JAIIB AFM Syllabus 2024, Know all Topics

JAIIB AFM Syllabus 2024

JAIIB AFM Syllabus: The Indian Institute of Banking and Finance or IIBF conducts the JAIIB exam twice a year. The Junior Associate for the Indian Institute of Banking or JAIIB exam is the first promotional exam for banking professionals. Accounting and Financial Management is the third paper of four for the exam. This article will provide a detailed JAIIB AFM syllabus.

JAIIB AFM Syllabus – Exam Pattern

Before we get into the syllabus, let’s take a look at the question and mark distribution for AFM.

Subjects	No. of Questions	Total Marks	Duration
Accounting and Financial Management	100	100	2 hours

As you can see, the paper consists of 100 questions for a total of 100 marks. The paper is of a 2-hour duration. There is no negative marking and candidates require a minimum of 50 marks out of 100 to clear the paper.

JAIIB Accounting and Financial Management Syllabus

Paper 3 of JAIIB is Accounting and Financial Management. The paper consists of a total of 4 modules as listed below:

• Accounting Principles and Processes 
• Financial Statement and Core Banking Systems
• Financial Management 
• Taxation and Fundamentals of Costing.

AFM Module A Syllabus – Accounting Principles and Processes

The syllabus for Module A of AFM is below:

Unit	Topics
Definition, Scope and Accounting Standards including Ind AS	Nature and Purpose of Accounting, Historical Perspectives, New Accounting system / Value system accounting, Origins of Accounting Principles, Accounting Standards in India and its Definition and Scope, Generally Accepted Accounting Principles of USA (US GAAP), Overview of IFRSs, Difference between GAAP and IFRS Transfer Pricing.
Basic Accountancy Procedures	Concepts of Accountancy, Going Concern Entity, Double Entry System, Principle of Conservatism, Revenue Recognition and Realisation, Accrual and Cash Basis
Maintenance of Cash/Subsidiary Books and Ledger	Record Keeping Basics, Account Categories, Debit and Credit Concepts, Accounting and Columnar Accounting Mechanics, and Journalising
Bank Reconciliation Statement	Recording Transactions in Cash Book, Transactions Contained in the Pass Book/Bank Statement, Is Passbook a Mirror Image of Cash Book? Causes for Passbook and Cashbook being different, Understanding Reconciliation, Preparing Reconciliation Statement, Need for Bank Reconciliation, How to prepare a Bank Reconciliation Statement when extracts of Cash Book and Pass Book are given? Adjusting the Cash Book balance, and Advantages of Bank Reconciliation Statement
Trial Balance, Rectification of Errors and Adjusting & Closing Entries	Meaning of a Trial Balance, Features and Purpose of a Trial Balance, Types of Trial Balance and Preparation of a Trial Balance, Disagreement of a Trial Balance, Classification of Errors, Location of Errors, Rectification of Errors, Suspense Account and Rectification, Rectification of Errors when Books are Closed, Adjusting and Closing Entries.
Depreciation & its Accounting	Meaning of Depreciation, Causes of Depreciation, Need for Depreciation, Factors of Depreciation, Accounting Entries, Methods of Depreciation, Straight Line Method, Diminishing Balance or Written Down Value (WDV) Method, Advantages and Disadvantages of Straight Line Method, Advantages and Disadvantages of Written Down Value Method, Units of Production Method, Sum of the Years’ Digits Method, Replacement of a Fixed Asset and Creation of Sinking Fund, and Amortisation of intangible assets
Capital and Revenue Expenditure	Expenditure, Distinction between Capital and Revenue Expenditure Receipts
Bills of Exchange	Types of Instruments of Credit, Term and Due Date of a Bill, Certain Important Terms, Accounting Entries to be Passed, Accommodation Bill, and Bill Books
Operational Aspects of Accounting Entries	Peculiar Features of Accounting System in Banks Accounting Systems of Different BanksIllustration
Back Office Functions/Handling Unreconciled Entries in Banks	Functions Performed by the Back Office, Reconciliation Function in Banks, Reconciliation of Inter Branch/ Office Entries.
Bank Audit & Inspection	Bank Audit Emergence of Risk based Internal Audit, Types of Bank Audits Viz. Concurrent Audit Internal Audit, Statutory Audit, Role of Audit and Inspection

AFM Module B Syllabus – Financial Statement and Core Banking Systems

The syllabus for Module B of AFM is below:

Unit	Topics
Balance Sheet Equation	Balance Sheet Equation, Computation of Balance Sheet Equation
Preparation of Final Accounts	Preparation of Trial Balance, Adjustment Entries, Preparation of Financial Statements from Trial Balance
Company Accounts – I	Definition and Types of Companies, Distinction between Partnership and Limited Liability Company, Classes of Share Capital, Issue of Shares, General Illustrations, Non-voting Shares
Company Accounts – II	Form of Balance Sheet, Impact of Ind AS on Financial Statements
Cash Flow & Funds Flow	Cash Flow, Funds Flow Statement, Cash Flow Statement, Fund Flow and Cash Flow Analysis
Final Accounts of Banking Companies	Definition and Functions of a Bank, Requirements of Banking Companies as to Accounts and Audit, Significant Features of Accounting Systems of Banks, Principal Books of Account, Preparation and Presentation of Financial Statements of Banks, Accounting Treatment of Specific Items, Preparation of Profit and Loss Account, Comments on Profit and Loss Account Items, Important Items of Balance Sheet. Disclosure Requirements of Banks to be Added as Notes to Accounts, Disclosures Prescribed by RBI Under Basel-III, Banks Listed on a Stock Exchange, Implementation of Indian Accounting Standards (Ind AS)
Core Banking Systems & Accounting in Computerised Environment	Meaning of Computerised Accounting, Features of Computerised Accounting, Terms Used in Computerised Accounting, Difference between Computerised and Manual Accounting, Advantages and Disadvantages of Computerised Accounting, Functions Performed by Computerised Accounting Softwares Available in the Market, Computerisation – Scope and Experiences in Banking, The Core Banking Components, Information Security, Internet and World Wide Web – Influences on Banking

AFM Module C Syllabus – Financial Management

The syllabus for Module C of AFM is below:

Unit	Topics
An Overview of Financial Management	Forms of Business Organisation, Financial Decision making in a Firm, Objectives of Financial Management, The Fundamental Principles of Finance, Building Blocks of Modern Finance,Risk-Return Trade off, Agency Problem in Financial Management, Business Ethics & Social Responsibility, Organisation of the Finance Function, Relationship of Finance to Economics and Accounting, Emerging Role of the Financial Manager in India
Ratio Analysis	Meaning of Accounting Ratios, Classification of Ratios, Uses of Accounting Ratios, Limitations of Accounting Ratios, Calculation and Interpretation of Various Ratios, Different Users and Their Use of Ratios
Financial Mathematics – Calculation of Interest & Annuities	What is Simple Interest? What is Compound Interest? Fixed and Floating Interest Rates, Front-end and Back-end Interest Rates, Calculation of Interest Using Products/Balances,What are Annuities? Calculating the Future Value of an Ordinary Annuity, Calculating the Present Value of an Ordinary Annuity, Calculating the Future Value of an Annuity Due, Calculating the Present Value of an Annuity Due, Repayment of a Debt
Financial Mathematics – Calculation of YTM	Meaning of Debt, Introduction to Bonds, Terms Associated with Bonds, Types of Bonds,Optionality in Bonds, Valuation of Bonds, Bond Value with Semi-annual Interest, Current Yieldon Bond, Yield-to-Maturity of Bond, Theorems for Bond Value, Illustrations, Duration of Bond,Properties of Duration, Bond Price Volatility, Problems and Solutions
Financial Mathematics – Forex Arithmetic	Fundamentals of Foreign Exchange, Indian Forex Market, Direct and Indirect Quote, Some Basic Exchange Rate Arithmetic, Forward Exchange Rates
Capital Structure and Cost of Capital	Meaning of Capital Structuring, Leverage/Gearing, Factors Influencing Decision on Capital Structuring, Theories/Approaches on Capital Structuring, Net Income Approach, Net Operating Income Approach, Traditional Position, Assumptions in the Approaches on Capital Structuring, Taxation & Capital Structure, Cost of Debt, Preference, Equity, Determining the Proportions, Weighted Average Cost of Capital (WACC), Factors Affecting the WACC,Weighted Marginal Cost of Capital, Determining the Optimal Capital Budget, Divisional and Project Cost of Capital, Floatation Cost and the Cost of Capital, Misconceptions surrounding the Cost of Capital
Capital Investment Decisions/Term Loans	Discounted and Non-Discounted Cash Flow Methods for Investment Appraisal, Basicconcepts of term loans, Deferred payment Guarantees, Project financing, Difference between term loan appraisal and project appraisal
Equipment Leasing/Lease Financing	Meaning of a Lease, Features of a Lease, Types of Leases, Rationale for Leasing, Contents of a Lease Agreement, Legal Aspects of Leasing, Finance Leases, Operating Leases,Accounting of Lease Transaction in the books of Lessor and Lessee, Leasing as a Financing Decision
Working Capital Management	Working Capital Cycle, Cash and Marketable Securities, Accruals, Trade Credit, Working Capital Advance by Commercial Banks, Cash Budget Method of Lending, Regulation of BankFinance, Public Deposits, Inter- Corporate Deposits, Short-term loans from Financial Institutions, Rights Debentures for Working Capital, Commercial Paper, Factoring & Forfaiting
Derivatives	Characteristics & Functions of Derivatives, Users of derivatives, Futures, Forward RateAgreement (FRA), Swaps, Options

AFM Module D Syllabus – Taxation and Fundamentals of Costing

The syllabus for Module D of AFM is below:

Unit	Topics
Taxation: Income Tax/TDS/Deferred Tax	Overview of Income Tax Act, Basic Overview of Deductions in Respect of Certain Incomes & Deduction 80 QQB, 80 RRB, 80 TTA & 80U, TDS/TCS, Returns, Refund & Recovery
Goods & Services Tax	Meaning of Direct & Indirect Tax, Introduction to GST
An Overview of Cost & Management Accounting	Cost Accounting: Evolution, Meaning, Objectives and Scope, Concepts of Costs,Classifications and Elements of Cost, Cost Centre and Cost Unit, Methods and Techniques ofCosting, Cost Accounting Standards, Management Accounting: Evolution, Meaning,Objectives and Scope. Tools and Techniques of Management Accounting, Relationship of Cost Accounting, Financial Accounting, Management Accounting and Financial Management
Costing Methods	Unit and Output Costing, Job Costing: Job Cost Cards, Collecting Direct Costs, Allocation of Overheads and its Applications, Batch Costing: Features and Applications, Contract Costing: Features, Distinction between Job and Contract Costing, Progress Payments, Retention Money, Escalation Clause, Contract Accounts, Accounting for Material, Accounting for Plant Used in a Contract, Contract Profit and Accounting Entries, Process Costing: Features, Applications and Types of Process Costing, Process Loss, Abnormal Gains and Losses, Equivalent Units, Inter-Process Profit, Joint Products, By-Products and Accounting, Service Costing: Features and Applications, Unit Costing and Multiple Costing, Application, Identification of Cost Unit and Cost Determination and Control
Standard Costing	Definition, Significance and Applications, Various Types of Standards, Installation of Standard Costing System—for Material, Labour, and Overhead, Variance Analysis for Materials, Labourand Overheads and Accounting Treatment of Variances, Benchmarking for Setting of Standards, Variance Reporting to Management
Marginal Costing	Meaning, Advantages, Limitations and Applications, Breakeven Analysis, Cost-Volume ProfitAnalysis, P/V Ratio and its Significance, Margin of Safety, Absorption Costing: System of Profit Reporting and Stock Valuation, Difference between Marginal Costing and Absorption Costing, Income Measurement under Marginal Costing and Absorption Costing
Budgets and Budgetary Control	Budget Concept, Manual, Fixed and Flexible Budgets, Preparation and Monitoring of VariousTypes of Budgets, Budgetary Control System: Advantages, Limitations and Installation, Zero Based Budgeting, Programme and Performance Budgeting

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