Module B (Certificate Stage)

Advanced Accounting Concepts

Financial Statement Analysis

Business Taxation

Fundamentals of Financial

Management

Module C (Professional Group I) Strategic Business

Communication Corporate Performance

Evaluation Managerial Accounting &

Decision Making Professional Values & Ethics

Module D (Professional Group II)

IFRS & External Independent

Reports Financial Management Policy &

Procedure Total Quality Management Audit & Assurance

Module A (Foundation Stage)

Basic Accounting Tests &

Techniques

Industrial and Commercial Laws

Strategic Business Management

Corporate Governance

Syllabus of

Certified Financial Accountant Program

The Society of Accounting Education

Sr.

No.

Course

Code Course

Class

Room

Hours

Credit

Hours

Module A (Foundation Stage)

1 FS-01 Basic Accounting Tests & Techniques 60 5

2 FS-02 Industrial and Commercial Laws 50 4

3 FS-03 Strategic Business Management 60 5

4 FS-04 Corporate Governance 60 5

Sub-Total (A) 230 19

Module B (Certificate Stage)

5 CS-01 Advanced Accounting Concepts 60 5

6 CS-02 Financial Statement Analysis 50 4

7 CS-03 Business Taxation 50 4

8 CS-04 Fundamentals of Financial Management 60 5

Sub-Total (B) 220 18

Module C (Professional Group I)

9 PG-01 Strategic Business Communication 60 5

10 PG-02 Corporate Performance Evaluation 60 5

11 PG-03 Managerial Accounting & Decision Making 60 5

12 PG-04 Professional Values & Ethics 50 4

Sub-Total (C) 230 19

Module D (Professional Group II)

13 PG-05 IFRS & External Independent Reports 50 4

14 PG-06 Financial Management Policy & Procedure 60 5

15 PG-07 Total Quality Management 60 5

16 PG-08 Audit & Assurance 60 5

Sub-Total (D) 230 19

Grand-Total (A+B+C+D) 910 75

The Society of Accounting Education 1

Course Outline of Certified Financial Accountant

Program

OBJECTIVE

The course objective is to develop the understanding of basic concepts and techniques of

accounting /book keeping.

COURSE CONTENTS:

Financial Accounting

Introduction

Accounting Standards

Accrual vs Cash Method

Underlying Assumptions, Principles and Conventions

Financial Statements

Double Entry Accounting

Fundamental Accounting Model

Transactions

The Accounting Process

Underlying Assumptions and Principles

Single Entry Bookkeeping

Double Entry Bookkeeping

The Accounting Equation

The Accounting Cycle

The Source Document

Journal Entries

Debit and Credit

Trial Balance

Adjusting Entries

Closing Entries

The Financial Statements

Financial Accounting Standards

The Society of Accounting Education 2

MODULE (A) COURSE CODE FS-01

BASIC ACCOUNTING TESTS & TECHNIQUES

RECOMMENDED BOOKS FOR READING:

Modern Accounting By Mukerjee M. Hanif Tata McGraw Hill Publishing Co.

How to Read a Financial Report By Tracy John A

Accounting Principles By Jerry J W.eygandt Paul D. Kimmd & Donard E. Kieso

Financial Statements By Ittelson, Thomas R.

Accounting By Meigs & Meigs

OBJECTIVE This course has been selected to teach to the students, to equip in the application of Industrial and Commercial Laws, during their services, or to run the businesses. COURSE CONTENTS: INDUSTRIAL LAWS I. THE FACTORIES ACT Definitions, certifying surgeon and inspector, their powers and duties, provisions relating to Health, safety and welfare, hours of work and holidays, special provisions regarding employment of women and children/adolescent. II. INDUSTRIAL RELATIONS ORDINANCE Definitions, Trade union and its registration, collective bargaining agent, unfair labour practices, method of settlement of Industrial disputes labour courts, strike and lockout. III. WORKMEN’S COMPENSATION ACT Meaning of the terms Accident and arising out of and in the course of disablement, employer’s liability, when employer is not liable to pay compensation. COMMERCIAL LAWS I. LAW OF CONTRACT Introduction and definition of contract, Essentials of a valid contract, void agreements, contingent of the contract, Discharge of contract, quasi contracts, Indemnity and Guarantee, Bailment and Pledge, Agency etc. II THE SALE OF GOODS ACT Define goods and its classification, Distinction between sale and agreement to sell, price, conditions and warranties, Transfer of property, Transfer of title, unpaid seller and his rights, Delivery and its rules, Auction sale. III. THE PARTNERSHIP ACT Definition of partnership & Determination at will, Rights and duties of Partner(s) implied authority of a partner, position of a Minor Partner, Dissolution of Partnership, Registration and effect of non-registration of the firm.

The Society of Accounting Education 3

MODULE (A) COURSE CODE FS-02

INDUSTRIAL AND COMMERCIAL LAWS

IV. THE NEGOTIABLE INSTRUMENTS ACT Introduction, meaning, requirements characteristics of negotiable instruments, Definition and Distinction of Promissory notes, Bill of Exchange and cheque. Crossing – object and kinds, A brief introduction of endorsement, Negotiation, presentment, Acceptance and Dishonour. Discharge from liability. V. SECURITIES A brief Introduction of Mortgages, changes and Hypothecation. VI. CARRIAGE OF GOODS. Common Carrier. Essentials of a Common Carrier, Rights, and Duties of a common Carrier.Restricted Liability of Railway Carriage as common carriage and by Sea.

RECOMMENDED BOOKS FOR READING

Mercantile Law of Pakistan Accountancy & Taxation Services Institute, Lahore (Latest Ed.) By Khawaja Amjad Saeed.

Business Law By Syed Mobin Mahmud Co. Lahore. Govt. of Pakistan Relevant Acts and Ordinances (latest Ed.)

A Manual of Mercantile Law – 11thRevised Edition S. Chand and Co. (Pvt.) Limited 1989 M.C. Shukla

Bare Acts, Govt. of Pakistan.

Elements of Mercantile Law By Sultan Chand & Sons New Dehli.

OBJECTIVES

This course is very important to give full strength to manage the things in the Business

Environment and give professional knowledge to become a strong Manager.

COURSE CONTENTS:

o Management: An overview.

o The Manager’s Diverse Environment

o Social Responsibility and Business Ethics

o Managerial Decision Making

o The Planning Process

o Strategic Planning

o The Organizing Process and the Informal Organization

o Organizing Concepts and Organization Structure.

o Human Resource Management and the Staffing Function.

The Society of Accounting Education 4

MODULE (A) COURSE CODE FS-03

STRATEGIC BUSINESS MANAGEMENT

o Motivation.

o Leadership.

o Communication

o Group Performance, Team Building and Conflict.

o Power, Organizational Politics and Stress.

o Corporate Culture, Change and Development.

o The Controlling Processes and Techniques.

o Total Quality Management.

o Management in the Multinational Environment

o Production and Operation Management

o Management Information Systems

RECOMMENDED BOOKS FOR READING

Study Guide, By Jeanne Daboval McNeese State University, Seventh Edition.

Managmeent Concepts, Pratices and Skills By R. Wayne Mondy, Shane R. Premeaux Prentice Hall, Englewood Cliffs, New Jersey.

Essential of Managmenet an Innternational Perspective B y Harold Koontz, Weihrich, Tata McGraw Hill

Management By Stephen P. Robins & Mary Coulter Prentice Hall International Inc. New York.

Principles of Management By George R. Terry

OBJECTIVE

To provide the participants with a broad conceptual framework and understanding of

Industry practice and compliance issues in corporate governance.

COURSE CONTENTS

i. Corporate Governance and Corporate Accountability An introduction and general mapping of the issues with reference to the relevant academic literature on the subject:

o The legal model of the company, and its failure

o Forces driving corporate governance since the 90s

o The Cadbury model and codes of corporate governance

The Society of Accounting Education 5

MODULE (A) COURSE CODE FS-04

CORPORATE GOVERNANCE

ii. The Board as a Mechanism of Corporate Governance The presenters will seek to elicit the views of participants while defining the issues, summarizing research, and making their own suggestions on the following topics:

o Responsibilities of the Board;

o What constitutes "independence" of directors?

o What should non-executive directors be doing?

o Audit Committee

o Institutional Nominees;

o The need for a legislative statement of directors' duties.

iii. Corporate Governance and the Market

o Disclosure and transparency issues

o Accounting standards and auditor’s independence

o Do Institutional Investors have governance responsibilities?

o Corporate governance and takeover regulations

o Shareholder voting rights

iv. Between Self-Regulation and Compliance

o Corporate law and the Department of Corporate Affairs

o SEBI Code of Corporate Governance and Clause 49 of the Listing Agreement

o Compliance issues and some company responses

The Society of Accounting Education 6

OBJECTIVE

The primary objective of this course is to enable the students to understand the General

Accounting Theory pertaining to the Business Combinations. Secondly to make the students

familiar with the applicability of IAS /GAAP/IFRS regarding requisite financial disclosures for

consolidated financial statements resulting from Business Combinations.

At the completion of this course, the students will be able to understand the general

accounting theory pertaining to the Business Combinations. The students should be able to

complete various types of consolidate financial statements resulting from “Business

Combinations. Finally, the students will be required to have a good understanding of the full

depth involving the international accounting environment, as well as disclosure requirements

for as prescribed in the IAS/ GAAP/ IFRS.

COURSE OUTLINE

o Business Combinations – Introductions

o Business Combinations – [Continued] The Environment

o Consolidated Statements – Date of Acquisition

o Consolidated Statements – Date of Acquisition [Continued]

o Consolidated Statements – Subsequent to Acquisition

o Consolidated Statements – Subsequent to Acquisition [Continued]

o Inter Company Transactions – Merchandising, Plant Assets and Notes

o Inter Company Transactions –Merchandising, Plant Assets and Notes

o Inter Company Transactions – Merchandising, Plant Assets and Notes[Cont.]

o Inter Company Transactions – Bonds and Leases

o The International Accounting Environment

o Interim Reporting – Disclosure

o Segments of an Enterprise

RECOMMENDED BOOKS FOR READING

Intermediate Accounting By Donald E Kieso & Jerry J. Wygandt

Modern Advanced Accounting By E. John Larsen & A.N. Mosich

Advance Accounting By R.L. Gupta & M. Radha Swamy

International Accounting Standards

Advanced Accounting By S.P. Jain & K.L. Narang

The society of Accounting Education 7

MODULE (B) COURSE CODE CS-01

ADVANCE ACCOUNTING CONCEPTS

OBJECTIVES

The learning objectives of this course, to develop know how about financial statement analysis, which is very important to understand the whole scenario and trend analysis of the Industry / Organization and to make corrective action to improve the business and its positive results. COURSE OUTLINE Course Structure: The course is organized into three parts: Part One: Overview of Financial Statement Analysis This section emphasizes understanding business activities – planning, financing, investing and operating. It describes strategies underlying business activities and their effect on the financial statements, and it discusses the objectives of analysis. Important tools and techniques in analyzing and interpreting financial statements are illustrated. Part Two: Accounting Analysis This section describes the accounting measurement and reporting practices underlying financial statements. Presentation is organized around financing (liabilities and equity), investing (assets), and operating (income and cash flow) activities Part Three: Financial Analysis In this section, the processes and methods of financial statement analysis are examined. The objectives of users and the analytical tools and techniques for meeting those objectives are emphasized. This section demonstrates how analysis tools and techniques enhance users’ decisions – including company valuation and lending decisions. It also shows how financial statement analysis reduces uncertainty and strengthens confidence in making timely business decisions.

o Introduction to Investing and to the Financial Statements.

o Choosing a Technology: Method of comparables, Asset-based Valuation, Screening

Analysis, Pro Forma Analysis, Dividend Discount Analysis, Discounted Cash Flow

Analysis, and Contrasting Cash Accounting with Accrual Accounting

o Pricing Book Values and Pricing Earnings

o Analysis of the Statement of Shareholders Equity

o Balance Sheet and Income Statements

o Profitability analysis

The Society of Accounting Education 8

MODULE (B) COURSE CODE CS-02

FINANCIAL STATEMENT ANALYSIS

o Analysis of Sustainable Earnings and Growth

o Analysis of Cash Flow Statement

o Pro forma Analysis for Operating and Financial Activities, enterprise valuation and

leverage

o Simple Forecasting and Valuation

RECOMMENDED BOOKS FOR READING

Royal Modern Advanced Accounting By Spicer & Peglar

SAARC requirements

Annual Reports of the Top Few Listed Companies.

Financial Statement Analysis and Security Valuation”, By Stephen Penman McGraw Hill Irwin (4th Ed.)

Modern Advance Accounting By E. John Larsen, McGraw Hill Co. Inc.

OBJECTIVES

o To familiarize the students with the Income Tax Laws and its Practice.

o To elaborate the important elements and aspects of tax system and authorities and their

limits.

o To equip the students with necessary skills to deal with tax matters.

COURSE CONTENTS

o Introduction and scope of Income Tax Law in Pakistan

o Definitions and Terminologies

o Exclusions from total income

o Reduction in tax liability

o Exemption from specific provisions of income tax ordinance 2001

o Distinction between capital and revenue items of expenditures

o Tests for differentiating capital and revenue receipts

o Tests for differentiating capital and revenue expenditures

o Capital Loss.

The Society of Accounting Education 9

MODULE (B) COURSE CODE CS-03

BUSINESS TAXATION

o Income from Salary and Scope of Salary income

o Allowances and relieves under the Ordinance

o Types of provident fund, treatment of provident fund, sixth schedule employer’s

contribution of approved gratuity fund deduction from income, gratuity fund deduction

from income, gratuity fund and schemes

o Computation of income tax payable from salaries persons

o Income from business and professional terms used

o Considerations governing taxation of business profits

o Maintenance of accounts on mercantile or cash basis

o Income chargeability under income tax law on income from business

o Principles of computation of taxable profits, allowable deductions

o Deduction for computing business income, significant changes introduced by the

ordinance

o Non-admissible expense

o Bad debts

o Income from Property tax on agriculture income

o Calculation of ALV

o Allowable deduction from income from property

o Set-off and carry forward of losses

o Types of Losses

o Rules for set-off and carry forward

o Penalties, offenses, appeals and prosecutions

o Income tax authorities their appointments, duties, limitation and powers.

o Income from other sources

Deduction for computing income from other sources

o Exchange gain / losses, income deemed to accure or arise

o Tax accountings and assessment cycle, procedure filling of return.

o Assessment of individual salaried and non-salaried person

o Self-assessment scheme

o Appeals

o Practical Problems

The Society of Accounting Education 10

RECOMMENDED BOOKS FOR READING (LATEST EDITIONS)

Income Tax Principles and Practice, By Syed Mobin & Co. Lahore

Income Tax Law By Khawaja Amjad Saeed,

Income Tax Ordinance 2001, Govt. of Pakistan. & Income Tax Law By Luqman Baig

Direct Taxes in Pakistan By Huzaina Bukhari & Dr. Ikramul Haq.

Synopsis of Taxes in Pakistan By Mirza Munawar Hussain Iqbal Brothers, Lahore.

OBJECTIVES:

To develop:

o understanding of an integrated perspective for the inter-relation between financial

markets, financial institutions and management

o competence about the latest approaches/tools to critically examine and measure the

performance of business concerns

o skills to solve investment and financial problems in the light of specified goals of the firm

COURSE CONTENTS:

Section I

o Forms of business organization

o Goals of the Corporation

o Agency relationships

Section II

o Balance Sheet

o Income Statement

o Statement of cash flows (FASB Opinion NO.95) (IAS7)

o Personal Taxes

o Corporate Taxes

The Society of Accounting Education 11

MODULE (B) COURSE CODE CS-04

FUNDAMENTAL OF FINANCIAL MANAGMENT

Section III

o Ratio Analysis

o Du Pont system

o Effects of improving ratios

o Limitations of ratio analysis

o Qualitative factors

Section IV

o Forecasting sales

o Projecting the assets needed to support sales

o Projecting internally generated funds

Section V

o Projecting outside funds needed

o Deciding how to raise funds

o Seeing the effects of a plan on ratios

Section VI

o Stand-alone risk

o Portfolio risk

o Risk & return: CAPM/SML

Section VII

o Future value

o Present Value

o Rates of return

Section VIII

o Amortization key features of bonds

o Bond Valuation

o Measuring yield

o Assessing risk

The Society of Accounting Education 12

Section IX

o Features of common stock

o Determining common stock values

o Bonus / Right shares

Section X

o Efficient markets

o Preferred stock

o Sources of capital

Section XI

o Component costs

o Adjusting for flotation costs

o Adjusting for risk.

RECOMMENDED BOOKS FOR READING:

Fundamental of Financial Management By James Van Horn

Business Finance By McGraw Hill, Sydny Peirson, Grahem & Brown, Rob (1998)

Business Finance, By Stanely B. & Hirt Geoffroy A, (2002)

Melicher, W.R & Norton A.E., (2005) Finance By John Wiley and Sons Inc.

Fundamental of Financial Management (10th Ed.) South Western College Publication Brigham / Houston

OBJECTIVES:

o To learn the most successful and proven ways that all forms of business communications

should be handled i.e. letters, emails, reports, presentations, telephone conversations etc.

o This course offers flexibility with the added-value of self-study, designed to enable you to

work at your own pace.

o On completion of the course you will be able to use Strategic Business technique of

Communications within your area of activity.

The Society of Accounting Education 13

MODULE (C) COURSE CODE PG-01

STRATEGIC BUSINESS COMMUNICATION

COURSE CONTENTS:

The Three Basic Steps to Business Writing

o Prewriting (Preparation)

o Writing (Organizing and Outlining)

o Revising and proof reading.

Improving Readability

o Using simple language – focus on clarity and tone

o Avoid Stang, Jargon and Abbreviations

o Avoid usage of vague adjectives

o Avoid cliché’s and awkward references

Guidelines to Writing Good Sentences

o Focus on clarity and meaning rather than a “complete thought”.

o Sentences should be neither too long nor too choppy.

o Avoid empty phrases that make the sentence heavy.

o Be careful not to mix verb forms within a sentence.

Gender Inclusive Language

o In today’s business world – men and women both hold important positions – hence

importance of gender inclusive language.

Words Commonly Confused

o These words often used in business writings, sound and are spelled similar but have very

different meanings.

Paragraphs

o How to use topic sentences to make your paragraph effective.

o Use opening, body and closing paragraphs to organize your business writing

Organizing and Writing Business Letters

o State your Purpose

o Know your Reader

o Determine the scope of your letter

o Research your subject

o Outline your letter

The Society of Accounting Education 14

o Proof read for grammar and errors

o Revise for Clarity, Brevity and Simplicity

Sample Business Letters

Forms of letter / sample may be viewed:

o Announcement of Change of Address

o Acknowledgement of Receipt of Documents

o Apology and Replacement of Damaged Goods

o Apology for Accounting errors, and passed due Notices.

o Appointment for Employment interview and Testing Complimentary Letter to Employee

on Handling of Difficulty.

o Congratulations on Increased Sales

o Covering Letter to Response to Catalog Request.

Written Communication

o Various Forms of Written Communication

o Disadvantages of Written Communication

o Meetings and Group discussions

o Running the sessions

o Important points to keep in mind while having a meeting

Email Etiquettes

o How do you enforce Email Etiquette?

o 32 Essential Email Etiquettes that will apply to all companies.

Tips for Using the Internet for Business Success

o Have an internet strategy?

o Use the internet to your advantage to keep in touch with customers.

o To increase business

o To make important business contacts.

o To have your own web site and use it to promote business

o Use the Internet for competitor research.

RECOMMENDED BOOKS FOR READING:

Effective Performance By Lockett Measurement Pitman Publishing London

The Operational Auditing Handbook By Andrew Chambers & Graham Rand John Willey & Sons Ltd. – England

Business Communication & Report Writing Presentation Skills. Functional English: By K.M. Siddiqui Al-Hamad Academy, Karachi

Excellent in Business Communication By Join V Thill Courtland LBove’s Prentice Hall International inc. Upper Saddle River, New Jersey

Communication for Business (A practical approach) By Shirley Taylor, Pitman Publishing, London

The Society of Accounting Education 15

OBJECTIVES:

It’s a modernized course, which is necessary to learn the students, for getting complete edge

and ideas how to evaluate the Corporate Performance, material of this course is available in

the useful links, reference material section of the SOAE website.

COURSE CONTENTS:

o Why evaluate the performance of organizations?

o Why is so much measurement in purely financial terms?

o Are ‘soft’ measures of performance of any use?

o Is performance evaluation an end in itself, or a potentially valuable tool for business

managers?

o Is it feasible to have a measurement system that monitors all the lead indicators of an

organization’s performance?

o How do we look to our shareholders (what they term the financial perspective)?

o How do we look to our customers (the external perspective)?

o At what must we excel (the internal perspective, viewed in terms of core competencies)?

o How can we maintain continuous performance improvement, and create added value

(what they term the innovation & learning perspective)?

o How can measures be integrated both across an organization’s functions

and through its hierarchy?

o How can conflicts between measures be avoided?

o Can functional and process measures co-exist?

o Everything can be measured but how can the number of measures be

kept to a meaningful but manageable set?

o How can the cost/benefit of a system be analyzed?

o How does process measurement build capability?

The Society of Accounting Education 16

MODULE (C) COURSE CODE PG-02

CORPORATE PERFORMANCE EVALUATION

o For Individual Measures:

o How can ‘flexibility’, which is often simply a property of the business process, be

measured?

o How can measures be designed to promote inter-function co-operation?

o How can measures be designed that do not encourage ‘short-termism’?

o How can measures be designed to encourage appropriate (e.g. employee) behaviour?

o How can ‘flexible’ measures, those that take account of changes in the business

environment, be defined?

o How should data generated from a measure be displayed?

o How can management ensure that appropriate (perhaps corrective) action follows

measurement?

o How can predictive measures be identified and developed?

o Set-off and carry forward of losses.

For The Business Environment:

o How can organizations integrate measures into strategic control systems?

o How can management ensure that the system matches the organization’s strategy and

culture?

o Where are the strongest links to business strategy?

o To which dimensions of the internal and external business environment does the system

have to be matched?

RECOMMENDED BOOKS FOR READING:

Effective Performance By Lockett Measurement Pitman Publishing London

The Operational Auditing Handbook By Andrew Chambers & Graham Rand John Willey & Sons Ltd. England

The Society of Accounting Education 17

OBJECTIVES:

o To develop the skills in students so they are be able to make proper distinction between

different types of costs.

o To equip the students with emerging new concepts and its application in the field of

managerial accounting.

o To develop the skills in students to design the costing system that help in decision making.

COURSE OUTLINE

Basic Cost Management Concepts:

Meaning of cost, manufacturing costs, manufacturing cost flow, different costs for different

purposes, costs and benefits of information.

The changing role of managerial accounting in a dynamic business environment:

o Managerial accounting: managerial vs financial accounting, managerial accounting in

different types of organization, evolution and adaptation in managerial accounting.

o Service vs. manufacturing firm, emergence of new industries, global competition, focus on

customer, cross functional team, computer integrated manufacturing, product life cycle

and diversity and time based competition.

Activity based Costing and Activity Based Management:

o Some key issues about cost drivers

o Activity dictionary and bill of activities, direct vs. indirect costs, when is new product-

costing system needed.

o Cost management systems.

o ABC and advanced manufacturing environment:

o Flexible manufacturing system,

o Two dimensional ABC,

The Society of Accounting Education 18

MODULE (C) COURSE CODE PG-03

MANAGERIAL ACCOUNTING & DECISION MAKING

o Customer profitability analysis.

o Target costing, kaizen costing.

o Bench marking and reengineering,

o Theory of constraints.

Activity Analysis, Cost Behaviour and Cost Estimation

o Cost behaviour patterns

o Operational based vs. volume based cost drivers

o Cost estimation methods.

Cost Volume Profit Relationship:

o Projected expenses and revenues,

o Breakeven point and target net profit,

o Applying CVP analysis, CVP analysis with multiple products, assumption under CVP

analysis, CVP and income estimation, cost structure and operating leverage.

o Profit planning, activity based budgeting and e-budgeting;

o Types of budgets (master budgets, budgeted financial statements), manufacturing

overhead budget, ABB and the cost hierarchy, financial planning models and budget

administration

o Zero based budgeting and international aspects of budget

o Standard costing, operational performance, and the balanced score card: managing costs,

setting standards, multiple types of direct material and direct labour.

Flexible budgeting and the management of overhead and support activity costs

overhead budgets:

o Choice of activity measure,

o Cost management using overhead cost, overhead cost performance report, and activity

based flexible budgets.

Responsibility accounting, quality control, and environmental cost management

o Responsibility centers and performance reports

o Behavioral effects of responsibility accounting,

o Segmented reporting and total quality management.

o ISO 9000 standards and environmental cost management

The Society of Accounting Education 19

Decision making, relevant cost and benefits:

The managerial Accountant role in decision making, relevant information, identifying relevant

costs and benefits and analysis of special decision.

RECOMMENDED BOOKS FOR READING:

Management Accounting: A Decision Emphasis By John Wiley, Jessi, Raiborn & Kenney

Management Accounting and By Sultan Chand S.M. Maheswari

Management Accountancy By McDonald & Evans J. Batty

Financial Policy and Management Accounting By Bhabatosh Banerjee World Press

Strategic Cost Management University of Calcutta By Basu, Banerjee and Dandapat

OBJECTIVES

This course introduces students to the practices and codes of conduct involved in the finance

function. The course covers ethical issues and the roles of the corporate financial manager,

other stakeholders and other participants in the investment industry. The emphasis of the

course will be on readings, rules, and regulations from the SOAE for Certified Financial

Accountant Program. Cases and speakers will be employed to bring a real world perspective

to the classroom. This course introduces students to the conflicts of interest faced by finance

professionals. In addition, students are introduced to the codes of conduct, rules, regulations,

and practices required of finance professionals by the SOAE through Certified Financial

Accountant Program. In particular, we look at the rationales for these rules. We also look at

the role of ethics in personal financial planning. This course is valuable to anyone who plans to

manage their own finances. This course is also valuable to any student who intends to pursue

a career as a Finance professional. Potential careers that come under this heading include:

Compliance Officer, Financial advisor, corporate financial manager, director or other officer,

money or investment manager, banking or investment banking professional, lawyer

specializing in the fiduciary relationship, and/or public sector finance manager, to name a few.

The Society of Accounting Education 20

MODULE (C) COURSE CODE PG-04

PROFESSIONAL VALUES & ETHICS

Upon completion of this course, students will be able to complete the following key

tasks:

o Recognize the principal conflicts of interests faced by those working in the Financial

Services industry

o Recognize the principal conflicts of interest faced by anyone involved in managing their

own finances

o Recognize the principal conflicts of interest faced by government and non-regulatory

agencies in regulating the Financial Services sector

o Understand why government, non-regulatory agencies, and Financial Service participants

do not always attempt or sincerely attempt to minimize these conflicts of interest

o Begin to think about ways to minimize these conflicts of interest that would appeal to the

various parties to the process

o Understand some of the rules and regulations that govern behaviour in the Financial

Services Industry

COURSE OUTLINE

Code of Ethics and Standards of Professional Conduct

o Standard I. Professionalism

o Standard II. Integrity of Capital

o Standard III. Duties to Clients

o Standard IV. Duties to Employers

o Standard V. Investment Analysis, Recommendations and Actions

o Standard VI. Conflicts of Interest

o Standard VII. Responsibilities as SOAE member of Certified Financial Accountant.

HELPING MATERIAL

Newspapers, Article and available presentations

The Society of Accounting Education 21

OBJECTIVES

IFRS adoption, while a significant regulatory event, is also an opportunity and potential

catalyst for organizations to create global standards and achieve benefits. Required changes

means that IFRS transitioning will have impact not only on the accounting process but will

also have an impact on the IT infrastructure, the financial reporting applications and the

business processes supporting financial reporting. This 1 day program is designed for Internal

Auditors, and focuses on the drivers to IFRS, conversion approaches and methodologies,

potential benefits and the role of key parties in implementing IFRS.

The program includes the presentation sessions, exercises and case study. It will also provide

opportunities to discuss the participant’s experience as well as problems concern.

Describe the global momentum towards IFRS.

Identify external and internal drivers to IFRS.

Discuss managing the risks for U.S. companies and maximizing the benefits of IFRS

implementation.

Describe conversion approaches.

Identify tools and resources for IFRS implementation.

Identify the roles of key parties in implementing IFRS: internal auditors, board of

directors/audit committee, management, and external auditors.

Design a roadmap to implementing IFRS for a given case study

COURSE OUTLINE

Setting the Baseline

IFRS overview

IFRS today and tomorrow

External and internal drivers

The Society of Accounting Education 22

MODULE (D) COURSE CODE PG-05

IFRS AND EXTERNAL INDEPENDENT REPORTS

Managing Risks for U.S. Companies

Different accounting standards

Statutory reporting implications and regulatory risks

Non-U.S. equity offerings

Creditors and debtors requirements

Acquisitions and divestitures

Impact on internal controls and system implications

Potential Benefits

Standardization and centralization of accounting policies

Improved controls

Better cash management

Effective use of people and resources

Streamlined processes

Case Study of a ‘Typical’ U.S. Company

Business case for early implementations

Key impacts of IFRS implementations

Potential challenges and best practices

European Union observations and lessons learned

Phased adoption approach

‘Big bang’ approach

Approach to implementation

Current statutory reporting requirements

Net income impacts

Current and long-term strategies

Illustrative management activities

Phases of IFRS conversion efforts

Identify risks by performing assessments

Key components to a roadmap

IFRS Conversion Approach

Phase I – Assess

o Assess technical accounting & tax implications and risks

o Assess supporting processes & infrastructure and change management

The Society of Accounting Education 23

o Formulate implementation Plan of assessing skill gaps and remediation plans

o Educating the audit committee and organization

Phase II – Convert

o Perform technical accounting and tax Conversion

o Design supporting processes and infrastructure

o Develop organization and change strategy

Phase III – Sustain

o Implement supporting processes & infrastructure

o Execute change management activities

o Complete knowledge & capability transfer with tools and resources

Conversion Methodologies

Technical accounting

o Analyze impact of IFRS statutory and regulatory requirements

o Impact of IFRS to key financial accounts

o Conversion methodology

o Protocol to monitor changing standards

Tax

o Reporting and method implications

o Costs and benefits

o Disclosure requirements

o Method changes

o Provision computations

Finance process

o Impact to accounting, reporting, close & consolidation and reconciliation

process and controls

o Designing, developing and deploying future state accounting, reporting, close &

consolidation and reconciliation processes

Risks & controls

o Impact on controls and governance

o Future state control environment to ensure accurate and timely financial

information

Technology

o Impact upon financial systems and architecture

The Society of Accounting Education 24

Organization & change

o Magnitude of change upon stakeholders and operating model

o Organizational structure

o Change management and learning strategies

Project management

o Program structure to develop IFRS roadmap

o Monitoring implementation

o Facilitating knowledge transfer

Roles of Key Parties in Implementing IFRS

Internal auditors

Management

Independent auditors

Board of directors/audit committee

OBJECTIVES

o Understand the terminology and basic concepts.

o Grasp the conceptual framework behind foundation topics including valuation techniques,

investment, financing and dividend policy decisions, and risk management.

o Problem-solve and improve your analytical skills in constructing rational approaches that

address fairly complex financial management issues.

o Apply and evaluate financial information in a simulated case setting.

o Increase your confidence to participate in financial decision making.

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MODULE (D) COURSE CODE PG-06

FINANCIAL MANAGEMENT POLICY & PROCEDURE

COURSE OUTLINE

Cost of Capital

o An overview: The agency problem

o Weighted Average Opportunity Cost and its component

o Optimal Capital structure; WACC and Marginal Cost

o Factors affecting Cost of Capital

Cash Flow and Capital Budgeting

o Cash Flow vs Profit

o NPV and Project Financing

o Project Selection

o Effects of Inflation

Risk Analysis for Optimum Capital Budget

o Three types of risks: Stand Alone, Corporate and Market

o Analytical techniques

o Estimating Project Beta

o Risk Adjusted Discount Rate

o Capital Rationing

Capital Structure and Leverage

o Operating Leverage and Profitability

o Financial Leverage

o How much Debt?

o Modigliani and Miller (MM) Proposition

o MM and Leverage Trade-off

Dividend Policy

o Optimal Dividend Policy and Stock Price

o Is Dividend Irrelevant?

o Residual Dividend Model

o Stock dividends and Stock splits

RECOMMENDED BOOKS FOR READING:

Principles of

Managerial Finance

By Gitman, Lawren Jo

Harper International

Basic Financial

Management

By Keown, A.J. & Martin JD

Prentice Hall

Managerial Finance

By Weston & Coperland

Financial Management

Policy and Procedures

By James Van Horn

The Society of Accounting Education 26

OBJECTIVES

Now a days we are in the modern era, and to discuss about the efficient management, we can’t

learn this without knowing about the Quality Management.

COURSE OUTLINE

o The meaning of quality

o Quality from consumer’s perspective.

o Dimensions of service and product quality. Quality from producer’s perspective.

o Need for Total Quality.

o Total Quality Management.

o Evolution of Total Quality Management. Deming, Juran & Crosby’s approaches to Total

o Quality Management.

o Principles and objectives of Total Quality Management.

o Strategic implications of Total Quality Management.

o Total Quality Management in service and manufacturing companies.

o The cost of quality.

o The effect of quality management on productivity and profitability. Identifying quality

problems and causes.

o Techniques to Total Quality Management.

o Seven tools to total quality control. ISO-9000 series and its implications.

RECOMMENDED BOOKS FOR READING:

Integrating Total

Quality Management

By Susan Jurow, Susan

B. Barnard

Total Quality Management

By Joel E. Ross

Susan Perry

Total Quality

Management

By Gopal K Kanji

Subburaj

Total Quality

Management

By Anand A Samuel

The Society of Accounting Education 27

MODULE (D) COURSE CODE PG-07

TOTAL QUALITY MANAGEMENT

OBJECTIVES

To understand objectives and concepts of auditing and gain working knowledge of generally

accepted auditing procedures, techniques and skills needed to apply them in audit and

attestation engagements and solving simple case-studies.

COURSE OUTLINE

o Auditing Concepts – Nature and limitations of Auditing, Basic Principles governing an

audit, Ethical principles and concept of Auditor’s Independence, Relationship of auditing

with other disciplines.

o Auditing and Assurance Standards – Overview, Standard-setting process, Role of

International Auditing and Assurance Standards Board and Auditing and Assurance

Standards Board in India.

o Auditing engagement – Audit planning, Audit programme, Control of quality of audit

work–Delegation and supervision of audit work.

o Documentation – Audit working papers, Audit files: Permanent and current audit

files, Ownership and custody of working papers.

o Audit evidence – Audit procedures for obtaining evidence, Sources of evidence,

Reliability of audit evidence, Methods of obtaining audit evidence, Physical verification,

Documentation, Direct confirmation, Re-computation, Analytical review techniques,

Representation by management.

o Internal Control – Elements of internal control, Review and documentation, Evaluation

of internal control system, Internal control questionnaire, Internal control check list, Tests

of control, Application of concept of materiality, audit risk and concept of internal audit.

The Society of Accounting Education 28

MODULE (D) COURSE CODE PG-08

AUDIT AND ASSURANCE

o Internal Control and Computerized Environment, Approaches to Auditing in

Computerized Environment.

o Audit Sampling – Types of sampling, test checking and techniques of test checks.

o Analytical review procedures.

o Audit of payments – General considerations, Wages, Capital expenditure, Other

payments and expenses, Petty cash payments, Bank payments, Bank reconciliation.

o Audit of receipts – General considerations, Cash sales, Receipts from debtors, Other

Receipts.

o Audit of Purchases – Vouching cash and credit purchases, Forward purchases, Purchase

returns and allowance received from suppliers.

o Audit of Sales – Vouching of cash and credit sales, Goods on consignment, Sale on

approval basis, Sale under hire-purchase agreement, Returnable containers, various types

of allowances given to customers and sale returns.

o Audit of suppliers’ ledger and the debtors’ ledger – Self-balancing and the sectional

balancing system, Total or control accounts, Confirmatory statements from credit

customers and suppliers, Provision for bad and doubtful debts and writing off of bad

debts.

o Audit of impersonal ledger – Capital expenditure, deferred revenue expenditure and

revenue expenditure, Outstanding expenses and income, Repairs and renewals,

Distinction between reserves and provisions and implications of change in the basis of

accounting.

o Audit of assets and liabilities.

o Company Audit – Audit of Shares, Qualifications and Disqualifications of Auditors,

Appointment of auditors, Removal of auditors, Powers and duties of auditors, Branch

audit, Joint audit, Special audit, Reporting requirements under the Companies Act, 1956.

The Society of Accounting Education 29

o Audit Report – Qualifications, Disclaimers, Adverse opinion, Disclosures, Reports and

certificates.

o Special points in audit of different types of undertakings, i.e., Educational institutions,

Hotels, Clubs, Hospitals, Hire-purchase and leasing companies excluding banks, electricity

companies, cooperative societies, and insurance companies).

o Features and basic principles of government audit, Local bodies and not-for-profit

organizations, Comptroller and Auditor General and its constitutional role.

RECOMMENDED BOOKS FOR READING:

Audit and Assurance

By Alvin A, Arens, Rano

Auditing

By Khawaja Amjad

Saeed

Audit and Assurance

By Grant E Gay, Gay

Timothy J. Louwers,

McGraw Hill Lecture

Notes

From useful link of

SOAE website

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