PCC[professional competency course]

A-28
10 SYLLABUS OF PROFESSIONAL COMPETENCE COURSE (PCC)
OFFERED BY ICAI
These are the courses you have to pass as part of Chartered Accountancy First Stage (PCC or PE-II or Intermediate).
If a student pass these courses as part of Chartered Accountancy, he/she will get exemption for these courses in
B.Com (A&F).
BCO-005: Advanced Accounting 8 Credits
Objectives:
(a) To lay a theoretical foundation for the preparation and presentation of financial statements
(b) To gain working knowledge of the professional standards, principles and procedures of accounting and
their application to different practical situations,
(c) To gain the ability to solve simple problems and cases relating to company accounts including special
type of corporate entities, partnership accounts and
(d) To familiarize students with the fundamentals of computerized system of accounting
Contents:
1. Conceptual Framework for Preparation and Presentation of Financial Statements
2. Accounting Standards: An overview; standards setting process
Working knowledge of: AS 1: Disclosure of Accounting Policies; AS 2:Valuation of Inventories;
AS 3: Cash Flow Statements; AS 4: Contingencies and Events occurring after the Balance Sheet Date;
AS 5: Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies;
AS 6: Depreciation Accounting; AS 7: Construction Contracts (Revised 2002); AS 9: Revenue
Recognition; AS 10: Accounting for Fixed Assets; AS 11: The Effects of Changes in Foreign Exchange
Rates (Revised 2003); AS 12: Accounting for Government Grants; AS 13: Accounting for Investments;
AS 14: Accounting for Amalgamations; AS 15: Borrowing Costs AS 16: Borrowing Costs; AS 19:
Leases; AS 20: Earnings Per Share; AS 26: Intangible Assets; AS 29: Provisions, Contingent Liabilities
and Contingent Assets.
3. Company Accounts
(a) Preparation of financial statements - Profit and Loss Account, Balance Sheet and Cash Flow Statement;
(b) Profit (Loss) prior to incorporation; (c) Alteration of share capital, Conversion of fully paid shares
into stock and stock into shares, Accounting for bonus issue, Accounting for employee stock option
plan, Buy back of securities, Equity shares with differential rights, Underwriting of shares and debentures,
Redemption of debentures (d) Accounting for business acquisition, Amalgamation and reconstruction
(excluding problems of amalgamation on inter-company holding); (e) Accounting involved in liquidation
of companies, Statement of Affairs (including deficiency/surplus accounts) and liquidator’s statement of
account of the winding up.
4. Financial Statements of Banking, Insurance and Electricity Companies
5. Average Due Date, Account Current, Self-Balancing Ledgers
6. Financial Statements of Not-for-Profit Organisations
7. Accounts from Incomplete Records
8. Accounting for Special Transactions
(a) Hire purchase and instalment sale transactions; (b) Investment accounts; (c) Departmental and branch
accounts including foreign branches; (d) Insurance claims for loss of stock and loss of profit.
A-29
9. Advanced Issues in Partnership Accounts
Final accounts of partnership firms - Admission, retirement and death of a partner including treatment of
goodwill; Dissolution of partnership firms including piecemeal distribution of assets; Amalgamation of
partnership firms; Conversion into a company and Sale to a company.
10. Accounting in Computerised Environment
An overview of computerized accounting system - Salient features and significance, Concept of grouping
of accounts, Codification of accounts, Maintaining the hierarchy of ledger, Accounting packages and
consideration for their selection, Generating Accounting Reports.
Note: If either old Accounting Standards (ASs), Announcements and Limited Revisions to ASs are withdrawn
or new ASs, Announcements and Limited Revisions to ASs are issued by the Institute of Chartered
Accountants of India in place of existing ASs, Announcements and Limited Revisions to ASs, the syllabus
will accordingly include/exclude such new developments in place of the existing ones with effect from
the date to be notified by the Institute.
BCO-006: Auditing and Assurance 8 Credits
Objective:
To understand objective and concepts of auditing and gain working knowledge of generally accepted auditing
procedures and of techniques and skills needed to apply them in audit and attestation engagements and solving
simple casestudies.
Contents:
1. Auditing Concepts - Nature and limitations of Auditing, Basic Principles governing an audit, Ethical
principles and concept of Auditor’s Independence, Relationship of auditing with other disciplines.
2. Auditing and Assurance Standards - Overview, Standard-setting process,. Role of International Auditing
and Assurance Standards Board and Auditing and Assurance Standards Board in India.
3. Auditing engagement - Audit planning, Audit programme, Control of quality of audit work - Delegation
and supervision of audit work.
4. Documentation - Audit working papers, Audit files: Permanent and current audit files, Ownership and
custody of working papers.
5. Audit evidence - Audit procedures for obtaining evidence, Sources of evidence, Reliability of audit
evidence, Methods of obtaining audit evidence - Physical verification, Documentation, Direct confirmation,
Re-computation, Analytical review techniques, Representation by management.
6. Internal Control - Elements of internal control, Review and documentation, Evaluation of internal
control system, Internal control questionnaire, Internal control check list, Tests of control, Application
of concept of materiality and audit risk, Concept of internal audit.
7. Internal Control and Computerized Environment, Approaches to Auditing in Computerised
Environment.
8. Audit Sampling - Types of sampling, Test checking, Techniques of test checks. Analytical review
procedures.
9. Analytical review procedures.
10. Audit of payments - General considerations, Wages, Capital expenditure, Other payments and expenses,
Petty cash payments, Bank payments, Bank reconciliation.
11. Audit of receipts - General considerations, Cash sales, Receipts from debtors, Other Receipts.
A-30
12. Audit of Purchases - Vouching cash and credit purchases, Forward purchases, Purchase returns,
Allowance received from suppliers.
13. Audit of Sales - Vouching of cash and credit sales, Goods on consignment, Sale on approval basis, Sale
under hirepurchase agreement, Returnable containers, Various types of allowances given to customers,
Sale returns.
14. Audit of suppliers’ ledger and the debtors’ ledger - Self-balancing and the sectional balancing system,
Total or control accounts, Confirmatory statements from credit customers and suppliers, Provision for
bad and doubtful debts, Writing off of bad debts.
15. Audit of impersonal ledger - Capital expenditure, deferred revenue expenditure and revenue expenditure,
Outstanding expenses and income, Repairs and renewals, Distinction between reserves and provisions,
Implications of change in the basis of accounting.
16. Audit of assets and liabilities.
17. Company Audit - Audit of Shares, Qualifications and Disqualifications of Auditors, Appointment of
auditors, Removal of auditors, Powers and duties of auditors, Branch audit, Joint audit, Special audit,
Reporting requirements under the Companies Act, 1956.
18. Audit Report - Qualifications, Disclaimers, Adverse opinion, Disclosures, Reports and certificates.
19. Special points in audit of different types of undertakings, i.e., Educational institutions, Hotels, Clubs,
Hospitals, Hirepurchase and leasing companies (excluding banks, electricity companies, cooperative
societies, and insurance companies).
20. Features and basic principles of government audit, Local bodies and not-for-profit organizations,
Comptroller and Auditor General and its constitutional role.
Note: Candidates are expected to have working knowledge of relevant Auditing and Assurance Standards
issued by the ICAI with reference to above-mentioned topics.
BCO-007: Law, Ethics and Communication 8 Credits
Part A: Law (60 Marks)
Objective:
To test working knowledge of business laws and company law and their practical application in commercial
situations.
Contents:
Business Laws (30 Marks)
1. The Indian Contract Act, 1872
2. The Negotiable Instruments Act, 1881
3. The Payment of Bonus Act, 1965
4. The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952
5. The Payment of Gratuity Act, 1972.
Company Law (30 Marks)
The Companies Act, 1956 - Sections 1 to 197
(a) Preliminary
(b) Board of Company Law Administration - National Company Law Tribunal; Appellate Tribunal
(c) Incorporation of Company and Matters Incidental thereto
A-31
(d) Prospectus and Allotment, and other matters relating to use of Shares or Debentures
(e) Share Capital and Debentures
(f) Registration of Charges
(g) Management and Administration - General Provisions - Registered office and name, Restrictions on
commencement of business, Registers of members and debentures holders, Foreign registers of members
or debenture holders, Annual returns, General provisions regarding registers and returns, Meetings and
proceedings.
(i) Company Law in a computerized Environment - E-filing.
Note: If new legislations are enacted in place of the existing legislations, the syllabus would include the
corresponding provisions of such new legislations with effect from a date notified by the Institute.
Part B: Business Ethics (20 Marks)
Objective:
To have an understanding of ethical issues in business.
Contents:
1. Introduction to Business Ethics: The nature, purpose of ethics and morals for organizational interests;
Ethics and Conflicts of Interests; Ethical and Sooial Implications of bnsiness policies and decisions;
Corporate Social Responsibility; Ethical issues in Corporate Governance.
2. Environment Issues: Protecting the Natural Environment - Prevention of Pollution and Depletion of
Natural Resources; Conservation of Natural Resources.
3. Ethics in Workplace – Individual in the organisation, discrimination, harassment, gender equality.
4. Ethics in Marketing and Consumer Protection – Healthy competition and protecting consumer’s
interest.
5. Ethics in Accounting and Finance – Importance, issues and common problems.
Part C: Business Communication (20 Marks)
Objective:
To nurture and develop the communication and behavioural skills relating to business
Contents:
1. Elements of Communication
(a) Forms of Communication: Formal and Informal, Interdepartmental, Verbal and non-verbal; Active
listening and critical thinking; (b) Presentation skills including conducting meeting, press conference;
(c) Planning and Composing Business messages; (d) Communication channels; (e) Communicating
Corporate culture, change, innovative spirits; (f) Communication breakdowns; (g) Communication ethics;
(h) Groups dynamics; handling group conflicts, consensus building; influencing and persuasion skills;
Negotiating and bargaining; (i) Emotional intelligence - Emotional Quotient; (j) Soft skills - personality
traits; Interpersonal skills; leadership.
2. Communication in Business Environment
(a) Business Meetings - Notice, Agenda, Minutes, Chairperson’s speech; (b) Press releases; (c) Corporate
announcements by stock exchanges; (d) Reporting of proceedings of a meeting.
3. Basic understanding of legal deeds and documents
(a) Partnership deed; (b) Power of Attorney; (c) Lease deed; (d) Affidavit; (e) Indemnity bond; (f) Gift
deed; (g) Memorandum and articles of association of a company; (h) Annual Report of a company.
A-32
BCO-008: Cost Accounting and Financial Management 8 Credits
Part A: Cost Accounting (50 Marks)
Objectives:
(a) To understand the basic concepts and processes used to determine product costs,
(b) To be able to interpret cost accounting statements,
(c) To be able to analyse and evaluate information for cost ascertainment, planning, control and decision
making, and
(d) To be able to solve simple cases.
Contents:
1. Introduction to Cost Accounting
(a) Objectives and scope of Cost Accounting; (b) Cost centres and Cost units; (c) Cost classification for
stock valuation, Profit measurement, Decision making and control; (d) Coding systems; (e) Elements of
Cost; (f) Cost behaviour pattern, Separating the components of semi-variable costs; (g) Installation of a
Costing system; (h) Relationship of Cost Accounting, Financial Accounting, Management Accounting
and Financial Management.
2. Cost Ascertainment
(a) Material Cost: (i) Procurement procedures - Store procedures and documentation in respect of
receipts and issue of stock, Stock verification; (ii) Inventory control - Techniques of fixing of minimum,
maximum and reorder levels, Economic Order Quantity, ABC classification; Stocktaking and perpetual
inventory; (iii) Inventory accounting; (iv) Consumption -Identification with products of cost centres,
Basis for consumption entries in financial accounts, Monitoring consumption.
(b) Employee Cost: (i) Attendance and payroll procedures, Overview of statutory requirements, Overtime,
Idle time and Incentives; (ii) labour turnover; (iii) Utilisation of labour,’ Direct and indirect labour,
Charging of labour cost, Identifying labour hours with work orders or batches or capital jobs; (iv) Efficiency
rating procedures; (v) Remuneration systems and incentive schemes.
(c) Direct Expenses: Sub-contracting - Control on material movements, Identification with the main
product or service.
(d) Overheads: (i) Functional analysis - Factory, Administration, Selling, Distribution, Research and
Development Behavioural analysis - Fixed, Variable, Semi variable and Step cost; (ii) Factory Overheads
- Primary distribution and secondary distribution, Criteria for choosing suitable basis for allotment,
Capacity cost adjustments, Fixed absorption rates for absorbing overheads to products or services; (iii)
Administration overheads - Method of allocation to cost centres or products; (iv) Selling and distribution
overheads - Analysis and absorption of the expenses in products/customers, impact of marketing strategies,
Cost effectiveness of various methods of sales promotion.
3. Cost Book- keeping
Cost ledgers - Non-integrated accounts, Integrated accounts, Reconciliation of cost and financial accounts.
4. Costing Systems
(a) Job Costing: Job cost cards and databases, Collecting direct costs of each job, Attributing overhead
costs to jobs, Applications of job costing.
(b) Batch Costing
(c) Contract Costing: Progress payments, Retention money, Escalation clause, Contract accounts,
Accounting for material, Accounting for plant used in a contract, Contract profit and Balance
sheet entries.
(d) Process Costing: Double entry book keeping, Process loss, Abnormal gains and losses, Equivalent
units, Inter-process profit, Joint products and by products.
(e) Operating Costing System
A-33
5. Introduction to Marginal Costing
Marginal costing compared with absorption costing, Contribution, Breakeven analysis and profit volume
graph.
6. Introduction to Standard Costing
Various types of standards, Setting of standards, Basic concepts of material and labour standards and
variance analysis.
Part B: Financial Management (50 Marks)
Objectives:
(a) To develop ability to analyse and interpret various tools of financial analysis and planning,
(b ) To gain knowledge of management and financing of working capital,
(c) To understand concepts relating to financing and investment decisions, and
(d) To be able to solve simple cases.
Contents:
1. Scope and Objectives of Financial Management
(a) Meaning, Importance and Objectives; (b) Conflicts in profit versus value maximisation principle;
(c) Role of Chief Financial Officer.
2. Time Value of Money
Compounding and Discounting techniques- Concepts of Annuity and Perpetuity.
3. Financial Analysis and Planning
(a) Ratio Analysis for performance evaluation and financial health; (b) Application of Ratio Analysis in
decision making; (c) Analysis of Cash Flow Statement.
4. Financing Decisions
(a) Cost of Capital - Weighted average cost of capital and Marginal cost of capital; (b) Capital Structure
decisions - Capital structure patterns, Designing optimum capital structure, Constraints, Various capital
structure theories; (c) Business Risk and Financial Risk - Operating and financial leverage, Trading on
Equity.
5. Types of Financing
(a) Different sources of finance; (b) Project financing - Intermediate and long term financing;
(c) Negotiating term loans with banks and financial institutions and appraisal thereof; (d) Introduction to
lease financing; (e) Venture capital finance.
6. Investment Decisions
(a) Purpose, Objective, Process; (b) Understanding different types of projects; (c) Techniques of Decision
making: Non-discounted and Discounted Cash flow Approaches – Payback Period method, Accounting
Rate of Return, Net Present Value, Internal Rate of Return, Modified Internal Rate of Return, Discounted
Payback Period and Profitability Index; (d) Ranking of competing projects, Ranking of projects with
unequal lives.
7. Management of Working Capital
(a) Working capital policies; (b) Funds flow analysis; (c) Inventory management; (d) Receivables
management; (e) Payables management; (f) Management of cash and marketable securities; (g) Financing
of working capital.
A-34
BCO-009: Taxation 8 Credits
Part A: Income Tax (75 marks)
Objectives:
(a) gain knowledge of the provisions of Income-tax law relating to the topics mentioned in the contents
below and
(b) To gain ability to solve simple problems concerning assessees with the status of ‘Individual’ and ‘Hindu
Undivided Family’ covering the areas mentioned in the contents below.
Contents:
1. Important definitions in the Income-tax Act, 1961
2. Basis of charge; Rates of taxes applicable for different types of assessees
3. Concepts of previous year and assessment year
4. Residential status and scope of total income; Income deemed to be received / deemed to accrue or arise
in India
5. Incomes which do not form part of total income
6. Heads of income and the provisions governing computation of income under different heads
7. Income of other persons included in assessee’s total income
8. Aggregation of income; Set-off or carry forward and set-off of losses
9. Deductions from gross total income
10. Computation of total income and tax payable; Rebates and reliefs
11. Provisions concerning advance tax and tax deducted at source
12. Provisions for filing of return of income.
Part B: Service tax and VAT (25 marks)
Objective:
To gain knowledge of the provisions of service tax as mentioned below and basic concepts of Value added tax
(VAT) in India.
Contents:
1. Service tax - Concepts and general principles
2. Charge of service tax and taxable services
3. Valuation of taxable services
4. Payment of service tax and filing of returns
5. VAT - Concepts and general principles.
Note: If new legislations are enacted in place of the existing legislations the syllabus will accordingly include
the corresponding provisions of such new legislations in the place of the existing legislations with effect
from the date to be notified by the Institute. Students shall not be examined with reference to any particular
State VAT Law.
A-35
BCO-010: Information Technology and Strategic Management 8 Credits
Part A: Information Technology (50 Marks)
Objective:
To develop an understanding of Information Technology and its use by the business as facilitator and driver.
Contents:
1. Introduction to Computers
(a) Computer Hardware: Classification of Computers - Personal computer, Workstation, Servers
and Super computers Computer Components - CPU, Input output devices, Storage devices
(b) BUS, I/O CO Processors, Ports (serial, parallel, USB ports), Expansion slots, Add on cards, On
board chips, LAN cards, Multi media cards, Cache memory, Buffers, Controllers and drivers
(c) Computer Software: Systems Software - Operating system, Translators (Compilers, Interpreters
and Assemblers), System utilities; General Purpose Software/ Utilities - Word Processor, Spread
Sheet, DBMS, Scheduler / Planner, Internet browser and E-mail clients; Application Software -
Financial Accounting, Payroll, Inventory; Specialised Systems”.. Enterprise Resource Planning
(ERP) , Artificial Intelligence , Expert Systems, Decision Support Systems - An Overvi.ew
2. Data Storage, Retrievals and Data Base Management Systems
(a) Data and Information Concepts: Bits, Bytes, KB, MB, GB, IB
(b) Data organization and Access: Storage Concepts: Records, Fields, Grouped fields, Special fields
like date, Integers, Real, Floating, Fixed, Double precision, Logical, Characters, Strings, Variable
character fields (Memo); Key, Primary key, Foreign key, Secondary key, Referential integrity,
Index fields; Storage tecbniques: Sequential, Block Sequential, Random, Indexed, Sequential
access, Direct access, Random access including Randomizing; Logical Structure and Physical
structure of files.
(c) DBMS Models and Classification: Need for database, Administration, Models, DMLand DDL
(Query and reporting); Data Dictionaries, Distributed data bases, Object oriented databases,
Client Server databases, Knowledge databases
(d) Backup and recovery - backup policy, backup schedules, offsite backups, recycling of backups,
frequent checking of recovery of backup
(e) Usage of system software like program library management systems and tape and disk
management systems - features, functionalities, advantages
(f) Data Mining and Data Warehousing - An overview
3. Computer Networks & Network Security
(a) Networking Concepts - Need and Scope, Benefits; Classification: LAN, MAN, WAN, VPN;
Peer-to-Peer, Client Server; Components- NIC, Router, Switch, Hub, Repeater, Bridge, Gateway,
Modem Network Topologies- Bus, Star, Ring, Mesh, Hybrid, Architecture :Token ring, Ethernet
Transmission Technologies and Protocols - OSI, TCP/IP, ISDN etc.; Network Operating System
(b) Local Area Networks- Components of a LAN, Advantages of LAN
(c) Client Server Technology: Limitation of Single user systems and need for Client Server
Technology; Servers - Database, Application, Print servers, Transaction servers, Internet servers,
Mail servers, Chat servers, IDS; Introduction to 3- tier and “n” tier architecture (COM, COM+)
(d) Data centres: Features and functions, Primary delivery centre and disaster recovery site
(e) Network Security: Need; Threats and Vulnerabilities; Security levels; techniques
4. Internet and other technologies
(a) Internet and world-wide web, Intranets, Extranets, applications of Internet, Internet protocols
(b) E-Commerce - Nature, Types (B2B, B2C, C2C), Supply chain management, CRM, Electronic
data interchange (EDI), Electronic fund transfers (EFT), Payment portal, E-Commerce security;
(c) Mobile Commerce, Bluetooth and Wi-Fi
5. Flowcharts, Decision Tables.
A-36
Part B: Strategic Management (50 Marks)
Objectives:
(a) To develop an understanding of the general and competitive business environment,
(b) To develop an understanding of strategic management concepts and techniques,
(c) To be able to solve simple cases.
Contents:
1. Business Environment: General Environment - Demographic, Socio-cultural, Macro-economic, Legal/
political, Technological and Global Competitive Environment.
2. Business Policy and Strategic Management: Meaning and nature; Strategic management imperative;
Vision, Mission and Objectives; Strategic levels in organisations
3. Strategic Analyses: Situational Analysis - SWOT Analysis, TOWS Matrix, Portfolio Analysis - BCG
Matrix.
4. Strategic Planning: Meaning, stages, alternatives, strategy formulation.
5. Formulation of Functional Strategy: Marketing strategy, Financial strategy, Production strategy,
Logistics strategy, Human resource strategy.
6. Strategy Implementation and Control: Organisational structures; Establishing strategic business units;
Establishing profit centers by business, product or service, market segment or customer; Leadership and
behavioural challenges.
7. Reaching Strategic Edge: Business Process Reengineering, Benchmarking, Total Quality Management,
Six Sigma, Contemporary Strategic Issues.
BCOL-101: 100 Hours Information Technology Training Programme 8 Credits
Syllabus
S1. No. Topic Duration
1. Computer Fundamentals 1 hr.
2. Operating Systems 6 hrs.
3. MS-Word 6 hrs.
4. MS-Excel 15 hrs.
5. MS-PowerPoint 5 hrs.
6. Data Bases 15 hrs.
7. MS-Office utilities 3 hrs.
8. Accounting package 20 hrs.
9. Computer Aided Audit Techniques 12 hrs.
10. Web Technology and E-Commerce 10 hrs.
11. Introduction to Visual Basic 5 hrs.
12 Digital Signature and Verification of Electronic Record 2 hrs.
Total 100 hrs.
Structure of Examination
Online Examination 60 Marks
Project Report to be evaluated by the BOS 20 Marks
Module tests 20 Marks
Pass Marks 60 Marks