CA Final Syllabus 2020

CA Final Syllabus 2020- The Institute of Chartered Accountants of India (ICAI) releases CA Final syllabus pdf as relevant for candidates appearing in the exam session and also keep updating on the CA Final syllabus changes. The official website contains CA Final syllabus May 2020 for both old and new syllabi. Candidates registered under the old scheme can refer the CA Final old syllabus for both the groups. ICAI had introduced elective papers through new syllabus which can be found in CA Final new syllabus. The ICAI CA Final syllabus 2020 contains all the topics and sub- topics that need to be covered by candidates preparing for the upcoming session of exams, be it the CA Final old syllabus or the new one. Thus, one may refer to the syllabus for CA Final as released by ICAI and cumulated hereby in the article below for all papers.

Recommended

Latest- CA Final Result Nov 2019 announced on January 16, 2020.

CA Final New Syllabus 2020

Candidates enrolled under the CA Final 2020 new scheme may refer to the CA Final syllabus May 2020 for both the groups and all 8 papers including the elective paper as provided below.

CA Final New Syllabus Group 1-

Paper 1- Financial Accounting

1. Framework for Preparation and Presentation of Financial Statements in accordance with Indian Accounting Standards (Ind AS).

2. Application of Indian Accounting Standards (Ind AS) with reference to General Purpose Financial Statements:

• Ind AS on First time adoption of Indian Accounting Standards

• Ind AS on Presentation of Items in the Financial Statements

• Ind AS on Measurement based on Accounting Policies

• Ind AS on Income Statement

• Ind AS on Assets and Liabilities of the Financial Statements including Industry specific Ind AS

• Ind AS on Items impacting the Financial Statements

• Ind AS on Disclosures in the Financial Statements

• Other Ind AS

3. Indian Accounting Standards on Group Accounting

• Business Combinations and Accounting for Corporate Restructuring (including demerger) (as per Ind AS)

• Consolidated and Separate Financial Statements (as per Ind AS)

4. Accounting and Reporting of Financial Instruments (as per Ind AS)

5. Analysis of Financial Statements

6. Integrated Reporting

7. Corporate Social Responsibility Reporting

Paper 2- Strategic Financial Management

1. Financial Policy and Corporate Strategy

• Strategic decision making framework

• Interface of Financial Policy and strategic management

• Balancing financial goals vis-à-vis sustainable growth.

2. Risk Management

• Identification of types of Risk faced by an organisation

• Evaluation of Financial Risks

• Value at Risk (VAR)

• Evaluation of appropriate method for the identification and management of financial risk.

3. Security Analysis

• Fundamental Analysis

• Technical Analysis

• Meaning

• Assumptions

• Theories and Principles

• Charting Techniques

• Efficient Market Hypothesis (EMH) Analysis

4. Security Valuation

• Theory of Valuation

• Return Concepts

• Equity Risk Premium

• Required Return on Equity

• Discount Rate Selection in Relation to Cash Flows

• Approaches to Valuation of Equity Shares

• Valuation of Preference Shares

• Valuation of Debentures/ Bonds

5. Portfolio Management

• Portfolio Analysis

• Portfolio Selection

• Capital Market Theory

• Portfolio Revision

• Portfolio Evaluation

• Asset Allocation

• Fixed Income Portfolio

• Risk Analysis of Investment in Distressed Securities

• Alternative Investment Strategies in context of Portfolio Management

6. Securitization

• Introduction

• Concept and Definition

• Benefits of Securitization

• Participants in Securitization

• Mechanism of Securitization

• Problems in Securitization

• Securitization Instruments

• Pricing of Securitization Instruments

• Securitization in India

7. Mutual Fund

• Meaning

• Evolution

• Types

• Advantages and Disadvantages of Mutual Funds

8. Derivatives Analysis and Valuation

• Forward/ Future Contract

• Options

• Swaps

• Commodity Derivatives

9. Foreign Exchange Exposure and Risk Management

• Exchange rate determination

• Foreign currency market

• Management of transaction, translation and economic exposures

• Hedging currency risk

• Foreign exchange derivatives – Forward, futures, options and swaps

10. International Financial Management

• International Capital Budgeting

• International Working Capital Management

• Multinational Cash Management

• Objectives of Effective Cash Management

• Optimization of Cash Flows/ Needs

• Investment of Surplus Cash

• Multinational Receivable Management

• Multinational Inventory Management

11. Interest Rate Risk Management

• Interest Rate Risk

• Hedging Interest Rate Risk

• Traditional Methods

• Modern Methods including Interest Rate Derivatives

12. Corporate Valuation

• Conceptual Framework of Valuation

• Approaches/ Methods of Valuation

• Assets Based Valuation Model

• Earning Based Models

• Cash Flow Based Models

• Measuring Cost of Equity

• Capital Asset Pricing Model (CAPM)

• Arbitrage Pricing Theory

• Estimating Beta of an unlisted company

• Relative Valuation

• Steps involved in Relative Valuation

• Equity Valuation Multiples

• Enterprise Valuation Multiple

• Other Approaches to Value Measurement

• Economic Value Added (EVA)

• Market Value Added (MVA)

• Shareholder Value Analysis (SVA)

• Arriving at Fair Value

13. Mergers, Acquisitions and Corporate Restructuring

• Conceptual Framework

• Rationale

• Forms

• Mergers and Acquisitions

• Financial Framework

• Takeover Defensive Tactics

• Reverse Merger

• Divestitures

• Partial Sell off

• Demerger

• Equity Carve outs

• Ownership Restructuring

• Going Private

• Management/ Leveraged Buyouts

• Cross Border Mergers

14. Startup Finance

• Introduction including Pitch Presentation

• Sources of Funding

• Start up India Initiative

Paper 3- Advanced Auditing and Professional Ethics

1. Auditing Standards, Statements and Guidance Notes

• Engagement & Quality Control Standards,

• Statements and Guidance Notes on Auditing issued by the ICAI,

• Elements of system of quality control,

• Leadership responsibilities for quality within the firm,

• Acceptance and Continuance of clients relationships and specific engagements,

• Engagement Performances, etc.

2. Audit Planning, Strategy and Execution

• Planning the flow of audit work;

• audit strategy, audit plan, audit programme and importance of supervision;

• principal’s ultimate responsibility;

• extent of delegation;

• control over quality of audit work;

• Analytical Procedures prior to audit as well as towards finalization;

• Concept of Principal Auditor and Other Auditor, Acceptance as Principal Auditor, Procedures to be performed by Principal Auditor, Co-ordination between the Principal Auditor and Other Auditor (SA 600 Using the Work of Another Auditor)

• Concept of Internal Audit Functions and its evaluation, Using the work of the internal audit function, Using internal auditors to provide direct assistance (SA 610 Using the Work of Internal Auditors);

• Auditor's Expert – Meaning, Need for an Auditor’s Expert, Understanding the Auditor’s Expert, Agreement with the Auditor’s Expert, Adequacy of the Auditor’s Expert’s Work (SA 620 Using the Work of an Auditor’s Expert)

3. Risk Assessment and Internal Control

• Evaluation of internal control procedures;

• Components of internal controls;

• Internal control and risk assessment;

• Risk -based auditaudit risk analysis, general steps;

• Internal audit;

• Reporting on internal control weaknesses (SA 265 Communicating Deficiencies in Internal Control to Those Charged With Governance and Management);

• Framework on Reporting of Internal Controls

4. Special aspects of Auditing in an Automated Environment

• Key features of automated environment

• related risks and controls,

• Standards

• Guidelines and procedures,

• using relevant frameworks and best practices,

• understanding and documenting automated environment,

• Enterprise Risk management overview,

• Assessing IT-related risks and controls,

• evaluating risks and controls at entity level and process level,

• Considerations of automated environment at each phase of audit cycle,

• using relevant analytical procedures and tests using data analytics,

• key concepts of auditing in real-time automated environments such as E-Commerce, ERP, Core Banking, etc

5. Audit of Limited Companies

• Application of Relevant Provisions under the Companies Act, 2013 relating to Audit and Auditors and Rules made thereunder;

• Powers/rights, duties of auditors;

• Branch Audit;

• Significance of true and fair view;

• Dividends and divisible profits- financial, legal, and policy considerations;

• Depreciation

• Special features of audit of Limited Liability Partnerships (LLPs)

• Eligibility for audit,

• appointment of auditor, remuneration, etc.

• Audit report under the Companies Act, 2013;

• Reporting under CARO

6. Audit Reports

• Basic elements of auditor’s report;

• Types of opinion;

• Notes on accounts;

• Distinction between notes and qualifications;

• Distinction between audit reports and certificates;

• Communication to Management and those charged with Governance;

• Self Review threats;

• Drafting of different types of Audit Reports

7. Audit Committee and Corporate Governance

• Audit committee;

• Role of auditor in Audit Committee and Certification of Compliance of Corporate Governance;

• Compliances with Laws and Regulations (SA 250 Consideration of Laws and Regulations in an Audit of Financial Statements);

• Disclosure requirements including those of SEBI;

• Regulatory requirements of Corporate Governance

• Report on Corporate Governance

8. Audit of Consolidated Financial Statements

• Provisions under the Companies Act, 2013 in respect of Accounts of Companies and Rules made thereunder;

• Audit of Consolidated Financial Statements

• responsibility of parent company,

• auditor of the consolidated financial statements

• Audit Considerations

• permanent consolidation

• current period consolidation

• Reporting

9. Special features of audit of Banks, Insurance & Non Banking Financial Companies

10. Audit under Fiscal Laws

• Audit under Fiscal Laws, viz, Direct and Indirect Tax Laws including documentation for Form 3CD etc.

11. Audit of Public Sector Undertakings

• Special features

• Directions of Comptroller and Auditor General of India

• Concept of propriety audit

• Performance audit

• Comprehensive audit

12. Liabilities of Auditors

• Professional negligence

• Civil liabilities

• Criminal liabilities

• Liabilities under different statutes - for example Income Tax Act, Companies Act

13. Internal Audit, Management and Operational Audit

• Provisions of internal audit as per Companies Act, 2013

• Scope of internal auditing

• Relationship between internal and external auditor

• Basics of Internal Audit Standards issued by the ICAI

• Drafting of Internal Audit Report

• Management audit and Operational audit

14. Due Diligence, Investigation and Forensic Audit

• Due Diligence Review

• Audit versus Investigation

• Steps for investigation

• Types of investigation

• procedure, powers, etc. of investigator;

• Types of Fraud

• indicators of fraud

• follow-up thereof

• Forensic audit meaning

• Difference between statutory audit and forensic audit

• forensic audit techniques

• forensic audit report etc.

15. Peer Review and Quality Review

16. Professional Ethics

• Code of Ethics with special reference to the relevant provisions of the Chartered Accountants Act, 1949 and the Regulations thereunder

Paper 4- Corporate and Economic Laws

Part 1- Corporate Laws

Section A- Company Law

1. The Companies Act, 2013

• Rules framed thereunder in its entirety with specific reference to section 149 onwards:

• Appointment and Qualifications of Directors

• Appointment and remuneration of Managerial Personnel

• Meetings of Board and its powers

• Inspection, inquiry and Investigation

• Compromises, Arrangements and Amalgamations

• Prevention of Oppression and Mismanagement

• Winding Up

• Producer Companies

• Companies incorporated outside India

• Miscellaneous Provisions

• Compounding of offences, Adjudication, Special Courts

• National Company Law Tribunal and Appellate Tribunal

2. Corporate Secretarial Practice

• Drafting of Notices

• Resolutions

• Minutes and Reports

Section B- Securities Laws

1. The Securities Contract (Regulation) Act, 1956 and the Securities Contract (Regulation) Rules, 1957

• Introduction and important provisions

2. The Securities Exchange Board of India Act, 1992

• SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009

• SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015

Part 2- Economic Laws

1. The Foreign Exchange Management Act, 1999

• Introduction

• broad structure of FEMA

• Definition

• Regulation and Management of Foreign Exchange

• Contraventions and Penalties in brief,

• Miscellaneous provisions

2. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

• Important Definitions

• Regulation of Securitisation and Reconstruction of Financial Assets of Banks and Financial Institutions

• Enforcement of Security Interest

• Offences and Penalties

• Miscellaneous Matters

3. The Prevention of Money Laundering Act, 2002

• Definitions

• Punishment for the Offence of Money laundering

• Obligation of Banking Companies

• Financial Institutions and Intermediaries or a person carrying on a designated business or profession

• Appellate Tribunal

• Special Court

• Procedure for Attachment and Confiscation of Property and Recovery of fines and penalties

4. Foreign Contribution Regulation Act, 2010

• Definitions

• Regulation of Foreign contribution and miscellaneous provisions

5. The Arbitration and Conciliation Act, 1996

• General Provisions

• Arbitration agreement

• Tribunal

• Conciliation

6. The Insolvency and Bankruptcy Code, 2016

• Preliminary

• Corporate insolvency resolution process

• Liquidation process and other provisions

CA Final New Syllabus Group 2-

Paper 5- Strategic Cost Management and Performance Evaluation

Part A- Strategic Cost Management and Decision Making

Sub Part 1- Strategic Cost management

1. Introduction to Strategic Cost Management

• Concept of Strategic Cost Management

• Limitations of Traditional Cost Management

• Traditional vs. Strategic Cost Management

2. Modern Business Environment

• Introduction/ Characteristics of the Modern Business Environment

• Cost of Quality, Total Quality Management, Business Excellence Model

• Throughput Accounting and Theory of Constraints

• Supply Chain Management (SCM)

• Gain Sharing Arrangements

• Outsourcing

3. Lean System and Innovation

• Introduction to Lean System

• Just-in-Time (JIT)

• Kaizen Costing

• 5 Ss

• Total Productive Maintenance (TPM)

• Cellular Manufacturing/ One-Piece Flow Production Systems

• Six Sigma (SS)

• Introduction to Process Innovation and Business Process Re-engineering (BPR)

4. Cost Management Techniques

• Cost Control/ Waste Control, Cost Reduction

• Target Costing

• Value Analysis/ Value Engineering

• Pareto Analysis

• Life Cycle Costing

• Environmental Management Accounting

5. Cost Management for Specific Sectors

• Agricultural Sector

• Information Technology Sector

• Power Sector

Sub Part 2- Strategic Decision Making

1. Decision Making

• Decision Making using CVP Analysis

• Decision Making using Relevant Cost Concepts

• Decision Making using Activity Based Costing

• Ethical and Non-Financial Considerations Relevant to Decision Making

2. Pricing Strategies/ Decisions

• Theory & Principles of Product Pricing

• Pricing – New Product, Finished Products & Pricing of Services

• Sensitivity Analysis in Pricing Decisions

• Pricing Decision under Special Circumstances

• Pricing Strategies

Part 2- Performance Evaluation and Control

Sub Part 1- Performance Evaluation and Reporting

1. Performance Measurement and Evaluation

• Responsibility Accounting

• Linking Critical Success Factors (CSFs) to Key Performance Indicators (KPIs) and Corporate Strategy; Performance Measurement Models‒The Balanced Scorecard, The Performance Pyramid, The Performance Prism and The Building Block Model; Divisional Performance Measures; Benchmarking Schemes

• Performance Measurement in the Not-for-Profit Sector

• Preparation of Performance Reports

2. Divisional Transfer Pricing

• Meaning, Purpose and Principles of Transfer Pricing

• Methods of Transfer Pricing

• The Behavioural Consequences arising from Divisional Structures

• International Transfer Pricing

3. Strategic Analysis of Operating Income

• Operating Profit Analysis

• Advanced Activity Based Costing, Activity Based Management (ABM), Activity Based Budgeting (ABB)

Sub Part 2- Managerial Control

1. Budgetary Control

• The Concept of Feedback and Feed Forward Control

• Behavioural Aspects of Budgeting – Imposed Style, Participative Budget

• Behavioural Aspects of Budgetary Control

• Beyond Budgeting

2. Standard Costing

• Analysis of Advanced Variances

• Integration of Standard Costing with Marginal Cost Accounting

• Reconciliation of Profit

• Variance Investigation Techniques, Interpretation of Variances, Possible Interdependence Between Variances and Reporting

• Behavioural Aspects of Standard Costing, Limitation of Standard Costing (including its use in the contemporary business environment)

Part C- Case Study

Paper 6A- Risk Management

1. Introduction to risk

• The Concept of Risk

• Risk and Uncertainty: Distinction

• Classification of Risks

• Dynamic Nature of Risks

• Types of Risk, including:

• Strategic and Operational Risks

• Business Risk

• Financial Risk

• Information Risk

• Liquidity Risk

2. Source and evaluation of risks

• Identification and Sources of Risk

• Quantification of Risk and various methodologies

• Impact of Business Risk

• Identify and assess the impact upon the stakeholder involved in Business Risk

• Role of Risk Manager and Risk Committee in identifying Risk

3. Risk management

• Concept of Risk Management

• Objective and Process of Risk Management

• Importance of Risk Management

• Risk Management techniques

4. Evaluation of Risk Management Strategies

• Risk Management Strategy alignment with Business Strategy

• Internal Control environment and linkages with Risk Management

• Risk Culture and attitudes to risk management

• Integrated Risk Reporting and Stakeholder responsibilities

• IT Risk Management – Disaster Recovery

5. Risk model

• VAR

• Stress Testing

• Scenario Analysis

• Country and Sovereign Risk Models and Management

6. Credit risk measurement and management

• Understanding the component of credit risk

• Evaluating credit risk

• Mitigating Credit risk

• Qualitative and Quantitative techniques to manage risk

• Credit scoring models

7. Risk associated with corporate governance

• Evaluation of Risk Associated with Governance

• Description and evaluation of framework for Board level consideration of risk

• OECD Guidelines for Corporate Governance

8. Enterprise Risk Management

• Definition, Scope and Techniques

9. Operational Risk Management

• Definition, Scope and Techniques

Paper 6 B- Financial Services and Capital Markets

1. Global Financial Markets

• Introduction to Global Financial Market

• Role of Financial Market in Economic Development of a country

• Stakeholders in Financial Market (Domestic and Global)

• Indian Financial Market scenario

2. Impact of various Policies of Financial Markets

• Credit Policy of RBI

• Fed Policy

• Inflation Index, CPI, WPI, etc.

3. Capital Market - Primary

• New Issue Market – Domestic and Global

• Private Placement , QIP, Disinvestment

• Right Issue

4. Capital Market - Secondary

• Secondary Market

• Stock Market Operations

• Indian Debt Market

5. Money Market

• Basics of Money Market

• Money Market Participants

• Money Market Instruments

• Repo and Reverse Repo

• CRR, SLR

• MIBOR, LIBOR

• Government Securities Market

6. Institutions and Intermediaries

• Depository

• Stock and Commodity Exchanges – Indian and Global

• Intermediaries

• Institutional Investors

• FPIs

• Custodians

• Clearing Houses

7. Commodity Market

• What are Commodity Markets

• Role of Commodity Markets

• Commodity Market in India

• Application of Derivative in Commodities

• Global Commodities Exchanges

8. Banking as source of Capital including NBFCs

• Concept of Project Financing

• Working Capital Management

• Reverse Mortgage

9. Mutual Funds

• Meaning

• Evolution

• Types

• Performance Measures, NAV

• Mutual Fund Organisation

• Advantages and Disadvantages of Mutual Fund

• Exchange Traded Funds (ETFs)

• Real Estate Investment Trusts (ReITs)

• Infrastructure Investment Trusts (Invits)

10. Private Equity

• Meaning and Classification

• Venture Capital

• Buyouts

• Special Cases

• Hurdle rate

• Paid in Capital

• Term Sheet

• Cost of Investing in Private Equity

• Exit Routes

• Valuation of Private Equity Transactions

• Private Equity Funds (Distribution of returns in General Partner and Limited Partners)

11. Investment Banking

• Concept

• Functions

• Challenges

• Developments in Investment Banking

• Merchant Banking and issue management

12. Credit Rating

• Introduction

• Rating Services

• Objectives and types

• Uses

• Credit Rating Process

• Credit Rating Methodology

• Rating Revisions

• Credit Rating Agencies in India and abroad

• Limitations with case studies

13. Treasury Operations

• Raising and Deployment of Funds

• Risk Management

14. Risk Management

• Preventive Controls

• Early Signals

• Credit Risk

15. Credit Derivatives

• Credit Default Swaps

• Collateralized Debt Obligations (CDO)

• Pricing of Credit Derivative Instruments

16. Leasing Decisions

17. Factoring

18. SEBI Guidelines

Paper 6C- International Taxation

Part I - Taxation of International Transactions and Non-resident Taxation in India

1. Transfer Pricing provisions under the Income-tax Act, 1961

• Arm’s Length Price

• International Transactions

• Most Appropriate Method

• Functions, Assets and Risk Analysis

• Documentation & Compliances

• Specific Reporting Regime in respect of Country by Country reporting and master file

• Advance Pricing Agreements

2. Other Provisions relating to taxation of international transactions and non-resident taxation under the Income-tax Act, 1961

• Non-resident Taxation (including Source Rule of Taxation)

• Double Taxation Relief

• Advance Rulings

3. Law and Procedures under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 – An Overview

Part II - Other aspects of International Taxation

1. Overview of Model Tax Conventions

• OECD Model Tax Convention

• UN Model Tax Convention

• US Model Tax Convention

2. Tax treaties, Application and Interpretation

• Features of Tax treaties

• Overview of Tax Information Exchange Agreements

• Commentaries and their importance

• Role of Vienna Convention in application and interpretation of tax treaties

3. Anti Avoidance Measures

• Controlled Foreign Corporations

• Base Erosion and Profit Shifting

• Other Anti Avoidance Measures

4. Taxation of E-Commerce Transactions

• Introduction

• Emerging issues

• Equalisation levy

Paper 6 D- Economic laws

1. World Trade Organization (WTO) covering its Role, Principles, Functions and Dispute Settlement Mechanism

2. Competition Act, 2002 and Rules/ Regulations

3. Real Estate (Regulation and Development) Act, 2016 [Central Act and Rules/ Regulations]

4. Insolvency and Bankruptcy Code, 2016 and Rules/ Regulations

5. Prevention of Money Laundering Act, 2002 and Rules/ Regulations

6. Foreign Exchange Management Act, 1999 and Rules/ Regulations

7. Prohibition of Benami Property Transactions Act, 1988 and Rules/ Regulations

Paper 6E- Global Financial Reporting Standards

1. Conceptual Framework for Financial Reporting as per IFRS

2. Application of International Financial Reporting Standards

3. Significant differences between IFRS and US GAAPs

Paper 6F- Multidisciplinary Case Study

1. Financial Accounting and Reporting

2. Audit and Assurance

3. Taxation

4. Finance and Financial Management

5. Management Accounting

6. Corporate Laws

7. Business Strategy and Management

Paper 7- Direct Tax laws and International taxation

Part I : Direct Tax Laws

Law and Procedures under the Income-tax Act, 1961,

1. Basis of charge, residential status, income which do not form part of total income, heads of income, income of other persons included in assessee’s total income, aggregation of income, set-off and carry forward of losses, deductions from gross total income, rebates and reliefs

2. Special provisions relating to companies and certain persons other than a company

3. Provisions relating to charitable and religious trust and institutions, political parties and electoral trusts

4. Tax Planning, Tax Avoidance & Tax Evasion

5. Collection & Recovery of Tax, Refunds

6. Income-tax Authorities, Procedure for assessment, Appeals and Revision

7. Settlement of Tax Cases, Penalties, Offences & Prosecution

8. Liability in Special Cases

9. Miscellaneous Provisions and Other Provisions

Part II: International Taxation

1. Taxation of international transactions and Non-resident taxation

• The provisions under the Income-tax Act, 1961, including

• Specific provisions relating to Non-residents

• Double Taxation Relief

• Transfer Pricing & Other Anti-Avoidance Measures

• Advance Rulings

• Equalisation levy

2. Overview of Model Tax Conventions – OECD & UN

3. Application and interpretation of Tax Treaties

4. Fundamentals of Base Erosion and Profit Shifting

Paper 8- Indirect Tax Laws

Part-I: Goods and Services Tax

Goods and Services Tax (GST) Law as contained in the Central Goods and Services Tax (CGST) Act, 2017 and Integrated Goods and Services Tax (IGST) Act, 2017 including:

• Introduction to GST in India including Constitutional aspects

• Levy and collection of CGST and IGST – Application of CGST/IGST law; Concept of supply including composite and mixed supplies, inter-State supply, intra-State supply, supplies in territorial waters; Charge of tax including reverse charge; Exemption from tax; Composition levy

• Place of supply

• Time and Value of supply

• Input tax credit

• Computation of GST liability

• Procedures under GST including registration, tax invoice, credit and debit notes, electronic way bill, accounts and records, returns, payment of tax including tax deduction at source and tax collection at source, refund, job work

• Liability to pay in certain cases

• Administration of GST; Assessment and Audit

• Inspection, Search, Seizure and Arrest

• Demand and Recovery

• Offences and Penalties

• Advance Ruling

• Appeals and Revision

• Other provisions

Part-II: Customs & FTP

1. Customs Law as contained in the Customs Act, 1962 and the Customs Tariff Act, 1975

• Introduction to customs law including Constitutional aspects

• Levy of and exemptions from customs duties – All provisions including application of customs law, taxable event, charge of customs duty, exceptions to levy of customs duty, exemption from custom duty

• Types of customs duties

• Classification and valuation of imported and export goods

• Officers of Customs; Appointment of customs ports, airports etc.

• Import and Export Procedures including special procedures relating to baggage, goods imported or exported by post, stores

• Provisions relating to coastal goods and vessels carrying coastal goods

• Warehousing

• Drawback

• Demand and Recovery;

• Refund

• Provisions relating to prohibited goods, notified goods, specified goods, illegal importation/exportation of goods

• Searches, seizure and arrest; Offences; Penalties; Confiscation and Prosecution

• Appeals and Revision; Advance Rulings; Settlement Commission

• Other provisions

2. Foreign Trade Policy to the extent relevant to the indirect tax laws

• Introduction to FTP

• legislation governing FTP

• salient features of an FTP

• administration of FTP

• contents of FTP and other related provisions

• Basic concepts relating to import and export

• Basic concepts relating to export promotion schemes provided under FTP

CA Final Old Syllabus 2020

Candidates enrolled under the old scheme may refer to the CA Final syllabus May 2020 and prepare for the upcoming session of exams accordingly for both group 1 and group 2.

CA Final Old Syllabus Group 1-

Paper 1- Financial Reporting

1. Accounting Standards and Guidance Notes on various accounting aspects issued by the ICAI and their applications.

2. Introduction of Indian Accounting Standards (Ind AS);

• Comparative study of ASs vis-a-vis Ind ASs

• Carve outs/ins in Ind ASs vis-à-vis International Financial Reporting Standards (IFRSs)

3. Corporate Financial Reporting - Issues and problems with special reference to published financial statements.

4. Accounting for Corporate Restructuring (including inter-company holdings).

5. Consolidated Financial Statements of Group Companies

• Concept of a Group,

• Purposes of consolidated financial statements,

• Minority interest,

• Goodwill,

• Consolidation procedures

• Minority interests

• Goodwill,

• Treatment of pre- acquisition and post-acquisition profit

• Consolidation with two or more subsidiaries,

• Consolidation with foreign subsidiaries.

• Consolidated profit and loss account,

• Balance sheet and cash flow statement

• Treatment of investment in associates in consolidated financial statements

• Treatment of investments in joint ventures in consolidated financial statements.

6. Accounting and reporting of financial instruments

• Meaning

• Recognition

• Derecognition and offset,

• Compound financial instruments

• Measurement of financial instruments

• Hedge accounting

• Disclosures

7. Share based payments

• Meaning

• Equity settled transactions

• Transaction with employees and non- employees

• Determination of fair value of equity instruments

• Vesting conditions

• Modification

• Cancellation and settlement

• Disclosures

8. Financial Reporting by Mutual funds, Non-banking finance companies, Merchant bankers, Stock and commodity market intermediaries.

9. Valuation

• Concept of Valuation

• Valuation of Tangible Fixed Assets

• Valuation of Intangibles including brand valuation and valuation of goodwill

• Valuation of liabilities

• Valuation of Shares

• Valuation of Business

10. Developments in Financial Reporting

• Value Added Statement

• Economic Value Added, Market Value Added, Shareholders’ Value Added

• Human Resource Reporting

Paper 2- Strategic Financial Management

1. Financial Policy and Corporate Strategy

• Strategic decision making framework

• Interface of Financial Policy and strategic management

• Balancing financial goals vis-à-vis sustainable growth.

2. Project Planning and Capital Budgeting

• Feasibility study

• Cash flow Projections

• Impact of taxation

• Depreciation

• Inflation

• Working capital

• Capital Budgeting Decisions

• Certainty Equivalent approach

• Evaluation of Risky Investment Proposals

• Risk and Return analysis

• Simulation and decision tree analysis

• Sensitivity analysis

• Capital Rationing

• Adjusted Net Present Value

• Replacement decisions

• Application of Real Options in capital budgeting

• Impact of inflation on capital budgeting decisions

• Preparation of Project Report

• Social cost benefit analysis

3. Leasing decision including cross border leasing

4. Dividend Decisions

• Dividend theories

• Determinants of dividend policies

5. Capital Market

• Indian Capital Market including role of various primary and secondary market institutions

• Capital Market Instruments

• Financial derivatives

• Stock futures

• Stock options

• Index futures

• Index options

• Option valuation techniques

• Binomial model

• Black Scholes Option Pricing Model

• Greeks- Delta, Gamma, Theta, Rho and Vega

• Pricing of Futures

• Cost of carry model

• Imbedded derivatives

• Commodity derivatives

• OTC derivatives

• Swaps

• Swaptions

• Forward Rate Agreements (FRAs)

• Caps

• Floors and Collors

6. Security Analysis

• Fundamental analysis

• Economic analysis

• Industry analysis

• Company Analysis

• Bond valuation, Price Yield relationship, Bond Price forecasting

• Application of duration and convexity

• Yield curve strategies

• Technical Analysis

• Market cycle model and basic trend identification,

• Different types of charting

• Support and resistance,

• Price patterns

• Moving averages

• Bollinger Bands

• Momentum analysis

7. Portfolio Theory and Asset Pricing

• Efficient Market Theory

• Random walk theory

• Markowitz model of risk return optimization

• Capital Asset Pricing Model (CAPM)

• Arbitrage Pricing Theory

• Sharpe Index Model

• Portfolio Management

• Formulation

• Monitoring

• Evaluation

• Equity Style Management

• Principles and Management of Hedge Funds

• International Portfolio Management

8. Financial Services in India

• Investment Banking

• Retail Banking

• On Line Share Trading

• Depository Service

9. Funds

• Mutual Funds

• Regulatory framework

• Formulation

• Monitoring and evaluation of various schemes of Mutual funds

• Money market mutual funds

• Exchange Traded Funds

10. Money Market operations

11. a) Foreign Direct Investment, Foreign Institutional Investment

b) International Financial Management

• Raising of capital abroad

• American Depository Receipts

• Global Depository Receipts

• External Commercial Borrowings

• Foreign Currency Convertible Bonds

• International Capital Budgeting

• International Working Capital Management

12. Foreign Exchange Exposure and Risk Management

• Exchange rate determination

• Exchange rate forecasting

• Foreign currency market

• Foreign exchange derivatives

• Forward

• Futures

• Options

• Swaps

• Management of transaction, translation and economic exposures

• Hedging currency risk

13. Mergers, Acquisitions and Restructuring

• Meaning of mergers and acquisition, categories, purposes

• Process of mergers and acquisition

• Identification and valuation of the target

• acquisition through negotiation

• due diligence

• post – merger integration

• Legal and regulatory requirements

• Merger and Acquisition agreement

• Reverse merger

• Potential adverse competitive effects of mergers

• Corporate Takeovers

• Motivations

• Co-insurance effect

• Cross-border takeovers

• Forms of takeovers

• Takeover defenses

• Going Private and Other Control Transactions

• Leveraged Buyouts (LBOs)

• Management Buyouts (MBOs)

• Spin Offs

• Asset Divestitures

• Corporate Restructuring

• Refinancing and rescue financing

• Reorganizations of debtors and creditors

• Sale of assets

• Targeted stock offerings

• Downsizing and layoff programmes

• Negotiated wage give-backs

• Employee buyouts

Paper 3- Advanced Auditing and Professional Ethics

1. Auditing Standards, Statements and Guidance Notes

• Auditing and Assurance Standards (AASs);

• Statements and Guidance Notes on Auditing issued by the ICAI

• Significant differences between Auditing and Assurance Standards and International Standards on Auditing

2. Audit strategy, planning and programming

• Planning the flow of audit work

• Review of audit notes and working papers

• Drafting of reports

• Principal’s ultimate responsibility

• Extent of delegation

• Control over quality of audit work

• Reliance on the work of other auditor

• Internal auditor or an expert

3. Risk Assessment and Internal Control

• Evaluation of internal control procedures

• Techniques including questionnaire

• Flowchart

• Internal audit and external audit

• Coordination between the two

4. Audit under computerized information system (CIS) environment

• Special aspects of CIS Audit Environment

• Need for review of internal control especially procedure controls and facility controls

• Approach to audit in CIS Environment

• Use of computers for internal and management audit purposes: audit tools, test packs, computerized audit programmes

• Special Aspects in Audit of E-Commerce Transaction

5. Special audit techniques

• Selective verification; statistical sampling; Special audit procedures; physical verification of assets, direct confirmation of debtors and creditors

• Analytical review procedures

• Risk-based auditing

6. Audit of limited companies

• Relevant Provisions under the Companies Act, 2013 relating to Audit and Auditors and Rules made thereunder

• Audit of branches

• Joint audits

• Dividends and divisible profits - financial, legal, and policy considerations

7. Rights, duties, and liabilities of auditors; third party liability

8. Audit reports

• Qualifications

• Notes on accounts

• Distinction between notes and qualifications

• Detailed observations by the statutory auditor to the management vis-a-vis obligations of reporting to the members

9. Audit Committee and Corporate Governance

10. Provisions under the Companies Act, 2013 in respect of Accounts of Companies and Rules made thereunder. Audit of Consolidated Financial Statements, Audit Reports and Certificates for Special Purpose engagements; Certificates under the Payment of Bonus Act, import/export control authorities, etc.; Specific services to non-audit clients; Certificate on Corporate Governance.

11. Special features of audit of banks, insurance companies, co-operative societies and non-banking financial companies.

12. Audit under Fiscal Laws, viz, Direct and Indirect Tax Laws

13. Cost audit

14. Special audit assignments like audit of bank borrowers, audit of stock and commodity exchange intermediaries and depositories; inspection of special entities like banks, financial institutions, mutual funds, stock brokers.

15. Special features in audit of public sector companies.

• Directions of Comptroller and Auditor General of India to statutory auditors

• Concepts of propriety and efficiency audit

16. Internal audit

• Management and operational audit

• Nature and purpose

• Organisation

• Audit programme

• Behavioural problems

• Internal Audit Standards issued by the ICAI

• Specific areas of management and operational audit involving review of internal control

• Purchasing operations

• Manufacturing operations

• Selling and distribution

• Personnel policies

• Systems and procedures

• Aspects relating to concurrent audit

17. Investigation and Due Diligence

18. Concept of peer review

19. Salient features of Sarbanes

• Oxley Act, 2002 with special reference to reporting on internal control

20. Professional Ethics

21. Code of Ethics with special reference to the relevant provisions of The Chartered Accountants Act, 1949 and the Regulations thereunder

Paper 4- Corporate and Allied Laws

Section A- company Law & Insolvency and Bankruptcy Code 2016

1. The Companies Act, 2013 and Rules framed thereunder in its entirety with specific reference to

• Declaration and payment of Dividend

• Accounts and audit

• Appointment and Qualifications of Directors

• Appointment and remuneration of Managerial Personnel

• Meetings of Board and its powers

• Inspection, Inquiry and Investigation

• Compromises, Arrangements and Amalgamations

• Prevention of Oppression and Mismanagement

• Revival and Rehabilitation of Sick Companies

• Winding Up

• Producer Companies

• Companies incorporated outside India

• Offences and Penalties

• E-governance

• National Company Law Tribunal and Appellate Tribunal

• Special Courts

• Miscellaneous Provisions

2. Corporate Secretarial Practice

• Drafting of Resolution

• Minutes

• Notices

• Reports

3. Insolvency and Bankruptcy Code, 2016

• Covering Important Definitions

• Corporate Insolvency Resolution Process

• Liquidation Process

Section B- Allied Laws

4. An overview of the following laws:

• The Securities and Exchange Board of India Act, 1992, Rules, Regulations and Guidelines issued thereunder

• Securities Contracts (Regulation) Act, 1956

• The Foreign Exchange Management Act, 1999

• The Competition Act, 2002

• The Banking Regulation Act, 1949, The Insurance Act, 1938. The Insurance Regulatory and Development Authority Act, 1999. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

• The Prevention of Money Laundering Act, 2002

5. Interpretation of Statutes, Deeds and Documents

CA Final Old Syllabus Group 2

Paper 5- Advanced Management Accounting

1. Cost Management

• Developments in the Business Environment

• Just in Time

• Manufacturing Resources Planning; (MRP)

• Automated Manufacturing

• Synchronous Manufacturing and Back Flush Systems to reflect the importance of accurate bills of material and routings

• World Class Manufacturing

• Total Quality Management

• Activity Based Approaches to management and cost analysis

• Analysis of Common Costs in manufacturing and service industry

• Techniques for Profit Improvement, Cost Reduction, and Value Analysis

• Throughput Accounting

• Target Costing; Cost Ascertainment and Pricing of Products and Services

• Life Cycle Costing

• Shut Down and Divestment

2. Cost Volume Profit Analysis

• Relevant Cost

• Product Sales Pricing and Mix

• Limiting Factors

• Multiple Scarce Resource Problems

• Decisions about Alternatives such as Make or Buy, Selection of Products, etc.

3. Pricing Decisions

• Pricing of a Finished Product

• Theory of Price

• Pricing Policy

• Principles of Product Pricing

• New Product Pricing

• Pricing Strategies

• Pricing of Services

• Pareto Analysis

4. Budgets and Budgetary Control

• The Budget Manual

• Preparation and Monitoring Procedures

• Budget Variances

• Flexible Budgets

• Preparation of Functional Budget for Operating and Non-Operating Functions

• Cash Budgets

• Capital Expenditure Budget

• Master Budget

• Principal Budget Factors

5. Standard Costing and Variance Analysis

• Types of Standards and Sources of Standard Cost Information; Evolution of Standards, Continuous – Improvement; Keeping Standards Meaningful and Relevant; Variance Analysis; Disposal of Variances

• Investigation and Interpretation of Variances and their Inter Relationship

• Behavioural Considerations

6. Transfer Pricing

• Objectives of Transfer Pricing

• Methods of Transfer Pricing

• Conflict between a Division and a Company

• Multinational Transfer Pricing

7. Cost Management in Service Sector

8. Uniform Costing and Inter Firm Comparison

9. Profitability Analysis - Product Wise / Segment Wise / Customer Wise

10. Financial Decision Modeling

• Linear Programming

• Network Analysis

• PERT/CPM

• Resource Allocation

• Resource Leveling

• Transportation Problems

• Assignment Problems

• Simulation

• Learning Curve Theory

Paper 6- Information Systems Control and Audit

1. Concepts of Governance and Management of Information Systems

• Governance, Risk and compliance and relationship between governance and management

• Role of information technology and IS Strategy in business strategy

• Operations and control

• Business value from use of IT

• Business impact of IS risks different types of Information Systems Risks

• IS Risk management overview

• IT Compliance overview

• Role and responsibilities of top management as regards IT-GRC

• Role of Information Systems Assurance

• Overview of Governance of Enterprise IT and COBIT

2. Information Systems Concepts

• Overview of information systems in IT environment and practical aspects of application of information systems in enterprise processes

• Information as a key business asset and its relation to business objectives

• business processes and relative importance of information systems from strategic and operational perspectives

• Various types of business applications

• Overview of underlying IT technologies

3. Protection of Information Systems

• Need for protection of Information systems

• Types of controls

• IT general controls

• logical access controls & application controls

• Technologies and security management features

• IS Security Policies

• Procedures

• Practices

• Standards and guidelines

• IT controls and control objectives

• Role of technology systems in control monitoring

• Segregation of duties

• Impact of IT controls on Internal controls over financial reporting

• Cyber frauds and control failures

4. Business Continuity Planning and Disaster recovery planning

• Assessing Business Continuity Management

• Business Impact Analysis and Business Continuity Plans

• Disaster recovery from perspective of going concern

• Recovery Strategies

5. Acquisition, Development and Implementation of Information Systems (SDLC)

• Business process design (integrated systems, automated, and manual interfaces)

• Software procurement

• RFP process, evaluation of IT proposals

• Computing ROI

• Computing Cost of IT implementation and cost benefit analysis

• Systematic approach to SDLC and review of SDLC controls at different stages

6. Auditing & Information Systems

• Different types of IS audit and assurance engagements

• Evaluating IT dependencies for audit planning

• Overview of continuous auditing

• Auditing Information Systems

• IS Audit planning

• performing an IS audit

• Rules of digital evidence

• Best practices and standards for IS audit

• Reviewing General Controls

• Application Controls

• Application control reviews

• Review of controls at various levels/layers such as: Parameters, user creation, granting of access rights, input, processing and output controls.

7. Information Technology Regulatory issues

• Overview of Specific section of IT Act 2008 & Rules as relevant for assurance

• Electronic Contracting

• Digital signatures

• Cyber offences

• Need for systems audit as per various regulations such as

• SEBI Clause 49 listing requirements and internal controls

• Systems control & audit requirements as per RBI, SEBI, IRDA

• Concepts of Cyber forensics/Cyber Fraud investigation

• Overview of Information Security Standards ISO 27001, ISAE 3402/SA 402, ITIL

8. Emerging Technology

• Overview of Cloud Computing

• Software as a Service

• Mobile Computing & BYOD

• Web 2.0 & social media

• Green IT and related security and audit issues

Paper 7- Direct Tax Laws

1. The Income-tax Act, 1961 and Rules thereunder

• Considerations relevant to tax management

• Tax considerations with regard to specific management decisions

• Foreign collaboration agreements

• International taxation

• Amalgamations

• Tax incentives

• Personnel compensation plans

• Inter-relationship of taxation and accounting, with special reference to relevant accounting standards

• Other precautions to be observed to maximise tax relief

• Basic understanding about the ethical considerations in tax management and

• Compliance with taxation laws

Paper 8- Indirect Tax Laws

Part 1- Goods and Services Tax

1. Goods and Services Tax (GST) Law as contained in the Central Goods and Services Tax (CGST) Act, 2017 and Integrated Goods and Services Tax (IGST) Act, 2017

• Constitutional aspects

• Levy and collection of CGST and IGST

• Application of CGST/IGST law

• Concept of supply including composite and mixed supplies

• inter-State supply

• intra-State supply

• supplies in territorial waters

• Charge of tax

• Exemption from tax

• Composition levy

• Place of supply

• Composition levy

• Input tax credit

• Computation of GST liability

• Procedures under GST

• All procedures including registration

• Tax invoice

• Credit and debit notes

• Electronic way bill

• Accounts and records

• Returns

• Payment of tax including reverse charge

• Refund

• Job work

• Provisions relating to electronic commerce

• Liability to pay in certain cases

• Administration of GST; Assessment and Audit

• Inspection, Search, Seizure and Arrest

• Demand and Recovery

• Offences and Penalties

• Advance Ruling

• Appeals and Revision

• Other provisions

Part 2- Customs and FTP

1. Customs Law as contained in the Customs Act, 1962 and the Customs Tariff Act, 1975

• Introduction to customs law including Constitutional aspects

• Levy of and exemptions from customs duties

• All provisions including application of customs law

• Taxable event

• Charge of customs duty

• Exceptions to levy of customs duty

• Exemption from custom duty

• Types of customs duties

• Classification and valuation of imported and export goods

• Officers of Customs

• Appointment of customs ports, airports etc.

• Import and Export Procedures - All import and export procedures including special procedures relating to baggage, goods imported or exported by post, stores

• Provisions relating to coastal goods and vessels carrying coastal goods

• Warehousing

• Drawback

• Demand and Recovery; Refund

• Provisions relating to prohibited goods, notified goods, specified goods, illegal importation/exportation of goods

• Searches, seizure and arrest; Offences; Penalties; Confiscation and Prosecution

• Appeals and Revision; Advance Rulings; Settlement Commission

• Other provisions

2. Foreign Trade Policy to the extent relevant to the indirect tax laws

• Introduction to FTP

• Legislation governing FTP

• Salient features of an FTP

• Contents of FTP

• Other related provisions

• Basic concepts relating to import and export of goods

• Basic concepts relating to export promotion schemes provided under FTP