Tribhuvan University

Faculty of Management

Office of the Dean

Bachelor of Business Management (BBM)

Course Title: Corporate Accounting

Course Code: ACS 203

Semester: Semester 6

Nature of Course: required

Full Marks: 100

Pass Marks: 50

Credit Hours: 3 Cr.

Curriculum: BBM curriculum effective from 2021

Course Description

This course contains various aspects of company accounts, shares and debentures, valuation of goodwill and shares, new trends in accounting and price level changes in accounting.

Course Objective

The objectives of the course are to provide the students with a detailed knowledge of accounting principles, standards and their application to develop ability and skills in corpoarete world . On complet ion of this course the students will be able to gain the knowledge of corpoare accounting. The course further attempts to provide sound knowledge of new trends of accounting. It helps them to understand the concept of business combinations and to prepare the consolidated financial statement. Course Description This course contains various aspects of company accounts, shares and debentures, valuation of goodwill and shares, new trends in accounting and price level changes in accounting.

Course Contents:

Lecture hours show the approximate classroom time allocated to each unit.

Corpoarte accounting: concept , objectives, importance and limitations, steps involved in corpoarate accounting
Corporate Financial Reporting : r equirements of corporate reporting, recent trends in financial reporting
Corporate social responsibility
Accounting Standards:
Concept, nee d, nature, issues and classification
Nepalese Accounting Standards (NAS), International Accounting Standards (IAS), Relative aspects of NAS and IAS.

Share capital: concept, importance, types ( equity and preference)
Book building, DEMAT shares and employee shares
Concept of share premium, share discount, bonus shares, right shares and underwriting
Redemption and conversion of preferen ce shares Debentures:
concept, importance and types of debentures
concept of debenture premium and debenture discount, redemption and conversion of debentures
Difference s between shares and debentures.

Goodwill: concept, features and need for valuation of goodwill and shares, Factors affecting the value of goodwill and accounting treatment
Metho ds of valuing goodwill: Average profit method, super profit method, capitalization metho d, annuity method
Valuation of shares: concept and need, Factors affecting value of shares
Methods of valuation of shares:
net assets method, yield method, earning capacity method.

Company expansion through Amalgamation and Absorption: meaning and concept
Purchase consideration: concept and determination
Accounting treatment in the books of bot h Purchasing and Vendor Company
Preparation of Balance Sheet by Purchasing Company.
Internal and external reconstruction: Meaning, importance, n eed and accounting tre atment & balance sheet after reconstruction.
Expansion through Subsidiary companies and Holding Company : Concept of Holding and Subsidiary Company, preparation of Consolidated Balance Sheet by Holding C ompany after due consideration of: Pre -acquisition and post-acquisition profit, Minority Interest, Cost of Control/Goodwill or Capital Reserve, Elimination of common transactions, Treatment of contingent liabilities and unrealized profit, Revaluation of assets and liabilities , Dividend from Subsidiary Company and preference shares in subsidiaries.
Corporate Liquidation: Concept and reasons for liquidation procedures o f winding up as per Company Act
Liquidator’s Final statement of Account: me aning, contents and preparation showing amount realized from assets realized.

Concept of Price Level Change: Inflation and Deflation
Current Purchasing Power Accounting: Concept and preparation of financial s tatements after Price Level Adjustments
Current Cost Accou nting: Concept and determination: Current Replacement Cost, Net Realizable Value of Assets, Depreciation Adjustment, Holding Gains, Inventory Adjustment, Cost of Sales Adjustment, Monetary Working Capital Adjustment, Gearing A djustment, Current Cost Reser ve: Preparation of Current Cost Profit and Loss Account, Current Cost
Balance Sheet.

Human Resource Accounting: Concept, objectives and benefits of HRA, Valuation of Human Resources: Historical Cost Approach, Replacement Cost Approach, Opportunity Cost, Standard Cost Approach, Present Value Approach.
Social Accounting : C oncept and approaches, Social responsibilities of business, Measurement of social cost benefit, Social Accounts and Balance Sheet.
Environment Accounting: C oncept, needs, scope, forms and ele ments of environment accounting.
Forensic Accounting: Concept, functions, needs of foren sic accounting, detection techniques used in for ensic accounting, c ritical aspects to be followed while conducting forensic accounting.
Sustainable Accounting: Concept, objectives and needs of sustainable accounting

Corporate Accounting

Syllabus