FINANCIAL ACCOUNTING Paper V TYBAF Semester V Manan Prakashan

1. Underwriting of Shares and DebenturesIntroduction, Underwriting, Underwriting CommissionProvision of Companies Act with respect to Payment of underwriting commissionUnderwriters, Sub-Underwriters, Brokers and Manager to issuesTypes of underwriting, Abatement Clause

Marked, Unmarked and Firm-underwriting applications

Liability of the underwriters in respect of underwriting contract

Practical Problems

2. Buy Back of Shares

Company Law / Legal provisions (including related restrictions, power, transfer to capital redemption reserve account and prohibitions)

Compliance of conditions including sources, maximum limits and debt equity ratio.

Cancellation of Shares Bought back

(Excluding Buy Back of minority shareholding)

Practical Problems

3. AS – 14 – Amalgamation, Absorption and External Reconstruction (excluding inter–company holding)

In the nature of merger and purchase with corresponding accounting treatments of pooling of interests and purchase method respectively.

Meaning and Computation of purchase consideration.

Problems based on Purchase Method only.

Practical Problems

4. Internal Reconstruction

Need for reconstruction and company law provisions

Distinction between internal and external reconstruction

Methods including alteration of share capital, variation of shareholder rights, sub division, consolidation, surrender and reissue / cancellation, reduction of share capital with relevant legal provisions and accounting treatment for same.

Practical Problems

5. Liquidation of Companies

Meaning of liquidation or winding up

Preferential Payments

Overriding preferential payments

Preparation of statement of affairs, deficit / surplus account

Liquidator’s Final Statement of Account

Practical Problems