The accounting cycle; Sources of accounting information; Forms of business organizations; Users of accounting information; The accounting profession; Desirable qualities of accounting information; Legal environment of accounting; Fundamental accounting assumptions; Branches of accounting.
Basics of Financial Reporting
How is accounting information communicated; Annual report: contents, structure, provisions in the company laws, relevant provisions of the Nepal Accounting Standards and the International Accounting Standards/International Financial Reporting Standards; Interim accounting reports.
Major financial statements: balance sheet, income statement, statement of retained earnings, cash flow statement; Preparation of financial statements; Legal provisions relating to presentation of financial statements; Provisions of Nepal Accounting Standards and International Accounting Standards on presentation of financial statements; Notes to accounts.
Business Transactions and Accounting Cycle
Entity, transactions and events; Accounting equation; Transactions analysis; Rules for debit and credit; Bases of accounting; Recording and posting of transactions; Preparation of unadjusted trial balance; Adjusting entries for accruals and deferrals; Adjusted trial balance; Worksheet; Closing entries; Preparation of financial statements with schedules.
Accounting and Reporting of the major Components of Financial Statements
Current assets: Inventories – recording, costing methods; valuation, presentation in financial statements; Recording and presentation of bad and doubtful debts.
Non-current assets: Capital, revenue and deferred revenue expenditure; Capitalization process, Accounting and reporting of fixed assets and depreciation; Recording, amortization and presentation of intangible assets.
Bonds and debentures: Nature of bonds and debentures; When should a corporation issue bonds?; Accounting for issue, amortization and redemption of bonds.
Stockholders' equity: Nature; Accounting for issue of preferred and common stocks; Additional paid-in-capital; Dividends and retained earnings; Stock splits; Treasury stock.
Financial Statements Analysis
Introduction to financial statements analysis: Objectives, applications, precautions in statements analysis, limitations of financial statements, tools for analysis.
Analysis and interpretation of financial statements: Reading an annual report; Comparative and common-size statements: horizontal and vertical analysis; Ratio analysis and interpretation: liquidity, solvency, profitability and stock market ratios; Cash flow statement: operating, investing and financial activities.