and Conventions (iii) Accounting Standards concepts, objectives, benefits

Transcription

1 Changes made in the Syllabus of CA Foundation Paper 1: Principles and Practices of Accounting (proposed) vis-a-vis CPT Section A :Fundamentals of Accounting (existing) Fundamentals of Accounting (60 Marks) as per the existing syllabus Principles and Practices of Accounting (100 Marks) as per the proposed syllabus 1. Theoretical Framework 1. Theoretical Framework (i) Meaning and Scope of accounting (ii) Accounting Concepts, Principles and Conventions (iii) Accounting Standards concepts, objectives, benefits (iv) Accounting Policies (v) Accounting as a measurement discipline valuation principles, accounting estimates 2. Accounting Process Books of Accounts leading to the preparation of Trial Balance, Capital and revenue expenditures, Capital and revenue receipts, Contingent assets and contingent liabilities, Fundamental errors including rectifications thereof. (i) Meaning and Scope of accounting (ii) Accounting Concepts, Principles and Conventions (iii) Accounting Standards concepts, objectives, benefits (iv) Accounting Policies (v) Accounting as a measurement discipline valuation principles, accounting estimates 2. Accounting Process Books of Accounts leading to the preparation of Trial Balance, Capital and revenue expenditures, Capital and revenue receipts, Contingent assets and contingent liabilities, Fundamental errors including rectifications thereof. 3. Bank Reconciliation Statement 3. Bank Reconciliation Statement 4. Inventories Basis of inventory valuation and record keeping. 4. Inventories Basis of inventory valuation and record keeping. Changes (Addition/ Deletion) Reasons for changes

2 5. Depreciation accounting Methods, computation and accounting treatment of depreciation, Change in depreciation methods. 6. Preparation of Final Accounts for SoleProprietors 5. Depreciation accounting Methods, computation and accounting treatment of depreciation, Change in depreciation methods. 6. Preparation of Final Accounts for SoleProprietors 7. Simple problems on Financial Statements of Not-for-Profit Organisations 8. Accounts from Incomplete Records 9. Average Due Date and Account Current Addition Addition Addition In the existing curriculum, this topic is covered at Intermediate (IPC) level Paper 1: Accounting. The underlying concepts of this topic is similar to the principles applied for preparation of final accounts. Hence, the basic of preparation of financial statements of Not-for-Profit Organisations has been covered at Foundation level and advanced problems on this topic dealing with sector wise accounting is proposed to be covered at Intermediate level in Paper 1 : Accounting. In the existing curriculum, this topic is covered at Intermediate (IPC) levelpaper 1: Accounting. The underlying concepts of this topic is also similar to the principles applied for preparation of final accounts. Hence, this topic has also been proposed to be shifted here at Foundation level. In the existing curriculum, this topic is covered at Intermediate (IPC) level Paper 1: Accounting. The technique of average due date is useful for calculating interest on transactions made by the proprietors or partners of a business firm at several points of time. Account current is very useful when frequent transactions take place between the two parties in settlement of their accounts.the underlying concepts of this topic is

3 7. Accounting for Special Transactions (a) Consignments (b) Joint Ventures (c) Bills of exchange and promissory notes (d) Sale of goods on approval or return basis. 8. Partnership Accounts Final accounts of partnership firms Basic concepts of admission, retirement and death of a partner including treatment of goodwill. 9. Introduction to Company Accounts Issue of shares and debentures, forfeiture of shares, re-issue of forfeited shares, redemption of preference shares. 10. Accounting for Special Transactions (a) Consignments (b) Joint Ventures (c) Bills of exchange and promissory notes (d) Sale of goods on approval or return basis applied in other topics of Foundation like bills of exchange and partnership for calculation of interest on capital and drawings. (e) Departmental accounts. Addition The concepts used in this topic are the basic principles applied for preparation of departmental accounts. Hence the topic has been shifted here from Intermediate (IPC) Paper 5 Advanced Accounting. 11. Partnership Accounts Final accounts of partnership firms Basic concepts of admission, retirement and death of a partner including treatment of goodwill. 12. Introduction to Company Accounts Issue of shares and debentures, forfeiture of shares, re-issue of forfeited shares, redemption of preference shares.

4 Changes made in the Syllabus of CA Foundation paper 2 (part I): Mercantile Laws (proposed) vis-a-vis Section B: Mercantile Laws (existing). Mercantile Laws (40 Marks) Mercantile Laws (60 Marks) Changes (Addition/ Deletion) 1. The Indian Contract Act, 1872: An overview of Sections 1 to 75 covering the general nature of contract, consideration, other essential elements of a valid contract, performance of contract and breach of contract. 1. The Indian Contract Act, 1872: An overview of Sections 1 to 75 covering the general nature of contract, consideration, other essential elements of a valid contract, performance of contract and breach of contract. - - Reasons for changes 2. The Sale of Goods Act, 1930: Formation of the contract of sale, Conditions and Warranties, Transfer of ownership and delivery of goods, Unpaid seller and his rights. 3. The Indian Partnership Act, 1932: General Nature of Partnership, Rights and duties of partners, Registration and dissolution of a firm. 2. The Sale of Goods Act, 1930: Formation of the contract of sale, Conditions and Warranties, Transfer of ownership and delivery of goods, Unpaid seller and his rights. 3. The Indian Partnership Act, 1932: General Nature of Partnership, Rights and duties of partners, Registration and dissolution of a firm The Limited Liability Partnership Act, 2008: Introduction- covering nature and scope, Essential features, characteristics of LLP, Incorporation and differences with other forms of organizations. New addition LLP is a new corporate structure that combines the flexibility of a partnership and the advantages of limited liability of a company at a low compliance cost. With the increasing importance of the LLP in today s

5 - 5. The Companies Act, 2013 [section 1 to 22]: Important definitions, Introduction of company & corporate veil theory, Classes of companies, Conversion of company, Incorporation of company, Memorandum of Association, Articles of Association, Alteration of Memorandum and Articles, Doctrine of Indoor Management, Conversion of companies already registered, Promoters, Service of documents. Note 1: Here, chapters 1 to 4 carries 45 marks and chapter 5 carries 15 marks New addition [Section 1 to 22 of the Companies Act, 2013 has been shifted from Intermediate (IPC) Paper 2, Business Ethics and Communication, Existing syllabus business scenario, the knowledge of LLP is the requirement of the CA Profession. Company law is one of the most significant and pervasive statute among the various Corporate legislations and so form an important subject of the chartered accountancy course. The Companies Act, 2013 deals with the law and regulations for the formation and effective working of the corporate entity and to deal with the complexities in the business and corporate world. Note 2: If new legislations are enacted in place of the existing legislations, the syllabus would include the corresponding provisions of such new legislations with effect from dates notified by the Institute.

6 Changes made in the Syllabus of CA Foundation Paper 2 Part-II General English (proposed) Existing Syllabus General English (40-Marks) as per the proposed syllabus Changes (Addition/ Deletion) No existing Curriculum Section A Topic :Comprehension Passages and Note Making Subtopic : Comprehension Passages Introduction to Comprehension Passages Kind of Questions asked Multiple Choice questions Questions requiring short answers o Central theme o Inference/Conclusion Questions based on Vocabulary Steps to comprehend the text Helpful Hints to answer questions Points to Ponder Sample Passages with answers Exercises with answers Subtopic: Note Making Introduction to Note Making Significance of Note Making for students Detailed Format Heading(Title) New Paper Curriculum has been designed afresh Reasons for changes Not Applicable

7 Sub-heading Indentation Points Use of abbreviations Summary Content Expression Steps to Comprehend text Helpful Hints Points to Ponder Sample Passages with Notes Exercises with answers Section B Developing Writing Skills Subtopic: Article Writing Format Title Writer s Name Content (Value points related to the topic) 3-4 Paragraph Para 1 : Brief Introduction of the status of the issue Para 2 : Analysis of the topic in terms of o Types o Consequences o Causes o Good/bad aspects o related information Para 3: Implications social / environmental/psychological/health related. Para 4: Concluding Para-Suggestions / reminders.

8 Expression Grammatical accuracy, spellings, coherence, relevance of ideas and style. Steps to write an article Ideas associated with the topic Structuring the ideas in a logical progression. Quick Review Subtopic: Report Writing What is a Report Essential elements of Report Writing Kinds of Reports Reporting for a Meeting/Assembly Reporting for a Newspaper Reporting for a Magazine Detailed Format (for each) Title By- Writer s Name Place, Date Body o What o When o Where o Who o How Tips and Conventions of Report Writing Sample Reports Exercises with Answer hints

9 Subtopic : Writing Formal Letters Detailed format Date Salutation Subject Body of the letter o First paragraph o Second paragraph Complimentary Closing Points to Remember Subtopic : Writing Formal Mails How to Write a Formal Mail Writing Effective Mails Essential elements of Mails Subject line Formal Greetings Target Audience(Reader) Clarity and Conciseness Formal Closing Proof read Feedback Tips and Conventions of Mails Sample Mails Exercises with answer hints Subtopic : Resume Writing Essential Elements of Resume Name and contact details Objective Summary

10 Academic Qualifications and Achievements Co-curricular Achievements Training Programs attended/completed Strengths Interests/Hobbies Declaration Signature Resume Writing Tips and Conventions Do s and Don ts of Resume Writing Sample Resumes Exercises with answer hints Section C: Grammar Subtopic: Introduction to Basic Writing Introduction Process of writing Styles of Writing Significance of writing skills for students Writing Conventions Characteristics of good writing How to make writing effective Do s and Don ts of good writing Subtopic: Basic English Grammar(Nouns, Pronouns and Verbs) Nouns: Definition, Examples Different types and categories of nouns(classification with examples) o Common and Proper Noun o Abstract and Concrete Noun

11 o Countable and Uncountable Noun o Compound Noun o Collective Noun o Verbal Noun and Gerunds Pronouns: Definition, Examples Different categories of Pronouns(Classification with examples) o Subject Pronoun o Object Pronoun o Possessive Adjectives/Determiners o Possessive Pronouns o Reflexive Pronouns o Intensive Pronouns o Indefinite Pronouns o Demonstrative Pronoun o Relative Pronoun o Interrogative Pronoun o Reciprocal Pronoun Verbs: Definition, Examples Different categories of Verbs(Classification with examples) o Action and Stative Verbs o Transitive and Intransitive Verbs o Auxiliary and Modal Verbs o Irregular Verbs o Phrasal Verbs Different Verb Forms

12 Simple Continuous Perfect Perfect Continuous Simple Present Simple Past Simple Future Present Continuous Past Continuous Future Continuous Present Perfect Past Perfect Future Perfect Present Perfect Continuous Past Perfect Continuous Future Perfect Continuous Subtopic: Articles, Adjectives and Adverbs Articles: Definition, Examples Types of Articles(classification with examples) o Definite Article o Indefinite Articles Difference in usage of a and an Difference in usage of a and the Usage of the When to use and when not to use Articles Adjectives: Definition, Examples Classification of Adjectives(with examples) o Adjectives of quality o Adjectives of quantity o Adjectives of Number o Demonstrative Adjectives o Interrogative Adjectives o Coordinate Adjectives o Non-coordinate adjectives Order of placement of different kinds of adjectives in a

13 sentence Adverbs: Definition, Examples Usage of adverbs Adverb basics Forming adverbs form adjectives Classification of Adverbs(with examples) o Comparative Adverbs o Superlative Adverbs o Adverbs of place(location and prepositions) o Adverbs of movement o Adverbs of time(specific time, time period, periodicity) o Adverbs of manner o Adverbs of degree o Adverbs of certainty Subtopic: Prepositions, Conjunctions and Interjections Prepositions: Definition, Examples Simple Prepositions, Double Prepositions Compound Prepositions Participle Prepositions Phrase Prepositions Prepositions of time Prepositions of place Prepositions of movement. Conjunctions: Definition, Examples Classification of Conjunctions(with examples) Coordinating Conjunctions

14 Subordinating Conjunctions o Subordinating conjunctions of time o Subordinating conjunctions of place o Subordinating conjunctions of reason o Subordinating conjunctions of purpose o Subordinating conjunctions of condition o Subordinating conjunctions of comparison Correlative Conjunctions Compound Conjunctions Interjection: Definition,Examples Classification of Interjections(with examples) Mild Interjection Strong Interjection Subtopic: Sentence Types, Direct-Indirect, Active -Passive Speech Sentence: Definition Classification of sentence based on connotation Assertive sentences Interrogative sentences Imperative sentences Exclamatory sentences Optative sentences Sentence Structure Subject and Predicate Verb (Auxiliary, Finite) Object (Direct, Indirect) Complement Adjunct or Adverbial

15 Sentence Clause Structure Types of Clauses Independent clauses Dependent clauses Relative or noun clauses Types of sentences Simple sentence Compound sentence Complex sentence Compound-complex sentence Direct-Indirect Speech: Introduction Procedure for converting Direct speech into Indirect speech Rules for converting Direct speech into Indirect speech Change in pronouns Change in tenses Change in modals Changes for Imperative sentences Changes for Exclamatory sentences Changes for Interrogative sentences Punctuation in Direct speech Procedure for converting Indirect speech into Direct speech Rules for converting Indirect speech into Direct speech Active Passive Voice: Introduction Usage Active Vs passive voice

16 Reasons for using Passive voice Changing Passive voice to Active voice Changing Active voice to Passive voice Suggestions for using Active and Passive voice Verbs Voice Active or passive Verbs Mood Indicative Imperative Subjunctive Subtopic : Vocabulary Root Words, Synonyms, Antonyms, Prefixes, Suffixes), Phrasal verbs, Collocations and Idioms. Introduction Types of Vocabulary Significance of improving vocabulary How to improve vocabulary List of commonly used words with usage Root words Synonyms and Antonyms Words formed by using Prefixes Words formed by using Suffixes Phrasal verbs Collocations Idioms Exercises with answers

17 Reason for Addition / Deletion of the topics: Foundation Course Paper 3-Business Mathematics Logical Reasoning and Statistics (100 Marks) S.No CPT- Quantitative Aptitude (50 Marks) Foundation Course -Business Mathematics Logical Reasoning and Statistics (100 Marks) A. Business Mathematics and Logical Reasoning (60 Marks A. Mathematics (25 marks) Business Mathematics and Logical Reasoning (40 Marks ) 1 Ratio and Proportion and Indices and Logarithms. Numbers, Laws of Indices, Exponents and Logarithms and Anti Logarithms Ratio and proportion and Time and work related problems. Adding/ Deletion same topic in CPT Reason Chapter one deals with applications of basic fundamental tools for all calculations in Business and Finance. Ratio and proportion are very useful business applications. 2 Equations: Linear Simultaneous linear equations up to three variables, Quadratic and Cubic equations in one variable. Equations of Straight line, Intersection of Straight lines Equations: Linear Simultaneous linear equations up to three variables, Quadratic and Cubic equations in one variable. Algebra of Matrices, Inverse of a Matrix and determinants, solving system of equations using matrix method (Cramer s rule) involving not more than three variables. The topics related Coordinate Geometry deleted. (Rest of the topic in CPT) and Matrices is a new topic in this chapter Coordinate Geometry applications are too mathematical and the objective in this chapter to find out the unknown variables similar method we are used using the solving equations. Matrices helps to find the unknown variables. Which helps formation of linear programming problems in maximization and minimization problems.

18 3 Inequalities: Linear Inequalities in one variable and the solution space 4 Simple Interest And Compound interest including annuity applications 5 Basic Concepts of Permutations and Combinations 6 Introduction Sequences, Series, Arithmetic and Geometric progression Inequalities: Linear Inequalities in one variable and the solution space Time value of Money Simple Interest Compound interest Effective Rate of Interest Present Value Net Present Value Future Value Perpetuity Annuities Sinking Funds Calculating of EMI Calculations of Returns: Nominal Rate of Return Compound Annual growth rate (CAGR) Basic concepts of Permutations and combinations: Introduction, the factorial, permutations, results, circular permutations, permutations with restrictions, Combinations with standard results. Introduction Sequences, Series, Arithmetic and Geometric progression same topic in CPT Helps to formation of linear programming problems in maximization and minimization problems. Same topic in CPT (Removed from FM in IPCC and shifted here) This is a new topic Time value of money Interest rates and Annuity applications are very useful for Chartered accountant students. This topics are useful in Financials and to calculate interests Same topic in CPT Permutation and combination applications are useful in Finance applications and Risk Management also. Same topic in CPT Arithmetic and geometric series applications are used in the area of Finance. 7 Sets,Functions and Relations Sets,Functions and Relations Same topic in CPT Sets, Functions are very important to understand relation in Economic and Business Functions.

19 8 Limits and Continuity intuitive approach 9 Basic applications of Differential and Integral calculus (Excluding the trigonometric applications) Limits and Continuity intuitive approach (Deleted) Basic applications of Differential and Integral calculus (Excluding the trigonometric applications) Deleted Same topic in CPT Limits and continuity functions are not much useful for CA students and they are too mathematical also. Differential calculus is used to find the Marginal concepts with respect to linear or non-linear change of functions. With the help of Integral Cal calculus we can find the total cost,total Revenues When Marginal Cost and Marginal Revenues are known Logical Reasoning (20 Marks) 10 Number series coding and Decoding and All the topics of odd man out. Logical reasoning 11 Blood Relations, topics are new.since this subject To test the analytical ability of the 12 Seating Arrangements, has been students 13 Direction Tests introduced in the 14 Syllogism. proposed scheme. B. Statistics (25 Marks) B. Business Statistics (40 Marks) Addition /deletion Reason 15 Statistical Representation of Data, Statistical Representation of Data, Same topic in CPT It s used to understand the data Diagrammatic representation of Diagrammatic representation of data, collections of sampling and pictorial data, Frequency distribution, Frequency distribution, Graphical representation of data Graphical representation of representation of Frequency Distribution Frequency Distribution Histogram, Frequency Polygon, Ogive, Piechart. Histogram, Frequency Polygon, Ogive, Pie-chart.

20 16 Measures of Central Tendency and Dispersion: Mean Median, Mode, Mean Deviation, Quartiles and Quartile Deviation, Standard Deviation, Co-efficient of Variation, Coefficient of Quartile Deviation. Measures of Central Tendency and Dispersion: Mean Median, Mode, Mean Deviation, Quartiles and Quartile Deviation, Standard Deviation, Co-efficient of Variation, Coefficient of Quartile Deviation Same topic in CPT The statistical tools like Mean,Standard Deviation and Variance are very useful for CA 17 Correlation and Regression: Scatter diagram, Karl Pearson s Coefficient of Correlation Rank Correlation, Regression lines, Regression equations, Regression coefficients Correlation and Regression: Scatter diagram, Karl Pearson s Coefficient of Correlation Rank Correlation, Regression lines, Regression equations, Regression coefficients Same topic in CPT With the help of the correlation and regression can understand the relation between variables 18 Probability and Expected value by Mathematical Expectation Probability and Expected value by Mathematical Expectation Same topic in CPT Probability applications are used in Finance and Risk Management.

21 19 Theoretical Distribution: Binomial Distribution, Poisson distribution basic application and Normal Distribution basic applications. Theoretical Distribution: Binomial Distribution, Poisson distribution basic application and Normal Distribution basic applications Same topic in CPT Theoretical distributions are useful in Finance and Cost Management applications 20 Sampling Theory : Basic Principles of Sample survey, Comparison between sample survey and enumeration, errors in Sample survey, some important terms associated with sampling, types of sampling 21 Index Numbers and Time series Uses of Index Numbers, Problems involved in construction of Index Numbers, Methods of construction of Index Numbers. Sampling Theory and testing of hypothesis (a) Basic Principles of Sample survey, Comparison between sample survey and enumeration, errors in Sample survey, some important terms associated with sampling, types of sampling. (b) Testing of Hypothesis, Large sample tests (Test for means, test for proportions and test for Standard deviations) and sample tests applications of t, F-distribution (Variance ratio test) and Chi-square test. Index Numbers and Time series Uses of Index Numbers, Problems involved in construction of Index Numbers, Methods of construction of Index Numbers. Time Series Analysis basic application including Moving Average, Moving Average Method, and Method of Least Squares. Same topic of sampling theory Testing hypothesis added of is Same topic in CPT Time Series part added Sampling techniques are very useful in auditing also. Testing of Hypothesis tools provides a basis for taking ideas or theories someone initially develops the economy or investing markets, and then deciding whether these ideas or true or false.testing of hypothesis tools helps to decide whether the tested ideas are probably true or false with the help of this tools can analyses the results Index numbers and Time series analysis are very useful for framing the suitable business and economic policies, useful deflating and adjusting data. Useful for calculating changes in wages in inflationary conditions and useful Cost of Living index numbers.

22 Section C: General Economics (50 marks) Paper 4*: Business Economics & Business and Commercial Knowledge (100 Marks) Changes (Addition/ Deletion) (I) Micro Economics Part I: Business Economics (60 Marks) Additions 1. Introduction to Micro Economics 1. Introduction to Business Economics Introduction to Business (a) Definition, scope and nature (a) Meaning of Business Economics Economics of Economics (b) Objectives of Business Firm- Profit (a) Meaning of Business (b) Methods of economic study Maximization, Sales Maximization, Growth Economics (c) Central problems of an Maximization. (b) Objectives of Business economy and Production Firm- Profit Maximization, possibilities curve. Sales Maximization, Growth Maximization. 2. Theory of Demand and Supply 2. Theory of Demand and Supply Demand Forecasting (a) Meaning and determinants of (a) Meaning and determinants of demand, Law of demand, Law of demand and demand and Elasticity of demand Price, Elasticity of demand Price, income and cross elasticity income and cross elasticity (b) Theory of consumer s behaviour Marshallian (b) Theory of consumer s approach and Indifference curve approach behavior Marshallian (c) Meaning and determinants of supply, Law of approach and Indifference supply and Elasticity of supply. curve approach (d) Demand Forecasting (c) Meaning and determinants of supply, Law of supply and Elasticity of supply. 3. Theory of Production and Cost (a) Meaning and Factors of production (b) Laws of Production The Law of variable proportions and Laws of returns to scale (c) Concepts of Costs Short 3. Theory of Production and Cost (a) Meaning and Factors of production (b) Laws of Production The Law of Variable proportions and Laws of Returns to Scale, Producer s equilibrium (c) Concepts of Costs Short-run and long-run costs, Average and marginal costs, Total, fixed Reasons for changes These are added as the name of the subject has been changed from General Economics to Business Economics and it is desirable to introduce the new subject including its meaning, nature and subject matter to students. Forecasting of demand, which is the art of predicting demand for a product or a service at some future date on the basis of certain present and past behaviour patterns of some related events, is being taught here as the survival of businesses today, to a great extent, depends upon the extent to which they can predict the demand for their products and services in future accurately. The students should be aware of various techniques of demand forecasting, it is felt.

23 run and long run costs, Average and marginal costs, Total, fixed and variable costs. and variable costs. 4. Price Determination in Different Markets (a) Various forms of markets Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly (b) Price determination in these markets. (II) Indian Economic Development 5. Indian Economy A Profile 6. Select Aspects of Indian Economy 7. Economic Reforms in India 8. Money and Banking 4. Price Determination in Different Markets (a) Various forms of markets Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly (b) Price determination in these markets. 5. Business Cycles Meaning of Business Cycles Phases of Business Cycles Features of Business Cycles. Causes behind these Cycles. Addition Business Cycles Dealt in Intermediate in the paper on business economic environment Every business undergoes phases of ups and downs during its lifetime. These phases in economic activity may be of short duration or long duration and these are called business cycles. A knowledge of the concept of Business Cycles is important for students as it helps them to understand the various economic events taking place in the real world- like great depression, financial crisis, booms etc.

24 Changes made in the Syllabus of CA Foundation Paper 4 Part-II Business and Commercial Knowledge (proposed) Existing Syllabus Business and Commercial Knowledge (40-Marks) as per the proposed syllabus Changes (Addition/ Deletion) Reasons for changes None No existing Curriculum 1. Introduction to Business Nature of Business, Profession and Employment. Objectives of Business. Business and Commercial Knowledge. Economic and Non-Economic Activities. 2. Business Environment Micro and Macro Environment, Elements of Micro Environment Consumers/Customers, Competitors, Organization, Market, suppliers, Intermediaries, Elements of Macro Environment Demographic, Economic, Politicallegal, Socio-cultural, Technological, Global Environment. 3. Business organizations Top Indian and Global Companies. 4. Government Policies for Business Growth Policies creating conducive business environment Startups,E-commerce. Liberalization, Privatization, Foreign Direct Investment. 5. Organizations facilitating Business Indian regulatory bodies - SEBI, RBI, IRDA, CCI, FMC, CBDT, CBEC Indian Development Banks IFCI, IDBI, SIDBI, EXIM Bank,NABARD Global organizations and world trade bodies IMF, ADB, WTO, OECD, SAARC, ASEAN, OPEC. Accounting Bodies IFAC,IASB, IESB, CAPA, SAFA, New Paper. Curriculum has been designed afresh.

25 AOSSG. 6. Common Business and Commercial Terminologies Finance, Marketing and other business terms. Stock Market Terminology.

26 Changes made in the Syllabus of CA Intermediate Paper 1: Accounting (proposed) vis-a-vis Intermediate (IPC) Paper 1 : Accounting (existing) Accounting as per the existing syllabus Accounting as per the proposed syllabus 1. A General Knowledge of the framing of the accounting standards, national and international accounting authorities, adoption of international financial reporting standards 2. Accounting Standards - Working knowledge of: AS 1 : Disclosure of Accounting Policies 1. Process of formulation of Accounting Standards including Ind ASs and their convergence with International Financial Reporting Standards (IFRSs) and various other International accounting standard setting bodies. 2. Framework for Preparation and Presentation of Financial Statements (as per Accounting Standard) 3. Accounting Standards: AS 1 : Disclosure of Accounting Policies AS 2 : Valuation of Inventories AS 2 : Valuation of Inventories Changes (Addition/ Deletion) Modification Addition Reasons for changes At Final level, it is proposed to discuss all Ind AS at length.accordingly, it was felt necessary to introduce Ind AS at Intermediate level by including the formulation of Ind AS and briefing theknowledge regarding various international accounting standard setting bodies, before studying the same in detail at Final level. Framework sets out the concepts that underlie the preparation and presentation of financial statements for external users. It assist preparers of financial statements in applying AS and in dealing with topics that have yet to form the subject of AS. Hence, it was decided to include this topic here only before teaching the basic AS.

27 AS 3 : Cash Flow Statements AS 3 : Cash Flow Statements AS 4 : Contingencies and Events occurring after the Balance Sheet Date AS 5 : Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies AS 6 : Depreciation Accounting AS 6 : Depreciation Accounting AS 7 : Construction Contracts (Revised 2002) AS 7 : Construction Contracts (Revised 2002) AS 9 : Revenue Recognition AS 9 : Revenue Recognition AS 10 : Accounting for Fixed Assets AS 10 : Accounting for Fixed Assets AS 11 : The Effects of Changes in Foreign Exchange Rates (Revised 2003) AS 12 : Accounting for Government Grants Addition Addition Addition Addition Earlier only 18 standards were covered at Intermediate level i.e. 9 AS in Paper 1 : Accounting and 9 AS in Paper 5 : Advanced Accounting. After inclusion of Ind AS and AS at Final level, it was felt that the content of the paper will not commensurate with 100 marks. So all the standards has been shifted at Intermediate level i.e. 13 AS in Paper 1 and 15 AS in Paper 5. To accommodate 13 AS in Paper 1 Accounting, above AS which are covered in the existing syllabus in Paper 5 : Advanced Accounting have been shifted herebased on the intricacies involved in each of the standard. Earlier only 18 standards were covered at Intermediate level i.e. 9 AS in Paper 1 : Accounting and 9 AS in Paper 5 : Advanced Accounting. After inclusion of Ind AS and AS at Final level, it was felt that the content of the paper will not commensurate with 100 marks. So all

28 AS 13 : Accounting for Investments AS 14 : Accounting for Amalgamations AS 13 : Accounting for Investments Deletion the standards has been shifted at Intermediate level i.e. 13 AS in Paper 1 and 15 AS in Paper 5. To accommodate 13 AS in Paper 1 Accounting, above AS which are covered in the existing syllabus in Paper 5 : Advanced Accounting have been shifted herebased on the intricacies involved in each of the standard. In the existing curriculum, the topic of Accounting for Amalgamation is also covered at Intermediate (IPC) level in Paper 5. In the new proposed syllabus, repetition has been avoided and this standard is now shifted at Paper 5 of Intermediate level alongwith the respective topic. AS 16 : Borrowing Costs Addition Earlier only 18 standards were covered at Intermediate level i.e. 9 AS in Paper 1 : Accounting and 9 AS in Paper 5 : Advanced Accounting. After inclusion of Ind AS and AS at Final level, it was felt that the content of the paper will not commensurate with 100 marks. So all the standards has been shifted at Intermediate level i.e. 13 AS in Paper 1 and 15 AS in Paper 5. To accommodate 13 AS in Paper 1 Accounting, above AS which are

29 3. Company Accounts 4. Company Accounts (a) Preparation of financial statements Profit and Loss Account, Balance Sheet and Cash Flow Statement, Statement of changes in Equity and Explanatory Notes. (b) Profit (Loss) prior to incorporation (c) Alteration of share capital, Conversion of fully paid shares into stock and stock into shares, Accounting for bonus issue (d) Simple problems on Accounting for business acquisition, Amalgamation and reconstruction (excluding problems of amalgamation on inter-company holding) (a) Preparation of financial statements Statement of Profit and Loss, Balance Sheet and Cash Flow Statement, Statement of changes in Equity and Explanatory Notes; (b) Profit (Loss) prior to incorporation; (c) Alteration of share capital, Accounting for bonus issue. Partial Deletion Deletion covered in the existing syllabus in Paper 5 : Advanced Accounting have been shifted herebased on the intricacies involved in each of the standard. Specific mention to this topic Conversion of fully paid shares into stock and stock into shares has been removed. However, it will be covered under the topic Alteration of share capital In the existing curriculum, this topic is also covered at Intermediate (IPC) level in Paper 5. In the new proposed syllabus, repetition has been avoided and this topic is now shifted at Paper 5 of Intermediate level alongwith the respective AS. 5. Cash flow Analysis. Addition In the existing curriculum, this topic forms part of Financial Management. However, AS 3 deals with Cash flow statement, hence, analysis of cash flow statement is proposed to be shifted

30 here. 4. Average Due Date, Account Current, Self-Balancing Ledgers 5. Financial Statements of Not-for- Profit Organisations 8. Advanced Problems on Financial Statements of Not-for-Profit Organisations. Deletion Modification The concepts underlying in the topics of Average due date and account current are basic in nature. Also The underlying concepts of these topics are applied in other topics of Foundation like bills of exchange and partnership for calculation of interest on capital and drawings. Hence these topics are shifted at Foundation level. However, after computerization of accounting and development of various accounting softwares, the relevance of self balancing ledgers has been reduced. Therefore, most of the organizations have stopped following this system and hence the topic on self balancing has been removed from the syllabus. In the existing curriculum, this topic is covered at Intermediate (IPC) level. The underlying concepts of this topic is similar to the principles applied for preparation of final accounts. Hence, the basic of preparation of financial statements of Not-for-Profit Organisations has been covered at Foundation level and advanced problems on this topic dealing with sector wise accounting is proposed to be covered at Intermediate level in Paper 1 : Accounting.

31 6. Accounts from Incomplete Records 7. Accounting for Special Transactions (a) Hire purchase and instalment sale transactions 6. Accounting for Special Transactions: (b) Investment accounts (a) Investment Accounting and (c) Insurance claims for loss of stock and loss of profit. (b) Insurance claims for loss of stock and loss of profit. (c) Branch accounts including foreign branches. 8. Issues in Partnership Accounts 7. Advanced Issues in Partnership Accounts in respect of Final accounts of partnership firms Admission, retirement and death of a partner including treatment of goodwill. Admission, Retirement and Death of a Partner including treatment of goodwill, Dissolution of partnership firms including piecemeal distribution of assets; Deletion The underlying concepts of this topic is also similar to the principles applied for preparation of final accounts. Hence, this topic has also been proposed to be shifted here at Foundation level. Deletion This topic uses the concept of AS 19 which is proposed in the syllabus of Paper 5 Advanced Accounting. Therefore, the topic is also shifted to that paper. Addition Addition In the existing curriculum, this topic is covered at Intermediate (IPC) level in Paper 5. In the new proposed syllabus, since AS 11 has been included in this paper, the topic related to it i.e. Branch accounts including foreign branches is now shifted here. In the existing curriculum, this topic is covered at Intermediate (IPC) level in

32 Amalgamation of partnership firms; Conversion into a company and Sale to a company; Issues related to accounting in Limited Liability Partnerships. Paper 5. In order to bring all the sub topics of partnership at one place, this topic has been shifted here. 9. Accounting in Computerised Environment An overview of computerized accounting system Salient features and significance, Concept of grouping of accounts, Codification of accounts, Maintaining the hierarchy of ledger, Accounting packages and consideration for their selection, Generating Accounting Reports. Note : If either old Accounting Standards (ASs), Announcements and Limited Revisions to ASs are withdrawn or new ASs, Announcements and Limited Revisions to ASs are issued by the Institute of Chartered Accountants of India in place of existing ASs, Announcements and Limited Revisions to ASs, the syllabus will accordingly exclude/include such new developments in place of the existing ones with effect from the date to be notified by the Institute. Note : If either a new Accounting Standards (ASs), Announcements and Limited Revisions to ASs are issued or the earlier one are withdrawn or new ASs, Announcements and Limited Revisions to ASs are issued in place of existing ASs, Announcements and Limited Revisions to AS, the syllabus will accordingly include / exclude such new developments in the place of the existing ones with effect from the date to be notified. Deletion This topic has been proposed to be shifted in the Intermediate paper of Information Technology and is proposed to be covered there under the heading Accounting Information System. The practical aspects of the same is also covered in the 100 hours ITT.

33 Changes made in the Syllabus of CA Intermediate (IPC) paper 2: Corporate and Other Laws (proposed) vis-a-vis Paper 2: Business Laws, Ethics and Communication (existing). Business Laws, Ethics and Communication (100 Marks) Corporate and Other Laws (100 Marks) Changes (Addition/ Deletion) Reasons for changes PART I- BUSINESS LAW (60 MARKS) Business Law (30 Marks) PART II- Other Laws (40 Marks) 1. The Indian Contract Act, 1872 The Indian Contract Act, 1872 (Specific contracts covered from section 76 onwards): Contract of Indemnity and Guarantee, Bailment, Pledge, Agency 2. The Negotiable Instruments Act, 1881 The Negotiable Instruments Act, 1881: Meaning of Negotiable Instruments Characteristics, Classification of Instruments, Different provisions relating to Negotiation, Negotiability, Assignability, Right and Obligation of parties, presentment of Instruments, Rules of Compensation 3. The Payment of Bonus Act, 1965 The Payment of Bonus Act, 1965: Applicability, Definitions, Entitlement of payment of bonus, Minimum and Maximum bonus, Calculation of bonus, Miscellaneous provisions 4. The Employees Provident Fund and Miscellaneous Provisions Act, 1952 The Employees Provident Fund and Miscellaneous Provisions Act, 1952: Introduction, Definition, Various Schemes and other provisions 5. The Payment of Gratuity Act, 1972 The Payment of Gratuity Act, 1972: Extent & Applicability, Definitions, Payment of Gratuity, Calculation, Nominations & Miscellaneous provisions Interpretation of statutes and Drafting of simple deeds and documents: Rules of Interpretation of statutes, Aids to interpretation, New topic added [shifted from Final This topic helps in the understanding of the law and

34 Company Law (30 Marks) Rules of Interpretation/construction of Deeds and Documents, Drafting of Resolution, Minutes, Notices and Reports. The Prevention of Money Laundering Act, Basic structure: Preliminary and Punishment for the Offence of Money laundering The Consumer Protection Act, 1986: Definitions and Application of the Act, Consumer Disputes Redressal agencies and Miscellaneous provisions. Tabular Format of major Labour Acts covering their name, preamble and basic comments PART I: Corporate law (60 Marks) paper 4: Corporate and Allied Laws, Existing syllabus] New Act added [shifted the basic structure from Final paper 4: Corporate and Allied Laws, Existing syllabus and advance portion of this Act will remain in the Final. New Act added Newly added improves writing skill as to drafting of simple deeds and documents. The students are required to have the knowledge of the same in order to point out the frauds committed by the corporates. Being student, knowledge is required to safeguard the interest being a consumer in one or the other through the redressal forums. To keep apprise the students regarding the major Labour Acts covering their name preamble and basic comments. The Companies Act, 2013 Sections 1 to 122 (a) Preliminary (b) Incorporation of Company and Matters Incidental thereto (c) Prospectus and Allotment of Securities (d) Share Capital and Debentures The Companies Act, 2013 Sections 1 to 122 (a) Preliminary (b) Incorporation of Company and Matters Incidental thereto (c) Prospectus and Allotment of Securities (d) Share Capital and Debentures e) Acceptance of Deposits by companies -

35 (e) Acceptance of Deposits by companies (f) Registration of Charges (g) Management and Administration (i) Company Law in a computerized Environment E-filing. (f) Registration of Charges (g) Management and Administration (i) Company Law in a computerized Environment E-filing. Part II ETHICS (20 Marks) - Deleted Covered in other CA papers 1. Introduction to Business Ethics 2. Environment issues 3. Ethics in Workplace 4. Ethics in Marketing and Consumer Protection 5. Ethics in Accounting and Finance Part III- COMMUNICATION (20 Marks) - Deleted Covered in other CA papers 1. Elements of Communication 2. Communication in Business Environment 3. Basic understanding of legal deeds and documents Note 1: The provisions of the Companies Act, 1956 which are still in force would form part of the syllabus till the time their corresponding or new provisions of the Companies Act, 2013 are enforced. Note 2: If new legislations are enacted in place of the existing legislations, the syllabus would include the corresponding provisions of such new legislations with effect from dates notified by the Institute. Similarly if any existing legislation ceases to have effect, the syllabus will accordingly exclude such legislation with effect from the date to be notified by the Institute.

36 Changes made in the Syllabus of CA Intermediate Paper 3: Cost and Management Accounting (proposed) vis-a-vis Paper 3: Cost Accounting (existing). Cost Accounting (50 Marks) Cost and Management Accounting (100 Marks) Changes (Addition/ Deletion) 1. Introduction to Cost Accounting A. Overview of Cost and Management Accounting (a) Objectives and scope of Cost Accounting (a) Introduction to Cost and Management Accounting (b) Cost centres and Cost units (i) Objectives and Scope of Cost and Management (c) Cost classification for stock valuation, Profit Accounting, measurement, Decision making and control (ii) The users of Cost and Management accounting (d) Coding systems information- Functions of management accounting. (e) Elements of Cost (iii) Role of cost accounting department in an (f) Cost behaviour pattern, Separating the organisation and its relation with other departments. components of semi-variable costs (iv) Installation of Costing System (g) Installation of a Costing system (v) Relationship of Cost Accounting, Financial Accounting, Management Accounting and Financial (h) Relationship of Cost Accounting, Financial Management. Accounting, Management Accounting and Financial (vi) Cost terms and Concepts Management. (vii) Cost Reduction and Cost Control (viii) Elements of Costs (ix) Cost behavior pattern, Separating the components of semi-variable costs, step costs. (x) Methods of Costing, Techniques of Costing. (xi) Coding Systems. (b) Elements of Cost and preparation of Cost Sheet (i) Functional classification and ascertainment of cost (ii) Preparation of Cost Sheet Additions: (b)elements of Cost and preparation of Cost Sheet (i) Functional classification and ascertainment of cost (ii) Preparation of Reasons for changes Topics have been elaborated and specified to cover basic cost concepts of cost and management accounting. Understanding of cost sheet is essential for the students to familiarize them with the basic cost concepts.

37 2. Cost Ascertainment (a) Material Cost (i) Procurement procedures Store procedures and documentation in respect of receipts and issue of stock, Stock verification (ii) Inventory control Techniques of fixing of minimum, maximum and reorder levels, Economic Order Quantity, ABC classification; Stocktaking and perpetual inventory (iii) Inventory accounting (iv) Consumption Identification with products of cost centres, Basis for consumption entries in financial accounts, Monitoring consumption. (b) (i) Employee Cost Attendance and payroll procedures, Overview of statutory requirements, Overtime, Idle time and Incentives (ii) Labour turnover (iii) Utilisation of labour, Direct and indirect labour, Charging of labour cost, Identifying labour hours with work orders or batches or capital jobs B. Ascertainment of Cost and Cost Accounting System (a) Material Cost (i) Procurement procedures- Store procedures and documentation in respect of receipts and issue of stock, Stock verification, (ii) Valuation of material receipts, (iii) Inventory control- - Techniques of fixing level of stocks- minimum, maximum, re-order point, safety stock, determination of optimum stock level, - Determination of Optimum Order quantity- Economic Order Quantity (EOQ), - Techniques of Inventory control- ABC Analysis, FSN, HML, VED, Just-in-Time (JIT)- Stock taking and perpetual inventory system, use of control ratios, (iv) Inventory Accounting (v) Consumption- Identification with products of cost centres, Basis for consumption entries in financial accounts, monitoring consumption. (b) Employee Cost (i) Attendance and Payroll procedures- - Elements of wages- Basic wages, Dearness Allowance, Overtime, Bonus, Holiday and leave wages, Allowances and perquisites. (ii) Labour Cost Control (iii) Labour Turnover- Methods of calculating labour turnover, causes of labour turnover, effects of labour turnover. (iv) Utilisation of labour, Direct and indirect labour, charging of labour cost, Identifying labour hours with Cost Sheet Topics have been elaborated and specified to cover specific aspects of Material cost. Topics have been elaborated and specified to cover specific aspects of Employee cost.

38 (iv) Efficiency rating procedures (v) Remuneration systems and incentive schemes. work orders or batches or capital jobs. (v) Remuneration systems and incentive schemes- -Time Rate System, Piece Rate System, Differential piece rate system, Calculation of wages, Effective Wages. (c) Direct Expenses Sub-contracting Control on material movements, Identification with the main product or service. (c) Direct Expenses (i) Direct expenses and Direct Material (ii) Nature of Direct or Chargeable expenses. (iii) Sub-contracting- Control on material movements, Identification with the main product or service. Topics have been elaborated. (d) Overheads (i) Functional analysis Factory, Administration, Selling, Distribution, Research and Development Behavioural analysis Fixed, Variable, Semi variable and Step cost (ii) Factory Overheads Primary distribution and secondary distribution, Criteria for choosing suitable basis for allotment, Capacity cost adjustments, Fixed absorption rates for absorbing overheads to products or services (iii) Administration overheads Method of allocation to cost centres or products (iv) Selling and distribution overheads Analysis and absorption of the expenses in products/customers, impact of marketing strategies, Cost effectiveness of various methods of sales promotion. (d) Overheads (i) Functional analysis- Factory, Administration, Selling, Distribution, Research and Development. (ii) Behavioral analysis- Fixed, Variable, Semi- Variable and Step cost. (iii) Allocation and Apportionment of overheads using Absorption Costing Method. (iv) Factory Overheads- Primary distribution and secondary distribution, (v) Administration Overheads- Method of allocation to cost centres or products, (vi) Selling & Distribution Overheads- Analysis and absorption of the expenses in products/ customers, impact of marketing strategies, cost effectiveness of various methods of sales promotion. (vii) Concepts of Activity Based Costing (ABC). Additions: Concepts of Activity Based Costing (ABC) Basic understanding of Activity Based Costing is essential at this level so that student are well versed with the concept of overhead. 3. Cost Book-keeping Cost Ledgers Non-integrated accounts, (e) Recording and Accounting of Costs (i) Non-integrated Accounting system- Ledger under