Accounting
6 chapters mappedFramework for Preparation of Financial Statements & AS Overview
Objective: provide information about financial position, performance, cash flows.
Open chapter →AS-2 Inventory Valuation
Inventory valued at lower of Cost or Net Realisable Value (NRV).
Open chapter →AS-3 Cash Flow Statement
Cash flows classified into Operating, Investing, Financing activities.
Open chapter →AS-14 Amalgamation
Amalgamation: merging of two or more companies into one.
Open chapter →Accounts of Banking Companies
Governed by Banking Regulation Act 1949 & RBI guidelines.
Open chapter →Branch Accounts
Types: Dependent (debtors method, stock & debtors method) & Independent branches.
Open chapter →Corporate & Other Laws
6 chapters mappedCompanies Act 2013 — Incorporation
Types: OPC, private (2-200), public (≥7), Section 8 (non-profit).
Open chapter →Share Capital and Debentures (Sec 43-72)
Kinds: equity (with/without DVR) and preference (cumulative/non-cumulative, participating, convertible).
Open chapter →Acceptance of Deposits (Sec 73-76)
Deposit excludes: share application money, loan from director, banks, govt, related party loan to private cos.
Open chapter →General Clauses Act, 1897
Applies to interpretation of all Central Acts unless context otherwise.
Open chapter →Interpretation of Statutes, Deeds & Documents
Primary rules: literal (grammatical), golden, mischief (Heydon's), purposive.
Open chapter →Foreign Exchange Management Act, 1999
FEMA regulates external trade & payments; replaced FERA in 1999.
Open chapter →Taxation (Income Tax + GST)
6 chapters mappedBasics & Residential Status (Income Tax)
Income Tax Act 1961 — Assessee, Previous Year, Assessment Year, total income.
Open chapter →Income from Salary (Sec 15-17)
Salary taxable on due or receipt basis whichever earlier.
Open chapter →Profits and Gains of Business or Profession (Sec 28-44)
Income from business/profession — net of admissible expenditure (Sec 30-37).
Open chapter →GST — Charging Section & Levy
GST: destination-based consumption tax; replaced VAT, Service Tax, Excise, etc.
Open chapter →GST — Input Tax Credit (Sec 16-18)
ITC eligibility: registered, possession of tax invoice, receipt of goods/services, supplier paid tax & filed return, recipient filed return.
Open chapter →Deductions under Chapter VI-A (Sec 80C-80U)
Available only under old tax regime; new regime (115BAC) has restricted deductions.
Open chapter →Cost & Management Accounting
6 chapters mappedIntroduction to Cost & Management Accounting
Cost: expenditure attributable to a cost object.
Open chapter →Material Cost
EOQ minimizes total inventory cost (ordering + carrying).
Open chapter →Overheads — Absorption Costing
Overhead absorption — allocating indirect cost to cost objects via rates.
Open chapter →Marginal Costing & CVP Analysis
Marginal cost = variable cost; charge fixed cost to period.
Open chapter →Standard Costing & Variance Analysis
Standard cost: predetermined cost based on technical estimates.
Open chapter →Budgetary Control
Budget: financial/quantitative plan for a defined period.
Open chapter →Auditing & Code of Ethics
6 chapters mappedNature, Objective & Scope of Audit
Audit: independent examination of financial statements to express opinion on true & fair view.
Open chapter →Audit Strategy, Planning & Programme
SA 300 — Planning is required throughout, not just initial activity.
Open chapter →Risk Assessment & Internal Control
SA 315 — Identify & assess Risks of Material Misstatement (RoMM).
Open chapter →Audit Evidence & Documentation
SA 500 — Sufficient appropriate audit evidence.
Open chapter →Company Audit — Appointment & Reporting
Auditor of company appointed by shareholders in AGM for 5 years (Sec 139).
Open chapter →Code of Ethics for Professional Accountants
Fundamental principles: Integrity, Objectivity, Professional Competence & Due Care, Confidentiality, Professional Behaviour.
Open chapter →Financial Management & Strategic Management
6 chapters mappedScope & Objectives of Financial Management
Functions: Investment (capital budgeting), Financing (capital structure), Dividend (payout policy), Working Capital.
Open chapter →Time Value of Money & Cost of Capital
Compound interest accumulates wealth; discounting brings future to present.
Open chapter →Capital Budgeting (Investment Decisions)
Long-term investment decisions involving capital expenditure.
Open chapter →Working Capital Management
WC = Current Assets − Current Liabilities; gross WC = total CA.
Open chapter →Introduction to Strategic Management
Strategy: long-term direction & scope to achieve advantage through resource configuration.
Open chapter →Strategic Analysis — Porter's Models & SWOT
Porter's Five Forces: Industry rivalry, threat of new entrants, threat of substitutes, bargaining power of suppliers, bargaining power of buyers.
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