Revised Syllabus of Financial Accounting Paper – V
3.5.1 Financial Accounting Paper – V
Modules at a Glance
| Sr. No. | Modules | No. of Lectures |
| 1 | AS – 14 – Amalgamation, Absorption & External Reconstruction (excluding inter – company holding) | 15 |
| 2 | Internal Reconstruction | 15 |
| 3 | Underwriting of shares & debentures | 10 |
| 4 | Liquidation of Companies | 10 |
| 5 | Buy-Back of shares | 10 |
| Total | 60 | |
| Sr. No | Modules/ Units |
| 1 | AS – 14 – Amalgamation, Absorption & External Reconstruction (excluding inter – company holding) |
| In the nature of merger and purchase with corresponding accounting treatments of pooling of interests and purchase method respectively.
Meaning and Computation of purchase consideration. Inter-company debtors, creditors, loan, bills, loading in stock. |
|
| 2 | Internal Reconstruction |
| Need for reconstruction and company law provisions
Distinction between internal and external reconstructions. Methods including alteration of share capital, variation of shareholder rights, sub division, consolidation, surrender and reissue / cancellation, reduction of share capital with relevant legal provisions and accounting treatment for same. |
|
| 3 | Underwriting of shares & debentures |
| Introduction, Underwriting, Underwriting Commission
Provision of Companies Act with respect to Payment of underwriting commission Underwriters, Sub-Underwriters, Brokers and Manager to issues Types of underwriting, Abatement Clause Marked, Unmarked and Firm-underwriting applications, Liability of the underwriters in respect of underwriting contract Practical problems |
|
| 4 | Liquidation of Companies |
| Meaning of liquidation or winding up
Preferential payments Overriding preferential payments Preparation of statement of affairs, deficit / surplus account Liquidator’s final statement of account |
|
| 5 | Buy Back of Shares |
| Company Law / Legal provisions (including related restrictions, power, transfer to capital redemption reserve account and prohibitions)
Compliance of conditions including sources, maximum limits and debt equity ratio. Cancellation of Shares Bought back (Excluding Buy Back of minority shareholding) |
Note: Relevant Law / Statute & Accounting Standards in force on 1st April of every Academic Year shall be applicable for examination.
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