COMMERCE AND ACCOUNTANCY SYLLABUS FOR IAS

COMMERCE AND ACCOUNTANCY SYLLABUS

Syllabus for the OPTIONAL Paper ‘COMMERCE AND ACCOUNTANCY’ for the IAS Main Examination is listed below. It consists of two parts: COMMERCE AND ACCOUNTANCY PAPER I and COMMERCE AND ACCOUNTANCY PAPER II. Both PAPER I and PAPER II contain 2 topics each.

COMMERCE AND ACCOUNTANCY PAPER – I: Accounting and Finance 

Paper I of ‘COMMERCE AND ACCOUNTANCY’ consists of 2 topics:

TOPIC 1: Accounting, Taxation & Auditing

1) Financing Accounting: 

Accounting as a financial information system; Impact of behavioural sciences. Accounting Standards e.g., Accounting for Depreciation, Inventories, Research and Development Costs, Long-term Construction Contracts, Revenue Recognition, Fixed Assets, Contingencies, Foreign Exchange Transactions, Investments and Government Grants, Cash Flow Statement, Earnings per Share.

Accounting for Share Capital Transactions including Bonus Shares, Right Shares.

Emplyees Stock Option and Buy-Back of Securities.

Preparation and Presentation of Company Final Accounts.

Amalgamations, Absorption and Reconstruction of Companies.

Material that should be used to prepare this topic.

JR Monga & Arun Jha – Financial Accounting and Auditing

JR Monga – Fundamentals of Corporate Accounting

JR Monga & Shweta Bajaj – Basic Corporate Accounting (2 Volumes)

JR Monga & Dr (Ms.) AK Malhotra – Management Accounting

Dr DS Rawat – Taxmann Student’s Guide to Accounting Standards

2) Cost Accounting: 

Nature and functions of cost accounting. Installation of Cost Accounting System. Cost Concepts related to Income Measurement, Profit Planning, Cost Control and Decision Making.

Methods of costing: Job costing, Process

Costing, Activity Based Costing.

Volume-cost-Profit Relationship as a tool of Profit Planning.

Incremental Analysis/Differential Costing as a Tool of Pricing Decisions, Product Decisions, Make or Buy Decisions, Shut-Down Decisions etc.

Techniques of Cost Control and Cost Reduction : Budgeting as a Tool of Planning and Control. Standard Costing and Variance Analysis.

Responsibility Accounting and Divisional Perfor- mance Measurement.

Material that should be used to prepare this topic.

Dr SN Maheshwari and Dr SN Mittal – Cost Accounting and Financial Management

Robert N Welsch & Glen A Anthony –     Fundamentals  of Management Accounting

Dr SN Maheshwari & Dr SN Mittal – Cost Accounting: Theory and Problems 

 

3) Taxation:

Income Tax: Definitions. Basis of charge; Incomes which do not form part of total income. Simple problems of Computation of Income (of individuals only) under various heads, i.e., Salaries, Income from House Property, Profits and Gains from Business or Profession, Capital Gains, Income from other sources, Income of other Persons included in Assessee’s Total Income.

Set-off and Carry forward of Loss. Deductions from Gross Total Income.

Salient Features/Provisions Related to VAT and Services Tax.

Material that should be used to prepare this topic.

Dr Vinod K Singhania & Dr Monica Singhania – Student’s Guide to Income Tax

Dr Girish Ahuja – Systematic Approach to Income Tax, Service Tax and VAT

4) AuditinG:

Company Audit: Audit related to Divisible Profits, Dividends, Special investigations, Tax audit.

Audit of Banking, Insurance, Non-Profit Organization and Charitable Societies/Trusts/ Organizations.

Material that should be used to prepare this topic.

Ravinder Kumar & Virender Sharma – Auditing: Principles and Practice

Dinkar Pagare – Principles and Practice of Auditing

Aruna Jha – Auditing and Corporate Governance

Aruna Jha – Taxmann’s Auditing

topic 2: Financial Management, Financial Institutions and Markets 

1) Financial Management: 

Finance Function: Nature, Scope and Objectives of Financial Management : Risk and Return Relationship.

Tools of Financial Analysis: Ratio Analysis, Funds-Flow and Cash-Flow Statement.

Capital Budgeting Decisions: Process, Procedures and Appraisal Methods. Risk and Uncertainty Anlysis and Methods.

Cost of Capital: Concept, Computation of Specific Costs and Weighted Average Cost of Capital. CAPM as a Tool of Determining Cost of Equity Capital.

Financing Decisions: Theories of Capital Structure—Net Income (NI) Approach.

Net Operating Income (NOI) Approach, MM Approach and Traditional Approach. Designing of Capital structure: Types of Leverages (Operating, Financial and Combined), EBIT-EPS Analysis, and other Factors.

Dividend Decisions and Valuation of Firm : Walter’s Model, MM Thesis, Gordan’s Model Lintner’s Model. Factors Affecting Dividend Policy.

Working Capital Management: Planning of Working Capital. Determinants of Working Capital. Components of Working Capital—Cash, Inventory and Receivables.

Corporate Restructuring with focus on Mergers and Acquisitions (Financial aspect only).

Material that should be used to prepare this topic.

James C Van Horne & Sanjay Dhamija – Financial Management and Policy

Ezra Solomon – Theory of Financial

Management

RP Rustagi – Principles of Financial Management

MY Khan & PK Jain – Financial Management: Text, Problems and Cases

2) Financial Markets and Institutions: 

Indian Financial System: An Overview

Money Markets: Participants, Structure and Instruments. Commercial Banks. Reforms in Banking Sector. Monetary and Credit Policy of RBI. RBI as a Regulator.

Capital Market: Primary and Secondary Market. Financial Market Instruments and Innovative Debt Instruments; SEBI as a Regulator.

Financial Services: Mutual Funds, Venture Capital, Credit Rating Agencies, Insurance and IRDA.

Material that should be used to prepare this topic.

LM Bhole & Jitendra Mahakud – Financial Institutions and Markets

MY Khan – Indian Financial System

Bharti V Pathak – The Indian Financial System: Markets, Institutions and Services

PAPER – II:  Organisation Theory and Behaviour, Human Resource Management and Industrial Relations

Paper II of ‘COMMERCE AND ACCOUNTANCY’ consists of 2 topics:

topic 1: Organisation Theory and Behaviour 

1) Organisation Theory: 

Nature and Concept of Organisation; External Environment of Organisation—Technological, Social, Political, Ecomomical and Legal; Organizational Goals Primary and Secondary Goals, Single and Multiple Goals; Management by Objectives.

Evolution of Organisation theory: Classical Neo- classical and system approach.

Modern Concepts of Organisation Theory : Organisational Design, Organisational Structure and Organisational Culture.

Organisational Design—Basic Challenges; Differentiation and Intergration Process; Centralization and Decentralization Process; Standardization/Formalization and Mutual Adjustment. Coordinating Formal and Informal Organizations. Mechanistic and Organic Structures.

Designing Organizational structures—Authority and Control; Line and Staff Functions, Specialization and Coordination. Types of Organization Structure—Functional. Matrix Structure, Project Structure. Nature and Basis of Power, Sources of Power, Power Structure and Politics. Impact of Information Technology on Organizational Design and Structure.

Managing Organizational Culture.

Material that should be used to prepare this topic.

Amitai Etzioni – Modern Organizations

BP Singh & TN Chabra – Organistion Theory and Behaviour

2) Organisation Behaviour:

Meaning and Concept; Individual in organization: Personality, Theories, and Determinants; Pereception Meaning and Process.

Motivation : Concepts, Theories and Applica- tions. Leadership—Theories and Styles. Quality of Work Life (QWL): Meaning and its impact on Performance, Ways of its Enhancement. Quality Circles (QC)—Meaning and their Importance. Management of Conflicts in Organizations. Trans- actional Analysis, Organizational Effectiveness, Management of Change.

Material that should be used to prepare this topic.

Stephen P Robbins & Timothy A Judge – Organizational Behaviour

Fred Luthans – Organizational Behavior

Davis Keith – Human Behavior at Work: Organizational Behavior

Paul H Hersey, Kenneth H Blanchard & Dewey E Johnson – Management of Organizational Behavior

LM Prasad – Organisational Behaviour

topic 2: Human Resources Management and Industrial Relations 

1) Human Resources Management (HRM): 

Meaning Nature and Scope of HRM, Human Resource Planning, Job Analysis, Job Description, Job Specification, Recruitment Process, Selection Process, Orientational and Placement, Training and Development Process, Performance Appraisal and 360° Feed Back, Salary and Wage Administration, Job Evaluation, Employee Welfare, Promotions, Transfers and Separations.

Material that should be used to prepare this topic.

Eugene McKenna & Nic Beech – The Essence of Human Resource Management

VK Singhania – Management Concepts

Dr CB Gupta – Modern Human Resource Management

RS Dwivedi – Managing Human Resources: Industrial Relations in Indian Enterprises

K Aswathappa – Human Resource Management: Text and Cases

2) Industrial Relations (IR):

Meaning, Nature, Importance and Scope of IR, Formation of Trade Union, Trade Union Legislation, Trade Union Movement in India. Recognition of Trade Unions, Problems of Trade Unions in India. Impact of Liberalization on Trade Union Movement.

Nature of Industrial Disputes: Strikes and Lockouts, Causes of Disputes, Prevention and Settlement of Disputes.

Worker’s Participation in Management: Philosophy, Rationale, Present Day Status and Future Prospects.

Adjudication and Collective Bargaining.

Industrial Relations in Public Enterprises, Absenteeism and Labour Turnover in Indian Industries, and their Causes and Remedies.

ILO and its Functions.

Material that should be used to prepare this topic.

RS Dwivedi – Managing Human Resources: Industrial Relations in Indian Enterprises

CB Mamoria, Satish Mamoria & SV Gankar – Dynamics of Industrial Relations

TN Chhabra & RK Suri – Dynamics of Industrial Relations

Leave a Reply

Your email address will not be published. Required fields are marked *