JAIIB AFM Exam Pattern 2026

Paper 

No. of Questions

Total Marks

Time Duration

Accounting and Finance Management of Bankers

100

100

2 hours

• Nature and Purpose of Accounting

• Historical Perspectives

• New Accounting system / Value system accounting

• Origins of Accounting Principles

• Accounting Standards in India and their Definition and Scope

• Generally Accepted Accounting Principles of USA (US GAAP)

• Overview of IFRSs

• Difference between GAAP and IFRS

• Transfer Pricing

• Concepts of Accountancy

• Going Concern Entity

• Double Entry System

• Principle of Conservatism

• Revenue Recognition and Realisation

• Accrual and Cash Basis

• Record Keeping Basics

• Account Categories

• Debit and Credit Concepts

• Accounting and Columnar Accounting Mechanics

• Journalising

• 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

• Advantages of Bank Reconciliation Statement

• 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

• 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

• Amortisation of intangible assets

• Expenditure

• Distinction between Capital and Revenue Expenditure

• Receipts

• Types of Instruments of Credit

• Term and Due Date of a Bill

• Certain Important Terms

• Accounting Entries to be Passed

• Accommodation Bill

• Bill Books

• Peculiar Features of Accounting System in Banks

• Accounting Systems of Different Banks

• Illustration

• Functions Performed by the Back Office

• Reconciliation Function in Banks

• Reconciliation of Inter Branch/ Office Entries

• Bank Audit

• Emergence of Risk-based Internal Audit

• Types of Bank Audits Viz. Concurrent Audit, Internal Audit

• Statutory Audit

• Role of Audit and Inspection

• Balance Sheet Equation

• Computation of Balance Sheet Equation

• Preparation of Trial Balance

• Adjustment Entries

• Preparation of Financial Statements from Trial Balance

• Definition and Types of Companies

• Distinction between Partnership and Limited Liability Company

• Classes of Share Capital

• Issue of Shares

• General Illustrations

• Non-voting Shares

• Form of Balance Sheet

• Impact of Ind AS on Financial Statements

• Cash Flow

• Funds Flow Statement

• Cash Flow Statement

• Fund Flow and Cash Flow Analysis

• 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)

• 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 Software Available in the Market

• Computerisation – Scope and Experiences in Banking

• The Core Banking Components

• Information Security

• Internet and World Wide Web – Influences on Banking

• 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

• 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

• 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

• 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 Yield on 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

• 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

• Discounted and Non-Discounted Cash Flow Methods for Investment Appraisal

• Basic concepts of term loans

• Deferred payment Guarantees

• Project financing

• Difference between term loan appraisal and project appraisal

• 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 Cycle

• Cash and Marketable Securities

• Accruals, Trade Credit

• Working Capital Advance by Commercial Banks

• Cash Budget Method of Lending

• Regulation of Bank Finance

• Public Deposits

• Inter- Corporate Deposits

• Short-term loans from Financial Institutions

• Rights Debentures for Working Capital

• Commercial Paper

• Factoring & Forfaiting

• Characteristics & Functions of Derivatives

• Users of derivatives

• Futures

• Forward Rate Agreement (FRA)

• Swaps

• Options

• Overview of Income Tax Act

• Basic Overview of Deductions in Respect of Certain Incomes

• Deduction 80QQB, 80RRB, 80TTA & 80U

• TDS/TCS

• Returns

• Refund & Recovery

• Meaning of Direct & Indirect Tax

• Introduction to GST

• Cost Accounting: Evolution, Meaning, Objectives and Scope

• Concepts of Costs

• Classifications and Elements of Cost

• Cost Centre and Cost Unit

• Methods and Techniques of Costing

• 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

• 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

• Definition, Significance and Applications

• Various Types of Standards

• Installation of Standard Costing System—for Material Labour

• and Overhead

• Variance Analysis for Materials, Labour and Overheads

• Accounting Treatment of Variances

• Benchmarking for Setting of Standards

• Variance Reporting to Management

• Meaning, Advantages, Limitations and Applications

• Breakeven Analysis

• Cost-Volume Profit Analysis

• 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

• Budget Concept

• Manual

• Fixed and Flexible Budgets

• Preparation and Monitoring of Various Types of Budgets

• Budgetary Control System: Advantages, Limitations and Installation

• Zero-Based Budgeting

• Programme and Performance Budgeting

 Exam Date 

(May Cycle)

 Exam Date

(November Cycle)