independence, public
Definition of leases and their importance, expectations, ethics and the professional: social
difference between operating and financial leases; responsibility, ethics and the law; consequences of
accounting for operating and finance leases; unethical behaviour to the individual, the
definition, reporting requirements of finance lease profession and society at large; ethics in business.
in terms of IAS 17 and relevant IFRS.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

CORE READINGS

TITLE AUTHOR PUBLISHER


Intermediate Accounting Donald E. Kieso / Jerry J. John Willey & Sons. Inc., England.
Weygandt & Terry D.
Warfield
Modern Advanced Accounting E. John Larsen McGraw-Hill Company Inc., New York.
Financial Analysis PBP Professional Business Publications,
Lahore.
An Introduction to Accountancy S.N. Maheshwari / S. K. Vikas Publishing House, Pvt. Ltd., 576,
Maheshwari Masjid Road, Jangpura,
New Delhi.
Companies Ordinance 1984 Govt. of Pakistan. P.L.D. Publishers Lahore.
International Financial Reporting Standards International Accounting International Accounting Standards,
/ IASs Standards Board Board, 30 Cannon Street, London,
EC4M 6XH United Kingdom.
Advanced Accountancy R. L. Gupta Sultan Chand & Sons Publishers, 23,
Daryaganj, New Delhi.
ADDITIONAL READINGS
Reading in Financial Analysis Qaisar Mufti Royal Book Co., Karachi.
Advanced Accountancy S.P. Jain / K. L. Narang Kalyani Publishing, New Delhi, udhiana.
Advanced Accounting Harry Simons / Wilbert E. South Western, Publishing Company N.
Karrenbrock Y.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

STAGE-4  Explain process of strategy formulation and


establish relationship between strategy and
INTEGRATED MANAGEMENT (S-402) organisational structure, and find out the
importance and role of organisational cultures,
i. Introduction: and ways to improving effectiveness of an
This course comprising strategic management, organisation,
project management and management of  determine resource-based views of the firm and
relationships, is designed to give the students new implications for strategy development,
approaches of management sciences, in order to  determine and apply suitable structures and
face emerging global organisational and frameworks to projects, and identify common
technological challenges. management issues,
 produce a basic project plan, recognise the effects
ii. Objectives: of uncertainty, and recommend strategies for
This course enables the students to learn: dealing with the uncertainty,
 the process of strategy formulation and  recommend most suitable project control systems,
implementation,  explain the concepts of power, bureaucracy,
 key project management skills, and authority, responsibility, leadership and
 managing internal and external business delegation,
relationships.  analyse the relationship between managers and
their subordinates, and
iii. Outcomes:  demonstrate personal time-management skills,
On completion of this course, students should be develop methodologies for managing individuals
able to: and teams, and for managing group conflict.

INDICATIVE GRID
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION-A 40%
Strategic Management
SECTION-B 30%
Project Management
SECTION-C 30%
The Management of Relationships
TOTAL 100%

Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

CONTENTS goodness of fitness test, performance test, competitive


edge Test.
SECTION-A
Strategic Management SECTION-B
Strategic Management; evolution & definition, Process,
content, functions, Direction Setting; developing
Project Management
Project vs Organization, Uniqueness of a project,
strategic vision, setting objective and crafting Strategy,
Project Lifecycle; project identification, project
Strategic Planning; strategic objective, strategy,
development, project proposal, project implementation,
allocation of resources, strategic planning vs general
project evaluation. Team Building; Group vs Team,
planning, Strategy Implementation; external and
Data Gathering, Data Analysis, Action Plan, Action
internal environment, business ethics and social
Implementation, Evaluation. Stages of Team
responsibilities, organizational culture, industrial
analysis, company’s evaluation, Winning Strategy; Development. Microsoft Project 98: basic
understanding of drawing network diagrams, creating

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

activities, linking activities, creating summary tasks, Management Roles, Power and Authority,
finding the critical path, assigning resources to Organizational Structure and Design, Organizational
activities, changing the calendar and working hours and Politics, Organizational Culture, Leadership, Teamwork,
printing of network diagrams. External Relations; Networking, Going with
Stakeholders, Managing External Environment.
SECTION-C
Management Relationship
Definition of Management, Levels of Management,
Internal Relations; Management Functions,

CORE READINGS

TITLE AUTHOR PUBLISHER

Strategic Management Leslie W. Rue McGraw-Hill,


Phyllis G. Holland New York.

Fred Luthans McGraw-Hill, Irwin,


Organisational Behaviour New York.

Greory Moorhead Houghton Mifflin Company, USA


Organisational Behaviour Ricky W.Griffin
Professional Business Publications,
PBP Lahore.
Integrated Management
Project Management Institute.

PMBOK (Project Management Body of Project Management Microsoft Inc. USA.


Knowledge) 1998 edition Institute

Microsoft Project 98 (Software) Microsoft

ADDITIONAL READING

Management James A.F. Stoner, Prentice-Hall of India, New Delhi.


A. Edward Freeman and
Daniel A. Gilbert, Jr.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN


explain procedures and regulations regarding
STAGE-4 transfer of shares,
CORPORATE LAWS AND 
explain procedures for conversion of limited
company into unlimited company and vice versa,
SECRETARIAL PRACTICES (S-403) 
describe procedures for registration of mortgage
and charges,
i. Introduction: 
describe management, administration, registered
This course deals with the theoretical and practical office, publication of name of the company etc.
approach to the Companies Ordinance 1984, the 
explain procedure for commencement of
Securities and Exchange Commission of Pakistan business by a public company,
Act 1997, Securities and Exchange Commission of 
describe procedure of holding statutory meeting
Pakistan Regulations 2000 and secretarial and AGM of company and related matters,
practices. 
discuss procedure for appointment and removal
of directors,
ii. Objectives: 
discuss procedures for appointment of first and
To provide the students with a thorough knowledge subsequent chief executive,
of Corporate Laws and Secretarial Practices to 
describe miscellaneous provisions regarding
enable them to: investments, contracts, officers shareholding,
advise and assist the management for taking trading and interests,
appropriate and prompt decision, and 
discuss procedures for declaration of dividend,
carry out secretarial work more effectively. issuance of dividend warrants and payment of
dividends,
iii. Outcomes: 
describe provisions regarding issue of bonus
On completion of this course, students should be and rights shares,
able to: 
describe procedure for books of accounts and
describe obligation to register certain financial reports,
associations and partnerships all as companies, 
describe procedures for winding up of
differentiate between public, private and single- companies,
member companies, 
describe the qualifications, functions and legal
describe procedures relating to incorporation of obligations of a company secretary,
companies and other matters incidental thereto, 
explain various matters relating to the Securities
describe general procedures relating to and Exchange Commission of Pakistan Act
registration and alteration, of articles and 1997, and the Securities and Exchange
memorandum of association, Commission of Pakistan Regulations 2000,
describe provision relating to conversion of 
explain jurisdiction and procedures of the court,
public company into private company and vice 
describe procedures and application of company
versa and other matters, (court) rules 1997, and
describe provisions relating to allotment, issue 
explain powers and functions of the commission.
and transfer of shares, debentures and deposits 
explain the rules relating to non-banking finance
etc. companies.
describe regulations regarding issuance of
shares certificates and debentures,

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

INDICATIVE GRID:
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION-A
Corporate Laws: 50%
1. The Companies Ordinance 1984
SECTION-B
2. The Securities and Exchange Commission of Pakistan Act, 1997, and the Securities and 15%
Exchange Commission of Pakistan Regulations 2000
3. Non-Banking Finance Companies (Establishment & Regulation) Rules 10%
SECTION-C
4. Secretarial Practices 25%
TOTAL 100%

Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

CONTENTS Incorporation of company, memorandum and


articles of association, prospectus, officers of the
SECTION-A
company; directors, chief executive, secretary and
CORPORATE LAWS auditors. Offer of shares, underwriting, brokerage,
1. The Companies Ordinance 1984 discount and premium on shares, listing with stock
The Companies Ordinance 1984 with latest exchanges, listing rules of stock exchanges,
amendments. applications and allotment of shares, issuance of
shares, letters of regret, share certificates, transfer
SECTION-B and transmission of shares, flotation of corporate
securities, issuance and redemption of debentures.
2. The Securities and Exchange Commission of Types of meetings, company and directors
Pakistan Act 1997, and the Securities and meetings, annual general meeting, notice of
Exchange Commission of Pakistan Regulation meetings, agenda of meetings, minutes of the
2000 meetings, quorum of meetings, voting, proxies,
The Securities and Exchange Ordinance 1969, as resolutions, declaration of dividend, dividend
amended up-to-date with the Securities and warrants, bonus and rights issue, filing of returns
Exchange Rules 1971. The Securities and with SECP and other agencies, maintenance of
Exchange Commission of Pakistan Act 1997 with statutory books, register of shareholders,
latest amendments, Securities and Exchange registration of mortgages and charges, books of
Commission of Pakistan Regulations 2000. Single- accounts and financial reports, service of
Member Companies Rules 2003. documents, receiving of deposits by company,
Central Depositary Company and its regulations
3. Non-Banking Finance Companies (Stock Exchange Regulations and CDC Act-1997);
(Establishment & Regulation) Rules 2003 Secretarial organisation and management;
(Introduction only) appointment of secretary, qualifications of
SECTION-C secretary; functions and legal obligations of
secretary. Working procedure of Securities and
4. Secretarial Practices Exchange Commission of Pakistan (SECP), audit
and investigation.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

CORE READINGS

TITLE AUTHOR PUBLISHER


Company Law & Secretarial Practice Prof. Dr. Khawaja Amjad Saeed Institute of Business Management, G.P.O.
in Pakistan Box No. 1164,
Lahore.
Practical Approach to Companies Nazir Ahmed Shaheen Federal Law House,
Ordinance 1984 H/136 Muree Road, Committee Chowk,
Rawalpindi.
Company Secretarial Practice Q. A. Wadud Royal Book Company,
232, Saddar Cooperative Market, Abdullah
Haroon Road,
P.O. Box No. 7737,
Karachi-74400.

Secretarial Practice D. P. Jain Konark Publishers Pvt. Ltd.


Bare Acts ____ Govt. of Pakistan Publishers, Karachi
ADDITIONAL READING
Manual of Corporate Governance SECP SECP, Islamabad.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

iii. Outcomes:
STAGE-5 On completion of this course, students should
be able to:
FINANCIAL REPORTING (S-501)  identify categories of users of financial reports
and describe the importance of financial
i. Introduction: reporting,
This course is designed to focus on preparing,  evaluate the uses of international regulatory
analysing financial statements and developing framework, including international standards of
reports thereon, for management decisions. The accounting and auditing and comparative
students are expected to use knowledge and accounting systems and analysis in financial
understanding of more advanced financial reporting,
accounting, for preparing and interpreting financial  prepare group financial statements, in
statements in context of practice. accordance with the requirements of the
Companies Ordinance 1984, International
ii. Objectives: Accounting Standards and IFAC Guidelines,
To provide the students with an in-depth  analyse, interpret and report on financial
knowledge of financial reporting enabling them to: statements (including cash flow statements)
 analyse and interpret financial statements and and related information to different groups of
prepare financial reports, and users, and
 submit recommendations to the management  demonstrate the financial reporting skills in
for taking decision. case studies.

INDICATIVE GRID:
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION-A
1 General
2 Categories of Users 50%
3 International Regulations (IAS and IFRS)

SECTION-B
4 Corporate Financial Reporting
5 Corporate Governance 30%
6 Interpretation and Value Measurement

SECTION –C
7. Case Studies & Practical Assignments 20%

TOTAL 100%

Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

CONTENTS 2. Categories of Users


External users (investors, stock exchanges,
SECTION-A
Securities and Exchange Commission of Pakistan
1. General (SECP) and other government agencies, financial
Importance of financial reporting; accounting, institutions, banks, financial analysts). Internal users
strategic financial management, MIS/IT; marketing, (directors, managers, employees and union).
industrial and commercial laws.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

3. International Regulations (IAS and IFRS) SECTION-C


The international regulatory framework including
international standards of accounting and auditing, 7. Case Studies & Practical Assignments
comparative accounting systems and analysis. Students will be expected to demonstrate, that they
IASs: IAS 7, 12, 14, 17, 19, 20, 21, 23, 24, 27, 28, can integrate the knowledge and skill of their
31, 34, 36, 37, 38, 39, 40, 41. studies of the subjects of financial accounting and
IFRs: 1, 2, 3, 4, 5, 6, 7. financial reporting and their practical training,
candidates’ professional capabilities will be tested
SECTION-B with reference to: their ability to identify key issues,
4. Corporate Financial Reporting their judgment in prioritising issues and
Preparation of Consolidated Financial Statements recommending practical solutions, their
(complex group structure as well) including communication skills, including their proper use of
Consolidated Cash Flow Statement. English, in presenting solutions in structured and
logical format. The emphasis at this stage, will be
5. Corporate Governance on the presentation, interpretation and meaningful
Various requirements under Code of Corporate use of data.
Governance.
Each student will be required to prepare at least
6. Interpretation and Value Measurement two annual reports of selected listed companies
Advanced aspects of preparation and interpretation from given data, and submit the same to the
of accounts and related reports, calculation of concerned faculty member for evaluation.
stock market ratios and measurement of business
valuation.

CORE READINGS

TITLE AUTHOR PUBLISHER


International Financial Reporting ___ International Accounting Standards Board,
Standards (IFRSs/IASs) 166 Fleet Street,
EC4A 2DY, London.
Modern Advanced Accounting E. John Larsen Mc-Graw-Hill Companies Inc.,
Princeton Road,
S-1 Hightslown,
NJ08520, New York.
Disclosure Requirements and Revised) Govt. of Pakistan
Fourth & Fifth Schedules of
Companies Ordinance, 1984
Companies Ordinance 1984 and Article
of Association Govt. of Pakistan
Relevant Sections of Income Tax
Ordinance, 2001 Govt. of Pakistan
Relevant Sections of Banking
Companies Ordinance, 1962 Govt. of Pakistan
Prospectuses for Allotment of Shares
& Securities of Companies
Annual Reports of the listed companies
Periodic Reports of Companies

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

STAGE-5  develop information for managerial planning


and decision-making by using various
MANAGEMENT ACCOUNTING- techniques, such as cost volume-profit
analysis, sales volume analysis, gross profit
DECISION MAKING (S-502)
analysis, marginal costing, sales mix, key
limiting factors, make or buy decision,
i. Introduction:
differential cost and comparative cost analysis,
This course is designed to focus on the
opportunity cost and relevant cost, joint cost of
identification and application of management
product mix,
accounting techniques for decision-making in a
 undertake sensitivity analysis and evaluate the
specific area.
impact of risk in decision models using
strategic management, cost benefits and
ii. Objectives:
behavioural consideration, planning and
To provide the students with an in-depth
control for product life cycles, probabilities,
knowledge of management accounting, to enable
probabilistic and expected value tables,
them to:
 use effectively the linear programming
 apply management accounting techniques for
technique for determination of the best use of
analysing the information, and presenting it to
available resources for profit maximising and
management for decision-making and control
revenue maximising,
purposes, and
 develop cost management information to
 formulate strategic plans for achieving
facilitate the principal management function
efficiency and effectiveness in the operation of
and strategic management,
business.
 generate information on the basis of pricing
techniques, and
iii. Outcomes:
 compile information by applying the capital
On completion of this course, students should be
budgeting techniques for use of management.
able to:
INDICATIVE GRID:
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION - A
COST ANALYSIS
1. Cost Behaviour 15%
2. Cost Volume Profit Analysis
SECTION - B
SHORT TERM DECISION MAKING
3. Decision Making - Introduction 35%
4. Limiting Factors
5. Pricing Decision
6. Uncertainty and Use of Probabilities
SECTION - C
LONG TERM DECISION MAKING
7. Discounted Cash Flow Techniques 35%
8. Capital Investment Decisions
9. Sensitivity Analysis
SECTION - D
STRATEGIC ADVANTAGE THROUGH COSTING 15%
10. Cost Reduction Techniques
TOTAL 100%
Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

CONTENTS Pricing strategies for new products: skimming and


penetration pricing.
SECTION-A
6. Uncertainty and Use of Probabilities
COST ANALYSIS Risk and uncertainty, Use of probabilities and
expected values in decision making, Decision tree,
1. Cost behaviour The value of perfect information.
Fixed, variable, semi variable and step fixed cost,
Linear, curvilinear and step functions, Relevant SECTION - C
range, Factors influencing cost behaviour. Methods
LONG TERM DECISION MAKING
of segregation of cost into fixed and variable, High
low method, scatter graph method, regression 7. Discounted Cash Flow Techniques
analysis and correlation, Learning curve and cost Simple and compound interest, Net present value,
function. Internal rate of return, Annuities and perpetuities,
Future value.
2. Cost Volume Profit Analysis
Break-even analysis, Break-even graph and profit 8. Capital Investment Decisions
graph, Multi-product CVP analysis, Operational Initiation of project, Request for proposals bidding
leverage, The economist's and accountant's CVP and tender documents, Non-financial consideration
model, Assumptions of CVP analysis, Effect of (quantitative vs. qualitative) methods, Return on
changes in cost and revenue. capital employed, Payback period,, Identifying
relevant cash flows, Comparison between IRR and
SECTION - B NPV, NPV payback period, NPV index, Capital
rationing, Effect of tax and inflation on investment
decisions, Lease or buy decisions, Projects with
SHORT TERM DECISION MAKING
3. Decision Making - Introduction unequal lives.
The decision process, Definition of objectives,
Consideration, evaluation and selection of 9. Risk and Sensitivity Analysis
alternatives, Relevant cost and revenue, Business risk and financial risk, Risk adjusted
Differential cost, Opportunity cost, Sunk cost, Make discount rate, Use of probabilities and expected
or buy decision or outsourcing, Sale or process value in calculating cash flows, Sensitivity analysis
further, Replacement of equipment, Adding / in long term decision making and the use, of
deleting a product, Discontinuation of operation. computer software for 'what if' analysis, Simulation
Analysis in project selection
4. Linear Programming
Decisions with limiting factors, Graphical linear SECTION - D
programming, Linear programming for minimising
STRATEGIC ADVANTAGE THROUGH COSTING
of cost, Linear programming for maximising of
contribution margin, Shadow pricing concept. 10. Cost Reduction Techniques
Value analysis, Total quality management and zero
5. Pricing Decisions defect programmes, Target costing, Continuous
Economic theory of pricing, Optimal sales price improvement and cost of quality reporting,
using differential calculus, Difficulties with applying Learning curve and labour cost reduction over
economic theory, Cost based or cost plus pricing, time, Theory of constraints and bottle-neck
Pricing policies, Pricing for target rate of return, analysis, Value chain analysis and supply chain
management,

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

CORE READINGS

TITLE AUTHOR PUBLISHER

Managerial Accounting Ray H. Garrison & Eric W. Noreen South Western Publishing Co.
USA

Managerial Accounting T. Lucy DP Publications Ltd.


Aldine place, 142-144, Uxbridge
Road, Shepherds, Bush Green,
London W12 8AW.

Management Accounting PBP Professional Business Publications,


Decision-Making Lahore.

Introduction to Management Charls T. Horngren, Gary L. Prentice-Hall of India Pvt. Ltd.,


Accounting Sundem & William O. Stratton New Delhi-110001.

Handbook of Management Accounting Roger Cowe Gower Publishing Co. Ltd.,


Aldershot, England.

ADDITIONAL READINGS

Managerial Accounting Lane K. Anderson, Harold South Western Publishing Co.


M. Sollenberger

Cost Accounting-A Managerial Charles T. Horngren, George Foster Prentice-Hall of India Pvt. Ltd.,
Emphasis & Srikant M. Datar New Delhi-110001.

Managerial Accounting Ronald W. Hilton Mc-Graw-Hill Companies Inc.


Princeton Road,
S-1 Hightslown,
NJ08520, New York.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

STAGE-5 
determine role and importance of internal
control,
RISK MANAGEMENT AND AUDIT S-503 
define objectives and scope of audit and
describe the conceptual approach of auditing
i. Introduction:
and evaluate and manage these risks,
This course comprises conventional audit, cost

determine legal and ethical considerations of
audit, and is designed to focus on risks involved in
audit profession and carry out job keeping in
operations and production areas, and to provide
view of their professional responsibility,
safety to business from such risks.

draw up audit planning and determine quantum
ii. Objectives: of audit work to be carried out in view of
To provide the students an in-depth knowledge of significant business risks,
risk management, financial audit and cost audit to 
determine status of internal control and internal
enable them to: audit for deciding quantum by audit work to be
 conduct audit effectively, and conducted,
 identify and advise management to take 
apply audit techniques and procedures,
appropriate remedial actions in those areas 
describe documentation and evidence of audit
where major risks are involved. work,
iii. Outcomes: 
prepare an audit report, keeping in view types of
On completion of this course, students should be qualifications,
able to: 
describe nature, objectives, functions, scope,
identify, evaluate and manage different types of planning and procedures of cost audit,
risks, 
describe Cost Accounting Records Rules, and

explain audit of material, labour and overhead
costs.
INDICATIVE GRID:
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION-A
1. RISK MANAGEMENT
1.1 Risk Management Control and Evaluation
1.2 Management of Financial Risks
1.3 Case Study – Risk Management System of a Limited Company/Corporation
2. AUDITING
2.1 Nature and Principles of Auditing
2.2 Legal, Professional and Ethical Considerations
2.3 Audit Planning and Evaluation 75 %
2.4 Quality controls
2.5 Internal Control and Internal Audit
2.6 Audit Techniques and Procedures
2.7 Documentation and Evidence of Audit Work
2.8 Completion Stage of an Audit
2.9 Reporting Function
2.10 Role of Corporate Governance in Mitigation of Risks
2.11 Case Study-Risk Management System of a Listed Company
SECTION-B
3. COST AUDIT
3.1 Nature, Objects, Functions and Scope of Cost Audit
3.2 Planning the Cost Audit 25 %
3.3 Provision of Cost Accounting Records Rules
3.4 Material Cost
3.5 Labour Cost

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

3.6 Overheads
3.7 Sales, Royalty, Inter-Company Transactions
TOTAL 100%
Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

CONTENTS auditor under Section 177 of the Income Tax


Ordinance 2001; investigations and appointment of
SECTION-A
inspectors under the Companies Ordinance, 1984.
1. RISK MANAGEMENT International Auditing Standards and Guidelines;
1.1 Risk Management Control and Evaluation pronouncement and technical release, issued by
Meaning, nature and types of risks; identification of professional institutes of Pakistan; knowledge on
risks of an organisation; methods of measuring, ICMAP Act; Regulation and Code of Ethics;
assessing and controlling risks; evaluation of risk Professional Code of Ethics and Behaviour issued
management strategies; assessing and managing by International Federation of Accountants (IFAC)
risks; evaluation of cost and benefits of audit; Rules of professional conduct; professional
minimising the risks of fraud and application of responsibility and liability of auditor with regard to
appropriate audit techniques; minimising political fraud and error; misconduct; negligence;
risks; principles of diversification of risks; issues expectation gap; insider dealing. Responsibility of
related to management’s risk policy; involvement of management, responsibility of auditors, reporting
financial audit, cost audit, internal audit to identify non compliance. Regulation of audit and
and eliminate various types of risks. Risk developments in auditing theories and their
assessment procedures and success of implications for the profession.
information about the entity and its environment, 2.3 Audit Planning and Evaluation
revision of risk assessment. Review of client’s business, its significant business
1.2 Management of Financial Risks risk; accounting; legal, ethical and practical
Identification and evaluation of financial risks and requirements; systems and procedures; preceding
appropriate methods for controlling them; year’s financial statements; client’s general
evaluating the effects of alternative methods by information; determining the audit risks and level of
risk management, and make recommendations; materiality; audit planning; overall audit plan,
impact of differential inflation rates, exchange identifying critical or significant audit areas; effect
rates, currency risk management. of transactions with related party on the financial
statements; detailed audit programmes;
1.3 Case Study – Risk Management System of a preparations and issue of engagement letters, in
Limited Company/Corporation cases of new and recurring customers; change in
engagement; multi-location and special purpose
2. AUDITING engagements and for providing other services;
2.1. Nature and Principles of Auditing allocation and supervision of work; responsibilities;
Nature, definition, objectives and scope of an audit; monitoring of time; progress and costs. Auditor’s
types of audit; relationship between internal and liability to third parties, environmental audit, social
external audit; general principles governing audit; audit, audit of small entities.
concept of true and fair view; reasonable 2.4 Quality controls
assurance; materiality; audit risk; going-concern Leadership responsibilities for quality of audits,
and responsibility for financial statements. assignment of engagement teams, engagement
2.2 Legal, Professional and Ethical Considerations performance, engagement quality control reviews.
Appointment, remuneration, resignation, removal, 2.5 Internal Control and Internal Audit
powers, duties, liabilities, qualifications, Definition; objectives; types; principles and
disqualifications etc. of auditors under the techniques of internal control and internal audit;
Companies Ordinance, 1984. Appointment of limitations and effectiveness of internal control;

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

evaluation of accounting and internal control purpose reports and reports on forecast and
systems; assessment of inherent; control and estimates; forensic assignments; related parties
detection risk and factors affecting thereto; use of (completion and review engagements); report on
internal control questionnaire; role of audit prospectus and relating to bonus-issues and due
committee towards internal control and audit; diligence engagements.
impact of internal audit work; reliance on internal
2.10 Role of Corporate Governance in Mitigation of
audit by external auditor; internal control in
Risks
Computer Information System environment;
Role of corporate governance in mitigation of risks;
issuance of management letter. Control
financial risks and their mitigation; interest rate risk;
environment, entity’s risk assessment process,
liquidity risk; credit risk; sovereign risk.
control activities, monitoring of controls, controls
relevant to audit, depth of understanding of internal 2.11 Case Study - Risk Management System of a
controls. Listed Company
2.6 Audit Techniques and Procedures
SECTION-B
Techniques of audit testing; third party
confirmation, management representations; 3. Cost Audit
sampling techniques; compliance technique; 3.1 Nature, objectives, functions and scope of cost
substantive testing; analytical review; use of audit, cost audit as required under Section 258 of
Computer Assisted Audit Techniques; reliance on the Companies Ordinance 1984, rights, duties,
other auditors and experts; use of test of controls responsibilities and status of cost auditor,
and substantive procedures for identifying risks of requirement of cost audit report rules. Cost
material mis-statements in existence; ownership Accounts Rules and Cost Audit Report Rules 1995,
obligation; occurrence; completeness; valuation; authentication of cost statements, penalty, cost
measurement; presentation and disclosure of audit report, particulars to be included in cost
assets and liabilities; appropriateness of auditor’s report to the directors of the company,
accounting policies and their consistent auditor’s observations and conclusions of report,
application. reconciliation with financial account, cost
statement, miscellaneous.
2.7 Documentation and Evidence of Audit Work
Documentation of work done, evidence of review, 3.2 Planning the cost audit familiarity with the
conclusions drawn and action taken, types of production process, systems and procedure of
working- papers, recording of significant points; different industries, preparation of the audit
objectives, existence, ownership, valuation, programme, obligation for maintenance of cost
completeness (cut-off), nature and sources, accounting records under Section 230(I) (e) of the
sufficiency, relevance, reliability. Companies Ordinance 1984. Provision of cost
accounting records rules issued by the Securities &
2.8 Completion Stage of an Audit Exchange Commission of Pakistan, under Section
Post-balance sheets events, contingent liabilities
230 (I) (e) of the Companies Ordinance 1984, from
and commitments, completion procedures, review
time to time.
of audit work, review of the company’s report and
accounts. 3.3 Provision of cost accounting records rules issued
under Section 230 (1) (e) of the Companies
Ordinance 1984 up-to-date.
2.9 Reporting Function
Audit reports; their meaning, types and
qualifications; management letter (including 3.4 Material cost: receipts, issues, transfers, returned,
communication with audit committee) subsequent valuation of receipt, modes of valuation of stores
discovery of facts existing at the date of auditor’s issues, consumption manufacturing / processing
report; date and place of auditor’s report and losses, stores and spares: own-manufactured
signing thereon; other information in report components and containers, major components,
containing audited financial statements; report on fabrication of different components, sub-
un-audited financial statements; group audit; joint assemblies, by-products, waste, defective work,
audits; partnership and sole-traders; special spoilage, scrap and losses, methods of valuing and

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

costing by-products, spoilage/scraps, work-in- overheads, administration overheads, selling and


progress, physical verification, nature and distribution overheads, service departments,
treatment of discrepancies. distribution, general principles of
allocation/apportionment of overheads.
3.5 Labour cost: classification and departmentalisation
of labour costs. 3.7 Sale, royalty, inter-company transactions, income
from intermediary products, income from work
3.6 Overheads: depreciation, plant utilisation, capacity
done for outside parties, abnormal non-recurring
utilisation, interest, utilities, allocation of cost of
costs, production and statistical record, standard
utilities, repairs and maintenance, collection of
costing system, budgetary control; books of cost
research and development costs, indirect
accounting, measurements (Ratio).
materials/ wages/expenses, manufacturing

CORE READINGS

TITLE AUTHOR PUBLISHER

Principles of Auditing Prof. Dr. Khawaja Amjad Institute of Business Management,


Saeed G.P.O. Box No. 1164, Lahore.

Advanced Auditing Prof. Dr. Khawaja Amjad Institute of Business Management,


Saeed G.P.O. Box No. 1164, Lahore.

International Federation of Accountants,


International Standards on Auditing ______ 545, Fifth Avenue, 14th Floor,
New York, NY 10017.

Business Risk Assessment David McNamee The Institute of Internal Auditors


USA.

ADDITIONAL READINGS

De Paula’s Auditing Frank A. Attwood & Pitman Publishing,


Neil D. Stein 128 Long Acre,
London WC2E 9AN.

Spicer & Peglar’s Practical Spicer and Peglar Butterworth & Co. Ltd.
Auditing 88 Kingsway,
London WC2B 6AB.

Risk Management Michel Crouhy, Mc-Graw-Hill


Robert Mark,
Dan Galai
Cost Audit Rules ____ Govt. of Pakistan.
Corporate Governance Arya, Tandan and Vaslisht Deep and Deep Publications,
Rajouri Garden, New Delhi 110027.
Corporate Governance Prof. Dr. Khawaja Amjad Institute of Business Management,
Saeed G.P.O. Box No. 1164, Lahore.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

STAGE-6  identify the objectives of the business in financial


terms and evaluate their attainment,
STRATEGIC FINANCIAL MANAGEMENT  identify various financial techniques and describe
their applications,
(S-601)  review the financial statements of the business and
i. Introduction: evaluate the financial position,
This course is designed to focus on the theoretical  develop financial plan to control short and long-
and practical aspects of financial management. term finances,
The course contains tools and techniques of  identify and evaluate working capital position, in
financial management, which can be applied in the the light of policy, and recommend to manage it
specific area of business, to manage operating, properly,
financing and investing activities.  calculate and evaluate the cost of capital,
 develop and evaluate capital budgeting and
recommend methods of funding investments,
ii. Objectives:
To provide the students with an in-depth
 explain the criteria that management uses to
knowledge of strategic financial management
determine whether profit should be reinvested or
enabling them to:
paid out as dividends,
understand and apply strategic approach of
 outline the factors to be considered in the
financial management,
development of dividend policy,
use financial instruments for strategic financial
 identify and evaluate the financial and strategic
management,
implications of proposals for mergers and
examine the financial goals and policy of the
acquisitions,
business for proper application, and
 describe the procedures for transfer of money from
develop financial plan to manage various
one country to another,
financial activities of business.
 describe the procedures for foreign exchange
iii. Outcomes: control in business,
On completion of this course, students should be  explain various steps involved in mergers &
able to: acquisitions & corporate restructuring,
 describe how to manage financial risks.
INDICATIVE GRID:
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION-A
FINANCIAL PLANNING AND ANALYSIS
1. An Overview of Financial Management & Managerial Finance 15%
2. Analysis of Financial Statements
3. Financial Planning and Forecasting
SECTION-B
SHORT AND MEDIUM-TERM STRATEGY
4. Working Capital Policy
5. Managing Cash and Marketable Securities 20%
6. Credit Management
7. Inventory Management
8. Short-term Financing
SECTION-C
LONG-TERM STRATEGY-I
9. The Cost of Capital
40%
10. Capital Budgeting
11. Capital Structure
12. Portfolio Theory and CAPM
SECTION-D
25%
LONG-TERM STRATEGY-II
SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

13. Dividend Policy


14. Multi-national Managerial Finance
15. Mergers & Acquisitions
16. Corporate Restructuring
17. Managing Financial Risks
TOTAL 100%
Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

CONTENTS working capital investment and financing policies;


advantages and disadvantages of short – term
SECTION-A
financing and long term financing.
FINANCIAL PLANNING AND ANALYSIS
5. Managing Cash and Marketable Securities
1. An Overview of Financial Management & Cash management; the cash budget; cash
Managerial Finance management techniques; the cost versus
Importance of managerial finance; the benefits of cash management; marketable
responsibilities of manager finance; role of finance
securities; cash break-even, Baumol Model,
in organisational structure of the firm; the goals of
corporation; managerial finance in the current
Miller-Orr Model.
perspective; objectives of financial management; 6. Credit Management
financial strategy and regulatory requirements; The credit function; credit policy; setting the credit
domestic and international long-term finance: standards; terms of credit; credit collection policy;
share capital, long-term debt and finance leases, monitoring accounts receivables; and other factors
creditworthiness of a lender, basis of lease or influencing credit policy; offering discounts,
buy-decision; the operation of stock exchanges; opportunities for additional sales, using receivable
role of professional advisors; role and advantages as a source of finance through factoring,
of a treasury department; valuation bases for lengthening credit period of customers.
assets, and pros and cons of these methods,
7. Inventory Management
interests of different stakeholders; efficient market
Types of inventory; managing inventory; EOQ
hypothesis, managerial actions to maximise
model extension; inventory control system;
shareholders’ wealth; agency relationships and the
monitoring inventory levels including calculation of
external environment.
safety stock using probabilistic Approach.
2. Analysis of Financial Statements
8. Short-Term Financing
Financial statements and reports; the accuracy of Sources of short-term financing; accruals;
financial statements; ratio analysis; uses and
accounts payables; short- term bank loans;
limitations of ratio analysis.
commercial papers.
3. Financial Planning and Forecasting
SECTION-C
Sales forecast; projected (pro-forma) financial
statements; other considerations in forecasting; LONG-TERM STRATEGY-I
financial control – budgeting and leverage; 9. The Cost of Capital
operating break-even analysis; operating leverage, Cost of debt; cost of preferred stock; cost of
financial break-even analysis; financial leverage. retained equity; cost of equity; weighted average
SECTION-B cost of capital, (WACC); marginal cost of capital;
leverage and risk.
SHORT AND MEDIUM-TERM STRATEGY
10. Capital Budgeting
Importance of capital budgeting; links between
4. Working Capital Policy
Working capital terminology; the requirements of
investment decisions & customer requirements;
external working capital financing; the relationship
of working capital items; the cash / operating cycle; generating ideas for capital budgeting; project

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

classification; similarities between capital working capital management; intellectual


budgeting and security valuation; capital budgeting property; merger or acquisition; integration
evaluation techniques; comparison of the NPV and process after acquisition or merger (difference
IRR methods; pay-back period, cash flow in culture & MIS), and venture capitalists and
estimation; relevant cash flow; capital budgeting;
exit strategy.
introduction to project risk analysis; beta (or
market) risk, and sensitivity analysis, APV 15. Mergers and Acquisitions
(Adjusted present value), lease versus buying Definition & meaning; types of amalgamation;
decision. take-over, methods of take-over, motives &
strategies influencing Mergers and Acquisitions;
11. Capital Structure
strategies, operational and financial motives;
The target capital structure; determining the
categories of Mergers and Acquisitions, horizontal,
optimal capital structure; MM hypothesis and
vertical, conglomerate & preference for group
traditional theory of capital structure.
structure; methods of payment in Mergers and
12. Portfolio Theory and CAPM Acquisitions; steps in merger transactions; tax
SECTION-D benefits of Mergers and Acquisitions; reverse
merger: steps in reverse merger; defensive
LONG-TERM STRATEGY-II strategies in hostile take-over bids; preventive
13. Dividend Policy measures & active measures.
Dividend policy and shares’ value; growth of 16. Corporate Restructuring
capital invested and retained earnings and Meaning and areas of restructuring; techniques of
dividend policy; factors influencing dividend restructuring: expansion techniques, divestment
policy; bonus shares and share splits; effects techniques & other techniques; strategies for
on market value, and residual dividend policy. restructuring; hardware restructuring and software
restructuring; implications of restructuring;
14. Multi-national Managerial Finance reconstruction, and financial reorganisation.
Multi-national corporations; multi-national
versus domestic managerial finance; the 17. Managing Financial Risk
Derivatives securities, hedging risks, futures
international monetary system and exchange markets, forward contracts, option contracts,
rates; trading in foreign exchange; inflation; interest rate swaps; credit derivatives; commodity
interest rates; multi-national capital budgeting; contracts.
international capital structure; multi-national
CORE READINGS

TITLE AUTHOR PUBLISHER


Financial Management and Policy James C. Van Horne Prentice Hall of India Pvt. Ltd., New
Delhi 110001.
Financial Management I.M. Pandey Vikas Publishing House, (Pvt) Ltd.,
576, Masjid Road, Jangpura, New
Delhi.
Management Accounting Financial Strategy PBP Professional Business Publications,
Lahore.
Financial Management Theory and Practice Eugene F. Brigham and South Western, United Kingdom.
Michael C. Ehrhardt
ADDITIONAL READING
Financial Management M.Y Khan and P.K Jain Tata Mc-Graw-Hill Publishing
Co.Ltd.4/12 Asif Ali Road New Delhi.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

 design and develop information system to


STAGE-6 improve the performance of organisations, and
 apply conceptual approach of information
INFORMATION SYSTEMS AND IT systems to I.T. Audit.
AUDIT S-602
iii. Outcomes:
i. Introduction: On completion of this course, students should be
This course deals with management of security of able to:
the systems, and is designed to focus on tools and  demonstrate an understanding of the
techniques of information systems and application complexity of managing security in electronic
of knowledge to I.T. Audit. systems,
 identify and assess the critical threats to
ii. Objectives: information systems,
To provide the students with a detailed knowledge  perform preliminary security audit of
of Information System and I.T. Audit to enabling information systems and apply skills to a
them to: security incident, and
 apply the most effective information systems
audit, control and security practices.
INDICATIVE GRID
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION-A
INFORMATION SYSTEM
1. Moving Towards E-business
2. Understanding Systems from a Business Viewpoint
3. Business Processes
4. Information and Data-bases
5. Customer, Product, and E-commerce
6. Artificial Intelligence
7. Information Systems Planning 50%
8. Building and Maintaining Information Systems
9. Security and Ethical Challenges
10. Lab Sessions: Spreadsheets for Modeling and Forecasting
SECTION-B
I.T. AUDIT
AUDITING IN I.T. ENVIRONMENT
11. Information Systems, Audit Process and Internal Control
12. Management, Planning and Organisation of Information System; 50%
13. Auditing Infrastructure and Operations;
14. Protection/Security of Information Assets;
15. Disaster Recovery and Business Continuity Planning
16. Auditing Development, Acquisition and Maintenance
TOTAL 100%

Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

CONTENTS 1. Moving Towards E-Business


Definition of business; definition of work systems;
SECTION-A
information systems and E-business; business
INFORMATION SYSTEM processes; functional areas and the value-chain;

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

E-commerce business models; E-business Value of Expert Systems


assumptions; phases in building and maintaining
7. Information Systems Planning
systems; information technology as driving force
The importance of IS planning; project
for innovation; obstacles when applying IT in the
management; strategic-level vs. project-level
real world.
planning; business maxims and IT maxims;
centralised vs. decentralised IS architecture;
cost/benefit analysis of information systems.
2. Understanding Systems from a Business
Viewpoint
Frameworks and models; the work system 8. Building and Maintaining Information Systems
framework; work system principles; relationship Four phases of any information system: initiation,
between work systems and information systems; development, implementation and operation and
principle-based systems analysis (PBSA) method; maintenance; alternative processes for building
measuring work system performance. information systems: traditional life cycle,
prototypes, application packages, and end-user
3. Business Processes development; advantages and disadvantages of
Process modeling; data flow diagrams (DFDs); each approach; deciding on a combination of
flowcharts and pseudo code; process methods to use.
characteristics; business process performance 9. Security and Ethical Challenges
variables; basic communication concepts; basic  Ethical Responsibility of Business Professionals
decision-making concepts. (Business Ethics, Technology Ethics and Ethical
4. Information and Data-bases Guidelines).
What is a data-base? data modeling; types of data-  Computer Crime (Hacking, Cyber Theft,
bases; the roles of a data-base management Unauthorized Use at Work, Software Piracy,
system; data as a resource; the importance of Piracy of Intellectual Property, Computer Viruses
models. Information systems categories; office and Worms)
automation systems; communication systems;  Privacy Issues (Privacy on Internet, Computer
transaction processing systems; management and Matching, Privacy Laws, Computer Libel and
executive information systems; decision support Censorship)
systems; enterprise systems; limitation and uses of  Other Challenges (Employment Challenges,
information systems categories. Computer Monitoring, Challenges in Working
5. Customer, Product, and E-commerce Conditions, Challenges to Individuality) Health
Three dimensions of products and services; the Issues (Ergonomics)
customer experience; the customer’s criterion for  Internet worked Security defenses (Encryption,
evaluating products and services; product Firewalls, Denial of Service Defenses, e-Mail
customisation and adaptability; information Monitoring, Virus Defenses)
systems as a competitive advantage; mission-  Other Security Measures (Security Codes,
critical and strategic information systems; Backup Files, Security Monitors, Biometric
challenges for e-commerce. Security, Computer Failure Controls, Fault
Tolerant Systems, Disaster Recovery).
6. Artificial Intelligence
Future trends including advances in artificial 10. Lab Sessions: Spreadsheets for Modeling and
intelligence. Forecasting (6 Hrs)
Business and AI a) Using spreadsheets as a decision support tool,
The Domains of AI developing financial and forecasting models,
Neural Networks regression analysis, capital budgeting.
Fuzzy Logic Systems Students need to have competency in the use
Genetic Algorithms of advanced built-in functions and accounting
Virtual Reality related extensions to the spreadsheet
Intelligent Agents package such as what-if analysis, goal
Expert Systems seeking, auditing and other tools. Competency
in developing a decision support/forecasting
SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

implementation of a business problem on a operating; control reviews; information system


spreadsheet. operations reviews; lights out operations;
application controls and their objectives; file
b) Optimisation
creation; data conversion; input and output;
Linear optimisation; linear programming;
problem management reporting reviews; hardware
sensitivity analysis; linear programming
availability and utilising reporting reviews;
applications; integer optimisation; non-linear
scheduling reviews.
optimisation.
Case Study
SECTION-B Review of the infrastructure of a selected
organisation.
I.T. AUDIT
14. Protection/Security of Information Assets
11. Information Systems, Audit Process and
Logical access exposures; logical access software
Internal Control
control policy: issues, features, tools and
Audit mission, planning, laws and regulations’
procedures; passwords, logs, audit trails,
effect on Information System (IS) audit planning;
biometrics, dial-back, safeguards, token devices
code of professional ethics; auditing standards and
and other tools; network infrastructure security:
guidelines; corporate governance. Role and
local area network, client/server, internet threats
responsibilities of internal, external and information
technology (IT) auditors; risk analysis: evaluation and security, encryption, firewalls, instruction
detection systems; auditing network infrastructure
and elements of risks; category of audit risk; risk-
security; environmental exposure and controls:
based audit approach; risk assessment
water, fire, smoke, power, wiring, emergencies
techniques; audit objectives; compliance and
etc.; physical access exposures, controls and
substantive testing; evidence and sampling;
internal control: objectives, procedures and audit.
classifications; cost effectiveness and controls;
computer-assisted audit techniques and its need
Case Study
Review of the protection/security of information
and functional capabilities; continuous on-line audit
assets of a selected organisation.
approach; audit documentation: constraints on the
conduct of audit; project management technique;
control self-assessment; performance IS audit;
15. Disaster Recovery and Business Continuity
definition, classification, procedures, methodology
Planning
Disaster and other disruptive events and
and phases of IS audit; evaluation of audit strength
components of an effective continuity planning;
and weakness; judging the materiality of findings;
recovery alternatives and off-site libraries:
communicating audit results; audit report structure
controls, security, media, procedures, records;
and contents.
testing of recovery plans: specification and
12. Management, Planning and Organisation of execution of tests; auditing of disaster recovery
Information System plans and their pre and post-evaluations.
Reviewing the IS strategy: planning, policies,
procedures and management practices; review of 16. Auditing Development, Acquisition and
IS organisational structure and responsibilities; Maintenance
segregation of IS and other organisational Risk of inadequate system development life
functions; auditing the management, planning and cycle (SDLC) and review of development
organisation of IS. procedures and methodologies; review of
Case Study acquisition process for outsourcing; information
Review of IT Planning/Strategy system maintenance practices: change
management, library control software, review of
13. Auditing Infrastructure and Operations the practice of project management tools and
Hardware review; operating systems reviews; data- techniques.
base reviews; local area network reviews; network

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

CORE READINGS

TITLE AUTHOR PUBLISHER


Information Systems: The Foundation Steven Alter Prentice Hall International Inc.,
of E-Business, 4/Edition
Decision Modelling with Microsoft Jeffrey H. Moore, Stanford University of Wyoming,
Excel, 6/Edition University Prentice Hall.
Larry R. Weatherford
CISA Review Manual CISA Information Systems Audit and
Control Associations, Inc., 3704
Algonquin Road,
Suite 1010 Rolling Meaduals, Illinois
60008, USA.
Spreadsheet/MS Excel Package Microsoft Corporation Microsoft Corporation,
New York.
International Federation of
IFAC Guidelines on IT ______ Accountants,
545, Fifth Avenue, 14th Floor,
New York, NY 10017.

ADDITIONAL READINGS

Introduction to Information System James O’ Brien McGraw Hill, Irwin, New York.

Practical IT Auditing James R. Hickman Warren Gorham & Lamont RIA


Group,
117 East Stenens avenue Vahalla,
New York 10595.

Information Technology for Business Prof. Dr. Khawaja Amjad Saeed Institute of Business Management,
Executives G.P.O.
Box No. 1164, Lahore.

Principles of Auditing Prof. Dr. Khawaja Amjad Saeed Institute of Business Management,
G.P.O. Box No. 1164, Lahore.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

 implement strategic planning in specific area


STAGE-6 of business.
MANAGEMENT ACCOUNTING - iii. Outcomes:
BUSINESS STRATEGY (S-603) On completion of this course, students should be
able to:
i. Introduction:  develop knowledge in business strategies
This course is designed to identify and apply most such as strategies in action, business mission,
suitable tools for strategic planning and analysis, in internal and external assessment, strategies
a variety of area of business management, for analysis and choice, implementing strategies,
evaluation and taking appropriate decisions. strategy evaluation & control and apply in the
specific area of decision-making,
ii. Objectives:  understanding strategic management,
To provide the students with an in-depth  understanding the types of strategies,
knowledge of Management Accounting – Business  understanding external and internal
Strategy enabling them to: assessment, and
 evaluate and interact with the business  understanding, analysing and implementing
environment, the business strategies.
 identify options and make strategic planning,
and

INDICATIVE GRID
SYLLABUS CONTENT AREA WEIGHTAGE
SECTION – A
STRATEGIC MANAGEMENT 20%
1 The Nature of Strategic Management
2 Strategies in Action
SECTION - B
ASSESSING THE ENVIRONMENT
3 The Business Mission 30%
4 The External Assessment
5 The Internal Assessment
6 Strategy Analysis and Choice
SECTION-C
IMPLEMENTATION AND REVIEW 30%
7. Implementing Strategies
8. Strategy Review, Evaluation and Control
SECTION-D
CASE STUDY 20%
9. Selected Case Studies

TOTAL 100%

Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

CONTENTS The nature of external audit, Key external forces,


The process of performing an external audit,
SECTION-A
Information technology, Economic forces, Social,
STRATEGIC MANAGEMENT cultural, demographic and environmental forces,
1. The Nature of Strategic Management Political, governmental and legal forces,
What is strategic management? Stages of strategic Technological forces, Competitive forces,
management, Integrating intuition and analysis, Competitive intelligence programmes, Cooperation
Adapting to change, Key term in strategic among competitors, Sources of external
management, Strategists Mission statements, information, Indexes, Internet, Forecasting tools
SWOT, External opportunities; and threats, Internal and techniques, Making assumptions, Competitive
strength and weaknesses, Long term objectives, analysis, Porter's five forces mode, Rivalry among
Strategies Short-term(annual) objectives, Polices competing firms, Potential entry of new
Market regulations and laws e.g.. WTO, Country competitors, Potential development of substitute
analysis and political risks, the strategic products, Bargaining power of suppliers,
management model, Importance of I.T. in strategy Bargaining power of consumers, Industry analysis,
formulation. The external factor evaluation (EFE) matrix, The
competitive profile matrix (CPM), Credit rating.
2. Strategies in Action 5. The Internal Assessment
Types of strategies, Integration strategies, Forward The nature of an internal audit, Key internal forces,
integration, Backward integration, Horizontal The process of performing an internal audit,
integration, Intensive strategies, Market Relationship among the functional areas of
penetration, Market development, Product business, Integrating strategy and culture,
development, Diversification strategies, Concentric Operating as if the nature environment matters,
diversification, Horizontal diversification, Selling product or services, Product and service
Conglomerate diversification, Defensive strategies, planning, Pricing distribution, Marketing research,
Joint venture retrenchment, Divesture, Liquidation, Opportunity analysis, Social responsibility, Finance
Combination, Guideline for pursuing strategies, and accounting functions, Basic types of financial
Mergers and leveraged buy-outs, Leveraged buy- ratios, Production and operation, Research and
outs (LBOs), Michel Porter's generic strategies, development, Internal and external R & D,
Cost leadership strategies, Differentiation Computer information systems, Strategic planning
strategies, Focus strategies, The value chain, The software, Internal audit checklists, the internal
competitive advantage of nations, Strategic factor evaluation (IFE) matrix.
management in non-profit governmental
organisations, educational institutions, medical
organisations, government agencies and
6. Strategy Analysis and Choice
The nature of strategy analysis and choice, The
departments and in small firms.
process of generating and selecting strategies,
SECTION - B Long term objectives, The nature of long term
ASSESSING THE ENVIRONMENT objectives, Managing by Objectives, A
comprehensive strategy formulation framework,
3. The Business Mission The input stage, The matching stage, The threats-
What is out business? The importance of clear opportunities-weakness-strengths (SWOT) matrix,
mission, Vision versus mission, The process of The strategic position and action evaluation
developing a mission statement, The nature of a (SPACE) matrix, The Boston consulting group
business mission, A declaration of attitude, A (BCG) matrix, The internal-external (IE) matrix,
resolution of divergent views, A customer The grand strategy matrix, The decision stage, The
orientation, A declaration of social policy, quantitative strategic planning matrix (QSPM),
Component of mission statement, Writing and Positive features and limitations of the QSPM,
evaluating mission statements. Cultural aspects of strategy choice, The role of a
4. The External Assessment board of directors.

SYLLABUS-2005
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN

SECTION-C (ESOPs); Balancing work life and home life;


IMPLEMENTATION AND REVIEW Corporate fitness programmes.
7. Implementing Strategies 8. Strategy Review, Evaluation and Control
The nature of strategy implementation; The nature of strategy evaluation; The process
Management perspective; Annual objectives; of evaluating strategies; The strategy-
Policies; Resource allocation; Managing evaluation framework; Reviewing bases of
conflicts; Matching organizational structure strategy; Measuring organisational
with strategy; The functional structure; The performance; Taking corrective action;
divisional structure; The strategic business unit Published sources of strategy-evaluation
(SBU) structure; The matrix structure; information; Characteristics of an effective
Restructuring and reengineering; Linking evaluation system; Contingency planning;
performance and pay to strategies; Managing Auditing; The environmental audit; Using
resistance to change; Managing the natural computers to evaluate strategies; Guidelines
environment; Creating a strategy-supportive for effective strategies.
culture; Production and operation concerns SECTION-D
when implementing strategies; Human CASE STUDIES
resource concerns when implementing
strategies; Employee stock ownership plans 9. Selected Case Studies

CORE READINGS

TITLE AUTHOR PUBLISHER


Management and Cost Accounting Colin Drury Thomson Learning,
High Holborn Ouse,
50-51 Bedford Row,
London
Strategic Management Leslie W. Rue McGraw-Hill
Phyllis G. Hollan
Organisational Behaviour Fred Luthans McGraw-Hill Companies, Inc. 1221
Avenue of the Americas, New York,
NY 10020
Management Accounting PBP Professional Business Publications,
Business Strategy Suite # 3, 5 Third Floor, Taj Arcade
73-Jail Road
Lahore
“Strategies Management” Fred R. David Prentice Hall,
Concepts & Cases, 10th edition Pearson Education , One Lake
Street, Upper Saddle River, New
Jersey 07458
ADDITIONAL READINGS
Management James A.F. Stoner Prentice Hall of India
A. Edward Freeman New Delhi
Daniel A. Gilbert, Jr.
Organisational Behaviour Greory Moorhead Houghton Mifflin Company Boston,
Ricky W. Griffin USA

SYLLABUS-2005