Corporate Accounting – NEP

Corporate Accounting – NEP Syllabus B.Com 3rd Semester – Bangalore City University

Module No. 1: Underwriting of Corporate Securities
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
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 Good will
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
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 5: Financial Statements of Companies
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.

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