FINANCIAL ACCOUNTING-II

FINANCIAL ACCOUNTING-II
AREA OF STUDY:
BAC 151

Year: 1
Semester: 2

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* Continuous
** Duration: 3 hours

Course Contents
Unit 1: Accounting for Liabilities & Shareholders' Equity L.H. 10
a. Liabilities
Recognition of liabilities, Valuation of liabilities, Classification of Liabilities: Current liabilities (definitely determinable, estimated and contingent liabilities), Time value of money and Long Term liabilities, Bonds and Debentures: Accounting of debentures, Retirement of debentures, Conversion of debentures into equity.
b. Shareholders' Equity
Corporate organization, Components of shareholders' equity (common stock, preferred stock, paid in excess of par, treasury stock and retained earnings), Accounting for ordinary share capital & preference share capital, Treasury stock, Stock options, EPS, Dividends: cash and bonus shares, Reserves.
Unit 2: Consolidated Financial Statements L. H. 6
An overview of corporate investment, Methods of accounting for business combinations, Preparation of consolidated balance sheet.
Unit 3: Accounting for Price Level Changes L. H. 8
Nature of inflation accounting, Limitations of conventional financial statements, Methods of price level adjustments- Current Purchasing Power Method and Current Cost Accounting Method.
Unit 4: Accounts for Non Profit Making Organization L. H. 12
Receipts & Payments Account, Income & Expenditure A/C, Balance Sheet, Accounting for Educational Institutions, Accounting for Professionals.
Unit 5: Financial Accounts from Incomplete Record L. H. 8
Concept, Features, Limitations, Methods, Net-worth and conversion.
Unit 6: Accounting Standards L. H. 4
Benefits, Types, International Accounting Standards and Accounting Standards in Nepal.
Suggested Readings:
1. Mukharjee & Hanif, "Modern Accountancy" Tata Mcgraw Hill, New Delhi, 2003.
2. Jawahar Lal, Financial Accounting" Wheeler Publishing, 1996
3. R. Narayan Swami, "Financial Accounting-A Managerial Perspective" Prentice Hall of India.
4. Accounting Standard Board/Nepal, "Nepal Accounting Standards", ASB, Babar Mahal.