DEPARTMENT - SCHOOL OF BUSINESS STUDIES AND SOCIAL SCIENCES

Course Pack
FOR
CORPORATE ACCOUNTING-BBH233

BBH233 - CORPORATE ACCOUNTING

Total Teaching Hours For Semester : 60 Total Teaching Hours For Semester : 4

Max Marks : 100 Credits : 4

Course Objectives/Course Description:

Course Description:This course is introduced to familiarize the students about the various aspects of Corporate Accounting including Merger and Acquisition.Course

Objectives
● To impart knowledge about maintenance of Books of Accounts of Corporate business houses.
● Familiarise the students the various aspects of corporate merger and acquisition such as valuation of good will and shares, Determination of consideration for

merger and acquisitions with reference to Accounting Standards

● Familiarise the students the Internal financial arrangements to be implemented to recover the companies undergoing loss for several years.

Learning Outcome

• Ability to prepare Annual financial statements of corporate business houses

• Proper Understanding about the Accounting procedures with reference to Corporate merger and acquisitions

• Practical knowledge about Internal reconstruction of companies.

Unit-1 Teaching Hours:15

Final Accounts of Joint Stock Companies:

Meaning- Features- Advantages, Capital Structure of Joint Stock Companies, Kinds of Shares &
debentures, Preparation of Income Statement/Statement of Profit and Loss and Balance Sheet – (vertical)
in accordance with the provisions of the existing Companies Act
Unit-2 Teaching Hours:6

Valuation of Goodwill
features of goodwill- types of goodwill- Methods of valuing the goodwill – Arbitrary assessment,
capitalization method; Purchase of past average profits method, Super profit method.
Unit-3 Teaching Hours:6

Valuation of shares
Valuation of shares: Intrinsic value method, Yield method and Earning capacity method.(theory and
problems).
Unit-4 Teaching Hours:15

Amalgamation, Absorption and External Reconstruction of Companies:

Amalgamation, Absorption and External Reconstruction of Companies: Amalgamation in nature of
merger (Pooling of interest Method) and Amalgamation in the nature of Purchase as per Accounting
Standard – 14. Difference between Amalgamation and Absorption - Calculation of purchase Consideration
under Different methods, Settlement of Purchase Consideration - Problems on Amalgamation and
Absorption.External reconstruction of Companies: Meaning of External Reconstruction, Forms,
Accounting Entries, Problems of External Reconstruction (excluding inter-company transactions and
holdings).
Unit-5 Teaching Hours:10

Capital Restructuring
Capital Restructuring : Concept, Accounting treatment for Subdivision of shares, Rights Shares, Bonus
shares, Buy Back of shares.
Unit-6 Teaching Hours:4

Accounting Standards and IFRS

Accounting Standards and IFRS: Basic postulates of accounting theory and generally accepted
accounting principles and practices recommended by the ICAI. Accounting standards issues by ICAI -
Mandatory and non mandatory Accounting Standards - compliance by companies in India. IFRS
(Overview), Carve outs in Indian Accounting Standards.
Unit-7 Teaching Hours:4

Recent Developments In Accounting:

Recent Developments In Accounting: Human Resource Accounting, Price Level Changes accounting,
Environmental Accounting, Social Responsibility Accounting, Accounting for Intangible Assets.
Text Books And Reference Books:
1. Jain, S.P., & Narang, K.L. (2012). Advanced Accounting, 2, New Delhi: Kalyani Publishers.

2. S. Anil Kumar, V Rajesh Kumar and B Mariappa. (2014) Corporate Accounting. New Delhi: Himalaya Publishing House

Essential Reading / Recommended Reading:

1. Gupta, R. L., & Radhaswamy, M. (2010). Advanced Accountancy, 2, New Delhi:Sultan Chand

& Sons.2. Gupta, R.L., & Radhaswamy, M. (2012). Corporate Accounting. New Delhi:Sultan Chand and Sons.3. Kaur, J. (nd). IFRS: A Practical approach. New

Dehli:McGraw Hill.4. Monga, J.R. (2011). Fundamentals of Corporate Accounting, New Delhi :K.L Malik and Sons Pvt. Ltd,5. Shukla, M.C., Grewal, T.S., & Gupta,

S.C. (2011). Advanced Accounts(revised edi) New Delhi:Jain Book Agency.6. Sehgal, A., & Sehgal, D. (2011). Advanced Accounting, 2, New Delhi: Taxmann.7.

Maheshwari, S.N., & Maheshwari, S.K.(2009). Corporate Accounting (5th edi).New Delhi: Jain Book Agency.

Evaluation Pattern
CIA 1A -10MarksCIA 1B -10MarksCIA 2 -MSE 25 Marks CIA3A -10MarksCIA 3 B -10MarksESE -30 Marks
 CORPORATE ACCOUNTING
COURSE PLAN (2018-19)
SECTION I

Semester II Semester Class BBA H

Course Code BBH233 Course title CORPORATE ACCOUNTING

Hours 60 Hours per 4

week

Faculty name Prof Sreelakshmi T H Sreelakshmi.th@christuniversity.in

Dr. Muthu Gopalakrishnan. muthugopalakrishnan.m@christuniversity.in
M
Dr. Deepa deepa.v@christuniversity.in
Prof.Varnita

Class policies Regular presence and participation of the students in the subject discussion is alwa
and desired. The same would be considered in the evaluation process and positive
guidelines rewarded.

Students are further expected to submit their assignments and project on decided dat
and time. Failing of which, internal assessment of the concerned students would
negatively affected. The results may be detained too. Students are expected to obser
the discipline and maintain the decorum in the class. At the same time, they a
encouraged to raise their queries and enhance the learning environment of the cla

Course Corporate Accounting is a basic course which enriches the accounting knowledge of t
Description learners in financial statements of Joint Stock Companies, Valuation of Goodwill a
shares, external and internal reconstruction. Thus this course focuses on preparation
final accounts as per the Companies Act 2013. It also deals with accounting practice a
process in case of amalgamation, absorption, internal and external reconstruction; It al
makes the students to be familiar with the concept of Valuation of Shares and Goodw
and provides an overview of Accounting standards IFRS and Recent development in t
field of corporate accounting.

Course To enable the students to prepare the financial statements of Joint Sto
Objectives Companies.
To enrich the learners’ understanding of accounting procedure in case of merge
and acquisition of companies. (As per AS 14)
To familiarise the students with the various aspects and accounting treatment
restructuring of companies
To make the students to comprehend valuation of goodwill and shares in JSC.
To familiarise the students with the latest developments in the accounting ar
including Accounting Standards and IFRS
Course Ability to prepare annual financial statements of corporate business houses
Outcomes Proper understanding about the accounting procedures with reference
corporate merger and acquisitions
Practical knowledge about capital restructuring
Proper understanding about Accounting Standards and IFRS and rece
developments in accounting
SECTION II

Pedagogy
(teaching
Week
learning
Unit (starting Hours Resource/ Referenc
Unit details methods used)/
number and end per week details
activities and or
dates)
class trips/ dates
for assessment
1 Final Accounts of Week 1, 2, 4 Lecture and Jain, S.P., & Narang,
Joint Stock 3,4 Problem solving K.L. (Second Revised
Companies Ed., 2015), Corporate
Accounting, Kalyani
Meaning- Features- Publishers, New Delh
Advantages, Capital
Structure of Joint
Stock Companies,
Kinds of Shares &
debentures,
Preparation of
Income
Statement/Statement
of Profit and Loss
and Balance Sheet –
(vertical) in
accordance with the
provisions of the
existing Companies
Act
2 Profit or Loss Prior Week 5, 6 4 Lecture and Jain, S.P., & Narang,
to Incorporation Problem solving K.L. (Second Revised
Meaning, Basis of Ed., 2015), Corporate
apportionment, Accounting, Kalyani
Ascertainment of Publishers, New Delh
profit or loss prior to
Incorporation,
problems
3 Valuation of Week 7, 8 4 Lecture and Jain, S.P., & Narang,
Goodwill & 9, 10 Problem solving K.L. (Second Revised
Features of goodwill- Ed., 2015), Corporate
types of goodwill-
Methods of valuing Accounting, Kalyani
the goodwill – Publishers, New Delh
Arbitrary
assessment,
capitalization
method; Purchase of
past average profits
method, Super profit
method.
4 Valuation of shares Week 4 Lecture and Jain, S.P., & Narang,
Intrinsic value 11,12 ,13 Problem solving K.L. (Second Revised
method, Yield Ed., 2015), Corporate
method and Earning Accounting, Kalyani
capacity method. Publishers, New Delh
5 Amalgamation & Week 4 Lecture and . Jain, S.P., Narang,
Absorption of 14,15,16 Problem solving K.L. & Simmi Agrawa
Companies and (Fifth Revised Ed.,
External
Reconstruction 2016). Advanced
Pooling Method by Corporate Accounting
nature of business Kalyani Publishers,
(Amalgamation) and New Delhi
business purchase
(Absorption and
external
reconstruction) as
per Accounting
Standards – 14.
Difference between
Amalgamation and
Absorption -
Calculation of
purchase
Consideration under
Different methods,
Settlement of
Purchase
Consideration -
Problems on
Amalgamation and
Absorption
External
reconstruction of
Companies
Meaning of External
Reconstruction,
Forms, Accounting
Entries, Problems of
External
Reconstruction
(excluding inter-
company
transactions and
holdings).
6 I n t e r n a l Week 17 4 Lecture and . Jain, S.P., Narang,
Reconstruction Review of K.L. & Simmi Agrawa
Meaning, Forms of Published (Fifth Revised Ed.,
Reconstruction,
Alteration of Capital Articles 2016). Advanced
and Capital Corporate Accounting
Reduction - Internal Kalyani Publishers,
Reconstruction Vs New Delhi
E x t e r n a l
reconstruction,
Practical Problems
 7 A c c o u n t i n g Week 18 4 Lecture and . Jain, S.P., Narang,
Standards and Review of K.L. & Simmi Agrawa
IFRS: IFRS and Published (Fifth Revised Ed.,
proposed changes in
Indian Accounting Articles 2016). Advanced
Standards Corporate Accounting
Kalyani Publishers,
New Delhi

SECTION III
Assessment outline:
Mapping: A template to map the Learning Outcomes of the course against the components of
assessment is given below:

Course Components of assessment

Outcomes

CO 1 Ability to prepare annual financial Assignment on Capital Structure of

statements of corporate business company
houses

CO 2 Proper understanding about the Class Room Problem Solving

accounting procedures with
reference to corporate merger and
acquisitions

CO 3 Practical knowledge about capital Class Room Problem Solving

restructuring

CO 4 Proper understanding about Report on recent development in the field

Accounting Standards and IFRS
and recent developments in accounting and IFRS
accounting

SECTION IV
Assessment Description:

S. No Assessment Component Marks

1 CIA 1 20 marks
2 CIA 2 (MSE) 25 marks
3 CIA 3 20 marks
4 Attendance 05 marks
5 End Sem Exam 30 marks
Total 100 marks
Individual Assignment Details (such as CIA I /II/III)

CIA 1
Assignment on Capital Structure of a company (10 Marks)
Individual and Written assignment
Assigned with an industry
Asked to identify two companies from the given industry
Required to evaluate the characteristics and impact and appropriateness of th
Required to compute the proportion of various sources to the total capital
Required to comment on the components of capital structure
Last date for submission 04/11/2018
Rubrics are given as annexure to this course plan

CIA 1 (b)
Quiz (10 Marks)
Topics for Quiz: (Module 1, 2)
Conducted in the class/computer lab
Proposed date of Quiz is 10/12/2018
For 20 marks 20 questions
Scaled down to 10 marks
Mid Semester Examination
Written Test for 2 hours
Conducted for 50 Marks
Portion for the MSE is Module 1 to 3
Scaled down to 25 marks
Date will be announced by the COE (Probably between 15/12/2018 and 22/12
Report on recent development in the field of accounting and IFRS
Group Project Work
Divided into a group of three members
Asked to study the impact of the dividend on the firm value
Required to prepare and submit a Report which should normally contain Introd
Last date for submitting will be announced by respective faculty members in c
Rubrics are given as annexure to this course plan
 End Semester Examination
Portion is Module 4 to 7
Conducted for 50 marks and scaled down to 30
Date will be announced by COE
2 hours

50 Marks

20 Marks

30%
Attendance (5 Marks)

Mapping the Learning Outcomes of the assignment with components of the

evaluation rubrics:

Learning Outcomes of the Method of assessment Component of the

assignment
LO 1 – Basic knowledge of
capital structure and ability
to identify its components
LO 2-
LO 3- Understanding of the
recent trends in the field.
Written assignment
Written
Hand written Assignment
evaluation rubrics
Understanding of the
concept, presentation,
writing skills, analytical skills
Understanding of the
concept, presentation,
writing skills, analytical skills

Annexure 2 – Rubrics for CIA 1

Criteria and Marks Good Average Below Average

Fully identified (2) Not identified Not at all identified
Identifying the various sources fully (1) (0)
of finance (2)
Critically evaluated (2) Just written the Not at all relevant (0)
Evaluating the characteristics meaning (1)
and impact of different sources
of finance (2)
Used appropriate Used appropriate Neither used
Identifying the differences method and correctly method but not appropriate method
between the components and interpreted (3) interpreted nor interpreted
correctly (2) correctly (0)
interpreting (4)
Comment (2) Excellent Comment (2) Average Poorly Commented
Comment (1) or not commented at
all (0)

Annexure 2 – Rubrics for CIA 2

Criteria and Marks Good Average Below Average

Fully Not collected Not at all attempted (0)
Understanding (collecting data) the Collected(3) fully (2)
recent developments in the said
field (3)
Organization of Data (3) Using Just used tools Using inappropriate tools (2)
appropriate (3)
and modern
tools (5)
Findings and conclusion (4) Relevant Average Poorly Commented (2) or not
Comment (4) Comment (3) commented at all (0)