B.Com Syllabus Fifth Semester BU

B.Com Regular CBCS  Syllabus 2021 

5.1 INCOME TAX- I 

 UNIT-1: Introduction to Income Tax. 10 hours Brief history of Indian Income Tax, legal framework, types of taxes, cannons of taxation, definitions, assessment, assessment year, previous year including exception, assesses, person, income, casual income, gross total income, total income, agricultural income, scheme of taxation, meaning and classification of capital and revenue. 

UNIT-2: Residential status 10 hours Residential status of an individual’s, Determination of residential status, incidence of tax problems on computation of Gross total Income 

UNIT-3: Exempted incomes 4 hours Introduction, exempted incomes U/S 10. Only in the hands of individuals

 UNIT-4: Income from salary 20 hours Meaning, definitions, basis of charge, advance salary, arrears of salary, all allowances, perquisites, profits in lieu of salary, provident fund, gratuity, commutation of pension, encashment of earned leave, deductions from salary U/S 16, problems on computation of salary income. 

UNIT-5: Income from house property 12 hours Basis of charge, deemed owners, exempted income from house property, composite rent, Annual value, determination of Annual value, treatment of unrealized rent, loss due to vacancy, deductions from Annual value U/S 24, problems on computation of income from house property.

 BUSINESS LAB ACTIVITIES

 1. Fill Form No. 49 A Online for obtaining PAN and submit the printout to the subject teacher

 2. Prepare a Slab rates chart for different individual assesses, 

3. List out any ten exempted income from Tax in India

 4. Prepare–E based Chart on perquisites 

5. Identify and collect the List of prescribed enclosures pertaining to IT returns in respect of salary and house property incomes 

BOOKS FOR REFERENCE (Latest version) 

1. Dr. viond k. singhania-direct taxes-law and practices, taxmann publication. 

2. B B Lal- direct taxes, konark publishers[p] ltd. 

3. Dr.Mehrotra and Dr.Goyal- direct taxes-law and practices, sahitya bhavan publication.

 4. Dinakar pagare-law and practice of income tax, sultan chand and sons. 

5. Gaur and narang- income tax – kalyani publishers. 6. Mariyappa B Income tax HPH 7. Usha devi et.,al ., Income tax -1 VBH 7. R G saha and Usha Devi- Income Tax -HPH 47

 5.2 COST MANAGEMNT 

 UNIT 1: COST CONTROL AND COST REDUCTION: 08 Hrs Meaning of cost control and cost reduction, areas covered by cost control and cost reduction – product design, target costing, value analysis, value engineering, value chain analysis, Business Process Re- Engineering (theory only) Pareto Chart.

 Unit 2: MARGINAL COSTING 12 Hrs Absorption costing, cost classification under absorption costing, Meaning and Definition of marginal costing – Absorption Costing V/s Marginal Costing - Need for Marginal Costing, arguments against and in favor of marginal costing – marginal cost equation – Uses and Limitations of Marginal Costing - Break even analysis - Problems on Break Even Analyses. 

Unit 3: STANDARD COSTING 12 Hrs Historical costing - Introduction – Meaning & Definition of Standard Cost and Standard Costing - Advantages & Disadvantages of Standard Costing –preliminaries in establishing system of standard costing – Variance Analysis – Material Variance, Labour Variance and Overheads Variance – Problems on Material Variances and Labor Variances. 

Unit 4: BUDGETARY CONTROL 12 Hrs Introduction – Meaning & Definition of Budget and Budgetary Control – Objectives of Budgetary Control – essential requirements of budgetary control – advantages and disadvantages of budgetary control – Meaning, Types of Functional Budgets - Flexible Budgets, Cash Budgets, sales budget and production budget. Problems on Flexible budgets and cash budget 

UNIT 5: ACTIVITY BASED COSTING 12 Hrs Introduction - Weakness of conventional system – concept of ABC – Kaplan and Cooper’s Approach – cost drivers and cost pools – allocation of overheads under ABC – Characteristics of ABC – Steps in the implementation of ABC – Benefits from adaptation of ABC system – difficulties faced by the industries in the successful implementation of ABC - Problems on ABC. 

BUSINESS LAB ACTIVITIES 1. Preparation of Income Statement using Absorption Costing and Marginal Costing Technique 2. Justify make or buying decisions of particular product of your choice. 3. Preparation of Sales Budget of a firm nearby of your locality 4. List any 10 industries where Standard Costing is used. 5. List any 10 industries where ABC method is used. 6. Develop E-content for cash budget on online of any organization

 BOOKS FOR REFERENCE 1. M.N. Arora, Cost Accounting HPH 2. Ravi & kishor. –cost management 3. S P Iyengar, Cost Accounting. 4. K.S. Thakur: Cost Accounting. 5. N. Prasad, Costing. 6. Palaniappan&Hariharan : Cost Accounting 7. Jain &Narang, Cost Accounting. 8. IM Pandey :Management Accounting 9. R.G saha et., al., Cost management VBH 10. CA & ICWA Bulletins 

5. 3: INDIAN ACCOUNTING STANDARDS (Ind AS)

Unit 1: Introduction to Indian Accounting Standards 8 hrs Overview of Accounting Standards – Objectives of Accounting Standards – Benefits and Limitations of Accounting Standards – Process of Formulation of Accounting Standards in India – List of Indian Accounting Standards (Ind AS) – Need for Convergence Towards Global Standards– International Financial Reporting Standards as Global Standards – Benefits of Convergence with IFRS – Applicability of Ind AS in India. 

Unit 2: Presentation of Financial Statements 10 hrs Users of financial statements, objective of financial statements, Underlying assumptions, Qualitative characteristics of financial statements, The elements of financial statements, Recognition of the elements of financial statements, Measurement of the elements of financial statements, Concepts of capital and capital maintenance 

Unit 3: Asset Based Indian Accounting Standards 16 hrs Property, Plant and Equipment (Ind AS 16) - Intangible assets (Ind AS 38) - Impairment of assets (Ind AS 36) – Inventories (Ind AS 2) - Borrowing costs (Ind AS 23) – Investment Property (Ind AS – 40) – Scope, definitions, Recognition and Measurement of the above-mentioned Standards. (Simple Problems on Ind AS 16, 38, 36, 2, 23) 

Unit 4: Liability Based Indian Accounting Standards 14 hrs Provisions, contingent liabilities and contingent assets (Ind AS 37) – Scope, provision, liability, obligating event, legal obligation, constructive obligation, contingent liability, contingent asset, relationship between provisions and contingent liability, recognition of provisions, Contingent asset and contingent liability, Measurement and Disclosure of Information in the Financial Statements.

 Unit 5: Revenue Based Indian Accounting Standards 8 hrs Revenue from contract with customers (Ind AS 115) – Contract, Customer, Income, performance obligation, Revenue, transaction price, Applicability of Ind AS 115, Recognition and identifying performance obligation, determining the transaction price, disclosure requirements in Financial Statements (Simple Problems Only) 

BUSINESS LAB ACTIVITIES 1. List out the countries that adopted and converged with IFRS around the world. 2. Collect and Analyse the Statement of Changes in Equity of any five companies. 3. List out any five Indian Accounting Standards disclosures. 4. Analysis of published financial statements for at-least 2 types of stakeholders 5. Disclosure of change in equity in the annual reports of any two select companies. . 

BOOKS FOR REFERENCE 1. IFRS for India, Dr.A.L.Saini, Snow white publications 2. Roadmap to IFRS and Indian Accounting Standards by CA Shibarama Tripathy 3. IFRS explained – A guide to International financial reporting standards by BPP learning Media 4. IFRS for finance executives by Ghosh T P, taxman allied services private limited 5. IFRS concepts and applications by Kamal Garg, Bharath law house private limited 6. IFRS: A Quick Reference Guide by Robert J. Kirk, Elsevier Ltd. 7. First lesson to International Financial Reporting Standards beginners guide by MP Vijay Kumar, prime knowledge services. 8. A student’s guide to international financial reporting standards by Clare Finch, Kalpan Publishing. 9. Sariha Gosain and Rajeeh Gosain- Practical approach to IND AS implementation, illustrations, summary & comparisons 10. CA Anand Banka- Comprehensive guide to IND AS implementation11. CA Praveen Kumar- Consolidation under IND AS- IFRS converged standard 

 5.4 AUDITING AND REPORTING 

 Unit 1: INTRODUCTION TO AUDITING 12 Hrs Introduction – Meaning - Definition – Objectives – Differences between Accountancy and Auditing – Types of Audit - Advantages of Auditing – Preparation before commencement of new Audit – Audit Notebook – Audit Working Papers – Audit Program, Recent Trends in Auditing: Nature & Significance of Tax Audit – Cost Audit - Management Audit. Forensic audit Tally ERP 9 Auditors Edition: Introduction, features, characteristics – Tally.Net: features – requirements for remote connectivity – Access information via SMS, Safeguard Data – Automated Backup and Recovery. E-Auditing-meaning, uses and limitations, auditing the auditors 

Unit 2: INTERNAL CONTROL 10 Hrs Internal Control: Meaning and objectives. Internal Check: Meaning, objectives and fundamental principles. Internal Check as regards: Wage Payments, Cash Sales, Cash Purchases. Internal Audit: Meaning - Advantages and Disadvantages of Internal Audit – Differences between Internal Check and Internal Audit. E- Applications in internal control and check. 

Unit 3: VOUCHING 12 Hrs Meaning - Definition – Importance – Routine Checking and Vouching – Voucher -Types of Vouchers – Vouching of Receipts: Cash Sales, Receipts from debtors, Proceeds of the sale of Investments. Vouching of Payments: Cash Purchases, Payment to Creditors, Deferred Revenue Expenditure, E-vouching, uses and limitations 

Unit 4: VERIFICATION AND VALUATION OF ASSETS AND LIABILITIES 12Hrs Meaning and Objectives of verification and valuation– Position of an Auditor as regards the Valuation of Assets – Verification and Valuation of different Items: Assets: Land & Building, Plant & Machinery, Goodwill – Investments - Stock in Trade. Liabilities: Bills Payable - Sundry Creditors – Contingent Liabilities. 

Unit 5: AUDIT OF LIMITED COMPANIES AND OTHERS 10 Hrs Company Auditor – Appointment – Qualification - Powers - Duties and Liabilities – Professional Ethics of an Auditor - Audit of Educational Institutions – Audit of Insurance Companies- Audit of Cooperative societies. Institutions for Auditing central Vigilance Commission (CVC) comptroller and Auditor General of India (CAG), State Accountant and Auditor General (SAG) –role and functions in Public Account Audits  

 BUSINESS LAB ACTIVITIES 1. Collect the information about types of audit conducted in any one Organization 2. Visit an audit firm write about the procedure followed by them in auditing the books of accounts of a firm. 3. Draft an investigation report on behalf of a Public Limited Company 4. Record the verification procedure with respect to any one fixed asset. 5. Develop E-content for qualified report and clean report of an MNC 6. List the renowned international audit firms

 BOOKS FOR REFERENCE: 1. TR Sharma, Auditing, Sahitya Bhavan 2. BN Tandon, Practical Auditing, Sultan Chand 3. Kamal Gupta, Practical Auditing, TMH 4. R.G Sexena - Principles and Practice of Auditing, HPH 5. MS Ramaswamy, Principles and Practice of Auditing. 6. Dinakar Pagare, Practice of Auditing, Sultan Chand 7. Usha devi et., al,. Auditing VBH

ELECTIVES

 I GROUP 

ACCOUNTING AND TAXATION 

 5.5 ADVANCED ACCOUNTING 

UNIT 1: ACCOUNTS OF BANKING COMPANIES 16 Hrs Business of banking companies – some important provisions of Banking Regulation Act of 1949 – minimum capital and reserves – restriction on commission – brokerage – discounts – statutory reserves – cash reserves – books of accounts – special features of bank accounting, final accounts - balance sheet and profit and loss account – interest on doubtful debts – rebate on bill discounted – acceptance – endorsement and other obligations – problems as per new provisions.

 UNIT 2: ACCOUNTS OF INSURANCE COMPANIES 16 Hrs (a) Life insurance – accounting concepts relating to life insurance companies - Preparation of Final accounts of life insurance companies – revenue account and balance sheet. (b) General insurance – Meaning accounting concepts- Preparation of Final accounts. 

UNIT 3: INFLATION ACCOUNTING 10 Hrs Need – Meaning – definition – importance and need – role – objectives – merits and demerits – problems on current purchasing power method (CPP) and current cost accounting method (CCA).

 UNIT 4: FARM ACCOUNTING 10Hrs Meaning – need and purpose – characteristics of farm accounting – nature of transactions – cost and revenue – apportionment of common cost – by product costing – farm accounting – recording of transactions – problems 

UNIT 5: INVESTMENT ACCOUNTING 04 Hrs Introduction – Nature of Investment – Investment ledger – different terms used- cum dividend or interest and ex- dividend or interest – securities – Bonus shares- right shares – procedures of recording shares – (theory only)

 BUSINESS LAB ACTIVITIES 

1. Collect any banking companies final accounts and prepare schedules 

2. Visit any insurance company and collect the financial statement and prepare financial statement

 3. Collect data and prepare chart showing companies practicing CAA and CPP methods of accounting 

4. Prepare a chart on apportionment of common farm cost

 5. List out various investment valuation methods 61 

BOOKS FOR REFERENCE:

 1. R L Gupta, Advanced Accountancy, Sultan Chand 

2. Shukla and Grewal, Advanced Accountancy, S Chand 

3. S. P. Jain and K. L. Narang – advanced accountancy, Kalyani 

4. S.N. Maheswari , Advanced Accountancy, Vikas Publishers 

5. Made Gowda – Managerial Accounting, HPH

 6. Jawaharlal, Managerial Accounting, HPH

 7. Anil Kumar, etal-Advanced Accounting-HPH 

 5.6 ACCOUNTING FOR GOVERNMENT AND LOCAL BODIES 

 PART –A 

ACCOUNTING FOR RURAL LOCAL GOVERNMENTS 

UNIT-1 INTRODUCTION LOCAL GOVEERNMENT INSTITUTIONS 06 hrs Panchayat raj institutions (PRI)-origin of panchayat raj institutions-constitutional background- three tier panchayat raj system-Financial functions of Zilla panchayat-taluk panchayat gram panchayat 

UNIT 2 RECEIPTS AND PAYMENTS OF PRI’S 10 hrs Salary, travelling allowances and other allowances to adyaksha, upadakshya and members of Zilla Panchayat , taluk panchayat, Gram Panchayat-application of gram panchayat fund- Honorarium of adyaksha and upadayakhya of Gram Panchayat,Grants- fees-taxes, Assets and liabilities of Panchayat Raj Institutions. 

UNIT -3 PREPARATION OF ACCOUNTS OF PRI’S 14 hrs Zilla panchayat Budget and Account-taluk panchayat finance and account-Gram panchayat Budgeting and accounting-Auditing of Panchayat Raj Institutions. Audit report ,Procedures to rectify audit objection and recovery paras, adhoc Committees in panchayat raj institutions, duties and responsibilities of adhoc committee, Priasoft accounting software in Panchayat raj institutions, Panchatantra software. 

PART-B 

ACCOUNTING FOR URBAN LOCALGOVERNMENTS 

UNIT-4 INTRODUCTION TO URBAN LOCAL GOVERNMENTS 08 hrs Origin of Municipalities- different tiers of urban local bodies- urbanization in karnataka DMA Organization Chart- Structure of ULB Organization-Functions of municipal councils municipal corporations-city municipal councils-town municipal councils-town panchayats-notified area Committees-standing Committees. 

UNIT-5 RECEIPTS & PAYMENTS AND PREPARATION OF ULB ACCOUNTS 18 hrs a) Rent-rates-taxes-fee-salary grants-other allowance to members-different schemes of ULB’S Expenditure rules-taxation rules 1965-contract rules 1986-Borrowing rules 1966-Assets and liabilities of ULB’S-Regulation of duty on transfers of Immovable property. b) Preparation of ULB Accounts Preparation of plans, estimates-Budgets-Receipts vouchers-payment vouchers maintenance accounts of different Schemes of Urban local bodies, FBAS Accounting system in municipalities c) Auditing of ULB’S Government auditor-Inspection of Books and Vouchers, different types of audit, measures to clear audit objection and recovery paras, adhoc committee. 63

 BUSINESS LAB ACTIVITIES

 1 Visit nearby panchayat office and list out its financial functions 

2 Collect details of various funds and honorarium paid in the panchyat offices

 3 Collect the statement of fund utilization at panchayat level 

4 Prepare an organization chart on local bodies 

5. Collect auditor’s report of local bodies 

BOOKS FOR REFERENCE: 

1. Indian audit and accounts department, accounts and audit rules

 2. Karnataka Panchayat raj act 1993 

3. Karnataka panchayat raj( badget and accounts rules) 2006

 4. Karnataka Municipal Corporation rules-1977

 5. Karnataka state audit and accounts department , Audit mannual 

6. Karntaka municipalities budget and accounts rules

 7. Government of Karnataka local bodies Accounts and Audit circulars

 8. Priasoft, panchatantra, FBAS accounting software 

II GROUP 

FINANCE GROUP 

5.5 CORPORATE FINANCIAL MANAGEMENT 

UNIT 1: FINANCIAL MANAGEMENT AND CORPORATE STRATEGY 8 Hrs Financial Policy, Corporate Strategy, Levels of Strategies – corporate level, business level, functional level, Financial Planning, interface of financial policy and strategic management 

UNIT 2: CAPITAL BUDGETING RISK AND UNCERTAINTY 18 Hrs Capital Budgeting Process- Risk analysis –meaning of risk and uncertainty-Measuring risk, Probability Approach, Standard Deviation of Cash Flows, Certainty Equivalent Approach, Risk Adjusted Discount rate, Sensitivity Analysis, Decision tree analysis, Managing Strategic Investment Decisions 

UNIT 3: FINANCING DECISIONS 12 Hrs Capital Structure- Equity & debt in capital structure-Capital Structure theories – Net Income Approach, Net Operating Income approach, WACC Approach (Traditional view) & MM Approach (Modern view), Tips to Make Smarter Strategic Financial Decisions

 UNIT 4: DIVIDEND DECISIONS 12Hrs Establishing a dividend policy-Dividend theories- Relevance Theory-Walter’s Valuation model, Gordon’s Growth model.-Irrelevance Theory – Modigliani and Miller’s model-Other Theories -tax differential theory, Residual theory, Gordon & Linter’s theory, 

UNIT 5: INVESTMENTMENT DECISION 6 Hrs Investing Surplus Funds, Financing Short-Term Deficits; Centralized versus Decentralized Cash Management 

BUSINESS LAB ACTIVITIES 

1. Prepare a list of corporate financial strategies 

2. Draw a chart of capital budgeting process 

3. Analysis investment proposal by applying any one measuring risk approach

 4. Evaluate dividend theories with practical examples

 5. Make out strategies to invest surplus funds 69 

BOOKS FOR REFERENCE

 1. G.P. Jakhotiya, Strategic Financial Management, Vikas Publishing House. 

2. Fred Weston & EF Brigham, Managerial Finance, Dryden Press. 

3. James C. Vanhorne, Financial Management and Policy, Prentice Hall. 

4. Brealy and Myess, Principles of Corporate Finance, Tata McGraw Hill.

 5. Allen. D, An Introduction to Strategic Financial Management, IMA/Kogan Page London.

 6. Copeland T., T. Koller and J. Murrin, Valuation Measuring and Manages the value of Companies, John Wiley International Edition. 

7. Copeland T.E and J.F. Weston, Financial Theory and Corporate Policy, Addison Wesley New York. 

8. Financial Management, M Y Khan & P K Jain, Tata McGraw Hill 

 5.6 STRATEGIC FINANCIAL MANAGEMENT 

UNIT 1 STRATEGIC DECISION MAKING FRAME WORK 08Hrs Meaning of strategy, strategic management, linking financial strategy with corporate strategy, Strategic Decision Making Frame Work – Strategic Financial Management – Dynamics of Strategic Financial Management – Issues in Strategic Financial Management 

UNIT2: PROJECT MANAGEMENT FROM FINANCIAL PERSPECTIVE 14 hrs Meaning of project and project management, Project Management from financial perspective – Product Life Cycle & Financial impact – Development of project reports – contents thereof – sourcing of funds for a project – traditional and alternative modes - Private Equity – Hedge Funds – Venture Capital – Crowd source funding - Non Financial Institutional Funding – Corporate Finance needs for SME - Foreign Exchange Management 

UNIT3: CORPORATE VALUATION 14 hrs Corporate Valuation – Dynamics of valuation – Approaches to Corporate Valuation – Discounted Cash Flow Approach - Adjusted Book Value Approach – Comparable Company Approach – Capitalized Earning Approach - Cost to Create Approach – Excess Earning Approach – Valuing specific intangible approach IPR, Brand, Human Capital – Concept of Economic Value Added – Concept of Realizable Value & Replacement Value 

UNIT 4 MANAGEMENT OF INTEREST RATE EXPOSURE 12hrs Introduction; Nature and Measurement of Interest Rate Exposure; Forward Rate Agreements (FRAS); Interest Rate Options; Interest Rate Caps, Floors and Collars; Valuation of Interest Rate Options; Options on Interest Rate Futures; Interest Rate Swaps 

UNIT 5 : CORPORATE GOVERNANCE & RISK MANAGEMENT 8 hrs Corporate Governance & Risk Management -Fundamentals of Corporate Governance – Governance Model –Roles of Audit Committees, Internal Control, Internal Audit & External Auditor – Linkages between Governance, risk management & audit – Case Study 

 BUSINESS LAB ACTIVITIES 

1. List of sources of funds for a project

 2. Make list of 10 startup company raising venture capital fund

 3. Prepare a list of companies currently following EVM 

4. Narrate the interest rate exposure method 

5. Prepare a chart showing role of audit committee in respect of finance 

BOOKS FOR REFERENCE: 

9. G.P. Jakhotiya, Strategic Financial Management, Vikas Publishing House. 

10. Fred Weston & EF Brigham, Managerial Finance, Dryden Press. 

11. James C. Vanhorne, Financial Management and Policy, Prentice Hall. 

12. Brealy and Myess, Principles of Corporate Finance, Tata McGraw Hill. 

13. Allen. D, An Introduction to Strategic Financial Management, IMA/Kogan Page London. 

14. Copeland T., T. Koller and J. Murrin, Valuation Measuring and Manages the value of Companies, John Wiley International Edition. 

15. Copeland T.E and J.F. Weston, Financial Theory and Corporate Policy, Addison Wesley New York. 

16. Financial Management, M Y Khan & P K Jain, Tata McGraw Hill

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