Course Contents
Unit I: Inventories and Cost of Goods Sold 8 hours
The nature of inventory; cost of goods sold model; perpetual and periodic inventory accounting system, inventory valuation and income measurement; inventory costing methods: FIFO, Weighted average & Specific identification; choice of a method; methods of inventory estimation; effect of inventory valuation method on the cost of goods sold; disclosure in the financial statements; Ratios relating to inventory management.
Unit II: Receivables 7 hours
Accounts receivables: accounts receivable & notes receivables; recognizing accounts receivables, valuation of accounts receivables, methods of accounting for doubtful and uncollectible debt, balance sheet presentation.
Notes receivables: interest bearing notes, non-interest bearing notes, presentation of the notes receivable and related aspects in the financial statements; Ratios relating to account receivables.
Unit III: Property, Plant and Equipment 7 hours
Nature of operating assets (property, plant and equipment); acquisition costs of operating assets; concepts of capital and revenue expenditure; the capitalization process; depreciation: concepts, methods and accounting (straight line method, diminishing balance method, double declining balance method and units of production method), comparison of depreciation methods, disposal of assets and accounting for gains and loses; disclosure in the financial statements; Ratios relating to property, plant and equipment.
Unit IV: Current Liabilities 3 hours
Accounts payable; notes payable, tax payable, current portion of long term liabilities, contingent liabilities and other current liabilities; accounting procedures and balance sheet presentation; Ratios relating to current liabilities.
Unit V: Non-current Liabilities 7 hours
Bonds payable: issuance of bonds, characteristics of bonds, factors affecting bond price, premium or discount on issuance of bonds, amortization of bond premium or discount, redemption of bonds at and before maturity, disclosure in financial statements.
Leases: operating and financial lease; Balance sheet presentation; Ratios relating to non-current liabilities.
Unit VI: Stockholders' Equity and Dividends 9 hours
Components of the stockholders' equity section of the balance sheet; types of stocks: common and preferred, types of preferred stocks, issuance of stock, stock issued for cash and non-cash consideration and on a subscription basis, retirement of preferred stocks; accounting for treasury stock: purchase and sale, presentation in the financial statements; dividends: meaning and types of dividend-cash dividend, cash dividend for ordinary stock and preferred stock; stock dividend and stock split, disclosure in financial statements; Ratios relating to stockholders' equity and dividend.
