Course Contents

1. Company Accounts: Types of capital, Treatment of special items like Issue of Shares, over/under subscription, Refund, Underwriting, Issue of Bonus and right shares, Dividends and other payment thereof, definitions and types of dividends, accounting treatment of bonus & right shares 2. Preparation of Final Accounts: Final accounts under Companies Ordinance 1984. Requirements of final accounts, trading account, profit & loss account, profit & loss appropriation account, long term investments, reserves. 3. Analysis of Accounting Ratios: Nature & meaning of ratio analysis, significance of ratio analysis, classification of ratio, short and long term financial positions, Activity ratio and profitability ratio, interpretation of ratios. 4. Branch Accounts: nature and operational system of branch, need for branch accounting, its comparison with departments, types of branches, accounting system for dependent branches, independent branches and head office reconciliation, inter branch transactions. 5. Valuation of Goodwill & Shares: Definition and nature of goodwill, distinguishing features of goodwill, types of goodwill, factors to be taken into consideration while valuation goodwill, accounting for goodwill, average profit method, super profit method, capitalization of average profit and super profit method, need and valuation of shares, assets backing method and yield valuation method.

Course Synopsis

The objective of this course is to equip students about the preparation of Financial Statements of Companies in accordance with statutory requirements of Companies Act and International Accounting Standards (IAS). Further, students are learned about application and selection of Accounting Techniques and procedures to specific circumstances like branches, departmental stores and construction contracts. To make enable students to compare the Companies financial analysis with the help of accounting ratios.

Course Learning Outcomes

After completion of this course students will be able to: • Understand nature of business and accounting technique with respect to International Accounting standards. • Compute and interpret accounting ratios which will helps them to get exposure of industry.