Advance Accounting is the first paper of CAP-II. It covers 100 marks in total. It is the Group 1 paper. The syllabus you need to cover in CAP-II under “Advance Accounting” is as follow:
Level of Knowledge : Working
Course objectives :
— Enable the candidates to understand the principles, methods and procedures of accounting as followed by different entities.
— Enable the candidates to understand the relevant laws, principles, practices and NFRS for the preparation and presentation of financial statements.
— Provide understanding of the tools and techniques followed in the analysis and interpretation and presentation of financial statements of companies.
— Familiarize the candidates with the basics of computerized system of accounting.
Introduction, concepts, principles, system, methods, process, types and accounting as a profession
Financial reporting standards
National and international accounting authorities, procedures of developing NFRS, conceptual framework for the preparation and presentation of financial statements and working knowledge on the following Nepal Financial Reporting Standards including conceptual framework.
— NFRS 3: Business combination
— NAS 1: Presentation of financial statements
— NAS 2: Inventories
— NAS 3: Statement of cash flows
— NAS 8: Accounting policies, changes in accounting estimates and errors
— NAS 10: Events after the reporting period
— NAS 16: Property, plant and equipment
— NAS 17: Leases
— NAS 18: Revenue
— NAS 20: Accounting for government grants and disclosure of government assistance
— NAS 21: The effect of changes in foreign exchange rates
— NAS 37: Provisions, contingent liabilities, and contingent assets
Accounting for special transactions
Leases, hire purchase and installment system, contract accounts, investment accounts, branch (including foreign branch) and departmental accounts, computation of insurance claims for loss of stock and profit.
Accounting for share capital and reserve funds-types of shares, issue of fresh shares, bonus shares, right issue, redemption of redeemable preference shares, issue, redemption and conversion of debentures, and underwriting of shares and debentures.
Preparation and presentation of financial statements as per NFRS and provisions in Company Act, format and contents as per the prevailing laws, interpretation of items of financial statements, profit (loss) prior to incorporation.
Winding up of companies and accounting treatment arisen there from including Statement of affairs. Additional disclosures and comment on going concern concept in relation to winding up, Accounting of acquisition, absorptions, amalgamation, merger and reconstruction, Statement of cash flows-objectives, preparation methods (direct and indirect) and interpretations.
Treatment of goodwill and profit sharing, admission, retirement and death of partner (including annuity and policies methods), dissolution, conversion and merger of firms
Preparation and presentation of financial statements of special organizations
1.Banking and financial institutions
Types of financial institutions as per prevailing Acts, formats and contents as prescribed by central bank, accounting policies and disclosures requirement, interest income recognition and loan loss provisioning, capital adequacy and cash reserve requirement. Simple practical problems
Nature of operation (life and non-life), formats and contents of financial statements prescribed by Insurance Board, accounting and disclosure requirements, premium income recognition, liability recognition and treatment of re-insurance. Simple practical problems
Concept and peculiarity of inventory valuations
4.Accounting for co-operatives
Nature of operation, formats and contents of financial statements prescribed by Department of Cooperatives, accounting and disclosure requirements, interest income recognition and loan loss provisioning, PEARL System. Simple practical problems.
5.Preparation of financial statements from incomplete records
Concept of incomplete records and generation of need for financial information from other records, preparation of final financial statements from incomplete records.
Basis of accounting and accounts classification. Differences between government and business accounting, Simple practical problems. Concept of PFM and features of sound PFM of the country
7.Analysis and interpretation of financial statements
Interpretation of financial statements, Segmental information analysis, Analysis of performance and position through cash flow, ratios and trend.
8.Accounting for NPOs
Preparation of financial statement of not for profit organizations, and fund based accounting.
9.Accounting in computerized system
Salient features, chart of accounts and grouping, codification of accounts, maintenance of ledger, accounting packages- general and customized, accounting reports