CA IPCC Syllabus Nov – Old Syllabus For Old CA Course IPCC Students

2. Accounting Standards

Working knowledge of:

AS 1 : Disclosure of Accounting Policies

AS 2: Valuation of Inventories

AS 3: Cash Flow Statements

AS 6: Depreciation Accounting

AS 7: Construction Contracts (Revised 2002)

AS 9: Revenue Recognition

AS 10: Accounting for Fixed Assets

AS 13: Accounting for Investments

AS 14: Accounting for Amalgamations

3. Company Accounts

(a) Preparation of financial statements – Profit and Loss Account, Balance Sheet and Cash Flow Statement

(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)

4. Average Due Date, Account Current, Self-Balancing Ledgers

5. Financial Statements of Not-for-Profit Organisations

6. Accounts from Incomplete Records

7. Accounting for Special Transactions

(a) Hire purchase and installment sale transactions

(b) Investment accounts

(c) Insurance claims for loss of stock and loss of profit.

9. Issues in Partnership Accounts 

Final accounts of partnership firms – Admission, retirement and death of a partner including treatment of goodwill;

10. Accounting in Computerized 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Note :If either old Accounting Standards (ASs), Announcements and Limited Revisions to ASs are withdrawn or new ASs, Announcements and Limited Revisions to ASs are issued by the Institute of Chartered Accountants of India in place of existing ASs, Announcements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 include/exclude such new developments in place of the existing ones with effect from the date to be notified by the Institute.

IPCC Syllabus Paper 2: Business Laws, Ethics and Communication

(One paper – three hours – 100 marks)

Paper 2: Business Laws, Ethics and Communication

(I) The Companies Act, 2013 : Relevant notified Sections 1 to 122 of the Companies Act, 2013 up to 30^th September 2014 by the Ministry of Corporate Affairs are applicable except Section 75 relating to ‘damages for fraud’, Section 48 relating to “Variation of shareholders’ right”, Section 66 related to “Reduction of share capital”, Section 97 relating to “ Power of tribunal to call AGM”, Section 98 relating to “ Power of Tribunal to call meetings of members, etc., and Section 99 relating to “ Punishment for default in complying with provisions of sections 96 to 98”, of the Companies Act, 2013. For other legislative amendments including relevant Notifications/Circulars/Rules/Guidelines issued by Regulating Authority cut-off date will be 31^stOctober, 2014.

(II)The Employees’ Provident Funds Miscellaneous Provisions Act, 1952-The Employees’ Deposit Linked Insurance ( Amendment) Scheme, 2014 Es’ Pension (Amendment) Scheme, 2014

Contents:Business Laws (30 marks)

1. The Indian Contract Act, 1872
2. The Negotiable Instruments Act, 1881
3. The Payment of Bonus Act, 1965
4. The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952
5. The Payment of Gratuity Act, 1972.

Company Law (30 marks)

The Companies Act, 2013  – Sections 1 to 197

(a) Preliminary

(b) Board of Company Law Administration – National Company Law Tribunal; Appellate Tribunal

(c) Incorporation of company and matters incidental thereto

(d) Prospectus and allotment, and other matters relating to use of shares or debentures

(e) Share capital and debentures

(f) Registration of charges

(g) Management and administration – general provisions – registered office and name, restrictions on commencement of business, registers of members and debentures holders, foreign registers of members or debenture holders, annual returns, general provisions regarding registers and returns, meetings and proceedings.

(h) Company Law in a computerized environment – e-filing.

Part II: Ethics (20 marks)

Contents:1. Introduction to Business Ethics The nature, purpose of ethics and morals for organizational interests; ethics and conflicts of interests; ethical and social implications of business policies and decisions; corporate social responsibility; ethical issues in corporate governance.

2. Environment Issues Protecting the Natural Environment – prevention of pollution and depletion of natural resources;conservation of natural resources.

3. Ethics in Workplace Individual in the organisation, discrimination, harassment, gender equality.

4. Ethics in Marketing and Consumer Protection Healthy competition and protecting consumer’s interest.

5. Ethics in Accounting and Finance Importance, issues and common problems.

Part III: Communication (20 marks)

Contents:

1. Elements of Communication

(a) Forms of communication: formal and informal, inter-departmental, verbal and non-verbal; active listening and critical thinking

(b) Presentation skills including conducting meeting, press conference

(c) Planning and composing business messages

(d) Communication channels

(e) Communicating corporate culture, change, innovative spirits

(f) Communication breakdowns

(g) Communication ethics

(h) Groups dynamics; handling group conflicts, consensus building; influencing and persuasion skills; negotiating and bargaining

(i) Emotional intelligence – emotional quotient

(j) Soft skills – personality traits; interpersonal skills; leadership.

2. Communication in Business Environment

(a) Business Meetings – Notice, Agenda, Minutes, Chairperson’s speech

(b) Press releases

(c) Corporate announcements by stock exchanges

(d) Reporting of proceedings of a meeting.

3. Basic Understanding of Legal Deeds and Documents

(a) Partnership deed

(b) Power of Attorney

(c) Lease deed

(d) Affidavit

(e) Indemnity bond

(f) Gift deed

(g) Memorandum and articles of association of a company

(h) Annual Report of a company.

IPCC Syllabus Paper 3: Cost Accounting and Financial Management

(One paper – three hours – 100 marks)

Contents:

1. Introduction to Cost Accounting

(a) Objectives and scope of cost accounting

(b) Cost centres and cost units

(c) Cost classification for stock valuation, profit measurement, decision making and control

(d) Coding systems

(e) Elements of cost

(f) Cost behavior pattern, separating the components of semi-variable costs

(g) Installation of a costing system

(h) Relationship of cost accounting, financial accounting, management accounting and financial management.

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 centers, basis for consumption entries in financial accounts, monitoring consumption.

(b) Employee Cost

(i) Attendance and payroll procedures, overview of statutory requirements, overtime, idle time and incentives

(ii) Labor turnover

(iii) Utilization of labor, direct and indirect labor, charging of labor cost, identifying labor hours with work orders or batches or capital jobs

(iv) Efficiency rating procedures

(v) Remuneration systems and incentive schemes.

(c) Direct Expenses Sub-contracting – control on material movements, identification with the main product or service.

(d) Overheads

(i) Functional analysis – factory, administration, selling, distribution, research and development Behavioral 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 centers 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.

3. Cost Book-keeping 

Cost ledgers – non-integrated accounts, integrated accounts, reconciliation of cost and financial accounts.

4. Costing Systems

(a) Job Costing Job cost cards and databases, collecting direct costs of each job, attributing overhead costs to jobs, applications of job costing.

(b) Batch Costing

(c) Contract Costing Progress payments, retention money, escalation clause, contract accounts, accounting for material, accounting for plant used in a contract, contract profit and balance sheet entries.

(d) Process Costing Double entry book keeping, process loss, abnormal gains and losses, equivalent units, inter-process profit, joint products and by products.

(e) Operating Costing System 

5. Introduction to Marginal Costing 

Marginal costing compared with absorption costing, contribution, break even analysis and profit volume graph.

6. Introduction to Standard Costing 

Various types of standards, setting of standards, basic concepts of material and labor standards and variance analysis.

7. Budgets and Budgetary Control 

The budget manual, preparation and monitoring procedures, budget variances, flexible budget, preparation of functional budget for operating and non-operating functions, cash budget, master budget, principal budget factors.

Part II: Financial Management (50 marks)

Contents:

1. Scope and Objectives of Financial Management

(a) Meaning, importance and objectives

(b) Conflicts in profit versus value maximization principle

(c) Role of Chief Financial Officer.

2. Time Value of Money Compounding and discounting techniques – concepts of annuity and perpetuity.

3. Financial Analysis and Planning

(a) Ratio analysis for performance evaluation and financial health

(b) Application of ratio analysis in decision making

(c) Analysis of cash flow statement.

4. Financing Decisions

(a) Cost of Capital – weighted average cost of capital and marginal cost of capital

(b) Capital Structure decisions – capital structure patterns, designing optimum capital structure, constraints, various capital structure theories

(c) Business risk and financial risk – operating and financial leverage, trading on equity.

5. Types of Financing

(a) Different sources of finance

(b) Project financing – intermediate and long term financing

(c) Negotiating term loans with banks and financial institutions and appraisal thereof

(d) Introduction to lease financing

(e) Venture capital finance.

6. Investment Decisions

(a) Purpose, objective, process

(b) Understanding different types of projects

(c) Techniques of decision making: non-discounted and discounted cash flow approaches – payback period method, accounting rate of return, net present value, internal rate of return, modified internal rate of return, discounted payback period and profitability index.

(d) Ranking of competing projects, ranking of projects with unequal lives.

7. Management of working capital

(a) Working capital policies

(b) Funds flow analysis

(c) Inventory management

(d) Receivables management

(e) Parables management

(f) Management of cash and marketable securities

(g) Financing of working capital.

PAPER – 4 : TAXATION

SECTION A – INCOME TAX (50 MARKS)

1. Important definitions in the Income-tax Act, 1961
2. Basis of charge; Rates of taxes applicable for different types of assessees
3. Concepts of previous year and assessment year
4. Residential status and scope of total income; Income deemed to be received / deemed to accrue or arise in India
5. Incomes which do not form part of total income (other than charitable trusts and institutions, political parties and electoral trusts)
6. Heads of income and the provisions governing computation of income under different heads
7. Income of other persons included in assessee’s total income
8. Aggregation of income; Set-off or carry forward and set-off of losses
9. Deductions from gross total income
10. Computation of total income and tax liability of individuals
11. Provisions concerning advance tax and tax deducted at source
12. Provisions for filing of return of income.

SECTION B – INDIRECT TAXES (50 MARKS)

Contents:
1. Concept of indirect taxes

(i) Concept and features of indirect taxes
(ii) Principal indirect taxes

GST Syllabus for CA IPCC

1. Goods and Services Tax (GST) Laws

(i) GST Laws: An introduction including Constitutional aspects
(ii) Levy and collection of CGST and IGST

a) Application of CGST/IGST law
b) Concept of supply including composite and mixed supplies
c) Charge of tax
d) Exemption from tax
e) Composition levy

(iv) Basic concepts of time and value of supply
(vi) Input tax credit
(vii) Computation of GST liability
(viii) Registration
(ix) Tax invoice; Credit and Debit Notes; Electronic way bill
(x) Returns
(xi) Payment of tax including reverse charge

GROUP II

IPCC Syllabus Paper 5: Advanced Accounting

(One paper – three hours – 100 marks)Contents

1. Conceptual Framework for Preparation and Presentation of Financial Statements

2. Accounting Standards Working knowledge of:

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 11 : The Effects of Changes in Foreign Exchange Rates (Revised 2003)

AS 12 : Accounting for Government Grants

3. Advanced Issues in Partnership Accounts Dissolution of partnership firms including piecemeal distribution of assets; Amalgamation of partnership firms; Conversion into a company and Sale to a company.

4. Company Accounts

(a) Accounting for employee stock option plan, Buy back of securities, Equity shares with differential rights, Underwriting of shares and debentures, Redemption of debentures

(b) Advanced problems for business acquisition, Amalgamation and reconstruction (excluding problems of amalgamation of inter-company holding)

(c) Accounting involved in liquidation of companies, Statement of Affairs (including deficiency/surplus accounts) and Liquidator’s statement of account of the winding up.

(d) Financial Statements of Banking, Insurance

5. Accounting for Special Transactions Departmental and branch accounts including foreign branches

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 include/exclude such new developments in place of the existing ones with effect from the date to be notified by the Institute.

IPCC Syllabus Paper 6: Auditing and Assurance

(One paper – three hours – 100 marks) Contents

1. Auditing Concepts – Nature and limitations of Auditing, Basic Principles governing an audit, Ethical principles and concept of Auditor’s Independence, Relationship of auditing with other disciplines.

2. Auditing and Assurance Standards – Overview, Standard-setting process, Role of International Auditing and Assurance Standards Board and Auditing and Assurance Standards Board in India.

3. Auditing engagement – Audit planning, Audit program me, Control of quality of audit work– Delegation and supervision of audit work.

4. Documentation – Audit working papers, Audit files: Permanent and current audit files, Ownership and custody of working papers.

5. Audit evidence – Audit procedures for obtaining evidence, Sources of evidence, Reliability of audit evidence, Methods of obtaining audit evidence, Physical verification, Documentation, Direct confirmation, Re-computation, Analytical review techniques, Representation by management.

6. Internal Control – Elements of internal control, Review and documentation, Evaluation of internal control system, Internal control questionnaire, Internal control check list, Tests of control, Application of concept of materiality and audit risk, Concept of internal audit.

7. Internal Control and Computerized Environment, Approaches to Auditing in Computerised Environment.

8. Audit Sampling – Types of sampling, Test checking, Techniques of test checks.

9. Analytical review procedures.

10. Audit of payments – General considerations, Wages, Capital expenditure, Other payments and expenses, Petty cash payments, Bank payments, Bank reconciliation.

11. Audit of receipts – General considerations, Cash sales, Receipts from debtors, Other Receipts.

12. Audit of Purchases – Vouching cash and credit purchases, Forward purchases, Purchase returns, Allowance received from suppliers.

13. Audit of Sales – Vouching of cash and credit sales, Goods on consignment, Sale on approval basis, Sale under hire-purchase agreement, Returnable containers, Various types of allowances given to customers, Sale returns.

14. Audit of suppliers’ ledger and the debtors’ ledger – Self-balancing and the sectional balancing system, Total or control accounts, Confirmatory statements from credit customers and suppliers, Provision for bad and doubtful debts, Writing off of bad debts.

15. Audit of impersonal ledger – Capital expenditure, deferred revenue expenditure and revenue expenditure, Outstanding expenses and income, Repairs and renewals, Distinction between reserves and provisions, Implications of change in the basis of accounting.

16. Audit of assets and liabilities.

17. Company Audit – Audit of Shares, Qualifications and Disqualifications of Auditors, Appointment of auditors, Removal of auditors, Powers and duties of auditors, Branch audit, Joint audit, Special audit, Reporting requirements under the Companies Act, 1956.

18. Audit Report – Qualifications, Disclaimers, Adverse opinion, Disclosures, Reports and certificates.

19. Special points in audit of different types of undertakings, i.e., Educational institutions, Hotels, Clubs, Hospitals, Hire-purchase and leasing companies (excluding banks, electricity companies, cooperative societies, and insurance companies).

20. Features and basic principles of government audit, Local bodies and not-for-profit organizations, Comptroller and Auditor General and its constitutional role.

Note: Candidates are expected to have working knowledge of relevant Auditing and Assurance Standards issued by the ICAI with reference to above-mentioned topics.

IPCC Syllabus Paper 6: Auditing and Assurance

1. Standards on Auditing (SAs)

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

IV Applicability of the Companies Act, 2013: The relevant notified Sections of the Companies Act, 2013 up to 30^th September 2014 will be applicable for May, 2015 Examination and for other legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authority cut-off date will be 31^st October, 2014.

IPCC Syllabus Paper 7: Information Technology and Strategic Management

(One paper – three hours – 100 marks)

Revised IPCC Syllabus – Applicable for May 2017 Section

A: Information Technology (50 Marks)