ICMAP

SYLLABUS
SYLLABUS2016
2016
Estd. 1951

GRADUATION LEVEL
G1 - Financial Accounting
Weightage
Part-A Preparation, Adjustment and Analysis
of Financial Statements 40%
Part-C Part-A
Part-B Accounting Treatment for Specific
Part-B Businesses 30%
Part-C Consolidated Financial Statements
(Single Parent and a Subsidiary) 30%

Syllabus Overview: l Prepare and present the financial statements of

companies
This is the second paper of financial stream and gives
insight to the students about preparation of financial l Understand the types/ nature of errors and its
statements for companies (stand alone and rectification
consolidated) and its analysis. The syllabus also covers
l Analyze the financial statements for decision making
accounting for special businesses. After completion of
and performance measurement
this paper, students will have better understanding for
Financial Reporting paper that will be tested at l Prepare and present the financial statements from
professional level. incomplete records
Learning Outcomes: l Prepare and present the receipts and payments and
On completion of this course, students will be able to: income and expenditure accounts

l Understand the nature and component of l Understand the accounting treatment and process
shareholders' equity and its accounting including for branches
accounting for issuance of shares (at par, discount l Prepare consolidated financial statements for single
and premium) including allocation of dividends and parent and a subsidiary
reserves

Detailed Contents Weightage Level of

in % Study Required
PART - A: PREPARATION, ADJUSTMENT AND ANALYSIS OF FINANCIAL STATEMENTS
1. Company Formation & l Formation of public and private limited companies U
Retained Earnings as per Companies law in Pakistan
l Concept and nature of shares and share capital A
l Types of shares and share capital A
l Recording of issue of shares (at par, premium and A
discount) against cash and for consideration other
than cash
l Concept of partly and fully paid-up shares 25 U
l Share splits, right issue of shares, bonus shares A
(stock dividend)
l Introduction to debentures/ bonds/ PTCs/ TFC/ A
Sukuk etc.
l Retained earnings appropriation to dividends and A
reserves
l Concept and types of dividends and reserves A
l Accounting for dividends, reserves and reserve funds A
l Year-end adjustments A
l Prepare and present the financial statements of A
companies i.e., Statement of Profit or Loss and
Other Comprehensive Income, Statement of
Financial Position, Statement of Cash Flows (Direct
and indirect Method), Statement of changes in equity

Institute of Cost and Management Accountants of Pakistan

74 (Constituted under Cost and Management Accountants Act, 1966)
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SYLLABUS 2016
Estd. 1951

2. Rectification of l Types of error A

Errors l Errors not affecting the trial balance A
l Errors affecting the trial balance including suspense A
account, effect of errors on financial statements
3. Financial Statements l Ratios analysis A
Analysis (Ratio l Activity ratios/ operating cycle ratio, liquidity ratios 15 A
Analysis) l Solvency ratios, profitability ratios, investors' ratios A
l Horizontal and Vertical Analysis A
l Interpreting financial information A
l Limitations of ratios analysis A
PART - B: ACCOUNTING TREATMENT FOR SPECIFIC BUSINESSES
4. Accounting for l Features of incomplete records and comparison with A
Incomplete Records double-entry accounting
l Pure and mixed incomplete records accounting A
treatments
l Preparation of financial statements from incomplete A
records
5. Accounting for l Preparation of receipts and payments account A
Non-profit l Preparation of income and expenditure account A
Organizations l Special funds U
l Preparation of financial statements A
6. Accounting for l Operation of a branch A
Branches (Excluding l Types of branch U
Foreign Branches) l Accounting systems for branch (including 30 A
dependent and independent branches) and
head office
l Reciprocal accounts and inter-branch transactions A
l Preparation of combined statements for head office A
and branches
7. Accounting for l Define a partnership and state its essential elements U
Partnership l Formation of a partnership U
Concerns l Accounting for partnerships, preparation of A
partnership accounts
l Preparation of income statement/ profit or loss A
account and statement of comprehensive income
for a partnership concern
l Appropriation/ distribution of profits among partners A
l Prepare capital and current account A

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(Constituted under Cost and Management Accountants Act, 1966) 75
 ICMAP

SYLLABUS 2016
Estd. 1951

PART-C: CONSOLIDATED FINANCIAL STATEMENTS (SINGLE PARENT AND A SUBSIDIARY)

8. Consolidated l Concept of a group as single economic unit U
Statement of l Concept of subsidiary and holding company U
Financial Position l Objectives of preparation of consolidated financial U
statements
l Pre and post-acquisition profits U
l Non-controlling interest U
l Need for valuing investment and net assets U
acquired in a subsidiary on fair values
l Accounting treatment of unrealized profit U
l Accounting for mid-year acquisitions 30 U
l Accounting treatment of goodwill U
l Preparation of consolidated statement of financial A
Position
9. Consolidated l Principles and elements of the consolidated U
Statement of statement of comprehensive income
Comprehensive l Inter-company transactions and why they need U
Income to be eliminated
l Other consolidated income statement adjustments U
l Preparation of consolidated statement of profit or A
loss and other comprehensive income
TOTAL WEIGHTAGE 100

NOTE:-
U = Understanding
A = Application
D = Decision

Institute of Cost and Management Accountants of Pakistan

76 (Constituted under Cost and Management Accountants Act, 1966)