In a recent notification in June 2019, ICAI announced that they were making a few changes to the CA Intermediate New Syllabus. These changes are applicable for the CA Intermediate November 2019 exams. (If you want a general overview of the syllabus, click here.)
The changes are of two types:
- Exclusions of topics from the scope of the Syllabi
- Inclusions of topics from the scope of the Syllabi
The table below shows the exclusions of the topics from the scope of the Syllabi:
Exclusions of Topics from the CA Intermediate November 2019 exam
|
Paper
|
Exclusions
|
|
Paper 2: Corporate and other laws
|
The following Sections in the Companies Act, 2013 are excluded from certain topics in the Syllabus:
- Prospect and allotment of Securities: Sections 24, 30, 33, 38, & 41
- Share Capital and Debentures: 44, 45, 60, 65 & 72
- Acceptance of deposits by companies: 75
- Registration of charges: 81 & 85
|
|
Paper 3: Cost Accounting
|
- Material: Consumption- Identification with products of cost centers, Basis for consumption entries in financial accounting, monitoring consumption has been EXCLUDED
- Employee Cost: Remuneration systems and incentive schemes – Under incentive schemes, only Premium Bonus method and Halsey Scheme has been RETAINED. All other incentive schemes have been REMOVED
- Direct Expenses: Direct expenses, Nature of Direct or Chargeable expenses, Subcontracting- Control on material movements, Identification with the main product or service have been EXCLUDED.
- Costing of Service Sectors: The sub-topic title “Costing of services sectors” has been changed to ‘Costing of various service sectors’ and the detailed description thereunder in the syllabus has been REMOVED. There is no reduction in content of Study Material.
|
|
Paper 6: Auditing and Assurance
|
Statement on Reporting under Section 227(1A) of the Companies Act, 1956 (Section 143(1) of the Companies Act, 2013) EXCLUDED
The Following Engagements and Quality Control Standards on Auditing are EXCLUDED:
- SA 260: Communication with Those Charged with Governance (Revised)
- SA 265: Communicating Deficiencies in Internal Control to Those Charged with Governance and Management
- SA 330: The Auditor’s Responses to Assessed Risks
- SA 402: Audit Considerations Relating to an Entity Using a Service Organization
- SA 450: Evaluation of Misstatements Identified during the Audits
- SA 540: Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
- SA 600: Using the Work of Another Auditor
- SA 620: Using the Work of an Auditor’s Expert
- SA 720: The Auditor’s Responsibilities Relating to Other Information
The Following Guidance Notes are EXCLUDED:
- Guidance Note on Audit of Inventories.
- Guidance Note on Audit of Debtors, Loans and Advances.
- Guidance Note on Audit of Investments.
- Guidance Note on Audit of Cash and Bank Balances.
- Guidance Note on Audit of Liabilities.
- Guidance Note on Audit of Revenue.
- Guidance Note on Audit of Expenses.
- Guidance Note on Reporting under section 143(3)(f) and (h) of the Companies Act, 2013
|
|
Paper 8A: Financial Management
|
- Capital Budgeting: The impact of Taxation on the NPV Analysis, the impact of inflation on the NPV analysis, Adjusted Present Value have been EXCLUDED.
- Risk Analysis in Capital Budgeting: Monte Carlo Simulation and Decision Tree Analysis has been EXCLUDED.
|
This table below shows the additions/modifications in the syllabi of select subjects:
Additions/modifications in the CA Intermediate May 2020 Syllabus
|
Paper
|
Additions/Modifications
|
|
Paper 1: Accounting
|
Topics shifted from Paper 1 to Paper 5:
- Application of Accounting Standards: AS 4; AS 5; AS 17 and AS 22
- Dissolution of partnership firms including piecemeal distribution of assets; amalgamation of partnership firms; conversion of partnership firm into a company and Sale to a company; Issues related to accounting in Limited Liability Partnership.
|
|
Paper 4A: Income-tax Law
|
Computation of AMT INCLUDED (in relation to section 35AD and 10AA) through Study Guidelines in the topic “Computation of total income and tax liability of individuals”
|
|
Paper 5: Advanced Accounting
|
Topics shifted from Paper 1 to Paper 5:
- Application of Accounting Standards: AS 4; AS 5; AS 17 and AS 22
- Dissolution of partnership firms including piecemeal distribution of assets; Amalgamation of partnership firms; Conversion of partnership firm into a company and Sale to a company; Issues related to accounting in Limited Liability Partnership.
Topics REMOVED from the syllabus:
- Underwriting of Shares and Debentures
- Application of Guidance Notes issued by the ICAI on specified accounting aspects
- Valuation of Goodwill
- Financial Reporting of Insurance Companies and Mutual Funds and regulatory requirements thereof; Topic 5 of the syllabus content will accordingly be restricted to Banking companies and NBFCs.
|
|
Paper 8A: Financial Management
|
- Types of Financing Introduction to Lease Financing has been INCLUDED.
- Lease Financing The entire topic has been EXCLUDED.
|
Now, one of our esteemed faculty, CA Chinmaya Hegde has made an analysis of the changes to the Paper 5 Advanced Accounting Syllabus. We invite you to take a look at his analysis on our Youtube channel. Also, we will be posting more videos looking at the changes in each part of the syllabus, so don't forget to subscribe to the channel for notifications.
If you want more information about these changes and notifications, have a look at the announcement made by ICAI in detail.
Looking for study material relevant to the CA Intermediate November 2019 syllabus? Sign up on LearnCab below:
