Accounting Theory
Subject Overview
Accounting Theory covers the conceptual foundations of accounting — GAAP, accounting policy for depreciation and inventories, lease/hire-purchase and derivatives accounting, contemporary developments (price-level, human resource, social, forensic and environmental accounting, cryptocurrency accounting), amalgamation and holding company accounts, a comparative study of Indian, international and US accounting standards, and financial reporting practices. A 4-credit core theory paper.
Unit-wise Syllabus
4 units — click WhatsApp below to get the full notes for each
Unit 1: Accounting foundations and policy
History and evolution of accounting thought, approaches to accounting theory, financial vs cost vs management accounting, concepts of income/revenue/expense/gains/losses, single vs double entry systems, GAAP nature/scope/merits/limitations, accounting policy for depreciation and inventories
Unit 2: Leases and contemporary accounting
Accounting for leases and hire purchase and their standards, accounting for derivatives, accounting for price-level changes, human resource accounting, social accounting, forensic accounting, environmental accounting, accounting for cryptocurrencies
Unit 3: Amalgamation, holding companies and standards
Accounting for amalgamation — methods and standards, holding company accounts — meaning and treatment, introduction to accounting standards and guidance notes, comparative study of International Accounting Standards, Indian Accounting Standards and US GAAP, harmonization of accounting practices
Unit 4: Financial reporting
Content, scope and issues in financial reporting, interim reporting, segment reporting, corporate social reporting, harmonization of financial reporting, recent trends in financial reporting practices