Chartered Accountancy IPCC Advanced Accounting Syllabus

Paper 5: Advanced Accounting

(One paper – three hours – 100 marks)

Level of Knowledge:  Working Knowledge

Objectives: 

(a) To have an understanding of the conceptual framework for the preparation and presentation of financial statements;  

(b) To gain working knowledge of the professional standards and application of accounting principles to different practical situations; and

(c) To gain the ability to solve advanced problems in the case of different entities.

Contents

1. Conceptual Framework for Preparation and Presentation of Financial Statements 

2. Accounting Standards Working knowledge of:

AS 4 : Contingencies and Events occurring after the Balance Sheet Date

AS 5 : Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies

AS 11: The Effects of Changes in Foreign Exchange Rates (Revised 2003)

AS 12: Accounting for Government Grants

AS 16: Borrowing Costs

AS 19: Leases

AS 20: Earnings Per Share

AS 26: Intangible Assets

AS 29: Provisions, Contingent Liabilities and Contingent Assets.

3. Advanced Issues in Partnership Accounts 

Dissolution of partnership firms including piecemeal distribution of assets; Amalgamation of partnership firms; Conversion into a company and Sale to a company.

4. Company Accounts

(a) Accounting for employee stock option plan, Buy back of securities, Equity shares with differential rights, Underwriting of shares and debentures, Redemption of debentures

(b)  Advanced problems for business acquisition, Amalgamation and reconstruction (excluding problems of amalgamation of inter-company holding)

(c)  Accounting involved in liquidation of companies, Statement of Affairs (including deficiency/surplus accounts) and Iiquidator’s statement of account of the winding up.

(d) Financial Statements of Banking, Insurance and Electricity Companies 

5. Accounting for Special Transactions

Departmental and branch accounts including foreign branches

Note :  If either old Accounting Standards (ASs), Announcements and Limited Revisions to ASs are withdrawn or new ASs,  Announcements and Limited Revisions to ASs are issued by the Institute of Chartered Accountants of  India in place of existing ASs,  Announcements and Limited Revisions to ASs, the syllabus will accordingly include/exclude such new developments in place of the existing ones with effect from the date to be notified by the Institute.