CS Executive Corporate Accounting and Financial Management Classes

CS Executive Paper 4 - Corporate Accounting and Financial Management

Under the ICSI New Syllabus 2022, financial management stopped being a paper of its own and was merged into corporate accounting. Paper 4 is now a single 100-mark paper covering both, and it is the most calculation-heavy paper in Group 1. Students moving from the old syllabus should note that strategic management moved to the Professional Programme - only the financial half survives here.

Part A - Corporate accounting

• Introduction to financial accounting and the Ind AS framework at a working level
• Company final accounts under Schedule III of the Companies Act 2013
• Accounting for share capital - issue, forfeiture, reissue, bonus and rights issues; buy-back; ESOP
• Debentures, redemption and related provisions
• Cash flow statements, and an introduction to consolidation of accounts
• Valuation of shares and intangible assets at an introductory level

Part B - Financial management

• Nature and scope of financial management; time value of money
• Capital budgeting - payback, NPV, IRR and profitability index, with mutually exclusive project decisions
• Cost of capital and WACC; capital structure theories and leverage
• Working capital management - inventory, receivables and cash
• Dividend policy and the sources of long-term and short-term finance

How to approach it

Treat it as two papers taught back to back rather than one. The accounting half rewards format discipline - Schedule III presentation marks are given away every session. The FM half rewards problem repetition; the formula set is small and the marks come from applying it under time pressure.