UPSC Commerce and Accountancy Syllabus Paper-1
Accounting and Finance Accounting, Taxation & Auditing
1. Financing Accounting :
Accounting as a financial information system; Impact of behavioral 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. Employees 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
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 Performance Measurement.
3. Taxation :
Income Tax: Definitions. Basis of Charge; Incomes that 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.
Company Audit: Audit related to Divisible Profits, Dividends, Special investigations, Tax
audit. Audit of Banking, Insurance, Non-Profit Organization, and Charitable
Financial Management, Financial Institutions and Markets
1. Financial Management :
Finance Function: Nature, Scope, and Objectives of Financial Management: Risk and
Tools of Financial Analysis: Ratio Analysis, Funds-Flow, and Cash-Flow Statement.
Capital Budgeting Decisions: Process, Procedures, and Appraisal Methods. Risk and
Uncertainty Analysis and Methods.
Cost of Capital: Concept, Computation of Specific Costs and Weighted Average Cost of
Capital. CAPM is a Tool for 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 a 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
UPSC Commerce and Accountancy Syllabus Paper-2
Organisation Theory and Behaviour
1. Organisation Theory :
Nature and Concept of Organisation; External Environment of Organisation—Technological, Social, Political, Economical 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.
Organizational Design—Basic Challenges; Differentiation and Integration Process;
Centralization and Decentralization Process; Standardization/Formalization and Mutual
Adjustment. Coordinating Formal and Informal Organizations. Mechanistic and Organic
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
Managing Organizational Culture.
2. Organisation Behaviour :
Meaning and Concept; Individual in organization: Personality, Theories, and
Determinants; Pereception Meaning and Process.
Motivation : Concepts, Theories and Applications. 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. Transactional 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
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.