Course Content
Accounting Principles and Standards, Preparation of Financial Statements
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Accounting Concepts and Principles: Theoretical Framework
Accounting Standards : IFRS, IAS & GAAP
Responsibilities of IASB
Indian Accounting Standards (Ind AS)
Types of Account
Types of Expenditure
Financial Statement Analysis: Ratio Analysis, Funds Flow and Cash Flow Analysis, DuPont Analysis
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Financial Statements List
Important Terms
Ratio Analysis
Funds Flow Analysis
Flow of Funds
Cash Flow Analysis
Ind AS 7: Cash Flow Statement
DuPont Analysis
Preparation of Cost Sheet, Marginal Costing, Cost-Volume Profit Analysis
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Important Principles in Cost Accounting
Implicit Cost & Explicit Cost; Accounting Profit & Economic Profit
Law of Diminishing Returns
Economic Theory of Production
Production Theory in Micro Economics
Special Types of Costs
Cost Theory in Economics
Short-Run Costs in Perfect Competition
Marginal Revenue & Profit Maximizing Rule
Shutdown Rule in Short Run
Short Run in Monopoly
Preparation of Cost Sheet
Fixed Costs (F.C.) , Variables Costs ( V.C.) and Contribution Margin
P/V ratio ( Profit / Volume ratio)
Break Even Point (B.E.P.) & Margin of Safety (M.O.S.) & Law of Diminishing Return
Cost-Volume Profit Analysis
Standard Costing & Variance Analysis
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Inventory Valuation Method
Standard Costing
Material Variance
Volume Variance
Overhead Absorption Rate
Overhead Expenditure Variance
Variable Overhead Cost Variance
Overhead Spending Variance
Labour Efficiency Variance
Unit IV: Managerial Accounting

IFRS (International Financial Reporting Standards)

  • Overview: IFRS refers to a set of international accounting standards developed by the International Accounting Standards Board (IASB). These standards are used by businesses around the world for preparing their financial statements.

  • Purpose: The primary goal of IFRS is to bring uniformity and transparency to financial reporting, making it easier for investors and stakeholders to compare financial statements across countries.

  • Global Usage: IFRS is widely adopted across many countries, especially in Europe, Asia, Africa, and other regions. Over 140 countries, including India and Canada, use or have adopted IFRS.

GAAP (Generally Accepted Accounting Principles)

  • Overview: GAAP refers to a set of accounting principles and standards used primarily in the United States. It is developed and governed by the Financial Accounting Standards Board (FASB).

  • Purpose: GAAP provides a framework for consistent and reliable financial reporting within the U.S., ensuring that financial statements are comparable and accurate for users like investors, creditors, and regulators.

  • U.S. Focus: Unlike IFRS, GAAP is not designed for global use and is mostly applicable within the United States.

IAS (International Accounting Standards)

  • Overview: IAS refers to the earlier set of accounting standards that were issued by the International Accounting Standards Committee (IASC) before it was replaced by the IASB. These standards are now largely superseded by IFRS.

  • Purpose: IAS aimed to create a consistent global framework for financial reporting, though it was more limited in scope and detail compared to IFRS.

  • Transition to IFRS: IAS standards were gradually replaced by IFRS starting in 2001, though some of the IAS standards are still in use today.

Key Differences:

  • IFRS vs GAAP: The main difference lies in principle-based (IFRS) versus rule-based (GAAP) approaches. IFRS is more flexible and broad in its guidance, while GAAP is detailed and prescriptive.

  • IFRS vs IAS: IAS standards have been mostly replaced by IFRS, but a few IAS standards are still in use as part of the IFRS framework.

In Summary:

  • IFRS: Global standards used to prepare financial statements (principle-based).

  • GAAP: U.S.-specific accounting standards (rule-based).

  • IAS: Earlier standards superseded by IFRS but still in some use today.

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