Part II of Syllabus of Accountancy, 'Analysis of Financial Statements' carries weightage of 40 marks, divided into two parts:

a) 20 marks theory paper included in 3 hrs. exam. to be held in March.

b) 20 marks project work .

The purpose of Project work in Financial Statement Analysis is to help the students develop the skills to comprehend, analyze and interpret accounting data of the business firms and make it meaningful for taking business decisions.

 

Project Work of 20 Marks:

Project work will include:

  • Project File - 12 Marks
  • Viva Voce - 8 Marks
  • The Written Test has been discontinued from the session 2023-24.

Project File should contain one project:

One specific project based on financial statement analysis of a company covering any two aspects from the following:

    1. Comparative and common size financial statements
    2. Accounting Ratios
    3. Segment Reports
    4. Cash Flow Statements

Specific projects can be on Segment Reporting , Ratio Analysis or Cash Flow Analysis , using these tools of Financial Statement Analysis. (Comparative Statements and Common Size Statements are not in syllabus now, so not to be used for Project Work).

Students are required to prepare a Project File relating to the problems attempted by them as follows:

  1. Particulars to be written on the first page:

          Title of work - Name of the project.

          Identity of student - Name, Class and section, Board Roll No

          School - Name of the school

         Concerned  teacher - Name of the teacher who supervised the project work.

  1. Index to indicate columns for title of work, page no., date, teacher's remarks and signature.
  2. The format for Project Work :

          a) Statement of the problem/Name of the Project

          b) Objectives

          c) Period of Study

          d) Source Material

          e) Tools of Analysis used

          f) Processing and Tabulation of data

          g) Diagrammatic/graphic presentation- pie-charts, bar-charts and graphs.

          h) Derivations, Interpretation and Conclusion.

          i) Assumptions (if any).

 

How to write the Project file:

      1. Project File should be neatly handwritten with page numbers.

      2. Each step of the solution needs to be highlighted.

      3. Conclusions drawn should be placed in boxes at the end.

Viva - 8 Marks

Viva Questions  should relate only to the Project:

a) To check the authenticity of the work.

b) To check that the student understands the idea behind the Project.

How to Arrange the Pages of Accountancy Project File?

To put in simple words, the pages of an Accountancy Project File with Ratio Analysis and Cash Flow Analysis should be arranged in the following order:

  1. Cover Page
  2. Inner Title Page
  3. Acknowledgement
  4. Certificate by teacher
  5. Certificate by student
  6. Index
  7. Company Profile
  8. Ratio, Ratio Analysis, uses, limitations, categories with meaning and names of different ratios.
  9. Problem, subject matter of project (as explained in class).
  10. Printed Balance Sheet and statement of profit and loss of the company.
  11. Analytical tools used, planning and execution.
  12. Chart showing different ratios with formula and calculations.
  13. Conclusion on the basis of these ratios individually or/and collectively.
  14. Also show bar diagrams depicting these Ratios of previous year as well as current year.
  15. Cash Flow Statement - Meaning, cash and cash equivalents, types of activities with meaning and examples of each.
  16. Printed cash flow statement.
  17. Summary of cash flows (as explained in class).
  18. Presentation in the form of bar diagrams.
  19. Conclusion.
  20. Bibliography

Use your own creativity to make your file the best.

Teacher can however, guide his students with minor variations in the above list.

 

You may check Guidelines for Project Work in Accountancy issued by C.B.S.E. in 2015

We hope to get Revised Guidelines for Project Work also.