For anyone from a commerce background preparing for UPSC, this optional subject is the jackpot. Aspirants already have a basic understanding or even more depending on experience, so scoring in the subject becomes more effective. The commerce & accounting UPSC optional subject has two papers- Paper 1 and Paper 2, both have different syllabus that students need to know. To give aspirants a detailed view, here is the list of syllabus for paper 1 and paper2:
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Paper 1- Commerce & Accountancy Optional
Here is the list of the full syllabus for commerce & accountancy optional:
Accounting and Finance Accounting, Taxation & Auditing
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, and Right Shares.
- Employee Stock Option and Buy-Back of Securities.
- Preparation and Presentation of Company Final Accounts.
- Amalgamations, Absorption and Reconstruction of Companies.
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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 for 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.
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.
Auditing:
- Company Audit: Audit related to Divisible Profits, Dividends, Special investigations, Tax audit.
- Audit of Banking, Insurance, Non-Profit Organisations and Charitable societies/Trusts/Organizations.
Financial Management, Financial Institutions and Markets
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 Analysis and Methods.
- Cost of Capital: Concept, Computation of Specific Costs and Weighted Average Cost of Capital. CAPM as a Tool for Determining the 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).
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Markets and Institutions:
- Indian Financial System: An Overview
- Money Markets: Participants, Structure and Instruments. Commercial Banks. Reforms in the 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 2- Commerce & Accountancy Optional
Here is the list of the full syllabus for commerce & accountancy optional:
Organisation Theory and Behaviours, Human Resource Management and Industrial Relations Organisation Theory and Behaviour
Theory:
- Nature and Concept of Organisation; External Environment of Organisation Technological, Social, Political, Economical and Legal; Organisational 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 Integration Process; Centralization and Decentralization Process; Standardization on/Formalization and Mutual Adjustment. Coordinating Formal and Informal Organisations. Mechanistic and Organic Structures.
- Designing Organisational 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 Organisational Design and Structure.
- Managing Organisational Culture.
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Behaviour:
- Meaning and Concept: Individual in the organisation: Personality, Theories, and Determinants; Perception 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 Organisational Effectiveness, Management of Change.
Human Resources Management and Industrial Relations
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° Feedback, Salary and Wage Administration, Job Evaluation, Employee Welfare, Promotions, Transfers and Separations.
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 Liberalisation 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.
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Conclusion on Commerce & Accountancy Optional Syllabus for UPSC Mains
These above-mentioned topics are complete details along with sub-topics that an aspirant needs to know when preparing for the UPSC optional. Commerce & accounting are more popular among aspirants who have a background in the field or understand the basics. Moreover, it does not overlap with any other subject or paper in UPSC, so it’s a scoring subject with less competition.
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