Know the New CA Final Syllabus and Section Wise Weightage Here

The Institute of Chartered Accountants of India ( ICAI ) has released the updated syllabus for the CA Final Exam, shedding light on the critical areas candidates must focus on.

The comprehensive breakdown includes section-wise weightage for the upcoming May 2024 CA Final Exam.

The CA Final Syllabus comprises the following papers –

Paper-1: Financial Reporting, Paper-2: Advanced Financial Management, Paper-3: Advanced Auditing, Assurance, and Professional Ethics, as well as Paper-4: Direct Tax Laws & International Taxation and Paper-5: Indirect Tax Laws.

Paper-1: Financial Reporting (100 Marks)

This paper emphasizes the understanding of financial reporting principles and Indian Accounting Standards ( Ind AS ).

Key sections include:

1. Introduction to General Purpose Financial Statements (10%-15%)

- Applicability criteria and statutory provisions.

2. Conceptual Framework for Financial Reporting under Ind AS (5%-10%)

- Presentation, measurement, and disclosure of financial items.

3. Application of Ind AS (15%-25%)

- In-depth coverage on revenue recognition, assets, liabilities, and disclosures.

4. Ind AS on Financial Instruments (10%-15%)

- Classification, measurement, and disclosure of financial instruments.

5. Ind AS on Group Accounting (10%-20%)

- Business combinations, consolidated and separate financial statements.

6. First-time Adoption of Ind AS (5%-10%)

- Analysis of financial statements, ethics with accounting concepts, and technology's role,

Paper-2: Advanced Financial Management (100 Marks)

This paper focuses on strategic decision-making in financial management. Notable sections include:

1. Financial Policy and Corporate Strategy (8%-15%)

- CFO's role, strategic decision-making, and financial goal balancing.

2. Risk Management (20%-30%)

- Identifying and managing financial risks, capital budgeting decisions, and security analysis.

3. Security Valuation (20%-30%)

- Theories, equity, debt valuation, and portfolio management.

4. International Financial Management (20%-25%)

- Multinational cash management, interest rate risk, and business valuation.

5. Business Valuation (10%-15%)

- Approaches, cost of equity, and valuation in various scenarios.

6. Mergers, Acquisitions, and Corporate Restructuring (2%-5%)

   - Conceptual framework, types, and strategies.

Paper-3: Advanced Auditing, Assurance, and Professional Ethics (100 Marks)

This paper delves into auditing practices, procedures, and ethical considerations. Noteworthy sections include:

1. Quality Control (45%-55%)

- SQC 1, SA 220, and general auditing principles.

2. Audit Planning, Strategy, and Execution (0%-5%)

- SA 300 application through case studies.

3. Materiality, Risk Assessment, and Internal Control (15%-24%)

- Evaluation of internal control, risk-based audit, and reporting.

4. Audit Evidence (0%-5%)

- Application of SA 500, SA 501, and other related SAs.

5. Reporting (15%-30%)

- Forming an opinion, key audit matters, and modification of opinions.

6. Group Audits (17%-24%)

- Consolidated financial statements and audit of group entities.

7. Professional Ethics and Liabilities of Auditors (17%-24%)

   - IESBA Code of Ethics, threats, safeguards, and ethical considerations in auditing.

Paper-4: Direct Tax Laws & International Taxation (100 Marks)

This paper focuses on analyzing direct tax laws and their application to cross-border transactions. Key sections include:

1. Comprehensive Computation of Income Tax (40%-45%)

- General provisions, special tax regimes, and tax planning.

2. Special Provisions (20%-30%)

- Charitable trusts, anti-avoidance provisions, and undisclosed income taxation.

3. International Taxation (30%-35%)

   - Cross-border transactions, transfer pricing, double taxation relief, and latest international tax developments.

Paper-5: Indirect Tax Laws (100 Marks)

This paper covers Goods and Services Tax ( GST ), Customs, and Foreign Trade Policy. Sections include:

1. Goods and Services Tax ( GST ) (45%-65%)

- Levy, procedures, refunds, job work, administration, and ethics under GST.

2. Customs & FTP (20%-45%)

- Levy of customs duties, import-export procedures, warehousing, and foreign trade policy.

Notably, a deviation of maximum ±5% in the specified section-wise weightage is permitted.

Aspiring candidates are encouraged to stay abreast of these sections, ensuring a comprehensive preparation strategy for the upcoming CA Final Exam.

The dynamic nature of the syllabus necessitates adaptability to legislative changes for a successful attempt at the CA Final Examinations.

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