Third Year- Accounting Specialization

Curriculum of the Third Year

Third Year- Accounting Specialization

COM 3322: Corporate Law

This course aims to acquaint the student with legal principles, statutory controls, rules, and regulations governing companies, securities such as stocks, bonds, and unit trusts in Sri Lanka. It enables student to apply the knowledge acquired through the course in different business related situations with legal implications. The main topics covered include legal basis of corporate existence, formation of a company, articles of association, memorandum of association, share capital and debentures, corporate governance, meetings and resolutions, accounts and audit, dissolution of companies and the law relating to securities.

ACC 3325: Accounting Modelling

This course familiarizes students with advanced spreadsheet applications and macro programming in relation to financial accounting, management accounting, financial management and financial statement analysis using MS Excel. The following study areas are covered: role of accounting modelling in accounting information systems; accounting model as a decision support system; spread sheet model design; spread sheet decision logic; vertical and horizontal lookup function; financial statement analysis and evaluating investments; using solver to determine the optimum solution; application of macros; conditional formatting; and sensitivity analysis with data tables.

FIN 3321: Investment and Portfolio Management I

This course is designed to acquaint students with basic concepts, theories and practices in understanding, analyzing and making decisions in investment and portfolio management. The course discusses understanding the market place, buyers and sellers participation in securities market, investor behaviour, efficient capital markets, valuation and analysis of riskless and fixed income securities, valuation and analysis of common stocks, risk free borrowing and lending and technical and fundamental analysis.

ACC 3322: Advanced Management Accounting

This course provides students with an in-depth knowledge and skill base pertaining to management accounting concepts, techniques and their relevance in practice in a business organization operating in a complex environment. The following study areas are covered: learning management accounting change; managing diversity: the problem of overheads and activity based costing (ABC); short-term decision analysis: further aspects of CVP analysis; long-term decision analysis: capital budgeting decisions; using budgets to achieve organizational objectives; cost analysis and strategizing for better pricing decisions; the balanced score card (BSC): measuring total business unit performance; management accounting techniques: lessons from the orient; and responsibility accounting; decentralization and related issues; transfer pricing; performance evaluation of investment centres.

ACC 3321: Skill Development of Intern Accountants – I

This course, first of the four units conducted under the Skill Development Programme of Intern Accountants emphasises on the development of Accounting and Financial Management Skills, and Management and Personal Capacity Skills. These skills are developed through the Internship Programme in Accounting and Financial Management, and workshops and projects on management and personal capacity skills development.

ACC 3327: Accounting Information Systems

This course familiarizes students with computerized accounting information systems while focusing on the qualitative aspects of information processing compared to quantitative aspects of problems solving. The following study areas are covered: role and purpose of AIS; transaction processing in the AIS; professionalism and ethics; internal controls; flowcharting and data flow diagramming; other business process and REA modeling; XBRL and e-business and Enterprise Resource Planning (ERP)systems; sales/collection process and acquisition/payment process; decision-making models and knowledge management; professionalism, ethics and career planning; computer crime and information technology security; and auditing and evaluating the AIS.

FIN 3324: Investment and Portfolio Management II

This is an extension of the Investment and Portfolio Management I course and discusses the uses and applications of concepts and theories discussed in the first course. This course also discusses portfolio analysis, capital asset pricing model, factor models, arbitrage pricing theory, bond portfolio management, financial derivatives for hedging the portfolio risk, portfolio performance evaluation and international investment. It also discusses empirical findings on these topics as and when required.

ACC 3320: Financial Reporting

This course familiarizes the students with corporate reporting practices and issues involved in the publication of financial and non-financial information of companies, including groups of companies and public sector corporations, and enables them appraise and critique current practices adopted in corporate reporting. The following study areas are covered: corporate reporting environment; role of governance and ethics in corporate reporting; corporate financial reporting process; preparation and presentation of financial statements of companies inclusive of groups of companies, accounting for biological assets, financial instruments, share based payments, taxation and retirement benefits, changes in group structure, and foreign currency transactions based on applicable LKAS and SLFRS; financial reporting in public sector organisations; corporate sustainability reporting and integrated reporting; and analysis and interpretation of financial and non-financial indicators of a company.

ACC 3323:  Auditing and Assurance

This course enables students to understand auditing concepts, principles, techniques, and procedures to apply in practical contexts in both local and international private and public sector organizations. The following study areas are covered: An overview of auditing; the nature, purpose, and the scope of audit and review engagements; statutory audits; practice management; materiality and audit risk; internal control systems and assessment of control risks; internal audit; audit planning and documentation; audit evidence; audit reports and different audit opinions; professional and ethical considerations; and contemporary issues in auditing.

ACC 3324:  Taxation

This course enables students to understand principles of income tax, Value Added Tax (VAT) and other relevant taxes and apply the theoretical knowledge and skills in practical situations. The following study areas are covered: introduction to principles of taxation; sources of income (employment income, income from property, dividend income, capital gains, interest income, income from any other sources, trade business profession and vocation); ascertainment of profits and income; total statutory income (TSI), assessable income (AI), taxable income, calculation of income tax liability (of individuals, companies, and partnerships); tax concessions and credits; payment of income tax under self-assessment system; appealing procedure, recovery of tax, tax refund and VAT; and introduction to tax planning and international tax.

ACC 3326: Skill Development of Intern Accountants II

This course, second of the four units conducted under the Skill Development Programme of Intern Accountants, emphasises on the development of Accounting and Financial Management Skills, Management and Personal Capacity Skills, and Communication Skills. These skills are developed through the Internship Programme in Accounting and Financial Management, projects on management and personal capacity skills development, outbound training, and Skill Development Centre (SDC) sessions.