B.Com. (Financial Accounting) Bachelor of Commerce in Financial Accounting
B.Com. Financial Accounting or Bachelor of Commerce in Financial Accounting is an undergraduate Commerce course. Financial Accountancy is the field of accountancy concerned with the preparation of financial statements for decision makers, such as stockholders, suppliers, banks, employees, government agencies, owners, and other stakeholders. B.Com. is generally three academic year degree course and it may be provided on part time basis by certain institutes. The duration of the course is three years and it career orienting in nature that opens many job scopes for them after its completion.
B.Com. Financial Accounting Eligibility
The candidates should complete their 10+2 or its equivalent exam with subjects like Account and Finance in Commerce stream. The marks of admission for this course may vary from college to college. In various colleges it conducts entrance exams plus interview and percentage of 12th class for the admission of students.
1. Meaning and Scope of Accounting, Accounting Principles (GAAP), Accounting Cycle, Types of Accounts & Rules of Debit and Credit, Users of Accounting information, Branches of Accounting, Indian Accounting Standards, Classification of Income and Expenditure. 2. Advanced Accounts of Partnership firm.
1. Branch Accounts. 2. Accounts from Incomplete Records.
1. Consignment Accounts. 2. Accounting for Joint Venture.
1. Hire purchase and installment purchase System. 2. Voyage Account.
1. Self Balancing Ledgers. 2. Insurance claim for loss of stock and loss of profit policy.
1. Accounting for “Not-for-profit” Entities. 2. Final accounts of Professionals.
Year II (Taxation - compulsory paper)
1.1 Introduction : Historical background of the Income Tax Act, 1961 ; Definitions-Meaning of various terms viz. Income, Income Tax, Assess, Person, Assessment Year, Previous Year, etc. 1.2 Residential Status & Incidence of Tax : Determination of Residential Status, Incidence of Income Tax on the basis of Residential Status of an assess and Basis of charge. 1.3 Exempted Income under Section 10 of the Income Tax Act, 1961. 1.4 Income under the head ‘Salaries’ : Determination / Taxation of income under the head ‘Salaries’, Income includible in ‘Salaries’- Taxable and Exempted Perquisites, Amount deductible from ‘Salaries’ – Professional Tax, etc.
2.1 Income under the head ‘House Property’: Determination / Taxation of income from ‘House Property’- Deductions available and not available from Income from ‘House Property’- Carry Forward and Set off of losses under the head Income form ‘House Property’ 2.2 Income under the head ‘Other Sources’: Determination / Taxation of income from ‘Other Sources’- Deductions available & not available from income from ‘Other Sources’.
3.1 Income under the head ‘Profits & Gains from Business & Profession’ : Taxation of Income from ‘Profits & Gains from Business & Profession’- Provisions of section 28 to 44D of the Income Tax, 1961.- Carry Forward and Set off of Business Losses and Unabsorbed Depreciation. 3.2 Income under the head ‘Capital Gains’ : Introduction, Basis of Charge & Computation, etc.
4.1 Computation of Total Income: Computation of Gross Total Income of Individuals, Deductions from Gross Total Income under Chapter VI A: viz. under Sections 80 C to 80 U of the Income Tax Act, 1961. 4.2 Interest payable by an assess : Interest payable by assesses under Section 234 A, 234 B, 234 C & 234 D of the Income Tax Act, 1961.
5.1 An Introduction to Indirect Taxes: Meaning & Constitutional support to Indirect Taxes (several Indirect Taxes), Direct & Indirect Taxes compared, Advantages & Disadvantages of Indirect Taxes. 5.2 Value Added Tax (VAT): Meaning, Background, Incidence of Tax; Important Definitions; VAT and Sales Tax compared; Registration, Assessment & Payment; Rate of Taxes on goods & declared goods, Set Off (input tax credit) conditions & procedure; Records & Documents. 5.3 An Introduction to CST.
6.1 Central Excise Duty: Historical Background, Meaning, Incidence of Tax; Levy and Collection of Excise Duty; Goods, Excisable Goods, Classification of Excisable Goods; What is Manufacture? ; Cenvat Credit. 6.2 Service Tax : Meaning, Background & Incidence of tax ; Levy & Collection of Service Tax ; Terms used in Service Tax – Service Provider, Consumer of Service, Input Service, Taxable Service, Exempted Service etc.; General Exemption from Service Tax ; Persons liable to pay service tax with exceptions.
Year II (Cost & Management Accounting - compulsory paper)
Introduction: Cost Concepts, Cost Object, Cost Classification (CAS-01), Cost Organization And Its Relationship With Other Departments. Material Cost – Procurement Procedure, Store Procedure and Documentation In respect of Receipts and Issues Of Stock, Perpetual Inventory And Physical Stock Taking, ABC Analysis, VED Analysis, Level Of Inventories and Economic Order Quantity (EOQ) Analysis. Labor Costs — Remuneration Methods, Monetary And Non-Monetary Incentive Schemes, Payroll Procedures, Measurement Of Labor Efficiency And Productivity, Analysis Of Non-Productive Time, Overtime - Cost & its Treatment, Labor Turnover And Remedial Measures. Direct expenses — nature, collection, classification and treatment of direct expenses.
Overheads — Nature, Collection, Classification, Apportionment and Absorption. (CAS – 03) Production Overheads — Collection, Apportionment, Absorption, Use Of Predetermined Recovery Rates, Treatment Of Under And Over Absorption, Fixed, Variable And Semi Variable Overhead, Report For Control Of Overhead Cost. Administration, Selling And Distribution Overheads — Analysis, Accounting And Control, Treatment Of Miscellaneous Items In Cost Accounting. Preparation of Cost Sheet (Advanced Comprehensive Examples only)
Specific Order Costing —Determination Of Cost In Job And Batch Costing, Valuation Of Work-In-Progress In Job Costing. Cost Accounting Records — Cost Accounting Systems – Integrated and Non-integrated, Reconciliation Of Cost And Financial Accounts. Process Costing — Treatment Of Normal And Abnormal Losses And Gains, Valuation Of Opening And Closing Raw Materials, Finish Goods, Valuation Of Work-In-Progress Using First-In – First-Out And Average Methods (Equivalent Production), Inter-Process Transfer And Pricing, Concepts And Accounting For Joint Products, By-Products, Waste, Packing Materials (Empties), Scrap, Spoilage And Defectives, Research And Development Expenses.
Activity Based Costing: Definition and Meaning objectives, Steps in Activity Based Costing, Cost Pools and Cost Drivers, Activity Based Information and Decision Making. Service Costing - Meaning, Definition, Application, Identification of Cost Unit, Cost Determination & Cost Control. Uniform Costing and Inter Firm Comparison. Introduction of Management Accounting: Meaning, Definition, Importance in Business Decisions, Classification of Costs in relation to business decisions.
Marginal Costing And Break-Even Analysis — Basic Concepts, Marginal Costing And Absorption Costing, Cost-Volume-Profit Analysis, Break-Even Analysis, Limitations Of Break-Even Analysis, Differential Cost Analysis And Relevant Cost Analysis, Applications For Management Decision Making (Simple Types). Budgetary Control — Basic Concepts, Functional Budgets And Master Budgets, Flexible Budgets, Zero Based Budgeting.
Standard Costing — Concepts/Uses And Establishing a Standard Costing system, Setting of Standards, Variance Analysis, Recording and Reporting, Relationship of Standard Costing And Budgetary Control.
Year II (Advanced Accounting – I
(Group – A: Accounting & Auditing; Special Paper - I)
1. Accounting for shares Issue – forfeiture – Re-issue of shares Buy back of shares- Underwriting – Bonus shares, Share Split and Reverse Split Right issue- Surrender of shares 2. Redemption of Redeemable Preference shares
1. Accounting for Debentures Issue and Redemption of Debentures (Various method), Bonus Debentures 2. Company Statutory Records Statutory Books – Statistical records – Statutory records 3. Acquisition of Business – profit prior to Incorporation
1. Accounting for Depreciation and Fixed assets (As per the provisions of As-6 and As-10) 2. Final Accounts of Joint stock Companies Preparation and presentation of Final Accounts in compliance of Schedule VI- (Vertical format) covering As-1, As-2, As-4, As-5, and As-29. (Excluding Computation of Managerial Remuneration and Divisible Profit)
1. Cash Flow Statement (As per As-3) – Indirect Method 2. Funds Flow statement -Statement of changes in Working Capital, Statement of Funds from Operation, Statement of sources and Application of Funds
1. Valuation of Goodwill Meaning – Definition – Factors affecting Goodwill-Future Maintainable profits- Normal rate of return- Average Capital Employed-Methods of Valuing Goodwill- Simple Profit Method-Super Profit Method – Capitalization Method. Annuity Method-Weighted Average profit method 2. Valuation of shares Need for valuation-Methods of Valuation of shares – Intrinsic Value Method – Yield Method- Fair book value method- Valuation based on P/E ratio
1. Investment accounts as per As-13 Definition- classification of Investment- Cost of Investment –valuation of Investments- Disposal of investment- Reclassification of Investment, Preparation of Investment account for Interest & dividend bearing Securities 2. Accounting for Lease Transactions as per As-19 Types of lease- Accounting for operating lease & Finance lease & Sale and leaseback 3. Accounts of Hotel Business Nature of Hotel companies - Sources of revenue – Heads of Expenditures – Important Terms, Significant accounting policies.
Year II (Capital Market)
(Group – B: Finance & Investment Management; Special Paper - I)
1. Financial Management: Introduction, Core Concepts, Objectives, Finance Functions, Organization of Finance Function. 2. Time Value of Money: Concept and Applications. 3. Statements of Financial Information, and Financial Statements Analysis.
1. Sources of Finance. 2. Leverages. 3. Dividend Policy.
1. Working Capital Management ( including basic elements of cash management, credit management and inventory management )
1. Cost of Capital. 2. Basics of Capital Budgeting.
1. Personal Finance : Introduction, Goals, Importance of Personal Financial Management, Personal Financial Statements ( Income Statement and Balance Sheet ), Financial Planning and Budgeting, Spending money wisely, Tax Planning for Personal Incomes. 2. Savings and Investments, Avenues for Investments: Financial Securities, Real Estate, Precious Metals and Derivatives, Depository System, Diversified Personal Investment Portfolio.
1. Borrowings for short term and long term personal needs. 2. Insurance: Life, Health, Property and Liabilities. 3. Retirement Planning.
Year III (Audit & Auditor’s Assurances)
(Group – A: Accounting & Auditing; Special Paper - II)
Principles of Auditing (with reference to AAS-1) Definition, An overview of Auditing & Assurance Standards (AAS), Objects (with reference AAS-4), advantages and different classes of Audit. Qualities of a Good Auditor. Preparation before commencement of Audit, Audit program (with reference AAS-8), Audit Notebook, Audit Files, Working papers (with reference AAS-3).
1. Internal Check, Internal Control (with reference AAS-6) and Internal Audit. 2. Special Audit Techniques:- Analytical Procedures (AAS - 14) - Types of sampling, Test check system of Audit (with reference AAS-15)
1. Meaning and Object of Vouching (with reference AAS-5). Vouching of various types of transactions. 2. Meaning of Verification and Valuation, Verification and Valuation Principles, Verification and Valuation of Assets and Verification of Liabilities. 3. Contemporary issues on Auditing.
1. Provision relating to auditors under The Companies Act, 1956: Appointment, Reappointment, Remuneration and Removal of Auditors, Qualifications and Disqualifications. 2. Rights, Powers, Duties and Liabilities of an auditor.
1. (a) Statutory Report to be placed before statutory meeting. (b) Dividend and appropriation of Profits including divisible profits. (c) Share Capital and Debenture Audit. 2. Auditing in Computerized environment. 3. Investigation – Meaning, difference between investigation and Audit, various types of investigation.
1. Following sections of the Companies Act, 1956: · Sec. 209 - Books of accounts to be kept by the Company. · Sec. 210 - Annual Accounts & Balance Sheet · Sec.227 - Auditors Report including CARO, 2003 as amended by CARO,2004. · Sec.228 - Branch Audit · Sec.233A - Power of Central government to direct special audit in certain cases. · Sec.233B - Cost audit. 2. Audit under Fiscal Laws - Tax Audit - Vat Audit 3. Recent Trends in Company Audit
Year III (Advanced Accounting – II)
(Group – A: Accounting & Auditing; Special Paper - III)
1. Final Accounts of Joint stock Company (Advanced) Computation of Managerial Remuneration-Divisible Profit -Application of As-15 As-22 As-29 Notes to accounts-Corporate Governance Report 2. Earnings Per Share (EPS) as per Ads-20 Computation of Basic and Diluted Earnings Per Share.
1. Accounting for Amalgamation as per Ads-14 Legal Provisions-purchase Consideration-Amalgamation in the nature of merger & Amalgamation in the nature of Purchase (Excluding inter Company investments) 2. Reconstruction of Company External Reconstruction - Internal Reconstruction-Alteration of Share Capital & Reduction of Share Capital surrender of shares-Dissenting shareholders
1. Liquidation of Joint Stock Companies Meaning of Liquidation- Modes of winding up – statement of Affairs – Deficiency or Surplus account, Liquidators Final statement of accounts- Receiver for Debenture holders – “B” list of Contributories.
1. Holding Company Accounts (With one subsidiary company only) Consolidated Balance Sheet Definitions as per As-21- wholly and partly owned Subsidiary Companies-pre & post acquisition profits/losses-Cost of control-Minority Interest- Unrealized profit-Intercompany transaction- Revaluation of Assets & Liabilities- Treatment of Bonus shares & Dividend-Preference shares in subsidiary company – Consolidated Profit and Loss Account
1. Accounts of Banking Companies Legal provisions relating to Final accounts of Banking companies – Disclosure of Accounting policies- prescribed formats of Profit and loss account and Balance sheet Norms for Income recognition, NPAs, Asset classification and provision for Bad and Doubtful debts. 2. Accounting for Intangibles (AS-26)
1. Accounts of Insurance Companies Life insurance-General Insurance various terms used in insurance business, IRDA provisions – Statutory financial statements of life and General Insurance business in prescribed formats 2. Accounting for foreign currency transactions (AS-11) 3. Emerging Trends in Accounting
Year III (Financial Analysis & Reporting)
(Group – B: Finance & Investment Management; Special Paper - II)
Company Final Accounts: Preparation and Presentation of Final accounts in compliance of Schedule VI - Accounting for Depreciation of Fixed Assets – AS-1,2,4,5,6,9,10 and 29.
Financial Statements Analysis: Statements of Financial Information – Users – Accounting Ratios – Types of Ratios – Basis of Comparison – Limitations of Ratios – Du Pont Analysis.
Predicting Corporate Failures using Z score models – Comparative Statements Analysis – Common size Statements.
Reporting to Shareholders: Contents of Annual Reports – Chairman’s Statement, Directors’ Report, Auditor’s Report, Financial Statements, and Corporate Governance Report - Management Discussion and Analysis, Voluntary and Mandatory Disclosures – Segment Reporting – Interim Financial Reporting.
Value Added Statement – Economic Value Added – Triple Bottom Line (People, Planet and Profits ) Reporting – Corporate Social Reporting.
(Group – B: Finance & Investment Management; Special Paper - III)
1. Savings and Investments, Meaning of Investment, Real Assets vs. Financial Assets, Investment vs. Speculation, Investment Attributes: Rate of Return, Risk, Marketability, Tax Shelter, and Convenience. 2. Investment Alternatives – a Panoramic View.
1. Risk and Return: Sources of Risk, Types of Risk, and Components of Return, Measuring Historical Return and Risk, and Measuring Expected Return and Risk. 2. Efficient Market Hypothesis: Concept, Three Levels of Market Efficiency and Implications for Investment Analysis.
1. Equity Valuation: Balance Sheet Valuation, Dividend Discount Model, Drivers of Growth, Earnings Multiplier Approach (P/E Ratio). 2. Bond Prices and Yields: Bond Characteristics, Bond Prices, Bond Yields, Risks in Bonds, Rating of Bonds, Yield Curve and Determinants of Interest Rates.
1. Fundamental Analysis: Macroeconomic and Industry Analysis, Company Analysis. 2. Technical Analysis: Basic Premises, Charting Techniques and Technical Indicators.
1. Portfolio Theory: The Benefits of Diversification, Portfolio Return and Risk, Measurement of Co-movements in Security Returns, Efficient Frontier, Optimal Portfolio. 2. Capital Asset Pricing Model (CAPM): Basic Assumptions, Capital Market Line, Security Market Line, Inputs required for applying CAPM.
1. Portfolio Management Framework: The Grand Design. 2. Futures and Options: Simple Strategies of Hedging, Speculation and Arbitrage – Commodities Futures. 3. Tax Aspects of Investments.
Those who are willing to go for teaching fields at higher degree level i.e. college and university level both in private and government institutions are good match for it.
They should have an excellent grounding in financial analysis, creative thinking and should possess good communicative and interpersonal skill.
They should have the love for numbers, good mathematical and analytical skills, knowledge of latest computer technology, integrity, problem-solving, decision-making and organization skills.
They must have the idea about the corporate system and be aware of all the tax and other financial laws regarding their industry.
How is B.Com. Financial Accounting Course Beneficial?
One can go for higher degree programs in respective subjects such as Masters’ degree, etc. and then for further research work.
They can become as finance controller, treasurer, finance officer, credit and cash manager, risk manager and insurance manager are some of the positions one could get in an organization after his academic studies in finance and the responsibilities varies according to the positions.
They have also the option of becoming treasurer; here they work as understanding the financial status of the company and maintaining the treasury of an institution.
One could find jobs as financial experts at multinational companies also.
A good experienced professional especially from a reputed B-school is in high demand in international market, and they could even start their own financial consultancies.
B.Com. Financial Accounting Job Types
Equity Research Analyst
Asst Manager - Finance Accounting and Logistics
Associate - Finance/ Accounting
Finance Executive - Accounting
Accounts officer - Financial Accounting
Head - Financial Reporting & Accounting
Colleges and Institutes
Colleges offering B.Com. (Financial Accounting) in India