Bcom Corporate
Bcom Corporate
Bcom Corporate
Accounting
1. Internal Reconstruction.
Internal reconstruction can be de ned as the reorganization of the company, without
liquidating the existing company and forming a new one. In internal reconstruction, the
capital of the company is reduced, and external liabilities such as debenture holders and
creditors waive their claims by giving a discount.
4. Mutual Debts
Mutual debts in corporate accounting refer to a situation where two parties owe each
other money, and the debts can be o set against each other, leaving only the net
balance to be settled.
ff
fi
fi
fi
fi
ff
ff
fi
fi
5. Normal Rate Of Return
Normal rate of return in corporate accounting is the expected rate of pro t on a
company's assets, used to evaluate investment pro tability. It is based on industry
standards and the company's cost of capital.
6. Valuation Of Shares
Valuation of shares in corporate accounting is the process of determining the fair value
of a company's shares based on factors such as nancial performance, growth
prospects, and market conditions. This is done to inform investment decisions using
various techniques, such as discounted cash ow analysis and comparative market
analysis.
7. Valuation Of Right
Valuation of rights in corporate accounting refers to the process of determining the fair
value of certain rights or entitlements that are associated with a company's shares, such
as the right to buy additional shares or receive dividends. This is done by analyzing
factors such as market conditions and the terms of the rights, and using appropriate
valuation techniques.
fi
fi
fi
fi
fi
fl
fi
fi
fi
fi
fi
11. Pro t & Loss Appropriation Account
The Pro t and Loss Appropriation Account in corporate accounting is a nancial
statement that shows how a company's pro ts are allocated between di erent
accounts, such as retained earnings, dividends, or reserves. It helps to track the
company's nancial performance and plan for future business activities.
13. Underwriting
Underwriting in corporate accounting refers to the process of guaranteeing a certain
amount of money will be raised from the sale of securities by an issuing company.
Underwriters assume the nancial risk of the o ering and may purchase and resell the
securities to investors or the public.
14. Co-underwriting
Co-underwriting in corporate accounting occurs when multiple underwriters share the
responsibility and risk of guaranteeing a securities o ering. Each co-underwriter
commits to purchasing a portion of the securities and may assist with marketing and
distributing the o ering to investors.
fi
ffi
fi
fi
fi
fi
fi
fl
fi
fi
fi
fi
fi
fi
fi
fi
fi
fi
fi
ff
fi