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Estd. 1951
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN
(Constituted under the Cost & Management Accountants Act 1966)
Education Department
Head Office: ST-18/C, ICMAP Avenue, Block-6, Gulshan-e-Iqbal, Karachi – 75300
Phones: (92-21) 99243900 Fax: (92-21) 99243342 E-mail: [email protected] Website: www.icmap.com.pk
Edu/2k12/4891 July 31, 2012 Dear Member, The National Council in principle approved the proposed courses and the suggested contents of the new syllabus 2012, as recommended by Education Committee. The proposed syllabus consist of 6 levels of 6 months each with total 18 subjects along with 1 year project and case study level in various modules.
In this regard as per the directives given by the National Council, the Suggested contents of the proposed Syllabus 2012 are being uploaded on the website for the members review and comments.
Please review the details at your earliest and apprise us with your worthy comments within 10 days time at the email ID [email protected].
The number of the courses and the modules for non-examination courses are detailed below: FOUNDATION CERTIFICATE LEVEL – 01 Year
Semester Subjects Duration Testing
Methodology
1
1. Fundamentals of Financial Accounting
Six [6] months
Written examination
2. Business Economics
3. Business Communication and Report Writing
2
4. Cost Accounting
Six [6] months
Written examination
5. Business Mathematics & Statistical Inference
6. Business Laws and Professional Ethics
OPERATIONAL LEVEL – 01 Year
Semester Subjects Duration Testing
Methodology
3
7. Financial Accounting Six [6] months
Written examination
8. Management and Marketing
9. Information Systems and I.T. Audit
4
10. Management Accounting Six [6] months
Written examination
11. Business Taxation
12. Corporate Laws and Secretarial Practices
MANAGERIAL LEVEL – 06 Months
Semester Subjects Duration Testing
Methodology
5
13. Advanced Financial Accounting and Corporate Reporting
Six [6] months
Written examination
14. Risk Management and Audit
15. Investment Analysis and Portfolio Management
Estd. 1951
INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN
(Constituted under the Cost & Management Accountants Act 1966)
Education Department
Head Office: ST-18/C, ICMAP Avenue, Block-6, Gulshan-e-Iqbal, Karachi – 75300
Phones: (92-21) 99243900 Fax: (92-21) 99243342 E-mail: [email protected] Website: www.icmap.com.pk
STRATEGIC LEVEL – 06 Months
Semester Subjects Duration Testing
Methodology
6
16. Advanced Cost and Management Accounting Six [6]
months Written
examination 17. Financial Management and Strategy
18. Strategic Management
PROJECTS AND CASE STUDY LEVEL – 01 Year
[NON-EXAMINATIONS]
PHASE-1: COMMUNICATION AND LEADERSHIP
No. of Courses
Modules Duration Assessment
One
� Presentation Skills Three [3] months
Computer based Testing
� Report Writing
� Interpersonal and Leadership Skills
PHASE-2: ENTERPRISE RESOURCE PLANNING (ERP) AND FINANCIAL MODELLING
No. of Courses
Modules Duration Assessment
One
� Introduction to ERP Three [3] months
Computer based Testing
� Financial Modeling and its tools
� Management Information Systems
PHASE-3: PRACTICAL TAX AND CORPORATE FILLING
No. of Courses
Modules Duration Assessment
One
� Practical Tax and e-filling Three [3] months
Computer based Testing
� Secretarial Practices
� Companies Ordinance
PHASE-4: BANKING AND STOCK MARKETS
No. of Courses
Modules Duration Assessment
One
� Banking Operations and Regulations Three [3]
months Computer based
Testing � Stock Market and Operations
� Islamic Banking and Finance
Regards Executive Director
Proposed Syllabus 2012
FOUNDATION CERTIFICATE LEVEL – 01 Year
Semester Subjects Duration Testing
Methodology
1
1. Fundamentals of Financial Accounting Six [6] months
Written examination
2. Business Economics
3. Business Communication and Report Writing
2
4. Cost Accounting Six [6] months
Written examination
5. Business Mathematics & Statistical Inference
6. Business Laws and Professional Ethics
OPERATIONAL LEVEL – 01 Year
Semester Subjects Duration Testing
Methodology
3
7. Financial Accounting Six [6] months
Written examination
8. Management and Marketing
9. Information Systems and I.T. Audit
4
10. Management Accounting Six [6] months
Written examination
11. Business Taxation
12. Corporate Laws and Secretarial Practices
MANAGERIAL LEVEL – 06 Months
Semester Subjects Duration Testing
Methodology
5
13. Advanced Financial Accounting and Corporate Reporting Six [6]
months Written
examination 14. Risk management and Audit
15. Investment Analysis and Portfolio Management
STRATEGIC LEVEL – 06 Months
Semester Subjects Duration Testing
Methodology
6
16. Advanced Cost and Management Accounting Six [6] months
Written examination
17. Financial Management and Strategy
18. Strategic Management
FUNDAMENTALS OF FINANCIAL ACCOUNTING Part A Conceptual, System and regulatory framework
1 Accounting Nature and Objectives ‐ Financial Accounting definition & objectives, ‐ Cost Accounting definition & Objectives ‐ Management Accounting definition & Objectives
2 Introduction to Financial Accounting ‐ Capital ‐ Assets ‐ Liabilities ‐ Expenditures (Capital & Revenue) ‐ Revenue ‐ Accounting Equation
3 Accounting Regulatory Framework ‐ Company Law ‐ IAS ‐ IFRS ‐ Accounting bodies ‐ Stock Exchanges
4 Accounting Concepts and Conventions
‐Accounting Concepts & Principles (Going Concern, Accruals, Prudence, Consistency, Materiality, Substance over form, Business Entity, Money Measurement) ‐Cost and Values (Historical Cost Convention, Theory of Capital Maintenance, Current Purchasing Power Accounting, Current Cost Accounting, Fair Value, Value to the business)
Part B Accounting systems and accounts preparation 5 Source Documents and Books
Source Documents (Sale & Purchase Order, Credit & Debit Note, GRN) Books
(Sale day book, Purchase day book, Sales Return day book, Purchase Return day book, Cash book, Petty Cash book)
6 Double Entry and Ledger accounting Principles of double entry bookkeeping Journal Nominal Ledger Posting from day book to nominal ledger Sales and Purchase accounts, including personal accounts and Control accounts
7 Trial balance and Financial statements Trial Balance Income Statement Balance Sheet/Statement of Financial Position Accounts Coding System 8 Accruals and prepayments Accruals Prepayments 8 Tangible non‐current assets Depreciation Re‐valuation of non‐current assets Non‐current asset disposal Non‐current asset register 9 Intangible non‐current assets Accounting treatment of Intangible Assets Research and Development Cost 10 Bad debts and allowances for receivables 11 Provisions and Contingencies 12 Accounting for Inventories 13 Accounting for Sales Tax 14 Accounting for Payroll 15 Bank Reconciliations 16 Control accounts 17 Correction of Errors Part C Final accounts 18 Sole traders' accounts 19 Company accounts 20 Manufacturing accounts 21 Incomplete records 22 Income and expenditure accounts Part D Interpretation of accounts 23 Statements of cash flows 24 Financial Ratios
BUSINESS ECONOMICS
1. Organization ‐ Form of Organization ‐ Types of Not‐for‐Profit Organization ‐ Stakeholders Role in setting Organization Goals ‐ Goal comparison between Managers and Shareholders ‐ Issues related to Principle Agent
2. Return to Shareholders
‐ Return on Short Run Measures ‐ Return on Long Run Measures ‐ Risk and Return‐ the required rate ‐ Impact of Financial Performance on Share Prices
3. Demand & Supply Analysis
‐ Definition of Market ‐ Demand Curve ‐ Supply Curve ‐ Formation of Equilibrium price ‐ Momentary, Short Run and Long Run Equilibrium Price
4. Price Elasticity
‐ Calculation of Price Elasticity of Demand ‐ Impact of Price Elasticity of Demand ‐ Influences on Price Elasticity of Demand ‐ Calculation of Price Elasticity of Supply ‐ Influences on Price Elasticity of Supply
5. Price Instability and Government Measures
‐ Reasons for Price Instability in Markets for Primary Goods ‐ Implications of Price Instability for Producer Incomes and Supply ‐ Price Stabilization Policies ‐ Minimum and Maximum Pricing Policies in Good Markets ‐ Minimum and Maximum Pricing Policies in Factor Markets
6. Cost Behavior
‐ Types of Cost ‐ Short Run Cost Behaviour ‐ Long Run Cost Behaviour ‐ Impact of Long Run Costs on Industry Structure
7. Profit Maximization
‐ Cost Volume Profit Analysis ‐ Profit Maximization‐ Graphical Approach ‐ Profit Maximization‐ Numerical Approach ‐ Influence of e‐business on Cost and Market Behavior ‐ Influence of Globalization on Cost and Market Behavior
8. Competition, Market Effects and Government Measures ‐ Methods of Business Integration ‐ Measures of Market Competition and Concentration ‐ Effects of Monopoly and Collusive Practices ‐ Competition Policy ‐ Nature of Externalities ‐ Government Measures to deal with Externalities ‐ Government Provision of Good and Services
9. Functions of the Financial System
‐ Finance for Consumers ‐ Finance for Firms ‐ Finance for Government ‐ Role and Functions of Financial Intermediaries
10. Domestic Institutions and Markets
‐ Commercial Banks and Credit Creation ‐ Yield on Financial Instruments ‐ Role of Central Banks ‐ Influence of Central Bank over Financial Markets ‐ Global Banking Crises
11. Foreign Exchange Markets
‐ About Foreign Exchange Markets ‐ Factors Influencing Exchange Rates ‐ Government Policies on Exchange Rates
12. Macroeconomic: Trade Cycle
‐ Factors affecting National Income ‐ Circular Flow of Income ‐ Stages in the Trade Cycle ‐ Impact of the Trade Cycle on Business Environment
13. Macroeconomic: The Role of Government
‐ Government Macroeconomic Policy Goals ‐ Elements of Public Finance ‐ Unemployment ‐ Inflation ‐ Fiscal Policy ‐ Monetary Policy ‐ Supply side Policies
14. International Context ‐ About Balance of Payment ‐ Causes of imbalance in the balance of Payment ‐ Policies to eliminate current account deficits ‐ Terms of Trade ‐ Role of Global Financial Institutions ‐ Nature and Causes of Globalization ‐ Trade Agreements and Trade Blocks ‐ Impacts of Globalization
BUSINESS COMMUNICATION AND REPORT WRITING Introduction
‐ Role of communication ‐ Defining and classifying communication ‐ Purpose of communication ‐ Process of communication ‐ Components of communication ‐ Characteristics of successful communication ‐ Barriers to communication
Communication in Organization ‐ Communication structure ‐ Formal Communication network ‐ Informal communication network ‐ Importance of communication in management
Oral Communication ‐ What is oral Communication ‐ Principles of successful oral communication ‐ What is conversation control ‐ Two sides of effective oral communication ‐ Effective listening ‐ Non – verbal communication
Interpersonal Communication (IPC) ‐ Componential ‐ Developmental & Relational definitions ‐ Purposes of IPC ‐ Universals of IPC ‐ Axioms of IPC ‐ IPC barriers
Written Communication ‐ Purpose of writing ‐ Clarity in writing ‐ Principles of effective writing: Seven C’s of effective communication ‐ Steps of writing process : The 3X3 writing process for ‐ Business communication: Pre writing – Writing – Revising – Specific writing‐ features – coherence –
electronic writing process. Business Letters
‐ Introduction to business letters ‐ Writing routine and persuasive letters ‐ Positive and negative messages ‐ Organizational plans ‐ Writing memos ‐ Circulars
Report Writing
‐ Objectives of Reports ‐ Kinds of business Reports ‐ Long reports
Case Method of Learning
‐ Understanding the case method of learning ‐ Different types of cases ‐ Overcoming the difficulties of the case method ‐ Reading a case properly (previewing, skimming, reading, scanning) ‐ Case analysis approaches ‐ Analyzing the case ‐ Do’s and Don’ts ‐ Case preparation
Presentation Skills ‐ What is a presentation ‐ Elements of presentation ‐ Designing a presentation ‐ Advanced visual support for business presentation ‐ Types of visual aids
Employment Communication ‐ Introduction ‐ Writing CVs ‐ Group discussions ‐ Interview types ‐ Job interview ‐ Interview skills ‐ Impact of Technological Advancement on Business Communication ‐ Communication networks – Intranet – Internet – e mails – SMS –teleconferencing – videoconferencing
Group Communication ‐ Meetings : Planning, objectives, participants, timing, venue, lead ‐ Preparation of Agenda, Notice and Minutes of meetings ‐ Media Management: press release, press conference, media interviews ‐ Seminars ,Workshop & Conferences ‐ Business etiquettes.
COST ACCOUNTING Part A The nature, source and purpose of management information
1 Introduction to costing and performance measurement 2 Introduction to management accounting 3 Sources of data
4 Cost classification 5 Cost behavior Part B Elements of Costing & Cost Bookkeeping 6 Accounting for Materials
7 Accounting for Labour 8 Accounting for Overheads
Part C Cost Accounting Techniques and Methods
9 Absorption and marginal costing 10 Job & batch costing 11 Process costing 12 Process costing, joint products and by‐products 13 Service Costing Part D Standard Costing 14 Standard costing 15 Variance analysis Part E Modern Costing Techniques 16 Activity Based Costing 17 Throughput and Back flush Accounting 18 Environmental costing
BUSINESS MATHEMATICS & STATISTICAL INFERENCE 1 Basic Mathematical Techniques ‐ Integers, Fractions and Decimals ‐ Using Scientific & Financial Calculator ‐ Order of Operations ‐ Percentage and Ratios ‐ Roots and Powers ‐ Errors ‐ Using Spreadsheets
2 Formulae and Equations ‐ Introduction ‐ Manipulating Inequalities ‐ Linear Equations ‐ Linear Equations and Graphs ‐ Simultaneous Equations ‐ Non‐Linear Equations ‐ Using Spreadsheets to provide Graphs 3 Data and Information ‐ Introduction ‐ Characteristics of Good Information ‐ Data Type ‐ Sampling
4 Collection and Presentation of data ‐ Tables ‐ Charts ‐ Frequency Distribution ‐ Histograms ‐ Ogives ‐ Scatter Diagram ‐ Using Spreadsheets
5 Averages ‐ Arithmetic Mean ‐ Mode ‐ Median 6 Dispersion ‐ Range ‐ Quartiles and the Semi‐Quartiles Range ‐ Mean Deviation ‐ Variance and Standard Deviation ‐ Coefficient of Variation ‐ Skewness ‐ Using Spreadsheets
7 Index numbers ‐ Basic Terminology ‐ Index Relatives ‐ Time Series of Index Relatives ‐ Time Series Deflation ‐ Composite Index Numbers ‐ Weighted Index Numbers ‐ Retail Price Index for Pakistan 8 Probability ‐ Concept of Probability ‐ Rules of Probability ‐ Expected Values ‐ Expectation and Decision Making 9 Normal distribution ‐ Probability Distributions ‐ Normal Distribution ‐ Standard Normal Distribution ‐ Using Normal Distribution to Calculate Probabilities ‐ Pareto Distribution and 80:20 Rule 10 Compounding and Discounting ‐ Simple Interest ‐ Compound Interest ‐ Equivalent Rates of Interest ‐ Regular Savings and Sinking Funds ‐ Loan and Mortgages ‐ Concept of Discounting
11 Basic Investment Appraisal ‐ Net Present Value (NPV) Method ‐ Internal Rate of Return (IRR) Method ‐ Annuities and Perpetuities ‐ Linking Compounding and Discounting ‐ Using Spreadsheet ‐ Shareholder Value 12 Correlation and Linear Regression ‐ Correlation ‐ Correlation Coefficient and Coefficient of determination ‐ Spearman’s Rank Correlation Coefficient ‐ Lines of Best Fit ‐ Scatter Graph Method ‐ Linear Regression Analysis ‐ Using Spreadsheets
13 Forecasting ‐ Time series ‐ Components of Time Series ‐ Finding the Trend ‐ Finding the Seasonal Variations ‐ Forecasting ‐ Limitation of Forecasting Models 14 Derivatives 15 Spreadsheets ‐ Use of Spreadsheet Software ‐ Spreadsheet Design ‐ Advantages and Disadvantages of Spreadsheets
BUSINESS LAWS & PROFESSIONAL ETHICS BUSINESS LAWS:
1. Introduction to Legal System of Pakistan
2. The Contract Act 1872 3. Sales of Good Act 1930 4. Partnership Act 1932 5. Negotiable Instrument Act 1881 6. Industrial Relations Act,2008 7. West Pakistan Industrial and Commercial Employment (Standing Order) Ordinance 1968 8. Factories Act 1934/Workman’s Compensation Act 1923 9. Social Security Ordinance 1965 10. EOBI Act 1997 11. PPRA Rules
PROFESSIONAL ETHICS:
1. Importance of Ethics
2. Personal Ethics
3. Professional Ethics
4. ICMAP’s Ethical Guidelines
5. Ethical Conflict
FINANCIAL ACCOUNTING Part A Regulatory and Conceptual Framework
1 The regulatory framework The International Accounting Standard Board (IASB) Setting of International Financial Reporting Standards 2 The Conceptual Framework Conceptual Framework and GAAP The IASB’s Conceptual Framework Qualitative Characteristics of Financial Statements The elements of Financial Statements Part B Single Company Financial Accounts 3 IAS 1 (Revised) Presentation of Financial statements 4 Reporting Financial Performance IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors IAS 18 Revenue Recognition IAS 24 Related Part Disclosures IFRS 8 Operating Segments IFRS 5 Non‐Current Assets held for Sale and discontinued operations 5 Other Reporting IAS 10 Events after the Reporting Period IAS 37 Provisions, Contingent Liabilities and Contingent Assets 6 Accounting for non‐current assets IAS 16 Property, Plant and Equipment IAS 20 Government Grants IAS 23 Borrowing Costs IAS 40 Investment Property 7 Intangible non‐current assets IAS 38 Intangible Assets Research & Development Cost IFRS 3 Goodwill 8 Impairment of Assets IAS 36 Impairment of Assets Cash Generating Units Goodwill and the Impairment of Assets Accounting treatment of an Impairment Loss 9 Leases
Characteristics of Leases IAS 17 Accounting for Leases
10 Statements of Cash Flows IAS 7 Statement of Cash Flow Preparing a Statement of Cash Flow Interpretation of Statements of Cash Flows 11 IAS 2 Inventories and Short term WIP 12 IAS 11 Construction Contracts 13 Share Transactions and Financial instruments
Part C Accounting for Taxation 14 IAS 12: Income taxes Current Tax Deferred Tax Taxation in Company Accounts Presentation and Disclosure of Taxation
Part D Group Financial Statements
15 Introduction to group accounting 16 Consolidated statement of financial position 17 Consolidated statement of comprehensive income 18 Associates
MANAGEMENT Part A Management of relationships 1 Key concepts in Management 2 Control 3 The financial function; conflict 4 Negotiation and communication 5 Culture Part B Global Business environment 6 Social, political and economic context 7 Governance and Regulation Part C Production Management 8 Production management and its importance for Management Accounting 9 Types of production 10 Quality Management 11 Plant maintenance 12 Production planning and control 13 Productivity and Efficiency Evaluation Part D Managing Human Capital 14 Human Resource Management 15 Human Resource Practices Part E Project Management 16 Project management 17 Project lifecycle and planning 18 Project implementation 19 Project conclusion Part F Marketing Management 20 Marketing and business strategy 21 Marketing plans, branding and communications 22 Developments in marketing
INFORMATION SYSTEMS AND IT AUDIT Section – A : Information Systems 1. Moving Towards E‐Business
Definition of the business, work systems, Information Systems and E‐Business. Business Processes, functional areas and the value‐chain, E‐commerce business models, E‐business assumptions, phases in building and maintaining systems, information technology as driving force for innovation, obstacle when applying IT in the real world.
2. Understanding Systems from a business view point
Framework and models, work system principles, PBSA (principle‐ based system analysis), Measuring work system performance.
3. Business Process
Process Modeling, DFDs, Flow Charts and Pseudo code. Process Characteristics, performance variables
4. Information and Data‐bases : Data Modeling, Types data and importance of data modeling, Information System Categories: OAS, Communication Systems, TPS, EIS, DSS, ERP
5. Customer, product and E‐Commerce: Three dimensions of product and services, customers criterion for evaluating products and services, challenges of e‐commerce
6. Building and Maintaining Information Systems : Phases of SDLC (Initiation, development, Implementation and operation & Maintenance). Alternative processes for building IS (SLC, Prototypes, application packages, end‐user development) Advantages and dis‐advantages of each approach and decision making
7. Security and Ethical Challenges : Ethical responsibilities, Computer Crimes (Hacking, cyber theft, Unauthorized usage, Privacy of Software and Intellectual property. Virus, worms, other Privacy issues Other Employment challenges in working conditions, health and monitoring. Internet Security, Encryption, firewall, Dos, virus defense. Other security measures: codes, backups, security monitors, Biometrics.
8. Lab Session : ( 10 Hours) Using Spreadsheets as decision support tool, developing financial and forecasting models, regression analysis, capital budgeting, financial other advance and productive usage of built‐functions. what‐if analysis, goal seek, pivot table, auditing and other tools. Implementation of business problem on a spread sheets, Security of the data during storage and transmission.
Section –B : IT Audit 9. The Process of Auditing Information Systems:
Audit Mission, planning, Role and responsibilities of Internal , external and IT auditors, risk assessment and analysis, risk based audit approach, compliance and substantive testing, internal Controls and their types, objectives and procedures . Performing an IT audit, CAATs, Control self assessment. Reporting and contents of audit reports.
10. Governance and Management of IT
Corporate and IT governance, role and responsibilities of Senior Management, Steering committee, Chief Information officer , Policies and Procedures, IS management practices, sourcing practices, change management, IS Organizational structures and responsibilities, Segregation of duties and controls within IS. Business continuity planning, auditing business continuity
11. Information System Acquisition, Development and Implementation:
Business application development, Traditional SDLC and these four phases, Business Application systems, EDI, electronic banking, ATMs, alternative development methods, Agile, Prototyping, RAD
12. Information System Operations, Maintenance and Support : Auditing Infrastructure and operations, Disaster Recovery Planning, backups and recoveries, recovery strategies, development of DRP plan.
13. Information System Acquisition, Development and Implementation: Business application development, Traditional SDLC and these four phases, Business
14. Protection of Information Assets : Logical Access, Network Infrastructure Security, Auditing Information Security Management Framework and, Auditing Network infrastructure Security, Environmental Exposure and controls and their auditing, physical access exposures and controls.
MANAGEMENT ACCOUNTING Part A Forecasting and budgeting techniques 1 Forecasts 2 Budgeting 3 Flexible budgeting Part B Decision‐making techniques 4 Break Even Analysis 5 Limiting factor Analysis 6 Marginal Cost Analysis 7 Short‐term decisions 8 Risk and uncertainty Part C Managing short‐term finance 9 Working Capital Management 10 Cash flow forecasts 11 Cash Management 12 Receivables & Payables Management 13 Inventory Management Part D Project Appraisal Methods 14 Capital Investment decisions 15 DCF techniques of investment appraisal 16 Taking account of taxation and inflation 17 Additional aspects of investment decision making
TAXATION
1. Income Tax Ordinance 2001
2. Income Tax Rules 2002
3. Sales Tax Act 1990
4. Sales Tax Ordinance 2000 promulgated by the provinces
5. Custom Act 1969
6. Federal Excise Act & Rules 2005
7. Capital Value Tax
CORPORATE LAWS & SECRETARIAL PRACTICES
1. Companies Ordinance 1984
2. Code of Corporate Governance
3. SECP Act 1997
4. SECP Regulations 2000
5. Non‐Banking Finance Companies Rules
6. Secretarial Practices
ADVANCED FINANCIAL ACCOUNTING & CORPORATE REPORTING Part A Matters related to Recognition and Measurement 1 Substance over form 2 Financial instruments IAS 32,IFRS 7 & IAS 39 3 Employee benefits IAS 19 4 Share‐based payments IFRS 2 5 Asset valuation and Changing prices
Part B Group financial statements
6 Review of Basic groups Group Accounts IAS 27 Consolidated and Separate Financial Statements IFRS 10 Consolidated Financial Statements IFRS 3 (Revised), IFRS 13 and Fair Values in Acquisition Accounting 7 Effect of Non‐controlling interests On Statement of financial position Intra‐group trading Intra‐group sales of non‐current assets Fair Values 8 Acquisition of a Subsidiary during its accounting period 9 Consolidated Statement of comprehensive income 10 Consolidated Statement of changes in Equity 11 Associates and Joint ventures IAS 28 Investment in Associates IAS 31 Interest in Joint Ventures Forms of Joint Ventures Accounting treatment of jointly controlled entities Part C Complex group topics 12 Changes in group structures Disposals Business Combination achieved in Stages Changes in direct ownership 13 Complex group structures Complex group Consolidating sub‐subsidiaries Direct holding in sub‐subsidiaries Indirect associates
14 Foreign currency Foreign Currency translation IAS 21: Individual company stage IAS 21: Consolidated financial statements stage 15 Group statements of cash flows IAS 7 Statement of Cash Flows of Single Company Consolidated Statements of Cash Flows Foreign Exchange and Statement of Cash Flow Part D Performance Reporting 16 Ratio and trend analysis 17 Earnings per share IAS 33 18 Segment reporting IFRS 8
Part E External Reporting
19 Advancement in Financial Reporting
International harmonization
Accounting around the World
Financial Reporting in USA
IFRS vs US GAAP
20 Advancement in Non‐Financial Reporting
Management Commentary Environmental Reporting Sustainability Social and Ethical Environment Social Responsibility Human Resource Accounting
Part A Audit framework and regulation
1. Audit and other assurance engagements 2. Statutory audit and regulation
Part B Management and internal control System
3. Corporate governance 4. Professional ethics 5. Control Systems 6. Management Accounting Control Systems
Part C Internal Audit
7. Internal audit
Part D Planning and risk assessment
8. Risk assessment 9. Audit planning and documentation 10. Introduction to audit evidence
Part E Internal Control
11. Internal control 12. Tests control
Part F Audit Evidence
13. Audit procedures and sampling 14. Non‐current assets 15. Inventory 16. Receivables 17. Cash and bank 18. Liabilities, capital and directors’ emoluments 19. Not‐for‐profit organization
Part G Review
20. Audit review and finalization
Part H Risk Management
21. Introduction to risk 22. Risk management 23. Financial risk management 24. Interest rate risk 25. International risk 26. Transaction risk
Part I Reporting
27. Reports
Investment Analysis and Portfolio Management 1. Investment environment and investment management process
1.1 Investing versus financing 1.2. Direct versus indirect investment 1.3. Investment environment
1.3.1. Investment vehicles 1.3.2. Financial markets
1.4. Investment management process 2. Quantitative methods of investment analysis
2.1. Investment income and risk 2.1.1. Return on investment and expected rate of return 2.1.2. Investment risk. Variance and standard deviation
2.2. Relationship between risk and return 2.2.1. Covariance 2.2.2. Correlation and Coefficient of determination
2.3. Relationship between the returns on stock and market portfolio 2.3.1. Characteristic line and Beta factor 2.3.2. Residual variance
3. Theory for investment portfolio formation
3.1. Portfolio theory 3.1.1. Markowitz portfolio theory 3.1.2. The expected rate of return and risk of portfolio
3.2. Capital Asset Pricing Model 3.3. Arbitrage Price Theory 3.4. Market Efficiency Theory
4. Investment in stocks
4.1. Stock as specific investment 4.2. Stock analysis for investment decision making
4.2.1. E‐I‐C analysis 4.2.2. Fundamental analysis
4.3. Decision making of investment in stocks. Stock valuation 4.4. Formation of stock portfolios 4.5. Strategies for investing in stocks
5. Investment in bonds
5.1. Identification and classification of bonds 5.2. Bond analysis: structure and contents
5.2.1. Quantitative analysis 5.2.2. Qualitative analysis 5.2.3. Market interest rates analysis
5.3. Decision making for investment in bonds. Bond valuation 5.4. Strategies for investing in bonds. Immunization
6. Psychological aspects in investment decision making 6.1. Overconfidence 6.2. Disposition effect 6.3. Perceptions of investment risk 6.4. Mental accounting and investing 6.5. Emotions and investment decisions
7. Using options as investments
7.1. Essentials of options 7.2. Options pricing 7.3. Using options. Profit and loss on options 7.4. Portfolio protection with options. Hedging
8. Portfolio management and evaluation 8.1. Active versus passive portfolio management 8.2. Strategic versus tactical asset allocation 8.3. Monitoring and revision of the portfolio 8.4. Portfolio performance measures
ADVANCED COST & MANAGEMENT ACCOUNTING Part A Cost Planning, Analysis and Techniques
1 Cost Planning Learning Curve Life Cycle Costing Target Costing Value Analysis Functional Analysis
2 Cost Analysis Activity Base Costing (ABC) Activity Base Management (ABM) Direct Product Profitability (DPP) Customer Profitability Analysis (CPA)
3 Cost Management Techniques Traditional vs Modern Manufacturing Philosophy Just‐in‐time (JIT) Kaizen Costing Total Quality Management Business Process Re‐engineering
4 Externally Oriented Cost Management Techniques The Value Chain
Supply Chain Management Outsourcing Partnering, incentives and gain‐sharing arrangements
5 Further Variance Analysis, Interpretation and Profit Reconciliation
Part B Product decisions 6 Linear programming: the graphical method 7 Linear programming: the simplex method 8 Multi‐product breakeven analysis Part C Pricing 9 Pricing decisions and pricing strategies 10 Transfer pricing
Part D Performance Management and Responsibility Centre 11 Budgetary Control Flexible Budgets and Budgetary Control System design Using Spread sheets to build business models Rolling Budgets Behavioral implications of budgeting Budget Participation Use of Budgets as Targets Budget and Motivation Beyond Budgeting 12 Performance Evaluation Financial Performance Indicators Non‐Financial Performance Indicators The Balanced Scorecard Benchmarking 13 Measuring performance in divisionalised businesses
FINANCIAL MANAGEMENT & STRATEGY Part A Formulation of financial strategy
1 Objectives of organizations ‐ Objectives of Companies ‐ Stakeholders and Objectives ‐ Objectives of public owned ‐ Objectives of non‐commercial bodies
2 Constraints on Financial Strategy ‐ Constraint Factors ‐ Economic Constraints ‐ International Constraints ‐ Regulatory bodies 3 Forecasting and Analysis ‐ Performance Analysis ‐ Cash Forecasts ‐ Financial Statements Forecast ‐ Sensitivity Analysis and Changes in Variables 4 Financial Strategies ‐ Working Capital Management ‐ Dividend Policy Part B Financing decisions 5 Equity finance ‐ Capital Markets ‐ Rights Issues ‐ Scrip Dividends, Bonus Issues and Share Splits ‐ Share Prices and Investment Returns ‐ Efficient Market Hypothesis 6 Debt finance ‐ Medium Term Finance ‐ Long Term Debt ‐ Convertible Securities ‐ Warrants ‐ International Debt Finance 7 Leasing
‐ Leasing as a Source of Finance ‐ Lease or Buy decision
8 The cost of capital ‐ Investment decisions ‐ Financing and the Cost of Capital ‐ Dividend Valuation Model ‐ CAPM ‐ Cost of debt ‐ Weighted average cost of capital
9 The capital structure ‐ Capital Structure decision ‐ Effect of Capital Structure on ratios ‐ Theories of Capital Structure ‐ Project Specific Cost of Capital 10 Treasury Management
‐ Treasury Functions ‐ Risk and Reward
Part C Investment decisions and project control 11 Investment appraisal techniques ‐ Capital Investment Appraisal ‐ Risk and Uncertainty 12 International investment ‐ International Investment: Basis and Risk ‐ International Investment: Appraisal 13 Specific investment appraisal scenarios ‐ Capital Rationing ‐ Equivalent Annual Cost ‐ Real Options ‐ Adjusted Present Value 14 Control of investment projects ‐ Investments and Projects ‐ Feasibility Study ‐ Project Control ‐ Investment Performance ‐ Post‐Completion Audits 15 Business valuations ‐ Reasons for Valuations ‐ Asset Valuation bases ‐ Earning Valuation bases ‐ Dividend Valuation bases ‐ Cash Flow Valuation Method ‐ Valuation issues 16 Amalgamations and restructuring ‐ Mergers and Acquisitions ‐ Conduct of a takeover ‐ Payment Methods ‐ Valuation of Mergers and Amalgamations ‐ Regulation of Acquisitions ‐ Post‐acquisition integration ‐ Impact of mergers and acquisition on stakeholders ‐ Exit Strategies
STRATEGIC MANAGEMENT Part A Interacting with the competitive environment 1 Business strategy and strategy development 2 Stakeholders and corporate objectives Part B Strategic management and Competitive environment 3 Strategy: Introduction, Levels and Concepts 4 General and Competitive environment Part C Strategy development and strategic options 5 Strategic decision making 6 Resource audit 7 Generic strategies 8 Directions and methods of growth 9 Evaluating strategic options 10 Strategic marketing 11 Information systems and strategy 12 Issues in strategic management Part D Change management 13 Organizational change 14 Implementing change Part E Implementing strategic plans 15 Strategic control 16 Enterprise performance management