COMMERCE AND ACCOUNTANCY SYLLABUS FOR UPSC IAS CIVIL SERVICES MAINS EXAMINATION

COMMERCE AND ACCOUNTANCY

                           PAPER-FIRST

Accounting and Finance
Accounting, Taxation & Auditing
1. Financing Accounting :
Accounting as a financial information system;
Impact of behavioural sciences. Accounting
Standards e.g., Accounting for Depreciation,
Inventories, Research and Development Costs,
Long-term Construction Contracts, Revenue
Recognition, Fixed Assets, Contingencies,
Foreign Exchange Transactions, Investments and
Government Grants, Cash Flow Statement,
Earnings per Share.
Accounting for Share Capital Transactions
including Bonus Shares, Right Shares.
Emplyees Stock Option and Buy-Back of
Securities.
Preparation and Presentation of Company Final
Accounts.
Amalgamations, Absorption and Reconstruction
of Companies.
2. Cost Accounting :
Nature and functions of cost accounting.
Installation of Cost Accounting System. Cost
Concepts related to Income Measurement, Profit
Planning, Cost Control and Decision Making.
Methods of Costing: Job Costing, Process
Costing, Activity Based Costing.
Volume-cost-Profit Relationship as a tool of Profit
Planning.
Incremental Analysis/Differential Costing as a
Tool of Pricing Decisions, Product Decisions,
Make or Buy Decisions, Shut-Down Decisions
etc.
Techniques of Cost Control and Cost Reduction :
Budgeting as a Tool of Planning and Control.
Standard Costing and Variance Analysis.
Responsibility Accounting and Divisional Perfor-
mance Measurement.
3. Taxation :
Income Tax: Definitions. Basis of charge; Incomes
which do not form part of total income. Simple
problems of Computation of Income (of individuals
only) under various heads, i.e., Salaries, Income
from House Property, Profits and Gains from
Business or Profession, Capital Gains, Income from
other sources, Income of other Persons included
in Assessee’s Total Income.
Set-off and Carry forward of Loss.
Deductions from Gross Total Income.
Salient Features/Provisions Related to VAT and
Services Tax.
4. Auditing :
Company Audit: Audit related to Divisible Profits,
Dividends, Special investigations, Tax audit.
Audit of Banking, Insurance, Non-Profit
Organization and Charitable Societies/Trusts/
Organizations.
Financial Management, Financial Institutions
and Markets
1. Financial Management :
Finance Function : Nature, Scope and Objectives
of Financial Management : Risk and Return
Relationship.
Tools of Financial Analysis: Ratio Analysis,
Funds-Flow and Cash-Flow Statement.
Capital Budgeting Decisions: Process, Procedures
and Appraisal Methods. Risk and Uncertainty
Anlysis and Methods.
Cost of Capital : Concept, Computation of Specific
Costs and Weighted Average Cost of Capital.
CAPM as aTool of Determining Cost of Equity
Capital. Financing Decisions: Theories of Capital
Structure—Net Income (NI) Approach. Net Operating Income (NOI) Approach, MM
Approach and Traditional Approach. Designing
of Capital structure: Types of Leverages
(Operating, Financial and Combined), EBIT-EPS
Analysis, and other Factors.
Dividend Decisions and Valuation of Firm :
Walter’s Model, MM Thesis, Gordan’s Model
Lintner’s Model. Factors Affecting Dividend
Policy.
Working Capital Management: Planning of
Working Capital. Determinants of Working
Capital. Components of Working Capital—Cash,
Inventory and Receivables.
Corporate Restructuring with focus on Mergers
and Acquisitions (Financial aspect only).
2. Financial Markets and Institutions :
Indian Financial System: An Overview
Money Markets: Participants, Structure and
Instruments. Commercial Banks. Reforms in
Banking Sector. Monetary and Credit Policy of
RBI. RBI as a Regulator.
Capital Market : Primary and Secondary Market.
Financial Market Instruments and Innovative
Debt Instruments; SEBI as a Regulator.
Financial Services : Mutual Funds, Venture Capital,
Credit Rating Agencies, Insurance and IRDA.

                        PAPER-SECOND

Organisation Theory and Behaviours, Human Resource
Management and Industrial Relations
Organisation Theory and Behaviour
1. Organisation Theory :
Nature and Concept of Organisation; External
Environment of Organisation—Technological,
Social, Political, Ecomomical and Legal;
Organizational Goals Primary and Secondary
Goals, Single and Multiple Goals; Management
by Objectives.
Evolution of Organisation theory : Classical Neo-
classical and system approach.
Modern Concepts of Organisation Theory :
Organisational Design, Organisational Structure
and Organisational Culture.
Organisational Design—Basic Challenges;
Differentiation and Intergration Process;
Centralization and Decentralization Process;
Standardization/Formalization and Mutual
Adjustment. Coordinating Formal and Informal
Organizations. Mechanistic and Organic
Structures.
Designing Organizational structures—Authority
and Control; Line and Staff Functions,
Specialization and Coordination. Types of
Organization Structure—Functional. Matrix
Structure, Project Structure. Nature and Basis of
Power, Sources of Power, Power Structure and
Politics. Impact of Information Technology on
Organizational Design and Structure.
Managing Organizational Culture.
2. Organisation Behaviour :
Meaning and Concept; Individual in organization:
Personality, Theories, and Determinants;
Pereception Meaning and Process.
Motivation : Concepts, Theories and Applica-
tions. Leadership—Theories and Styles. Quality
of Work Life (QWL): Meaning and its impact on
Performance, Ways of its Enhancement. Quality
Circles (QC)—Meaning and their Importance.
Management of Conflicts in Organizations. Trans-
actional Analysis, Organizational Effectiveness,
Management of Change.
Human Resources Management and Industrial
Relations
1. Human Resources Management (HRM) :
Meaning Nature and Scope of HRM, Human
Resource Planning, Job Analysis, Job
Description, Job Specification, Recruitment
Process, Selection Process, Orientational and
Placement, Training and Development Process,
Performance Appraisal and 360° Feed Back, Salary
and Wage Administration, Job Evaluation,
Employee Welfare, Promotions, Transfers and
Separations.
2. Industrial Relations (IR) :
Meaning, Nature, Importance and Scope of IR,
Formation of Trade Union, Trade Union
Legislation, Trade Union Movement in India.
Recognition of Trade Unions, Problems of Trade
Unions in India. Impact of Liberalization on Trade
Union Movement.
Nature of Industrial Disputes: Strikes and
Lockouts, Causes of Disputes, Prevention and
Settlement of Disputes.
Worker’s Participation in Management:
Philosophy, Rationale, Present Day Status and
Future Prospects.
Adjudication and Collective Bargaining.
Industrial Relations in Public Enterprises
Absenteeism and Labour Turnover in Indian
Industries and their Causes and Remedies.
ILO and its Functions.