CA ANNOUNCEMENT (IMPORTANT)  Syllabus  24th June 2019

Date of Announcement: 24th June 2019

 

Modification in syllabus for CA Intermediate (new) students appearing in November 2019 and 2020 examinations

 

Who is a CA Intermediate New Student?


1.  Students who have passed the CA-CPT exam or CA Foundation exam on or after 18th July 2017 automatically qualify to register for CA Intermediate (New syllabus).

2.  Similarly, anyone who is a Direct entry student (anyone who has completed any graduation degree with at least 40% in aggregate may take a direct entry to the intermediate level) registering for the intermediate level on or after 18th  July 2017 shall be under the CA Intermediate (New syllabus).

 

 

A.  Few topics have been decided to be excluded from the syllabus of the ICAI for CA Intermediate (NEW) students from the November, 2019 examination onwards.

 

 

1.  PAPER 2 - CORPORATE AND OTHER LAWS

Following sections in the Companies Act, 2013 are excluded for the Nov 2019 exam onwards:

a)  Prospectus and Allotmentofsecurities – sections  24, 30, 33, 38 & 41

b)  Share CapitalandDebentures- sections 44, 45, 60, 65 & 72

c)  Acceptance of depositsbycompanies-  section 75

d)  Registrationofcharges- sections 81& 85

 

 

2.  PAPER 3: COST ACCOUNTING

Following shall be excluded from the Nov 2019 exam onwards:    

a)  Material: Consumption- Identification with products of cost centres, Basis for consumption entries in financial accounting, monitoring consumption has been excluded

b)  Employee Cost Costing of Service Sectors: Remuneration systems and incentive schemes – Under incentive schemes, only Premium Bonus method and Halsey Scheme has been retained. All other incentive schemes have been removed

c)  Direct Expenses: Direct expenses, Nature of Direct or Chargeable expenses, Sub- contracting- Control on material movements, Identification with the main product or service have been excluded.

d)  Costing of Service Sectors: The sub-topic title “Costing of services sectors” has been changed to ‘Costing of various service sectors’ and the detailed description thereunder in the syllabus has been removed. There is no reduction in content of Study Material.

 

3.  PAPER 6: AUDITING AND ASSURANCE

Following shall be excluded from the Nov 2019 exam onwards:

a)  Statement on Reporting under Section 227(1A) of the Companies Act, 1956 (Section 143(1) of the Companies Act, 2013)excluded.

b)  Following Engagements and Quality Control Standards on Auditing excluded

a.  SA 260: Communication with Those Charged with Governance (Revised)

b.  SA 265: Communicating Deficiencies in Internal Control to Those Charged with Governance and Management

c.  SA 330: The Auditor’s Responses to Assessed Risks

d.  SA 402: Audit Considerations Relating to an Entity Using a Service Organization

e.  SA 450: Evaluation of Misstatements Identified during the Audits

f.  SA 540: Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related  Disclosures

g.  SA 600: Using the Work of Another Auditor

h.  SA 620: Using the Work of an Auditor’s Expert

i.  SA 720: The Auditor’s Responsibilities Relating to Other Information

          c)  Following Guidance Notes are excluded:

a.  Guidance Note on Audit of Inventories.

b.  Guidance Note on Audit of Debtors, Loans and Advances.

c.  Guidance Note on Audit of Investments.

d.  Guidance Note on Audit of Cash and Bank Balances.

e.  Guidance Note on Audit of Liabilities.

f.  Guidance Note on Audit of Revenue.

g.  Guidance Note on Audit of Expenses.

h.  Guidance Note on Reporting under section 143(3)(f) and (h)  of  the Companies Act, 2013

 

4.   PAPER 8A: FINANCIAL MANAGEMENT

a)  Capital Budgeting: The impact of Taxation on the NPV Analysis , The impact of inflation on the NPV analysis, Adjusted Present Value has been excluded

b)  Risk Analysis in Capital Budgeting: Monte Carlo Simulation and Decision Tree Analysis has been excluded.

 

 

B.  Few topics have been decided to be MODIFIED / ADDED to the syllabus of the ICAI for CA Intermediate (NEW) students from the November, 2020 examination onwards.

 

  1.  PAPER 1: ACCOUNTING 

The following is added / modified:

a)  Application of Accounting Standards: AS 4; AS 5; AS 17 and AS 22

b)  Dissolution of partnership firms including piecemeal distribution of assets amalgamation of partnership firms, conversion of partnership firm into a company and Sale to a company, Issues related to accounting in Limited Liability Partnership.

 

2.  PAPER 4A: INCOME-TAX LAW

The following is added / modified:

a)  Computation of AMT included (in relation to section 35AD and 10AA) through Study Guidelines in the topic “Computation of total income and tax liability of individuals”

 

3.  PAPER 5: ADVANCED ACCOUNTING

The following is added / modified

a)  Topics shifted from Paper 1 to Paper 5:

a.Application of Accounting Standards: AS 4; AS 5; AS 17 and AS 22

b.Dissolution of partnership firms including piecemeal distribution of assets, Amalgamation of partnership firms, Conversion of partnership firm into a company and Sale to a company, Issues related to accounting in Limited Liability Partnership.

b)  Topics removed from the syllabus:

a.  Underwriting of Shares and Debentures

b.  Application of Guidance Notes issued by the ICAI on specified accounting aspects

c.  Valuation of Goodwill

d.  Financial Reporting of Insurance Companies and Mutual Funds and regulatory requirements thereof*

 *Topic 5 of the syllabus content will accordingly be restricted to Banking companies and NBFCs.

 

4.  PAPER 8A: FINANCIAL MANAGEMENT 

  The following is added / modified:

a)  Types of Financing: Introduction to Lease Financing has been included. 

b)  Lease Financing: The entire topic has been excluded.   

         

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