In FYBAF Sem 1, you get to study the Financial Accounting Paper 1. Financial Accounting or Accountancy is nothing but the preparation of financial statements so that the stakeholders, business owners, banks, employees understand the important financial information which will eventually help them to take appropriate decisions for the organization’s progress.
Here we present Financial Accounting Paper 1 Syllabus:
- Accounting standards issued by ICAI and Inventory valuation
- Accounting Standards:
Concepts, benefits, procedures for issue of accounting standards Various AS :
AS – 1: Disclosure of Accounting Policies
(a) Purpose. (b) Areas of Policies. (c) Disclosure of Policies.
(d) Disclosure of Change in Policies. (e) Illustrations
AS – 2: Valuation of Inventories (Stock)
(a) Meaning, Definition. (b) Applicability. (c) Measurement of Inventory.
(d) Disclosure in Final Account. (e) Explanation with Illustrations.
AS – 9: Revenue Recognition
(a) Meaning and Scope. (b) Transactions excluded. (c) Sale of Goods.
(d) Rendering of Services. (e) Effects of Uncertainties. (f) Disclosure. (g) Illustrations.
- Inventory Valuation
Meaning of inventories, Cost for inventory valuation
Inventory systems : Periodic Inventory system and Perpetual Inventory System
Valuation: Meaning and importance, Methods of Stock Valuation as per AS – 2 :
FIFO and Weighted Average Method
Computation of valuation of inventory as on balance sheet date:
If inventory is taken on a date after the balance sheet or before the balance sheet
- Final Accounts
a) Capital, b) Revenue Receipts
a) Capital b) Revenue
2.2 Adjustment and Closing entries
2.3 Final accounts of manufacturing concerns (Proprietary firm)
- Accounting from Incomplete Records
Introduction, Problems on Preparation of Final Accounts of Proprietary Trading Concern. (Conversion Method)
- Fire Insurance Claims
Computation of Loss of Stock by Fire, Ascertainment of Claim as per the Insurance Policy
Exclude : Loss of Profit and Consequential Loss