JAIIB AFM Syllabus 2026: Exam Pattern, Modules, and Free PDF Study Notes
In this guide, we explore the complete JAIIB AFM Syllabus 2026, encompassing accounting fundamentals, financial statement analysis, costing, budgeting, and essential risk management strategies. Follow our module-wise roadmap to optimize your exam preparation for the AFM paper.
The Accounting and Financial Management for Bankers (AFM) paper is a vital component of the JAIIB 2026 examination, administered by the Indian Institute of Banking & Finance (IIBF). Mastering the JAIIB AFM Syllabus 2026 allows candidates to streamline their study plan, prioritize high-yield topics, and maximize their overall performance. Below, we provide a detailed, module-wise breakdown to guide your success.
JAIIB AFM Syllabus 2026
As a core subject in the JAIIB Exam, the AFM paper is designed to test your technical proficiency in banking finance. The exam comprises 100 multiple-choice questions totaling 100 marks, with a time limit of 120 minutes. Since there is no negative marking, candidates are encouraged to attempt every question. Use the structured JAIIB AFM Syllabus 2026 below to organize your revision strategy.
JAIIB AFM Exam Pattern 2026
The JAIIB AFM exam format is built to rigorously evaluate a banker's grasp of financial management principles through an online testing environment. With a 100-mark paper and a 2-hour duration, the exam features no negative marking, offering candidates a strategic advantage. Understanding this structure is essential for time management. Here is the official JAIIB AFM Exam Pattern:
| Particulars | Details |
| Subject |
Accounting and Financial Management (AFM)
|
| Duration | 2 hours |
| No. of Questions | 100 |
| Total Marks | 100 |
JAIIB AFM Syllabus: Module-wise
The JAIIB AFM Syllabus is organized into specific modules, covering accounting principles, financial statements, costing, and risk management. This modular approach is designed to help you tackle complex financial topics with greater clarity and efficiency. Explore the full module-wise syllabus below to sharpen your exam focus.
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 |
View Important JAIIB Exam Date 2026 Updates
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
Core topics include: Business Organization forms, Financial Decision-making, Objectives and Principles of Financial Management, Modern Finance building blocks, Risk-Return Trade-offs, Agency Problems, Business Ethics & Social Responsibility, Finance function organization, Integration with Economics/Accounting, and the evolving role of the Indian Financial Manager.
Ratio Analysis
Focus areas: Introduction to Accounting Ratios, Classification and Utility of Ratios, Limitations, Mathematical Calculation, Practical Interpretation, and the perspective of different stakeholders regarding ratio analysis.
Financial Mathematics – Calculation of Interest & Annuities
Coverage includes: Simple vs. Compound Interest, Fixed/Floating Rates, Front-end and Back-end interest models, Interest calculations via products/balances, and comprehensive Annuity concepts (Ordinary Annuity, Annuity Due) along with Present and Future Value calculations and debt repayment structures.
Financial Mathematics – Calculation of YTM
Key topics: Understanding Debt and Bond markets, Bond terminology, Valuation techniques, Yield-to-Maturity (YTM), Bond Theorems, Duration, Price Volatility, and practical problem-solving for bond-related scenarios.
Financial Mathematics – Forex Arithmetic
Essentials of Foreign Exchange: Basics of the Indian Forex Market, Direct vs. Indirect Quotes, Exchange Rate Arithmetic, and Forward Exchange Rate mechanisms.
Capital Structure and Cost of Capital
Advanced Financial Analysis: Capital Structuring, Leverage, Theories (Net Income/Operating Income), WACC calculations, Capital Budgeting decisions, and the impacts of taxation and flotation costs on firm financing.
Capital Investment Decisions/Term Loans
Investment Appraisal: Discounted vs. Non-Discounted Cash Flow techniques, Term Loan fundamentals, Deferred Payment Guarantees, Project Financing, and the distinction between term loan and project appraisals.
Equipment Leasing/Lease Financing
Leasing Fundamentals: Definition, Features, Rationale, Legal Requirements, Finance vs. Operating Leases, Lessor/Lessee accounting treatments, and leasing as a strategic financing decision.
Working Capital Management
Working Capital Management: Cycles, Cash/Marketable Securities, Trade Credit, Bank-led advances, Cash Budget lending, Public/Inter-corporate deposits, Commercial Paper, and Factoring/Forfaiting services.
Derivatives
Introduction to Derivatives: Characteristics, Market Participants, Futures, Forward Rate Agreements (FRAs), Swaps, and Option contracts.
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 Exam 2026
Applying these structured study strategies is key to mastering the technical content and achieving a high score in the JAIIB AFM 2026 exam.
- Understand the Syllabus Thoroughly: Review the Accounting and Finance for Bankers (AFM) syllabus in detail to identify important topics like financial statements, banking regulations, and accounting principles.
- Create a Study Plan: Develop a structured timetable, allocating sufficient time to each module based on difficulty and personal strengths.
- Practice Previous Papers and Mock Tests: Solve past years’ question papers and mock tests to get familiar with the exam pattern and improve speed and accuracy.
- Focus on Conceptual Understanding: Emphasise core accounting and finance concepts instead of rote memorisation to handle scenario-based and application-oriented questions.
- Make Short Notes: Prepare concise notes for formulas, key definitions, and accounting standards for quick revision.
- Revise Regularly: Periodic revision ensures better retention of important concepts and boosts confidence.
- Time Management: Practice solving questions within the exam duration to enhance efficiency during the actual test.
Free Study Material PDF for JAIIB AFM Exam 2026
Our curated Free Study Material PDF for the JAIIB AFM 2026 exam is designed to facilitate focused revision. It breaks down complex financial concepts into easy-to-digest formats. Access our free study resource below to enhance your preparation and streamline your revision process.
| Practice Set and Unit | Download Link |
| Unit 2 | Download PDF |
| JAIIB AFM Practice Set 1 | Download PDF |
| JAIIB AFM Practice Set 2 | Download PDF |
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FAQs
The Accounting and Finance for Bankers (AFM) paper is a 100-mark assessment containing 100 multiple-choice questions, which must be completed within a 2-hour timeframe.
No, there is no negative marking policy applied to 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, and Fundamentals of Costing.