Accounting Advanced - Corporate Accounting

Accounting Advanced - Corporate Accounting

Topic 1 (A): Limited Companies

This unit covers the preparation of financial statements for limited companies in line with International Accounting Standards. Students will explore the roles of auditors, capital and revenue reserves, and how shares are issued, including rights and bonus issues. Key topics include the features of shares and debentures, capital gearing, and provisions. Additionally, the unit covers accounting for mergers and acquisitions, including journal entries, revaluation, and the calculation of goodwill.

Topic 2 (A): Investment Ratios

This unit focuses on key investment ratios used to assess company performance. Students will learn to calculate and interpret ratios such as earnings per share, price-earnings ratio, dividend per share, dividend yield, dividend cover, and return on capital employed. Familiarity with profitability, liquidity, and asset utilization ratios from Unit 1 is essential for understanding these investment-focused metrics.

Topic 3 (A): Statement Of Cash Flows

This unit teaches students how to prepare a statement of cash flows according to International Accounting Standard (IAS) 7. It highlights the significance of liquidity in a company, showing how cash flow statements track the movement of cash in and out of a business. By analyzing cash flows, students will understand a company’s ability to meet short-term obligations and maintain financial stability.

Topic 4 (A): Budgeting

This unit explores the role of budgeting as a crucial management tool for planning, forecasting, and control. Students will learn the budget preparation process and how to create budgets for revenue, production, inventory, cash, trade receivables, and trade payables. The unit also covers the preparation of budgeted statements of comprehensive income and financial position, as well as flexible budgets that adjust for variations in activity levels.

Topic 5 (A): Standard Costing

This unit covers the purpose and implementation of standard costing as a cost management tool. Students will learn the stages involved in establishing a standard costing system, including data collection from accounting records. The unit also focuses on various types of variances—such as material, labor, and total variable overhead variances—and explores potential reasons and interrelationships between these variances. Additionally, students will study the principle of management by exception, which emphasizes addressing significant variances in variance analysis.

Topic 6 (A): Project Appraisal

This unit focuses on methods for evaluating the financial viability of projects. Students will learn to apply discounted methods, including net present value (NPV), weighted average cost of capital (WACC), and internal rate of return (IRR). The unit also covers non-discounted methods such as the average rate of return (accounting rate of return) and payback period, providing a comprehensive framework for assessing project profitability and risk.

Topic 7 (A): Break Even Analysis

This unit focuses on break-even analysis, teaching students to calculate fixed, semi-fixed, semi-variable, and variable costs, as well as selling price and net profit. Students will learn about contribution, break-even point, and margin of safety. The unit also emphasizes the graphical representation of break-even analysis, including elements such as fixed costs, total costs, sales revenue, break-even point, margin of safety, angle of incidence, and the areas of profit or loss.

Topic 8 (A): Marginal And Absorption Costing

This unit explores the concepts of marginal costing and absorption costing. Students will learn the advantages and disadvantages of each method, as well as how to value inventory using both approaches. The unit covers the application of marginal costing in decision-making processes, including accepting or refusing new orders, make-or-buy decisions, and the continuation or discontinuation of products or services. Additionally, students will prepare profit and loss statements using both costing methods and consider factors that influence the preferred course of action in constrained situations.

company

topics

Accounting Basics

Accounting Advanced