The Institute of Corporate Secretaries of Pakistan 

The Institute of Corporate Secretaries of Pakistan


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Module B : Group 4






Module B Group 4 Code 241



( 100 Marks )     








To provide comprehensive knowledge of principles, concepts and practices of financial accounting in order to select and apply accounting techniques and procedures to specific circumstances, prepare financial statements of companies and group companies in accordance with the International Accounting Standards and statutory requirements; analyze and interpret financial statements and comment on their compliance with statutory and professional requirements.







Accounting Regulations and Policies:


Need for accounting regulations and standards. Accounting assumptions, bases of recognition and measurement and accounting policies as required under Framework for the Preparation and Presentation of Financial Statements and International Accounting Standard-Presentation of Financial Statements (IAS-1) issued by International Accounting Standards Board (IASB). Need for disclosure and its requirements under the Companies Ordinance, 1984.


Accounts of Limited Companies:


Preparation and presentation of financial statements (balance sheet, profit and loss accounts, cash flow statement and statement of changes inequity) of limited companies and preparation of specific notes, extracts, schedules, reports of directors and auditors in line with statutory provision and international accounting standards.


Consolidated Financial Statements:


Definition of holding, subsidiary and associated undertaking and companies. Comparison and usefulness of acquisition and merger method of consolidation. Techniques of consolidation requiring accounting and disclosure requirements of IAS-22 and IAS-27 and the Companies Ordinance, 1984 relating to consolidated financial statements including calculation of premium or discount on acquisition, minority interest, elimination of intra group transactions and balances, inter-company profits and dividends. Accounting for investments in subsidiaries and associated under takings.



Specialized Accounting Treatments:


  1. Accounting for Property , Plant and Equipment (IAS-16) – Recognition and initial measurement of property, plant and equipment, measurement subsequent to initial recognition of asset, property, plant and equipment including exchange of assets, subsequent expenditure, revaluations, depreciation, review of useful life, review of depreciation methods, impairment of assets, retirement and disposals. Treatment of surplus on revaluation of property, plant and equipment under section 235 of the Companies Ordinance, 1984 and under IAS-16. Disclosure requirements for property, plant and equipment under IAS-16 and the Companies Ordinance, 1984.

  2. Accounting Treatment of Intangible Assets (IAS-38) – Treatment of intangible assets including research and development costs including their recognition, amortization and impairment of development costs.

  3. Accounting for Inventories – Cost and measurement of inventories, cost formulae, net realizable value, recognition of inventory as an expense. Compliance with the requirements of IAS-2 and the Companies Ordinance, 1984.

  4. Accounting for Leases (IAS-17) – Definition of lease, installment sales and hire purchases, their importance and difference between them. Accounting for operation and finance leases. Complications in lease accounting, recognition of income in installment sales and hire purchases. Disclosure requirements under IAS-17 and the Companies Ordinance, 1984.

  5. Accounting for Contracts (IAS-11) – Accounting for work-in-progress, work-certificate and payments, work-in-progress uncertified, profit on incomplete contract, preparation of contract account, profit and loss account and balance sheet.

  6. Accounting Treatment of Net Profit and Loss – For the period including profit or loss from ordinary activities, changes in accounting estimates, fundamental errors, change in accounting policies, events occurring after balance sheet date. Accounting treatment of contingent losses and gains (IAS-8 and 10).

  7. Taxation – Treatment of current and deferred taxation in accounts (IAS-12).

  8. Accounting for Capital Structure – Accounting of issue of shares and securities . Buy back of shares. Reconstruction of capital, merger and de-merger of companies.

  9. Recognition of Borrowing Costs (IAS-23). (j) Accounting Treatment of Foreign Currency Transactions (IAS-21)


Specific Reporting:



  1. Interim Financial Reporting (IAS-34) – Preparation, presentation and disclosure requirements with regard to interim financial statements of companies.

  2. Reporting on Related Party Disclosures – Transfer pricing. Disclosure requirements under IAS-24 and the Companies Ordinance, 1984.

  3. Reporting on Discontinuing Operations – Recognition, measurement, presentation, disclosure of discontinuing operations as required under IAS –35.

  4. Reporting on Earning Per Share – measurement, presentation and disclosure requirements of earning per share in line with IAS-33.


Analysis and Interpretation of Financial Statements :


Needs for various users of financial statements and importance thereof. Techniques for analysis; horizontal, vertical and ratio analysis and common-size statements, their uses and limitations. Detailed examination and analysis of accounts and other financial information regarding capital structure, asset-base, liquidity, cash flow and operating capabilities, earning per share, working capital level and controls. Reporting in good style, the analysis, evolution and recommendation arising for the examination to the management, investors and creditors.



Measurement of Profit:


Traditional approach using legal transaction as basic income and expenditure. Economist’s approach to income and measurement of profit as an increase in the value of business. Consideration of alternative approach to the measurement of profit in a changing price – level environment. Use of replacement, net realizable value and economic value for the valuation of property, plant and inventories.



Performance Reporting, Planning and Control:


Analysis and classification of costs for performance reporting. Product costing and elements of costs. Profit planning and break-even analysis. Introduction of different cost analysis. Introduction to budgets for planning and control including cash budgeting.



Module B Group 4 Code 242



( 100 Marks )     








To provide knowledge and understanding of the core areas of direct and indirect tax laws and develop understanding of their implications in different business situations and apply these in financial planning and decision making.







SECTION - 1 DIRECT TAX ( 50 Marks )



Basic Framework of Direct Tax Law:

Different direct tax laws and their inter-relationship in the scheme of taxation in Pakistan. Importance of Income Tax Ordinance, 2001 and amendments there in through Finance Act/Ordinance annually and concepts of prior tax ruling.


Detailed Study of Income Tax Law:


The Income Tax Ordinance, 2001 and the Income Tax Rules 2002 as amended up-to-date covering: definition, charge of tax, tax on income from salary, property, business, capital gains, other sources (including income from dividend, royalty, profit on debt, etc), exemptions, deductions allowed and not allowed, tax credits, set off and carry forward of losses relating thereto and tax depreciation. Common Rules: general, tax year and assets. Provisions governing persons; associates, individuals, association of persons and Companies. Taxation of foreign source of income of residents. Tax accounting. Transfer pricing. Records and books of accounts. Filing of various statements with income tax authorities.


Employee Remuneration:


Tax implications of employee compensation scheme: salaries, wages, perquisites, gratuity, bonus, commission, etc. Managerial remuneration its tax implications and planning consonant with Income Tax law requirements.


Tax Management:

Nature and areas of tax management, deduction of tax at source, advance payment of tax, minimum tax. Importance of tax management while claiming allowances, exemption, deductions and tax credits. Filing of returns of income, defaults and penalties. The organization problems of tax management review. Assessment procedure, appeals, collection and recovery of tax, payments and deductions, refunds, records and audit, penalty, additional tax, offence and prosecution. Review of assessment order in order to decide availability of further appeal, revision review or rectification, drafting ground of appeal, argument on appeal, memoranda to the Central Board of Revenue and other similar applications.


Corporate Taxation:


The income tax liabilities of companies and tax incidence under the Income Tax law. Capital structure of a company and tax incidence, tax as a variable in computing cost of capital, tax considerations in dividend policy and issue of bonus shares. Taxation of inter-corporate dividends and transfers.


Tax Planning:


Planning and scope of tax planning. Difference between tax planning, tax evasion and tax avoidance. Tax planning its need and methodology. Tax planning with reference to type of activity, scale of activity, ownership pattern, location aspects, etc. Limitations on the tax planning exercise, flexible planning premises. Tax planning in the context of court rulings and legislative amendments. Planning for tax holiday benefits. Setting up of new industrial undertaking for availing exemption. Merger with sick units. Amalgamation, merger and de-merger and tax planning.

Tax Consideration with regard to Specific Management Decision:


Consideration of tax benefit while management decision to make or buy, own or lease, return or replace, prepare or renovate, now or later, slow or fast, close or continue operation. Tax consideration relating to variation of portfolio of assets, change of tax year and method of accounting.


Taxation of Non-Residents:


Basic principles for taxation of non-residents, special deduction. Foreign collaboration agreements and tax implication; joint venture abroad and tax consideration, procedure for joint venture and foreign collaboration.


Double Taxation Avoidance Agreements:


Meaning of avoidance of double taxation and prevention of fiscal evasion. Tax implications of double taxation avoidance agreements and standard practice with regard to tax law for company secretaries.






Framework of Indirect Tax Laws:

Special features of indirect tax levies. Role of indirect tax laws and contribution to government revenues and fiscal performance as instrument of planning and development.


Sales Tax Act 1990:


Particularly Chapters I to V and VII of the Act and Turnover Tax Rules 1999. Apportionment of Input Tax Rules 1996. Filing of Monthly Return Rules 1996, Registration, Voluntary Registration and De-registration Rules 1996 and Retail Tax Rules 1998 and Sales Tax Ordinance 2000 promulgated by the provinces as amended up-to-date covering: definitions, scope and payment of Sales Tax, registrations, book-keeping and invoicing requirements. Sales in the course of import and export, taxability of inter-depot and inter-branch transfer of goods. Methods of executing sales through branches, head office and factory. Export contracts and implications on penultimate sale, canalized exports-implications, planning vis-ΰ-vis judicial pronouncement. Levy and collection of Sales Tax procedure, offences and penalties. Filing of returns and revision therein. Appeals, revision and rectification of assessment procedure. Sales Tax levies and cash management, promissory estoppels-extent of application to sales tax matters, a case law review.


Customs Act 1969:


Particularly chapters V, VI, X, XI, XVII and XIX of Customs Act 1969 as amended up-to-date covering: details of procedure in relation to levy, collection and exemption from and repayment of custom duties, drawback and documents to be prepared and presented to custom authorities; valuation of goods , classification of goods, its principles and rectifications; valuation of goods for the purpose of levy and its principles, abatement of duties and availing of exemptions; procedure for clearance of goods for home consumption and clearance of imported and exported goods; warehousing; offences, penalties, appeals and revision. Custom levies and cash management.


Federal Excise Act 2005:

Chapter I – Definitions
Chapter II – Levy, collection and payment of duty
Chapter III – Offences and Penalties
Chapter V – Power, Adjudication and Appeals. Federal Excise Rules 2005.