What is the syllabus of commerce and Accountancy in UPSC?

The topics included under commerce and accountancy optional for UPSC are accounting, cost accounting, taxation, auditing, financial management, financial markets, organizational theory and behaviour, human resource management and industrial relations.

Which stream is best for IAS commerce?

Arts scores over the Science and Commerce Streams.

Is commerce good for UPSC?

UPSC is the best opportunity for any commerce student who wants to move up in the bureaucratic hierarchy of the country.

UPSC Commerce and Accountancy Syllabus 2024, Get PDF Link

Table of Contents

UPSC Commerce and Accountancy Syllabus 2024: The UPSC IAS examination offers Commerce and Accountancy as a potential subject choice among the 48 optional subjects for the Mains exam. The syllabus for Commerce and Accountancy in the IAS Exam evaluates candidates’ comprehension of fundamental concepts and their ability to apply their knowledge of commerce and accountancy to address challenges encountered by governments and businesses.

UPSC Commerce and Accountancy Syllabus 2024

For individuals opting for Commerce & Accountancy as an optional subject in the UPSC Mains exam, they will discover that the syllabus primarily focuses on commerce and accountancy topics related to management. This particular optional subject is considered highly suitable for candidates with backgrounds in chartered accountancy, commerce, and those employed in finance or finance-related roles.

In this article, we present a comprehensive overview of the UPSC Commerce & Accountancy Optional Syllabus, along with a downloadable PDF version of the syllabus.

UPSC Commerce and Accountancy Syllabus 2024 Optional Papers

The Commerce & Accountancy Optional Subject in the UPSC Mains examination consists of two papers, namely Paper I and Paper II. Each paper carries a weightage of 250 marks, resulting in a total of 500 marks for this subject. Below, you will find the detailed syllabus for the IAS Commerce & Accountancy optional subject

UPSC Commerce and Accountancy Syllabus 2024 Optional Paper I

1 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.
Employees Stock Option and Buy-Back of Securities.
Preparation and Presentation of Company Final Accounts.
Amalgamations, Absorption, and Reconstruction of Companies.

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 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.

Auditing

Company Audit: Audit related to Divisible Profits, Dividends, Special investigations, and Tax audit.
Audit of Banking, Insurance, Non-Profit Organizations, and Charitable Societies/Trusts/Organizations.

2 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 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).

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 IRDA.

UPSC Commerce and Accountancy Syllabus 2024 Optional Paper II

1. Organisation Theory and Behaviours, Human Resource Management and Industrial Relations Organisation Theory and Behaviour

Organization 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 Structures.
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 Structure.
Managing Organizational Culture.

Organization Behaviour

Meaning and Concept; Individual in the Organization: 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, Organizational 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° Feed Back, 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 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 Future Prospects.
Adjudication and Collective Bargaining. Industrial Relations in Public Enterprises Absenteeism and Labour Turnover in Indian Industries and their Causes and Remedies.