CS Executive Corporate and Management Accounting Classes

CS Executive Paper 5 — Corporate and Management Accounting

Corporate and Management Accounting is a 100-mark paper that gives CS students the financial literacy needed to read, review, and certify financial statements — a core Company Secretary function. This paper has both MCQ and descriptive components under the CS Executive syllabus.

Corporate Accounting

• Accounting Standards (Ind AS basics) — Framework, Ind AS 1 (Presentation), Ind AS 2 (Inventories), Ind AS 7 (Cash Flows), Ind AS 8 (Accounting Policies), Ind AS 10 (Events after Reporting Date), Ind AS 16 (PPE), Ind AS 37 (Provisions), Ind AS 38 (Intangibles)
• Company Final Accounts — Schedule III (Division I for companies, Division II for Ind AS companies) — Balance Sheet format, Statement of Profit and Loss, preparation and notes to accounts
• Cash Flow Statement — Indirect method for operating activities, investing and financing cash flows, reconciliation (Ind AS 7)
• Amalgamation — AS 14 pooling and purchase method — computation of purchase consideration, treatment of reserves, journal entries in books of vendor and purchasing company
• Holding Company Accounts — Preparation of consolidated balance sheet, minority interest, inter-company transactions, unrealised profit elimination

Management Accounting

• Ratio analysis — Liquidity (Current Ratio, Quick Ratio), solvency (Debt-Equity, Interest Coverage), profitability (ROCE, ROE, Net Profit Margin), turnover (Asset Turnover, Inventory Days)
• Marginal costing — P/V ratio, break-even analysis, contribution-based decisions
• Standard costing — Material and labour variances, overhead variance analysis
• Budget and budgetary control — Cash budget, master budget, variance analysis for management reporting
• Working capital management — Estimation, operating cycle, management of receivables and inventory