ADVANCED FINANCIAL ACCOUNTING & REPORTING
FINALGROUP - IVPAPER - 16ADVANCEDFINANCIALACCOUNTING& REPORTINGThe Institute of Cost and Works Accountants of India12, SUDDER STREET, KOLKATA - 700 016
First Edition : January 2008Revised Edition : March 2009Second Revised Edition : June 2010Published by:Directorate of StudiesThe Institute of Cost and Works Accountants of India12, SUDDER STREET, KOLKATA - 700 016Printed at :India Limited,50/2, TTC MIDC Industrial Area, Mahape, Navi Mumbai - 400 710, IndiaCopyright of these Study Notes is reserved by the Institute of Cost and Works Accountantsof India and prior permission from the Institute is necessary for reproduction of the wholeor any part thereof.
CONTENTSPage No.Study Note - 1Introduction to IAS, USGAAP, Indian Accounting Standard .1.1Framework of Accounting .1.1.1 Introduction .1.1.2 Meaning of Accounting .1.1.3 Objectives and Functions of Accounting .1.1.4 Fundamental Accounting Assumptions .1.1.5 Limitations of Accounting .1.1.6 Financial Statements .1.1.7 Qualitative Characteristics of Financial Statements .1.2Accounting Standards - Applicability, Interpretation, Scope and Compliance .1.31.41.51.6122233445US GAAPS .1.3.1 Established Accounting Principles in the US .1.3.2 Other Accounting Literature .1.3.3 AICPA .1.3.4 FASB .1.3.5 Components of US GAAP.International Accounting Standards .1.4.1 Introduction .1.4.2 Extract of the International Accounting Standards .7101011111111131313International Financial Reporting Standards .A Comparison IGAAP - US GAAP - IFRS .2939Study Note - 2Preparation of Company Accounts under Various Circumstances .492.1Merger and Acquisitions .502.1.1 Introduction .502.1.2 What is Merger? .502.1.3 Varieties of Mergers .512.1.4 Acquisitions.512.1.5 Types of Acquisitions .522.1.6 Distinction Between Mergers and Acquisitions .52Accounting for Mergers and Acquisitions.542.2.1 Methods of Accounting .55Pooling of Interest Method .55Purchase Method.562.2.2 How to Value an Acquisition .602.2
Page No.2.32.2.3 Sources of Gains from Acquisitions .602.2.4 Valuation Procedures .61External Reconstruction.62Illustrations.IComputation and Discharge of Purchase Consideration .IIBasics of Amalgamation and Absorption .IIIPurchasing Company holding shares in Selling Company .IVSelling Company holding shares in Purchasing Company .VCross Holding .666673118142146VIVIIVIIIIXXXIXIIXIIIChain Holding .Internal Reconstruction .Reverse Merger .External Reconstruction .Surrender of Shares .Demerger .Sales of Division .Impact of Reconstruction over Wealth of Investor and Company .155158171176179182205208XIVBuy back of Shares .211XVConversion .217Study Note - 3Group Financial Statements .2253.1Holding Company.2263.2Methods of Combination .2263.3Accounting Treatment .2273.4Preparation of Group Cash Flow Statement .2993.5Statement of Cash Flows .3003.6Illustrations on Cash Flow Statement.304Study Note - 4Segmental Reporting .3594.1Introduction.3604.2Need for Segmental Reporting .3604.3Arguments against Segmental Reporting .3614.4International Scenario .362
Page No.4.5The Indian Scenario.3704.5.1 Definitions .3704.5.2 Disclosure Requirements .3734.5.3 Accounting and Auditing Issues .3734.6Segmental Reporting Problems & Difficulties .3754.7Specific Issues Relating to Management Accountants .3774.8Segmental Disclosure – A Practical Example .3814.9Illustrations on Segmental Reporting .385Study Note - 5Development in External Reporting .3895.1Indian Accounting Standards .3905.1.1 Companies (Accounting Standards) Rules, 2006.3905.1.2 Applicability of Accounting Standard to Non-corporate Entities .3925.2Accounting Standards .3955.3Financial Reporting across the world .4735.4Post Balance Sheet Events .4775.5External Reporting under Capital Market Regulations .4795.6Value Added Statement .4945.7Economic Value Added Statement .5075.8Human Resource Accounting.5125.9Environmental Accounting .5125.10Guidance Notes on Accounting for Tax Matters .5165.11Guidance Notes on Derivatives.5335.12Guidance Notes for Special Businesses / Reports .556Study Note - 6Government Accounting in India .5716.16.26.36.4Government Accounting in India .General Principles of Government Accounting .Methods of Government Accounting .Comparison with Commercial Accounting.5725725735736.5Comptroller and Auditor General of India .5746.6Audit of Government Companies (Commercial Audit) .5746.7Audit Board Setup in Commercial Audit .574
Page No.Section - 11 Comptroller and Auditor General to Prepare and Submit Accounts to thePresident, Governors of State and Administrators of Union Territories havingLegislative Assemblies.5766.8Public Accounts Committee.
Advanced Financial Accounting & Reporting Accounting concepts Accounting concepts defi ne the assumptions on the basis of which fi nancial statements of a business entity are prepared. Certain concepts are perceived, assumed and accepted in accounting to provide a unifying structure and internal logic to accounting process. The word concept means idea or notion, which has universal .
FINANCIAL ACCOUNTING : MEANING, NATURE AND ROLE OF ACCOUNTING STRUCTURE 1.0 Objective 1.1 Introduction 1.2 Origin and Growth of Accounting 1.3 Meaning of Accounting 1.4 Distinction between Book-Keeping and Accounting 1.5 Distinction between Accounting and Accountancy 1.6 Nature of Accounting 1.7 Objectives of Accounting 1.8 Users of Accounting Information 1.9 Branches of Accounting 1.10 Role .
STUDY GUIDE ADVANCED FINANCIAL ACCOUNTING AND REPORTING NO CONTENT REFERENCE LEVEL OF KNOWLEDGE 1.0 Financial accounting and reporting in Malaysia B Discuss the development of financial accounting and reporting in Malaysia Discuss the role of regulators such as MASB, Securities Commission, Bursa Malaysia, Bank Negara etc. in regards
ACCOUNTING AND REPORTING 13th Edition FINANCIAL ACCOUNTING AND REPORTING ELLIOTT AND ELLIOTT Financial Accounting & Reporting is the most up-to-date text on the market. Now fully updated in its 13th edition, it includes extensive coverage of International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs). This market-leading text offers students a clear, well .
Advanced Financial Reporting Primer . 1 / 62 PRIMER . INTRODUCTION Advanced Financial Reporting introduces a number of advanced accounting concepts such as consolidations, foreign exchange, and accounting for not-for-profit organizations. PART 1: ACCOUNTING FOR SIGNIFIC
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WSU Accounting Overview "Basis of Accounting" Wayne State University's financial statements are prepared in accordance with Governmental Accounting Standards Board (GASB) principles. The day -to day accounting is prepared using fund accounting. Fund accounting is an accounting and reporting system commonly used by public colleges and universities to keep track of resources whose use is
Financial Accounting & Reporting 3(B) Financial Accounting & Reporting 3(B) 1. Marketable securities .3 2.
Graeme falls in love with Barbara Allan. He is so lovesick that he is bound to his deathbed. When Barbara comes to visit her ailing lover, she reminds him that he slighted her in front of others at a local tavern. He dies, and then she feels guilty, so she asks her mother to prepare her deathbed for the following day. The message might be that one doesn’t need to take love for granted, or it .
