We have the BBS 1st Year Accounting for Financial Analysis Syllabus.
BBS 1st Year Accounting for Financial Analysis Syllabus
Following are the BBS 1st Year Accounting for Financial Analysis Syllabus:
Course Objectives
The objectives of the course are to provide the students with the knowledge required to analyze financial statements for decision-making, including long-term investment decisions. The course further attempts to provide sound knowledge required for higher studies in capital planning, analysis of financial statement and investment decisions.
Course Description
This course contains company, conceptual, and theoretical foundation, financial statement of the company, analysis of financial statement for a company, company growth, merger, combination, and liquidation, depreciation and its effect in financial statement of a company, price level changes, long-term planning – capital budgeting.
Unit I: Basic Understanding of Financial Accounting 8 LHs
Contents:
- Forms of business entities: sole proprietorship, partnership, and corporate entities.
- Cyclical nature of business: financial cycle and operating cycle; Financial accounting: concept, features, objectives, and scope.
- Book-keeping, accounting, and accountancy; Nature of accounting; Qualitative features of accounting information.
- Users and uses of accounting information: internal users and external users.
- Limitations of financial accounting.
- Bases of accounting: cash and accrual bases of accounting, and Accounting and other disciplines.
Unit 2: Conceptual Framework of Accounting 8 LHs
Contents:
- GAAP and its features; Basic accounting concepts: the business entity concept, the monetary concept,
- the going concern concept, the cost concept, the dual aspect concept, the accounting period concept, the realization concept, the accrual concept, and the matching concept.
- Accounting concepts Vs. Accounting conventions.
- Basic accounting conventions: consistency, conservatism, materiality, and full disclosure.
- Accounting standards: meaning, nature, need, and significance of accounting standards; NAS, IAS, NFRS, IFRS.
- Classification of Accounting standards; Ethics in accounting.
Unit 3: Accounting Process 23 LHs
Contents:
- Accounting events of business: concept and types; Source documents: concept, types and role in recording transactions.
- Accounting equation for analyzing the transactions; Debit and credit and their rules.
- Recording process of accounting events: journal, sub-division of journal, ledger, and trial balance.
Unit 4: Accrual Basis of Accounting 10 LHs
Contents:
- Accrual versus cash basis of accounting.
- Adjusting entries: concept and types of adjusting entries.
- Adjusted trial balance; Closing entries: concept and types of closing entries.
Unit 5: Accounting for Inventories and Cost of Goods Sold 8 LHs
Contents:
- Concept, nature, and cost of inventory.
- Cost of goods sold model.
- Inventory valuation and income measurement: periodic and perpetual systems.
- Methods of inventory valuation in periodic and perpetual systems; Inventory estimation: retail inventory method and gross profit method.
- Effect of inventory valuation on cost of goods sold and its disclosure.
- Analyzing the management of inventory: inventory turnover ratio and number of days’ sales in inventory.
Unit 6: Accounting for Cash and Internal Control 6 LHs
Contents
- Concept and nature of cash; Internal control and principles of internal control activities.
- Cash receipts and disbursement control.
- Preparation of bank reconciliation statement; adjusting entries; petty cash fund; Effect of cash in the balance sheet; Internal control procedures.
Unit 7: Accounting for Receivables 6 LHs
Contents
- Concept, nature and types of receivables.
- Recognition and valuation of accounts receivable: presentation of accounts receivable in the balance sheet, Recognition and valuation of notes receivable.
- Balance sheet presentation of notes receivable.
- Analyzing the management of accounts receivable.
- Accounts receivable turnover ratio and days’ sales outstanding.
Unit 8: Accounting for Current Liabilities and Contingencies 6 LHs
- Concept and nature of current liabilities; types of current liabilities.
- Accounts payable, notes payable, tax payable, other accrued liabilities (accrued expenses and unearned income) and current maturities of long-term debt.
- Recognition and valuation of accounts payable and notes payable.
- Balance sheet presentation of accounts and notes payable.
- Concept of contingent liabilities.
- Accounting entries of product warranty and guarantees.
- Analyzing the management of current liabilities.
Unit 9: Accounting for Long-Lived Assets 10 LHs
Contents
- Concept, features, and types of long-lived assets.
- Acquisition cost of tangible long-lived assets.
- Depreciation of tangible long-lived assets.
- Straight-line method, diminishing balance method, unit of activity method, and depreciation fund method.
- Choice of depreciation method; Disposal of long-lived assets; Impact of depreciation on profit measurement.
- Capital versus Revenue expenditure; Effect of long-lived assets in the balance sheet.
- Analyzing the management of long-lived assets.
Unit 10: Accounting for Long Term Liabilities 8 LHs
Contents
- Concept of tong term liabilities; Concept, features and types of debentures or bonds.
- Accounting entries for issuance and retirement of debentures or bonds.
- Balance sheet presentation of debentures or bonds.
- Concept and types of leases: Acquisition of capital lease; depreciation of leased asset; amortization of lease obligation; balance sheet presentation of lease obligation; analyzing the management of long-term debt.
Unit 11: Accounting for Shareholders’ Equity 7 LHs
Contents:
- Concept of shareholders’ equity; Components of shareholders’ equity.
- Common share, preference share, additional paid-in capital, and retained earnings.
- Balance sheet presentation of shareholders’ equity; Accounting entries for issuance of shares.
- Accounting entries for treasury shares or stock.
- Accounting entries for cash and stock dividends, stock splits, and its effect on shareholders’ equity; Analyzing the management of shareholders’ equity.
Unit 12: Basic Financial Statements 20 LHs
contents:
- Financial statements-means of communicating accounting information: concept, purpose, types and relationship.
- Income statement: concept and types of income statement, components of an income statement, preparation of single-step and multi-step income statements.
- Statement of retained earnings: concept, components, and preparation of retained earnings statement;
- Statement of financial position or balance sheet: concept, purpose, components and preparation of classified statement of financial position or balance sheet.
- Statement of changes in owners’ equity: concept, components, and preparation of statement of changes in owners’ equity.
- (Disclosure required for financial statements as perthe Nepal Company Act and NFRS).
Unit 13: Cash Flow Statement 12 LHs
Contents
- Meaning, objectives, and importance of cash flow statement.
- Contents of cash flow statement; preparation of cash flow statement using trail balance of a year.
- Preparation of cash flow statement using the balance sheets of two dates under direct and indirect methods.
Unit 14: Value Added Statement 6 LHs
Contents:
- Value added: concept and its application.
- Value-added statement: concept, contents, and advantages.
- Preparation of value added statement showing the value added generated and applied.
Unit 15: Analysis of Financial Statement 12 LHs
Contents:
- Meaning, objectives, need, and importance of financial statement analysis.
- Types of financial statement analysis: Horizontal and vertical analysis, comparative and common size statement analysis and their application.
- Ratio analysis: concept, uses, importance and limitations of ratio analysis.
- Types, computations and interpretations of: liquidity (current ratio and quick ratio), capital structure (debt-equity ratio, debt to total capital ratio, interest coverage ratio and debt coverage ratio), efficiency (stock turnover ratio, receivable turnover ratio including collection period, payable turnover ratio including payable period, fixed assets turnover ratio, total assets turnover ratio, capital employed turnover ratio), profitability (gross profit ratio, net profit ratio, operating ratio, return on equity, return on total assets and return on common shareholders equity) and earning evaluation ratios (EPS, DPS and price earning ratio) for evaluating the financial performance of the business.
Hence, these are the BBS 1st Year Accounting for Financial Analysis Syllabus.
Basic Books
- Gupta, R.L. & Radhaswamy, M., Advanced Accounting, New Delhi: S. Chand and Sons.
- Van Horne, Financial Management and Policy, New Delhi: Prentice Hall of India.
- Pandey, I.M., Financial Management, New Delhi: Bikash Publishing House.
Reference Books
- Munankarmi, S.P., Accounting for Financial Analysis and Planning, Kathmandu: Samjhana Publication House.
- Koirala, Y.R. & et al., Accounting for Financial Analysis and Planning, Kathmandu: Ashmita Publication.
- Shrestha, B.P. & Singh, Y.M., Accounting for Financial Analysis and Planning, Kathmandu: Buddha Academy Publication House,
- Dangol, R.M., Accounting for Financial Analysis and Planning, Kathmandu: Taleju Publishing House,
- Upadhyay, J.P. & Dahal, R., Accounting for Financial Analysis and Planning, Kathmandu: Khanal Publication.
- Shukla, S.M., Grewal, T.S. & Gupta, S.P., Advanced Accounting, Agra: Sahitya Bhawan
- Shukla, S.M., Grewal, T.S. & Gupta, S.P. Advanced Accounts, New Delhi: S. Chand and Co.
- Khan, M.Y. & Jain, P.K. Financial Management: Text and Problems, New Delhi: Tata McGraw-Hill Co.
Other Important Links