Accounting & Financial Management (AFM) Syllabus 2026 – JAIIB Paper 3 Guide + Free PDF
The AFM syllabus — Accounting & Financial Management, Paper 3 of the JAIIB examination conducted by the Indian Institute of Banking & Finance (IIBF) — is often considered the most calculation-heavy paper of the JAIIB course. To clear it efficiently you need three things: a precise map of the syllabus, awareness of the topics that change with regulation, and disciplined numerical practice. This exhaustive guide covers the complete AFM syllabus for 2026 chapter-by-chapter across all four modules, flags the topics that have been recently revised, and links you to free tests, one-liners, notes and games to prepare faster. You can also download the official syllabus PDF below.
📥 Download the Full AFM Syllabus (PDF)
The complete, exam-ready JAIIB Accounting & Financial Management syllabus in one PDF — keep it open while you plan your study weeks.
Download AFM Syllabus PDF →What is the AFM (Accounting & Financial Management) Paper?
AFM is the third paper of the JAIIB (Junior Associate of the Indian Institute of Bankers) certification, designed to give working bankers practical command over accounting fundamentals, the preparation and analysis of financial statements, financial management and the fundamentals of costing and taxation. It moves from the golden rules of book-keeping all the way to ratio analysis, capital budgeting, working-capital management and GST — the complete numbers toolkit a branch banker uses every day.
Because so much of the syllabus is quantitative, AFM rewards candidates who practise sums repeatedly rather than memorise theory. A clear grasp of journal entries, depreciation, reconciliation, ratios and break-even analysis pays off both in the exam hall and on the job.
AFM Exam Pattern at a Glance
The AFM paper is an objective, MCQ-based examination delivered through IIBF's online mode. Questions are heavily application- and numerical-oriented — expect problem sums on depreciation, ratios, BRS, cash flow, interest and costing rather than simple definition recall, so conceptual clarity and speed in calculation matter far more than rote learning. Always confirm the current number of questions, duration, marking scheme and passing marks from the latest IIBF examination notification before you register, as IIBF revises these periodically.
AFM Syllabus 2026 – Chapter-Wise
The AFM syllabus is organised into four modules spanning 32 chapters. Here is the complete, module-wise breakdown:
| Module | Ch | Topic | What you learn |
|---|---|---|---|
| Module A – Accounting Principles & Processes | 1 | Definition, Scope and Accounting Standards including Ind AS | Concepts, conventions and the framework of accounting standards and Ind AS. |
| Module A | 2 | Basic Accountancy Procedures | The golden rules, double-entry system and the accounting equation. |
| Module A | 3 | Maintenance of Cash/Subsidiary Books and Ledger | Journals, cash book, subsidiary books and posting to ledgers. |
| Module A | 4 | Bank Reconciliation Statement | Reconciling cash book and pass book balances step by step. |
| Module A | 5 | Reconciliation Statement | Reconciling other ledger and control accounts and rectifying errors. |
| Module A | 6 | Depreciation & its Accounting | SLM, WDV and the accounting treatment of depreciation. |
| Module A | 7 | Capital and Revenue Expenditure | Distinguishing capital from revenue items and their impact on accounts. |
| Module A | 8 | Bills of Exchange | Negotiable instruments, acceptance, discounting and dishonour entries. |
| Module A | 9 | Operational Aspects of Accounting Entries | Day-to-day branch accounting entries and their flow. |
| Module A | 10 | Back Office Functions/Handling Unreconciled Entries in Banks | Inter-branch reconciliation and clearing of pending entries. |
| Module A | 11 | Bank Audit & Inspection | Concurrent, statutory and internal audit and inspection of branches. |
| Module B – Financial Statements & Core Banking Systems | 12 | Preparation of Final Accounts | Trading, P&L account and balance sheet with adjustments. |
| Module B | 13 | Company Accounts – I | Share capital, issue, forfeiture and reissue of shares. |
| Module B | 14 | Company Accounts – II | Debentures, bonus issues and company final accounts. |
| Module B | 15 | Cash Flow & Funds Flow | Preparing cash flow (AS-3 / Ind AS 7) and funds flow statements. |
| Module B | 16 | Final Accounts of Banking Companies | Form A and Form B, schedules and banking-specific disclosures. |
| Module B | 17 | Core Banking Systems & Accounting in Computerised Environment | CBS architecture and how accounting works in a computerised setup. |
| Module C – Financial Management | 18 | Ratio Analysis | Liquidity, leverage, activity and profitability ratios and their interpretation. |
| Module C | 19 | Financial Mathematics – Calculation of Interest & Annuities | Simple/compound interest, present value and annuity computations. |
| Module C | 20 | Financial Mathematics – Calculation of YTM | Yield to maturity, bond pricing and current yield. |
| Module C | 21 | Financial Mathematics – Forex Arithmetic | Exchange-rate quotations, cross rates and forward differentials. |
| Module C | 22 | Capital Structure and Cost of Capital | Cost of debt, equity and WACC, leverage and capital-structure theories. |
| Module C | 23 | Capital Investment Decisions/Term Loans | NPV, IRR, payback, DSCR and appraising term loans. |
| Module C | 24 | Equipment Leasing/Lease Financing | Operating vs finance leases and their evaluation. |
| Module C | 25 | Working Capital Management | Operating cycle, MPBF and Turnover (Nayak) method of assessment. |
| Module C | 26 | Derivatives | Forwards, futures, options and swaps and their use in hedging. |
| Module D – Taxation & Fundamentals of Costing | 27 | Goods & Services Tax | GST structure, CGST/SGST/IGST, input tax credit and registration. |
| Module D | 28 | An Overview of Cost & Management Accounting | Cost concepts, classification and the role of management accounting. |
| Module D | 29 | Costing Methods | Job, batch, process and contract costing methods. |
| Module D | 30 | Standard Costing | Setting standards and computing material, labour and overhead variances. |
| Module D | 31 | Marginal Costing | Contribution, P/V ratio, break-even and decision-making applications. |
| Module D | 32 | Budgets and Budgetary Control | Types of budgets, flexible budgets and budgetary control. |
🆕 Recently Updated Topics You Must Not Miss
Accounting and tax rules evolve, and the AFM paper increasingly tests the latest position. Pay special attention to these recently revised areas (always cross-check the exact current figures and provisions against the latest official source — ICAI/MCA, the GST Council and RBI):
- Ind AS & accounting standards convergence: The migration from older AS to Ind AS continues to expand in coverage and applicability thresholds. Study which entities apply Ind AS and the key differences, as the framework is regularly refined.
- GST rates, returns and input tax credit: GST rate slabs, return filing (such as GSTR forms) and ITC rules are periodically amended by the GST Council. Make sure you revise the current rate structure and ITC conditions rather than outdated numbers.
- Bank final accounts & provisioning norms: RBI periodically updates disclosure formats and income-recognition/asset-classification/provisioning (IRAC) norms that flow into the final accounts of banking companies. Verify the latest provisioning percentages and disclosure requirements.
We keep our AFM notes and tests synced with these updates, so the figures you revise here stay current.
Quick AFM One-Liners for Revision
Use these rapid-fire one-liners to lock in the high-yield AFM concepts before the exam:
Free AFM Study Resources on Learning Sessions
A syllabus is only the start — you clear AFM by practising sums. Use the full Learning Sessions toolkit, all built around this exact syllabus:
- 📝 Chapter-wise AFM mock tests — timed, exam-pattern MCQs with instant answers and explanations.
- ⚡ Chapter one-liners — bite-sized revision points (a sample set is below) for last-mile prep.
- 🎮 Matching games — gamified drills that make formulas, ratios and accounting terms stick.
- 📚 Detailed notes & study-material PDFs — chapter-by-chapter notes you can download and revise offline.
- 🎥 Live and recorded classes — concept-building sessions by Ashish Jain for every accounting and finance topic.
Test Yourself — AFM Practice Questions
Try these hard, application-based questions. Tap Show Answer to check yourself and read the reasoning:
Q1. A company purchases a machine for Rs 1,00,000 with an estimated life of 5 years and nil scrap value. Using the Straight Line Method, what is the book value at the end of year 3?
- a) Rs 60,000
- b) Rs 40,000
- c) Rs 20,000
- d) Rs 80,000
✅ Show Answer
Answer: b) Rs 40,000
SLM charges Rs 1,00,000 ÷ 5 = Rs 20,000 per year. After three years, accumulated depreciation is Rs 60,000, so book value = Rs 1,00,000 − Rs 60,000 = Rs 40,000.
Q2. While preparing a Bank Reconciliation Statement starting from the cash book (debit) balance, how is a cheque issued but not yet presented for payment treated?
- a) Deducted from cash book balance
- b) Added to cash book balance
- c) Ignored as it self-corrects
- d) Deducted from pass book balance
✅ Show Answer
Answer: b) Added to cash book balance
An unpresented (issued but not yet cleared) cheque has reduced the cash book balance but not the pass book. To reconcile to the higher pass book balance, it is added back to the cash book balance.
Q3. A firm has a contribution margin of Rs 40 per unit and fixed costs of Rs 2,00,000. How many units must it sell to break even?
- a) 4,000 units
- b) 8,000 units
- c) 5,000 units
- d) 2,500 units
✅ Show Answer
Answer: c) 5,000 units
Break-Even Point (units) = Fixed Cost ÷ Contribution per unit = Rs 2,00,000 ÷ Rs 40 = 5,000 units.
Q4. Under the Turnover Method (Nayak Committee) of working-capital assessment, bank finance is typically computed as:
- a) 25% of projected annual turnover with a 5% margin from the borrower
- b) 20% of projected annual turnover with the borrower bringing in the rest
- c) 75% of projected annual turnover
- d) Equal to the entire projected turnover
✅ Show Answer
Answer: b) 20% of projected annual turnover with the borrower bringing in the rest
Under the Nayak Committee norms, working-capital requirement is taken as 25% of projected turnover; the bank funds 20% and the borrower brings the remaining 5% as margin.
Q5. In a cash flow statement prepared as per AS-3 / Ind AS 7, the purchase of a fixed asset for cash is classified under which activity?
- a) Operating activities
- b) Financing activities
- c) Investing activities
- d) It is not shown in the cash flow statement
✅ Show Answer
Answer: c) Investing activities
Acquisition and disposal of long-term assets and investments are classified under investing activities; operating relates to core trading, and financing relates to equity and borrowings.
Q6. A bond with a face value of Rs 1,000 and a coupon of 8% is trading at a price above par. Compared to its coupon rate, its Yield to Maturity (YTM) will be:
- a) Higher than the coupon rate
- b) Equal to the coupon rate
- c) Lower than the coupon rate
- d) Zero
✅ Show Answer
Answer: c) Lower than the coupon rate
When a bond trades at a premium (above par), the investor pays more than face value, so the effective return earned to maturity (YTM) is lower than the stated coupon rate. At par, YTM equals coupon; at a discount, YTM exceeds coupon.
How to Prepare for the AFM Exam
Because the AFM paper is calculation-driven, a module-by-module approach works best:
- Build the accounting base (Module A, Chapters 1–11): lock in the golden rules, ledgers, BRS, depreciation and bills of exchange — these underpin everything that follows.
- Master financial statements (Module B, Chapters 12–17): practise final accounts, company accounts, cash/funds flow and bank final accounts until the formats are automatic.
- Drill financial management (Module C, Chapters 18–26): the scoring heart of the paper — repeat ratio analysis, interest/annuity sums, YTM, capital budgeting and working-capital problems daily.
- Cover taxation & costing (Module D, Chapters 27–32): GST, costing methods, standard/marginal costing and budgeting carry direct, formula-based marks.
- Revise with mocks + one-liners + games: alternate full-length mock tests with one-liner revision and matching games so accuracy and speed climb together.
Frequently Asked Questions
Is AFM the toughest paper in JAIIB?
Many candidates find AFM the most demanding JAIIB paper because of its heavy numerical content — depreciation, ratios, interest, costing and capital budgeting. With consistent sum practice, however, it is also the most scoring, since the answers are objective and formula-driven.
How many chapters are there in the AFM syllabus?
The AFM syllabus has 32 chapters organised across four modules — Accounting Principles & Processes, Financial Statements & Core Banking Systems, Financial Management, and Taxation & Fundamentals of Costing.
Where can I download the AFM syllabus PDF?
You can download the complete AFM syllabus PDF from the button above — it lists every chapter and module in the official IIBF order.
How should I keep up with updated topics?
Follow the GST Council for tax changes, ICAI/MCA for Ind AS updates and RBI for bank provisioning and disclosure norms, and use our regularly-updated AFM notes and mock tests, which reflect the latest figures.
Start Your AFM Preparation Today
A clear syllabus is half the battle. Download the AFM syllabus PDF, map each module to a study week, revise with one-liners and games, and back it all with timed mock tests and daily sum practice. With a structured plan and consistent effort, JAIIB Paper 3 — Accounting & Financial Management — is well within your reach.
Take a free mock test, download chapter PDFs, or watch a video class — all included on iibf.store.
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