AFA - 1 Syllabus

UNIT 1
07 hours
Consolidation
AS-21 Accounting for Consolidated Financial Statements: Objective and scope, parents and subsidiary, format
of consolidated financial statements, Consolidation procedures, Minority Interest, Disposal of Investment in
subsidiary, Disclosures required.
UNIT 2.
07 hours
Cash Flow Statement
Introduction, meaning of CFS, differences between FFS and CFS, utility and limitations of CFS, Preparation of
CFS , advanced problems (Both indirect and direct method) according to accounting standards.
UNIT 3.
05 hours
Profits prior to incorporation
Problems on computation of profits prior to incorporation
UNIT 4.
11 hours
Final Accounts
Statutory requirement on books of accounts, [profit and loss account, Balance sheet Dividends $ disclosures;
Presentation formats; [problems on final accounts with treatment of special items taxation, dividends, corporate
dividend tax.Managerial remuneration Statutory provisions; calculation of profits for managerial
remuneration; Simple problems on calculating maximum permissible remuneration.
UNIT 5.
11 hours
Funds Flow Statement
Introduction, Meaning of Funds Flow Statement, Concept of Fund, Concept of Flow of Fund, Uses and
Limitations of Funds Flow Statement, Schedule of Changes in Working Capital, Calculation of Funds From
Operations, Statement of Sources and Application of Funds , advanced problems on the above.
UNIT 6.
09 hours
Financial Statement Analysis and IFRS
Concept and types of Financial Statements, significance and importance of Financial Statements, methods of
analysis of financial statements, techniques of analysis and interpretation , Comparative Income Statements,
Comparative Balance Sheets, Common Size Income Statements, Common Size Balance Sheets, Trend Analysis.
Problems on the above.
IFRS-Background, Meaning, International and Indian scenario, specific issues- Product Classification and
Significant risks, Investment Accounting and Valuation under IFRS, Deferred Acquisition Costs, Estimation of
Actuarial Liability, Disclosure Requirements.
UNIT 7.
10 hours
Liquidation Of Companies
Meaning; Statutory provisions on liquidation, preferential creditors & overriding preferential payments; format
of statement of affairs; problems on preparation of statement of affairs and preparation of liquidators final
statement of account; list B contributories.