Commerce is a popular optional chosen by graduates of the subject for the IAS (UPSC CSE) Mains. With well-planned strategies, proper time management and understanding the exam pattern and syllabus will help you easily score well in Commerce. Interest should be the prime criteria for choosing any optional. Each Commerce paper consists of 250 marks. Duration for each Commerce mains paper is 3 hours.
IAS 2021 exam will be conducted on June 27, 2021 for Prelims and on September17-22, 2021. However, the notification has not been released yet.
Who should opt for Commerce in IAS (UPSC CSE) Mains?
Advantages of choosing Commerce
- A good choice if one has prior knowledge of the subject’s demands.
- An interesting subject which gives an aspirant an opportunity to have an idea about various financial aspects.
- There is not much of a competition.
Disadvantages of choosing Commerce
- Few coachings are available for the subject.
- The syllabus is quite vast.
- There is no overlap with general studies in this subject.
IAS (UPSC CSE) Mains Commerce Paper 1 Syllabus
Accounting and Finance Accounting, Taxation & Auditing
- Financial Accounting: Accounting as a Financial Information System; Impact of Behavioral 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, Right Shares, Employees Stock Option and Buy- Back of Securities. Preparation and Presentation of Company Final Accounts. Amalgamation, 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 of Pricing Decisions, Product Decisions, Make or Buy Decisions, Shutdown 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 Assesses 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 Organizations 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 of 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: Walters Model, MM Thesis, Gordon’s Model Linter’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 focus on Mergers and Acquisitions (Financial aspects 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.
IAS (UPSC CSE) Mains Commerce Paper 2 Syllabus
Organization Theory and Behavior, Human Resource Management and Industrial Relations
- Organization Theory: Nature and Concept of Organization; External Environment of Organizations - Technological, Social, Political, Economic and Legal; Organizational Goals - Primary and Secondary goals, Single and Multiple Goals; Management by Objectives. Evolution of Organization Theory: Classical, Neo-classical and Systems Approach. Modern Concepts of Organization Theory: Organizational Design, Organizational Structure and Organizational 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 Behavior: Meaning and Concept; Individual in organizations: 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, Orientation 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 Unions, 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. Workers Participation in Management: Philosophy, Rationale, Present Day Status and Future Prospects. Adjudication and Collective Bargaining. Industrial Relations in Public Enterprises, Absenteeism and Labor Turnover in Indian Industries and their Causes and Remedies. ILO and its Functions.
*The article might have information for the previous academic years, please refer the official website of the exam.