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.
– 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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