NEP 3rd SEMESTER B.COM.

,
SYLLABUS ORIENTATION 2022 – 23
CORPORATE
ACCOUNTING
rd
3
SEMESTER B.com
Prof. GURURAJ RAO
VIJAYA COLLEGE
Syllabus:
Total Teaching Hours : 56 hours
Total Credits: 4
Course Outcomes: On successful completion of the course, the students will be able to
a. Understand the treatment of underwriting of corporate Securities.
b. Comprehend the computation of profit prior to incorporation.
c. Know the valuation of Goodwill.
d. Know the valuation Corporate Securities.
e. Prepare the financial statements of companies as per the Companies Act 2013.

Module No. 1: Underwriting of Corporate Securities 12 hours

Introduction - Meaning of Underwriting – SEBI regulations regarding underwriting; Underwriting Commission- Types of underwriting – Firm Underwriting, Open
Underwriting - Marked and Unmarked Applications –Determination of Liability in respect of underwriting contract – when fully underwritten and partially
underwritten – with and without firm underwriting problem relating to Underwriting of Shares and Debentures of Companies only.

Module No. 2: Profit Prior to Incorporation 10 hours

Introduction - Meaning – calculation of sales ratio – time ratio – weighted ratio – treatment of capital and revenue expenditure – Ascertainment of pre-
incorporation and post incorporation profits by preparing statement of Profit and Loss (Vertical Format) as per schedule III of Companies Act, 2013.

Module No.3 Valuation of Goodwill 10 hours

Introduction - Valuation of Goodwill –factors influencing goodwill, circumstances of valuation of goodwill- Methods of Valuation of Goodwill: Average Profit
Method, Capitalization of average Profit Method, Super Profit Method, Capitalization of Super Profit Method, and Annuity Method-Problems (Based on both
Simple and Weighted Average)

Module No. 4: Valuation of Corporate Securities 10 hours

Introduction - Meaning – Need for Valuation – Factors Affecting Valuation – Methods of Valuation: Intrinsic Value Method, Yield Method, Earning Per Share
Method, Fair Value of shares. Valuation of Preference Shares – Valuation of Debentures

Module No. 5: Financial statements of companies 14 hours

Statutory Provisions regarding preparation of Financial Statements of Companies as per schedule III of Companies Act 2013 and IND AS-1 – Treatment of Special
Items – Tax deducted at source – Advance payment of Tax – Provision for Tax – Depreciation – Interest on debentures – Dividends – Rules regarding payment of
dividends – Transfer to Reserves – Preparation of Statement of profit and loss and Balance Sheet.
Skill Development Activities:
1. Name the list of Indian companies which have issued IPO / FPO in recent times.
2. Determine Underwriters’ Liability in case of an IPO, with imaginary figures.
3. Prepare the format of ‘Statement of Profit and Loss’ and “Balance Sheet’ with imaginary figures.
4. Prepare Balance Sheet with imaginary figures.
5. Calculate the intrinsic value of shares under Net Asset Method.
 SEMESTER END EXAMINATION - TEMPLATE
BACHELOR OF COMMERCE – B.COM
Course Code: B.COM 3.1: CORPORATE ACCOUNTING
Duration: 2.30 Hours Total Marks: 60
SECTION-A
(Conceptual Questions)
I. Answer any Five of the following questions. Each question carries Two Marks. (5 x 2= 10)
a.
b.
c.
d.
e.
f.
g.
SECTION- B
(Application Questions)
Answer any Four of the following question. Each question carries Five Marks. (4 x5= 20)
2.
3.
4.
5.
6.
SECTION- C
(Analyses and Understanding Questions)
Answer Any Two of the following question. Each question carries Twelve Marks. (2 x12= 24)
7.
8.
9.
SECTION- D
(Skill Development Questions)
Answer Any One of the following question, carries Six Marks. (1 x6= 06)
10.
11.
 BLUE PRINT
Units Theory / Problems Marks Allotment Total Marks in each Unit
Section A = 1
ONE THEORY & PROBLEMS Section B = 1 19
Section C = 1 Section B – Partial
underwriting only
Section A = 2
TWO THEORY & PROBLEMS Section B = 1 9
Section B –
Calculations of
ratios or
preparation of
statement
No Section C
question
Section A=1
THREE THEORY & PROBLEMS Section B = 1 19
Section C = 1 Section B – simple or
weighted average
method
Section C – Super
Profit Method
THEORY & PROBLEMS Section A =1
FOUR Section B = 1 19/13
Section C = 1* or
Section D = 1*
 THEORY & PROBLEMS Section A = 2
FIVE SectionC= 1* 10/16
or
SectionD= 1*
Note: 1 theory question for section B can be asked from any of the chapters
Section D questions will only be from the Skill development.
There will be a option for 12 marks between Valuation of securities and Financial statements of
companies