Corporate Accounting – NEPDecember 7, 2022
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
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
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:
- Name the list of Indian companies which have issued IPO / FPO in recent times.
- Determine Underwriters’ Liability in case of an IPO, with imaginary figures.
- Prepare the format of ‘Statement of Profit and Loss’ and “Balance Sheet’ with
- Prepare Balance Sheet with imaginary figures.
- Calculate the intrinsic value of shares under Net Asset Method.