What is in the CA Final May 2019 Exam?

WHAT IS IN THE CA FINAL MAY 2019 EXAM?

The CA Final exam is the last set of exams in the Chartered Accountancy Course. This is when all the knowledge you’ve acquired during your articleship training and throughout your study for CA Foundation and/or CA Intermediate are tested and expanded upon. As such, this hurdle may be the toughest one to overcome for students.

But it need not be.

With due diligence, you should be able to pass.

You do need to know what’s in the exam to enable your prep.

That’s why, in this post, we will talk about what’s in the exam. The number of papers. Weightage given to teach topic. And how ICAI assess your skills. We are not going to talk about any special tips to pass the exam.

No.

Our focus will be mainly on the content of the exam.

Ready?

Let’s get started.

Read time: 30 min

1. Introduction
2. The Papers of the CA Final Exam: Overview
3. The Papers of the CA Final Exam: Skill Assessment
4. Group I – Paper 1: Financial Reporting
5. Group I – Paper 2: Strategic Financial Management
6. Group I – Paper 3: Advanced Auditing and Professional Ethics
7. Group I – Paper 4: Corporate and Economic Laws
8. Group II – Paper 5: Strategic Cost Management and Performance Evaluation
9. Group II – Paper 6: Elective Paper
10. Group II – Paper 7: Direct Tax Laws & International Taxation
11. Group II – Paper 8: Indirect Tax Laws
12. CA Final Passing Requirements
13. How to Study for CA Final
14. How to Check For CA Final Results

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Introduction

The exam is known officially as the Chartered Accountants Final Exam. CA Final for short. ICAI conducts these exams twice yearly. Once in May and the other in November.

There are two groups of papers: Group I and Group II. Both groups contain four papers. But you should know that one of the papers in Group II is elective. That is, you can choose to appear for a paper from among a list of elective topics.

Each paper is held in a single day. You can choose to attempt all papers in either or both groups.

The exam mode is offline (pen/pencil paper).

The medium of the exam is either in English or Hindi. You’ll have to indicate which when you register. Note that your choice of language is group based. That is, if you registered for a group with the choice of, say English, you must attempt all papers of that group in English. Likewise, for Hindi.

We will talk more about that later and what each paper contains.

But not everyone can register and appear for the exam. You’ll need to fulfil some minimum criteria. We’ve talked about what they are here.

The Papers of the CA Final Exam: Overview

As we said, there are two groups of papers in the exam. Each group contains four papers.

Papers of Group I are the following:

 Fig (1): Papers of CA Final May 2019 Exam Group I 

As you can see from the table, each paper in group I is worth a total of 100 marks. Note also that paper contains two parts. Also note that papers 3 and 4 contain both subjective and objective questions. 30% of the questions are MCQ based in these papers. In the MCQ section, each question is worth one to two marks with no negative marking.

Papers of Group II are:

 Fig (2): Papers of CA Final May 2019 Exam Group II  

Notice that all papers in the group are worth a total of 100 marks. Note also that papers 7 and 8 contain two parts. Also, 30% weightage of these two papers is given to MCQ. In the MCQ section, each question is worth one to two marks with no negative marking. In addition note that paper 6 is an elective paper. We’ll remark upon this later.

The Papers of the CA Final Exam: Skill Assessment

ICAI assess different types of skills in each content area. There are three levels of skills: Level I, Level II and Level II. Understand that skills specified in Level I are carried over to Level II and so on. That is you can’t achieve Level II skills with acquiring Level I skills!

Here’s the assessment specification grid (taken from the prospectus and adapted for the CA Final Exam.) 

  Fig (3): Skill Assessment Grid for CA Final May 2019 Exam

For skill and level wise weightage for each subject in each paper of Group I, look at the table below:

Fig (4): Skill Weightages for CA Final May 2019 Exam Group I Papers 

For Group II, the weightages are:

 Fig (5): Skill Weightages for CA Final May 2019 Exam Group II Papers 

Note that ICAI has NOT outlined the skill wise weightage for the elective paper. We’ll talk about the elective paper in depth later.

Now, let’s look at each paper in turn and see what they contain. 

Group I – Paper 1: Financial Reporting (100 Marks Total; Duration 3 hours)

According to ICAI, the objective of this paper is twofold:

• To acquire the ability to integrate and solve problems in practical scenarios on Accounting Standards, Guidance Notes and Indian Accounting Standards for deciding the appropriate accounting treatment and formulating the suitable accounting policies.
• To develop an understanding of the various forms of reporting (other than financial statements) and accounting for special transactions, and apply such knowledge in problem solving.

The contents of the paper are as follows: 

 Fig (6): Financial Reporting - Syllabus for CA Final May 2019 Exam Overview

Note that

1. if new accounting standards, announcements and limited revisions to them are issued, then the syllabus will be updated to reflect them. The same goes for the case where earlier ones are withdrawn or new accounting standards, announcements and limited revisions are issued in place of them. This will take effect from the date to be notified by the Institute; and
2. specific inclusions/exclusions in any topic covered by the syllabus will be outlined every year by study guidelines. The list of Guidance Notes in Accounting and significant Expert Advisory Opinions, wherever applicable, will also from part of the Study Guidelines.

Group I – Paper 2: Strategic Financial Management (100 Marks Total; Duration 3 hours)

 The contents of the paper are as follows: 

 Fig (7): Strategic Financial Management - Syllabus for CA Final May 2019 Exam Overview 

Group I – Paper 3: Advanced Auditing and Professional Ethics

Note that this paper contains both subjective and objective questions. 30% weightage is given to MCQs. 70% is subjective. There will be no negative marking in the MCQ section. Also, each MCQ is worth one to two marks.

ICAI says that the objective is for you:

• To acquire the ability to analyse current audit practices and procedures and apply them in auditing engagements.
• To acquire the ability to solve cases relating to audit engagements.

Here is a list of the topics covered: 

 Fig (8): Advanced Accounting and Professional Ethics - Syllabus for CA Final May 2019 Exam Overview 

 ICAI has also set out the following notes:

• The specific inclusions/exclusions in any topic covered in the syllabus will be effected every year by way of 64 Study Guidelines
• 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
• If new legislations/Standards Engagement of Quality Control/Guidance Notes/Statements are enacted in place of the existing legislations, the syllabus would include the corresponding provisions of such new legislations with effect from a date notified by the Institute. The changes in this regard would also form part of Study Guidelines

Group I – Paper 4: Corporate and Economic Laws (Total Marks 100; Duration 3 hours)

This paper is divided into two parts: Part I and Part II. It contains both subjective and objective questions. 30% weightage is given to MCQ. There will be no negative marking for MCQs. Also, each MCQ is worth one to two marks. Part I is further subdivided into two sections: Section A and Section B.

Group I – Paper 4 – Part 1: Corporate Laws (70 Marks)

Group 1 – Paper 4 – Part 1: Corporate Laws – Section A: Company Law

The objective of this section is to “acquire the ability to analyse interpret and apply the provisions of the company law in practical situations.”.

There are two main topics and various subtopics: 

Fig (9): Company Law - Syllabus for CA Final May 2019 Exam Overview  

 In addition, ICAI adds the following note to the syllabus:

“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.” 

Group 1 – Paper 4 – Part 1: Corporate Laws – Section B: Securities Laws

The objective here is “To acquire the ability to analyse the significant provisions of select securities laws.”.

The two securities acts that you’ll have to analyse are: 

Fig (10): Securities Laws - Syllabus for CA Final May 2019 Exam Overview  

Group I – Paper 4 – Part II: Economic Laws (30 Marks)

The objective in this part is to “acquire the ability to analyse the significant provisions of economic laws.”.

The syllabus is as follows:

 Fig (11): Economic Laws - Syllabus for CA Final May 2019 Exam Overview  

Note that if Parliament enacts new legislations in place of existing ones, the syllabus will be updated to include the corresponding provisions of these new legislations. It will be effective from the dates notified by the Institute. Similarly, if any existing legislation ceases to have effect, the syllabus will be updated to reflect the change.

The specific inclusions/exclusions in the various topics covered in the syllabus will be effected every year by way of Study Guidelines, if required.

Now, let's see what's in the papers of Group II. 

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Group II – Paper 5: Strategic Cost Management and Performance Evaluation (100 Marks Total; Duration 3 hours)

Here are the objectives:

• To apply various cost management techniques for planning and controlling performance in order to set, monitor and control strategic objectives.
• To develop skills of analysis, synthesis and evaluation in cost management to address challenges and issues which might affect or influence the management of performance with in organisations

The paper itself is split into three parts: A, B and C. Part A is divided into two subparts: Subpart I and Subpart II. Part B is also separated into two subparts I and II. Part C is a case study.

Let’s look at what each part, and each of its subparts contain.

 Fig (11): Strategic Cost Management and Performance Evaluation - Syllabus for CA Final May 2019 Exam Overview   

Group II – Paper 6: Elective Paper (100 Marks Total; Duration 3 hours)

This is an open book paper. It’s also case study based. You must choose a topic from among the following:

• 6A Risk Management
• 6B Financial Services & Capital Markets
• 6C International Taxation
• 6D Economic Laws
• 6E Global Financial Reporting Standards
• 6F Multi-disciplinary Case Study

We won't go into details of what each elective paper contains in this post. For that information, look at our analysis of what elective papers are. For now, just keep in mind that you’ll have to choose carefully which paper to attempt. Decide on a topic that you are deeply interested in or have strong partial knowledge. Also, your choice may be influenced by which field(s) you want to specialise in once you become a CA proper. 

Group II – Paper 7: Direct Tax Laws & International Taxation (100 Marks Total; Duration 3 hours)

This paper is split into two parts: Part I and Part II. It contains both subjective and objective questions. 70% is subjective whereas 30% is MCQ based. The MCQ part contains no negative marking and each question is worth one to two marks. Let’s now see what each part contains.

Group II – Paper 7 – Part I: Direct Tax Laws (70 Marks)

The objective here is to “acquire the ability to analyze and interpret the provisions of direct tax laws and recommend solutions to practical problems.”.

In essence, you’ll have to interpret and analyse the law and procedures under the Income-tax Act, 1961.

These are:

  Fig (12): Direct Tax Laws - Syllabus for CA Final May 2019 Exam Overview  

 Footnotes:

1. Including firms, LLPs, Trusts, AOPs, BOIs, Securitsation Trusts, Business Trusts, Investment Fund, etc.
2. Representative assessees, Executors, etc.
3. The entire income-tax law is included at the Final level. Any residuary provision under the Income-tax Act, 1961, not covered under any of the above specific provisions or under Part II: International Taxation would be covered under “Other Provisions”. Further, if any new chapter is included in the Income-tax Act, 1961, the syllabus will accordingly include the provisions relating thereto.

Group II – Paper 7 – Part II: International Taxation (30 Marks)

Here, you’ll have to “develop an understanding of the concepts, principles and provisions of International Taxation and acquire the ability to apply such knowledge to make computations and to address application oriented issues.”.

The contents are as follows: 

 Fig (13): International Taxation - Syllabus for CA Final May 2019 Exam Overview  

 And as with anything related to laws/provisions, ICAI has the following caveats:

“If any new legislation(s)are enacted in place of an existing legislation(s), the syllabus will accordingly include the corresponding provisions of such new legislation(s) in the place of the existing legislation(s) with effect from the date to be notified by the Institute. Similarly, if any existing legislation(s)on direct tax laws ceases to be in force, the syllabus will accordingly exclude such legislation(s)with effect from the date to be notified by the Institute.

Further, the specific inclusions/exclusions in any topic covered in the syllabus, wherever required, will be effected by way of Study Guidelines every year, if required. Specific inclusions/exclusions in a topic may also arise due to additions/deletions made every year by the Annual Finance Act.”. 

Group II – Paper 8: Indirect Tax Laws (100 Marks Total; Duration 3 hours)

This paper is split into two parts: Part I and Part II. The paper contains both subjective and objective questions. 70% is subjective and 30% is MCQ based. There is no negative marking for MCQs. And each MCQ is worth one to two marks.  Now, let’s see what each part contains, and the marks allocated for each part.

Group II – Paper 8 – Part I: Goods & Services Tax (75 Marks)

Here the objective is to “acquire the ability to analyze and interpret the provisions of goods and services tax law and recommend solutions to practical problems.”

Under the Goods and Service Tax (GST) Law as contained in the Central Goods and Service Tax (GGST) Act, 2017 and Integrated Goods and Services Tax (IGST) Act, 2017, you’ll have to understand the following:

  Fig (14): Goods and Services Tax (GST) - Syllabus for CA Final May 2019 Exam Overview  

 Footnotes:

1. The entire CGST and IGST laws are included in the syllabus at the Final level. Any residuary provision under the CGST Act, 2017 and IGST Act, 2017, not covered under any of the above specific provisions, would be covered under “Other provisions”. Further, if any new Chapter is included in the CGST Act, 2017, the syllabus will accordingly include the provisions relating thereto.

That’s what’s in the first part of the paper. Now, let’s move on to Part II. 

Group II – Paper 8 – Part II: Customs & FTP (25 Marks)

Here ICAI outlines two objectives. These are:

• To develop an understanding of the customs laws and acquire the ability to analyse and interpret the provisions of such laws.
• To develop an understanding of the basic concepts of foreign trade policy to the extent relevant to indirect tax laws and acquire the ability to analyse such concepts.

Here are the contents:

Fig (15): Customs and FTP - Syllabus for CA Final May 2019 Exam Overview   

As usual, when dealing with any laws and legislations, ICAI says the following:

“If any new legislation(s) is enacted in place of an existing legislation(s), the syllabus will accordingly include the corresponding provisions of such new legislation(s) in place of the existing legislation(s) with effect from the date to be 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. Students shall not be examined with reference to any particular State GST Law.

Further, the specific inclusions/exclusions in any topic covered in the syllabus, will be effected every year by way of Study Guidelines, if required.”.

Footnotes

1. The entire customs law is included in the syllabus at the Final level. Any residuary provision under the Customs Act, 1962 or Customs Tariff Act, 1975, not covered under any of the above specific provisions, would be covered under “Other Provisions”. Further, if any new Chapter is included in the Customs Act, 1962 or Customs Tariff Act, 1975, the syllabus will accordingly include the provisions relating thereto.

CA Final Passing Requirements

You can appear for either one or both groups of papers. Appearing for a group means that you’ll have to appear for all papers in that group. Note that you’ll have to pass both groups of papers to move on to the next step.

If you appear for only one group, the minimum requirement to pass the group is that:

1. you obtain a minimum of 40% marks in each paper of the group and
2. you obtain a minimum of 50% marks in the aggregate of all papers of the group taken together.

If you appear for both groups simultaneously, then you clear both groups if:

1. you meet the minimum requirements to clear a group individually or
2. you obtain a minimum of 40% marks in each paper of both the groups, and a minimum of 50% marks in the aggregate of all papers of both groups taken together.

Now, you can appear for the groups as many times as you want. And your next attempt can be made the next time ICAI holds the exam. That is, suppose you’ve failed a group in your May attempt. You can appear for the same group in November! Similarly, if you choose to appear for only one group and pass it, you can appear for the next group the next time ICAI conducts the exam.

You can also get certain exemptions depending on marks obtained from previous attempts.

How to Study for CA Final

The CA Final Exam covers a lot of ground. With adequate preparation, and concentration on your fundamentals, there’s no reason why you shouldn’t pass.

Focus your attention on papers in which you are relatively weak. And score as much as possible in your strong areas. Beware of the minimum requirements.

Also, there is no need to fear this exam, if you have prepared well! You might want to look at this post to see how to calm your nerves.

As a tip specific to this exam, we think that, depending on your prep, you should try to clear both groups together. This is counterintuitive but the way the passing requirements is structured makes this the best choice. Also, you will save time and not have to wait for another 6 months to clear the next group.

But if your prep is not adequate, then focus on a single group at a time. No need to take any risk. It all depends on the time you have spent on your studies.

How to Check For CA Final Results

Once you have appeared for the CA Final, your results will be out shortly. For the November 2018 exam, ICAI has made a major announcement regarding the results. You can read all about here.

Well, that’s about done it for this post. We hope that you are now aware of what’s in the paper and what to expect. If you want to know more, why don’t you sign up for our CA Final Video courses? This way, you can get a jump start in your prep asap.

Also, we wish you all the best in your upcoming exams. Good luck! 

Need any clarifications on any part of this post? Tell us in the comment section below. And don’t forget to sign up for our video lecture series that covers the entire syllabus!