ICFE Certified Global Accountant

This Document Contain the detailed outline for the course structure of ICGA (Internationally Certified Global Accountant) designed by ICFE, to be Reviewed by concerned Authorities in your Esteemed Organisation.

MODULE-1 - GLOBAL BUSINESS ACCOUNTING MANAGEMENT - 1 WEEK / 18Hrs

  • What is business?
  • Need of going global.
  • The need of global accountant
  • Cross-cultural management and different forms of business organization.
  • Emerging market multinationals.
  • Liberalization and economic nationalism.
  • Outsourcing and off shoring.
  • Major economic systems including US, European and transition economies.
  • National account balances (especially from international trade), monetary policy and their impact on markets.
  • Corporate governance, including stakeholders and the role of government.
  • Principles of corporate social responsibility and the scope for international variation, e.g. between developed and developing economies.
  • Business-government relations in developed and developing economies.
  • Regulation in the national and international context and its impact on the firm.
  • Role of institutions and governance in economic growth.
  • Corporate political activity in developed and developing markets.
  • Country and political risk.

MODULE-2 - BASIC & MANAGEMENT ACCOUNTING IN BUSINESS - 8 WEEKS/ 144Hrs

  • Marginal (or variable), throughput and absorption accounting systems of profit reporting and stock valuation.
  • Activity-based costing as a system of profit reporting and stock valuation.
  • Criticisms of standard costing in general and in advanced manufacturing environments in particular.
  • Integration of standard costing with marginal cost accounting, absorption cost accounting and throughput accounting.
  • Manufacturing standards for material, labour, variable overhead and fixed overhead.
  • Price/rate and usage/efficiency variances for materials, labour and variable overhead.
  • Further subdivision of total usage/efficiency variances into mix and yield components. (Note: The calculation of mix variances on both individual and average valuation bases is required).
  • Fixed overhead expenditure and volume variances. (Note: the subdivision of fixed overhead volume variance into capacity and efficiency elements will not be examined).
  • Planning and operational variances.
  • Standards and variances in service industries (including the phenomenon of 'McDonaldization'), public services (e.g. Health), (including the use of 'diagnostic related' or 'reference' groups), and the professions (e.g. labor mix variances in audit work).
  • Sales price and sales revenue/margin volume variances (calculation of the latter on a unit basis related to revenue, gross margin and contribution margin). Application of these variances to all sectors, including professional services and retail analysis.
  • Interpretation of variances: interrelationship, significance.
  • Benchmarking.
  • Back-flush accounting in just-in-time production environments. The benefits of just-in-time production, total quality management and theory of constraints and the possible impacts of these methods on cost accounting and performance measurement.
  • MRP and ERP systems for resource planning and the integration of accounting functions with other systems, such as purchase ordering and production planning
  • Types of internalized costs relating to the environment (e.g. emissions permits, taxes, waste disposal costs) and key externalized environmental impacts, especially carbon, energy and water usage. Principles for associating such costs and impacts with activities and output.

 

  • FORECASTING AND BUDGETING TECHNIQUES
  • The role of forecasts and plans in resource allocation, performance evaluation and control.
  • The purposes of budgets and the budgeting process, and conflicts that can arise (e.g. between budgets for realistic planning and budgets based on 'hard to achieve' targets for motivation).
  • Time series analysis including moving totals and averages, treatment of seasonality, trend analysis using regression analysis and the application of these techniques in forecasting product and service volumes.
  • Fixed, variable, semi-variable and activity-based categorizations of cost and their application in projecting financial results.
  • Mechanics of budget construction: limiting factors, component budgets and the master budget, and their interaction.
  • Alternative approaches to budget creation, including incremental approaches, zero-based budgeting and activity-based budgets.
  • PROJECT APPRAISAL
  • The process of investment decision making, including origination of proposals, creation of capital budgets, go/no go decisions on individual projects (where judgments on qualitative issues interact with financial analysis), and post audit of completed projects.
  • Identification and calculation of relevant project cash flows taking account of inflation, tax, and 'final' project value where appropriate.
  • Activity-based costing to derive approximate 'long-run' costs appropriate for use in strategic decision making.
  • Need for and method of discounting.
  • Sensitivity analysis to identify the input variables that most affect the chosen measure of project worth (payback, ARR, NPV or IRR).
  • Identifying and integrating non-financial factors in long-term decisions.
  • Methods of dealing with particular problems: the use of annuities in comparing projects with unequal lives and the profitability index in capital rationing situations.
  • The techniques of investment appraisal: payback, discounted payback, accounting rate of return, net present value and internal rate of return.
  • Application of the techniques of investment appraisal to project cash flows and evaluation of the strengths and weaknesses of the techniques.
  • DEALING WITH UNCERTAINTY IN ANALYSIS
  • The nature of risk and uncertainty.
  • Sensitivity analysis in decision modeling and the use of computer software for “what if” analysis.
  • Assignment of probabilities to key variables in decision models.
  • Analysis of probabilistic models and interpretation of distributions of project outcomes.
  • Expected value tables and the value of information.
  • Decision trees for multi-stage decision problems.
  • MANAGING SHORT TERM FINANCE
    • The link between cash, profit and the balance sheet.
    • The credit cycle from receipt of customer order to cash receipt and the payment cycle from agreeing the order to making payment.
    • Working capital ratios (e.g. debtor days, stock days, creditor days, current ratio, quick ratio) and the working capital cycle.
    • Working capital characteristics of different businesses (e.g. supermarkets being heavily funded by creditors) and the importance of industry comparisons.
    • Cash-flow forecasts, use of spreadsheets to assist in this in terms of changing variables (e.g. interest rates, inflation) and in consolidating forecasts.
    • Variables that are most easily changed delayed or brought forward in a forecast.
    • Methods for evaluating payment terms and settlement discounts.
    • Preparation and interpretation of age analyses of debtors and creditors.
    • Establishing collection targets on an appropriate basis (e.g. motivational issues in managing credit control).
    • Centralized versus decentralized purchasing.
    • The relationship between purchasing and stock control.
    • Principles of the economic order quantity (EOQ) model and criticisms thereof.
    • Use and abuse of trade creditors as a source of finance.
    • Types and features of short-term finance: trade creditors, overdrafts, short-term loans and debt factoring.
    • The principles of investing short term (i.e. maturity, return, security, liquidity and diversification).
    • Types of investments (e.g. interest-bearing bank accounts, negotiable instruments including certificates of deposit, short-term treasury bills, and securities).
    • The difference between the coupon on debt and the yield to maturity.
    • Export finance (e.g. documentary credits, bills of exchange, export factoring, forfeiting).

MODULE-3 - INTERNATIONAL FINANCIAL ACCOUNTING & REPORTING IN BUSINESS - 2 WEEKS/ 36Hrs

  • Preparation of the financial statements of a single company, as specified in IAS 1 (revised), including the statement of changes in equity.
  • Preparation of the statement of cash flows (IAS 7).
  • Preparation of the consolidated statement of financial position (balance sheet) and statement of comprehensive income where: interests are directly held by the acquirer (parent) company; any subsidiary is fully controlled; and all interests were acquired at the beginning of an accounting period. (IFRS 3 and IAS 27, to the extent that their provisions are relevant to the specified learning outcomes).
  • Reporting performance: recognition of revenue, measurement of profit or loss, prior period items, discontinuing operations and segment reporting (IAS 1(revised), 8 and 18, IFRS 5 and 8).
  • Property, Plant and Equipment (IAS 16): the calculation of depreciation and the effect of revaluations, changes to economic useful life, repairs, improvements and disposals.
  • Research and development costs (IAS 38): criteria for capitalization.
  • Intangible Assets (IAS 38) and goodwill: recognition, valuation, amortization.
  • Impairment of Assets (IAS 36) and Non-Current Assets Held for Sale (IFRS 5) and their effects on the above.
  • Inventories (IAS 2).
  • The disclosure of related parties to a business (IAS 24).
  • Construction contracts and related financing costs (IAS 11 and 23): determination of cost, net realizable value, and the inclusion of overheads and the measurement of profit on uncompleted contracts.
  • Post-balance sheet events (IAS 10).
  • Provisions and contingencies (IAS 37).
  • Leases (IAS 17) - distinguishing operating from finance leases and the concept of substance over form (from the Framework); accounting for leases in the books of the lessee.
  • Issue and redemption of shares, including treatment of share issue and redemption costs (IAS 32 and 39), the share premium account, the accounting for maintenance of capital arising from the purchase by a company of its own shares.

MODULE-4-TAXATION - 4 WEEKS/ 72Hrs

  • Concepts of direct versus indirect taxes, taxable person and competent jurisdiction.
  • Types of taxation, including direct tax on the company's trading profits and capital gains, indirect taxes collected by the company, employee taxation and withholding taxes on international payments, and their features (e.g. in terms of who Ultimately bears the tax cost, withholding responsibilities, principles of calculating the tax base).
  • Sources of tax rules (e.g. domestic primary legislation and court rulings, practice of the relevant taxing authority, supranational bodies, such as the EU in the case of value added/sales tax, and international tax treaties).
  • Indirect taxes collected by the company:
    • In the context of indirect taxes, the distinction between unit taxes (e.g. excise duties based on physical measures) and ad valorem taxes (e.g. sales tax based on value);
    • The mechanism of value added/sales taxes, in which businesses are liable for tax on their outputs less credits for tax paid on their inputs, including the concepts of exemption and variation in tax rates depending on the type of output and disallowance of input credits for exempt outputs.
  • Employee taxation:
  • The employee as a separate taxable person subject to a personal income tax regime;
  • Use of employer reporting and withholding to ensure compliance and assist tax collection.
  • The need for record-keeping and record retention that may be additional to that required for financial accounting purposes.
  • The need for deadlines for reporting (filing returns) and tax payments.
  • Types of powers of tax authorities to ensure compliance with tax rules:
  • Power to review and query filed returns;
  • Power to request special reports or returns;
  • Power to examine records (generally extending back some years);
  • Powers of entry and search;
  • Exchange of information with tax authorities in other jurisdictions.
  • The distinction between tax avoidance and tax evasion, and how these vary among jurisdictions (including the difference between the use of statutory general anti-avoidance provisions and case law based regimes).
  • International taxation:
  • the concept of corporate residence and the variation in rules for its determination across jurisdictions (e.g. place of incorporation versus place of management);
  • types of payments on which withholding tax may be required (especially interest, dividends, royalties and capital gains accruing to non-residents);
  • means of establishing a taxable presence in another country (local company and branch);
  • The effect of double tax treaties (based on the OECD Model Convention) on the above (e.g. reduction of withholding tax rates, provisions for defining a permanent establishment).
  • Direct taxes on company profits and gains:
  • The principle of non-deductibility of dividends and systems of taxation defined according to the treatment of dividends in the hands of the shareholder (e.g. classical, partial imputation and imputation);
  • the distinction between accounting and taxable profits in absolute terms (e.g. disallowable expenditure on revenue account, such as entertaining, and on capital account, such as formation and acquisition costs) and in terms of timing (e.g. deduction on a paid basis);
  • the concept of tax depreciation replacing book depreciation in the tax computation and its calculation based on the pooling of assets by their classes, including balancing adjustments on the disposal of assets;
  • The nature of rules recharacterising interest payments as dividends (e.g. where interest is based on profitability);
  • Potential for variation in rules for calculating the tax base dependent on the nature or source of the income (scheduler systems);
  • The need for rules dealing with the relief of losses;
  • Principles of relief for foreign taxes by exemption, deduction and credit.
  • The concept of tax consolidation (e.g. for relief of losses and deferral of capital gains on asset transfers within a group).

MODULE-5 - CORPORATE & BUSINESS LAW - 1 Week/ 18Hrs

  • Ethics and Business
  • Ethical conflict
  • Corporate governance
  • Comparison of English law with alternative legal systems
  • The law of contract
  • The law of employment
  • Company administration and finance

MODULE-6 - BUSINESS MATHEMATICS - 2 WEEKS/ 36Hrs

  • Basic mathematics
  • Probability
  • Summarizing and analyzing data
  • Inter-relationships between variables
  • Forecasting
  • Financial mathematics

MODULE-7 - TALLY & SPREADHSEET - 4 WEEKS/ 72Hrs

  • Creation of masters, accounting vouchers, inventory vouchers, stock journals, transactions with vouchers, advance features, configurations, remote access, synchronization, invoice formation, online data base connectivity, various analytic reports, indirect tax: VAT, CST, Service tac and excise, Challan, return forms, Vat computation, input credit, DVAT 16, DVAT-30, DVAT-31, DVAT-51, 2A and 2B, GAR-7, ST-3 etc
  • Direct tax: TDS, TCS, form 16 A, Challan, returns form, etc balance sheet, as per schedule 6, MCA portals, XBRL. Generation of employee database, salary structure and calculation, attendance and leave details, salary slip generations, PF, ESI, gratuity, bonus, professional tax, various analytical reports, TDS, as per income tax slab...etc
  • Advance excel