The JAIIB AFM Syllabus 2026 encompasses Accounting Principles, Financial Statements, Financial Management, and Taxation & Costing. Review the latest exam pattern, detailed module topics, strategic preparation tips, essential chapters, recommended study resources, and free downloadable PDF notes to ace your exam.
The Accounting and Financial Management for Bankers (AFM) paper is a vital component of the JAIIB certification, administered by the Indian Institute of Banking and Finance (IIBF). This subject is specifically designed to equip banking professionals with a robust understanding of core accounting principles, financial statement analysis, strategic financial management, taxation, and costing frameworks.
Mastering the JAIIB AFM Syllabus 2026 is the first step toward effective exam planning. A clear grasp of the curriculum allows candidates to prioritize high-yield topics, manage their study time efficiently, and significantly boost their overall performance.
JAIIB AFM Syllabus 2026
The JAIIB November 2026 examination is scheduled for November 1st, 22nd, 28th, and 29th, 2026. Given the competition, it is crucial to align your study plan with the latest syllabus and exam pattern. Leverage our comprehensive free notes, mock tests, and previous year's solved papers to gain a competitive edge.
The JAIIB AFM Syllabus 2026 is structured into four primary modules: Accounting Principles and Processes, Financial Statements and Core Banking Systems, Financial Management, and Taxation & Fundamentals of Costing.
JAIIB AFM Exam Pattern 2026
The JAIIB AFM exam is a computer-based test meticulously crafted to evaluate your practical application of accounting and finance in a banking environment. The paper consists of 100 marks and must be completed within a 2-hour timeframe. Notably, there is no negative marking, allowing candidates to attempt all questions confidently. Below is the breakdown of the official exam pattern.
| Particulars | Details |
| Subject |
Accounting and Financial Management (AFM)
|
| Duration | 2 hours |
| No. of Questions | 100 |
| Total Marks | 100 |
Free Study Material PDF for JAIIB AFM Exam 2026
To streamline your preparation for the Accounting and Finance for Bankers paper, we offer expert-compiled free study material PDFs. These resources distill complex concepts into clear, concise, and easy-to-revise formats, perfect for last-minute reviews and structured learning.
| Practice Set and Unit | Download Link |
| Unit 2 | Download PDF |
| JAIIB AFM Practice Set 1 | Download PDF |
| JAIIB AFM Practice Set 2 | Download PDF |
JAIIB AFM Syllabus: Module-wise
The JAIIB AFM syllabus follows a modular approach, covering critical areas such as accounting standards, financial statements, cost accounting, budgeting, and risk management. Adopting a module-wise study strategy ensures comprehensive coverage and improved retention of key concepts. Explore the detailed module-wise syllabus below.
JAIIB AFM Module A Syllabus: Accounting Principles and Processes
| Subject/Area | Topic Covered |
| 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, 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, 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, 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, Bill Books |
| Operational Aspects of Accounting Entries | Peculiar Features of Accounting System in Banks, Accounting Systems of Different Banks, Illustration |
| 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 |
JAIIB Exam Date 2026 – Click to Check
JAIIB AFM Module B Syllabus: Financial Statements and Core Banking Systems
| Subject/Area | Topic Covered |
| Balance Sheet Equation | Balance Sheet Equation, Computation of Balance Sheet Equation |
| Preparation of Final Accounts | Preparation of Trial Balance, Adjustment Entries, and 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 a 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 |
JAIIB AFM Module C Syllabus: Financial Management
An Overview of Financial Management
Covers topics including Business Organization structures, Financial Decision-making, Objectives of Financial Management, Fundamental Principles of Finance, Modern Finance Building Blocks, Risk-Return Trade-offs, Agency Problems, Business Ethics, Corporate Social Responsibility, Finance Function Organization, and the evolving role of Financial Managers in India.
Ratio Analysis
Focuses on Accounting Ratios: Understanding their meaning, classification, utility, and limitations. Includes practical training on the calculation and interpretation of various financial ratios for different stakeholders.
Financial Mathematics – Calculation of Interest & Annuities
Covers Interest Calculations: Simple vs. Compound Interest, Fixed vs. Floating rates, Front-end and Back-end interest models, product/balance-based interest calculation, Annuities (Ordinary and Due), Present/Future Value calculations, and Debt Repayment scheduling.
Financial Mathematics – Calculation of YTM
Explores Debt Instruments: Introduction to Bonds, Terminology, Bond types, Option features, Valuation methods, Semi-annual interest calculation, Yield-to-Maturity (YTM), Bond Theorems, Duration, and Price Volatility analysis.
Financial Mathematics – Forex Arithmetic
Covers Foreign Exchange Basics: Introduction to the Indian Forex Market, Direct and Indirect Quotes, exchange rate arithmetic, and Forward Exchange Rate determination.
Capital Structure and Cost of Capital
Covers Capital Structuring: Leverage and Gearing, Influencing factors, Capital Structure theories (Net Income, Net Operating Income, Traditional approach), Cost of Debt/Equity/Preference, WACC, Marginal Cost of Capital, Optimal Capital Budgeting, and Floatation Costs.
Capital Investment Decisions/Term Loans
Details Investment Appraisal: Discounted vs. Non-discounted Cash Flow methods, Term Loan fundamentals, Deferred payment guarantees, Project financing, and the technical distinctions between term loan and project appraisals.
Equipment Leasing/Lease Financing
Covers Leasing Concepts: Features, Rationale, Lease Agreement contents, Legal requirements, Finance vs. Operating Leases, Accounting treatments for Lessor/Lessee, and the role of leasing in financial decision-making.
Working Capital Management
Focuses on Working Capital Management: Operating Cycles, Cash/Marketable Securities, Accruals, Trade Credit, Bank Advances, Cash Budget Lending, Regulation of Bank Finance, Public/Inter-corporate deposits, Commercial Paper, and Factoring/Forfaiting services.
Derivatives
Explores Financial Derivatives: Characteristics, Core Functions, Market Participants, and detailed study of Futures, Forward Rate Agreements (FRAs), Swaps, and Options.
JAIIB AFM Module D Syllabus: Taxation and Fundamentals of Costing
| Subject/Area | Topic Covered |
| Taxation: Income Tax/TDS/Deferred Tax | Overview of Income Tax Act, Basic Overview of Deductions in Respect of Certain Incomes & Deduction 80QQB, 80RRB, 80TTA & 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 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 |
| 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, Labour and 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 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 |
| Budgets and Budgetary Control | 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. |
Preparation Strategies for JAIIB AFM 2026
A strategic and well-structured preparation plan is the key to successfully clearing the JAIIB AFM paper.
- Study one module at a time and complete it before moving to the next.
- Begin with Accounting Principles, as they form the foundation for later modules.
- Practice accounting entries and numerical questions regularly.
- Prepare short notes for accounting standards, taxation, and financial formulas.
- Solve previous year question papers to understand the difficulty level.
- Attempt mock tests every week to improve speed and accuracy.
- Revise important formulas and accounting concepts regularly.
- Focus on conceptual clarity instead of memorising definitions.
- Allocate additional time to Financial Management and numerical-based topics.
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FAQs
The JAIIB AFM paper features 100 multiple-choice questions (MCQs) worth a total of 100 marks, to be completed within the allotted 2-hour duration.
No, there is no negative marking for incorrect responses in the JAIIB AFM examination.
The JAIIB AFM syllabus is organized into four core modules: Accounting Principles and Processes, Financial Statements and Core Banking Systems, Financial Management, and Taxation & Fundamentals of Costing.