CMA Intermediate Financial Accounting Classes

CMA Intermediate Paper 6 — Financial Accounting

Financial Accounting is a 100-mark paper in Group 1 that bridges the accounting fundamentals from Foundation with the Ind AS framework and advanced company accounting scenarios. A CMA who cannot read and prepare financial statements cannot fulfil their core professional function — this paper ensures that competency is built rigorously.

Accounting Standards and Ind AS

• Indian Accounting Standards (Ind AS) — Key standards at intermediate application level: Ind AS 1 (Presentation), Ind AS 2 (Inventories), Ind AS 7 (Cash Flows), Ind AS 8 (Accounting Policies), Ind AS 10 (Events after Reporting Period), Ind AS 16 (PPE), Ind AS 37 (Provisions), Ind AS 38 (Intangibles)
• AS vs Ind AS — Convergence, carve-outs, transition from AS to Ind AS

Company Accounts (Advanced)

• Preparation of financial statements under Schedule III (Division I and Division II for Ind AS companies)
• Cash Flow Statement — Indirect method under Ind AS 7, treatment of special items
• Amalgamation — AS 14, pooling of interests and purchase method, computation of purchase consideration, treatment in books of transferor and transferee
• Holding Company and Subsidiary — Consolidated Balance Sheet preparation, minority interest, pre- and post-acquisition reserves, goodwill on consolidation
• Redemption of Debentures — Sinking fund method, open market purchases, conversion

Special Accounts

• Branch Accounts — Dependent branch (debtors method, stock and debtors method), independent branch, foreign branch accounts
• Hire Purchase and Instalment Purchase — Accounting in books of both parties, interest computation under actuarial method
• Insurance Claims — Loss of stock claim, consequential loss (loss of profit) claim — relevant for manufacturing CMAs
• Non-Profit Organisations — Receipts and Payments account, Income and Expenditure account, Balance Sheet of NPOs