CHANGES AND AMENDMENTS APPLICABLE FOR CA FINAL FOR NOVEMBER 2015

Applicability of Standards/Guidance Notes/Legislative Amendments etc. for November, 2015 – Final Examination


Paper 1: Financial Reporting


I. Framework for the Preparation and Presentation of Financial Statements.
II. Accounting Standards
AS No.
AS Title
1
Disclosure of Accounting Policies
2
Valuation of Inventories
3
Cash Flow Statements
4
Contingencies and Events Occurring after the Balance Sheet Date
5
Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
6
Depreciation Accounting
7
Construction Contracts (Revised 2002)
9
Revenue Recognition
10
Accounting for Fixed Assets
11
The Effects of Changes in Foreign Exchange Rates (Revised 2003)
12
Accounting for Government Grants
13
Accounting for Investments
14
Accounting for Amalgamations
15
Employee Benefits
16
Borrowing Costs
17
Segment Reporting
18
Related Party Disclosures
19
Leases
20
Earnings Per Share
21
Consolidated Financial Statements
22
Accounting for Taxes on Income
23
Accounting for Investment in Associates in Consolidated Financial Statements
24
Discontinuing Operations
25
Interim Financial Reporting
26
Intangible Assets
27
Financial Reporting of Interests in Joint Ventures
28
Impairment of Assets
29
Provisions, Contingent Liabilities and Contingent Assets
30
Financial Instruments: Recognition and Measurement
31
Financial Instruments: Presentation
32
Financial Instruments: Disclosure

III. Guidance Notes on Accounting Aspect
s
1. Guidance Note on Accrual Basis of Accounting.
2. Guidance Note on Accounting Treatment for Excise Duty.
3. Guidance Note on Terms Used in Financial Statements.
4. Guidance Note on Availability of Revaluation Reserve for Issue of Bonus Shares.
5. Guidance Note on Accounting Treatment for MODVAT/CENVAT.
6. Guidance Note on Accounting for Corporate Dividend Tax.
7. Guidance Note on Accounting for Employee Share-based Payments.
8. Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under the Income Tax Act, 1961.
9. Guidance Note on Measurement of Income Tax for Interim Financial Reporting in the context of AS 25.
10. Guidance Note on Applicability of Accounting Standard (AS) 20, Earnings per Share.
11. Guidance Note on Remuneration paid to key management personnel – whether a related party transaction.
12. Guidance Note on Applicability of AS 25 to Interim Financial Results.
13. Guidance Note on Turnover in case of Contractors.
14. Guidance Note on the Revised Schedule VI to the Companies Act, 1956*
[*Schedule III to the Companies Act, 2013.]

IV. Applicability of the Companies Act, 2013 and other Legislative Amendments

The relevant notified Sections of the Companies Act, 2013 up to 31st March, 2015 and other legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authority up to 30th April, 2015.

Non-Applicability of Ind ASs:

The Ministry of Corporate Affairs has notified Roadmap for applicability of Indian Accounting Standards (Ind AS) vide Notification No. G.S.R…….(E) dated 16 February, 2015, for compliance by the class of companies specified in the said roadmap. The notification has been uploaded on www.mca.gov.in along with the thirty nine (39) Indian Accounting Standards (Ind AS). Students may note that these Ind ASs are not applicable for November, 2015 Examination.


Paper 3: Advanced Auditing and Professional Ethics

I. Statements and Standards
1. Statement on Reporting under Section 227(1A) of the Companies Act, 1956 (Section 143 of the Companies Act, 2013).
2. Framework for Assurance Engagements.
II. Engagements and Quality Control Standards on Auditing
S.No
SA
Title of Standard on Auditing
1
SQC 1
Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements
2
SA 200
Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing
3
SA 210
Agreeing the Terms of Audit Engagements
4
SA 220
Quality Control for Audit of Financial Statements
5
SA 230
Audit Documentation
6
SA 240
The Auditor’s responsibilities Relating to Fraud in an Audit of Financial Statements
7
SA 250
Consideration of Laws and Regulations in An Audit of Financial Statements
8
SA 260
Communication with Those Charged with Governance
9
SA 265
Communicating Deficiencies in Internal Control to Those Charged with Governance and Management
10
SA 299
Responsibility of Joint Auditors
11
SA 300
Planning an Audit of Financial Statements
12
SA 315
Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment
13
SA 320
Materiality in Planning and Performing an Audit
14
SA 330
The Auditor’s Responses to Assessed Risks
15
SA 402
Audit Considerations Relating to an Entity Using a Service Organization
16
SA 450
Evaluation of Misstatements Identified during the Audits
17
SA 500
Audit Evidence
18
SA 501
Audit Evidence - Specific Considerations for Selected Items
19
SA 505
External Confirmations
20
SA 510
Initial Audit Engagements-Opening Balances
21
SA 520
Analytical Procedures
22
SA 530
Audit Sampling
23
SA 540
Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
24
SA 550
Related Parties
25
SA 560
Subsequent Events
26
SA 570
Going Concern
27
SA 580
Written Representations
28
SA 600
Using the Work of Another Auditor
29
SA 610
Using the Work of Internal Auditors
30
SA 620
Using the Work of an Auditor’s Expert
31
SA 700
Forming an Opinion and Reporting on Financial Statements
32
SA 705
Modifications to the Opinion in the Independent Auditor’s Report
33
SA 706
Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report
34
SA 710
Comparative Information – Corresponding Figures and Comparative Financial Statements
35
SA 720
The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements
36
SA 800
Special Considerations-Audits of Financial Statements Prepared in Accordance with Special Purpose Framework
37
SA 805
Special Considerations-Audits of Single Purpose Financial Statements and Specific Elements, Accounts or Items of a Financial Statement
38
SA 810
Engagements to Report on Summary Financial Statements
39
SRE 2400
Engagements to Review Financial Statements
40
SRE 2410
Review of Interim Financial Information Performed by the Independent Auditor of the Entity
41
SAE 3400
The Examination of Prospective Financial Information
42
SAE 3402
Assurance Reports on Controls At a Service Organisation
43
SRS 4400
Engagements to Perform Agreed Upon Procedures Regarding Financial Information
44
SRS 4410
Engagements to Compile Financial Information
III. Guidance Notes and other publications
1. Code of Ethics
2. Guidance Note on Independence of Auditors.
3. Guidance Note on Audit Reports and Certificates for Special Purposes.
4. Guidance Note on Audit under Section 44AB of the Income-tax Act (Revised in view of Latest Form 3CA, 3CB and 3CD notified on 25th July).
5. Guidance Note on Audit of Inventories.
6. Guidance Note on Audit of Debtors, Loans and Advances.
7. Guidance Note on Audit of Investments.
8. Guidance Note on Audit of Cash and Bank Balances.
9. Guidance Note on Audit of Liabilities.
10. Guidance Note on Audit of Revenue.
11. Guidance Note on Audit of Expenses.
12. Guidance Note on Computer Assisted Audit Techniques (CAATs).
13. Guidance Note on Audit of Payment of Dividend.
14. Guidance Note on Audit of Capital and Reserves.

IV Applicability of the Companies Act, 2013 and Other Legislative Amendments:

(i) The relevant notified Sections of the Companies Act, 2013 up to 31st March, 2015 alongwith other legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authorities cut-off date will be 30th April, 2015.

(ii) Companies (Auditor’s Report) Order, 2015 [CARO] issued by Ministry of Corporate Affairs on 10th April, 2015 is applicable for November 2015 Examination.
Paper 4 : Corporate and Allied Laws
I Applicability of Relevant Amendments/Circulars/ Notifications/Regulations etc.
1. The Companies Act, 2013
The relevant sections of the Companies Act, 2013, notified up to 31st March, 2015 along with relevant Rules/ Notifications/ Circulars/ Clarification/ Orders issued by the Ministry of Corporate Affairs upto 30th April, 2015.

2. SEBI (Issue of Capital and Disclosure Requirement) Regulations, 2009
SEBI vide Notification dated 24th March, 2015 has issued SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2015.

The amendments have been carried out in regulation 4 and 54 of SEBI (ICDR) Regulations, 2009.

3. The Insurance Act, 1938 and the Insurance Regulatory and Development Authority Act, 1999
Vide Notification dated 23rd March, 2015, Ministry of Law and Justice further amended the Insurance Act, 1938 and the Insurance Regulatory and Development Authority Act, 1999 by enacting the Insurance Laws (Amendment) Act, 2015. It shall be deemed to have come into force on the 26th day of December, 2014.

II Non-Applicability of the following Amendments/Circulars/Notifications
S.No.
Subject Matter
1.Chapter 9 of the study material (October, 2014 edition) covering provisions relating to Revival and Rehabilitation of Sick-Industrial Companies.

2. Chapter 15 of the study material (October, 2014 edition) covering provisions relating to the National Company Law Tribunal and Appellate Tribunal.

Paper 7 : Direct Tax Laws & Paper 8 : Indirect Tax Laws

Applicability of Finance Act, Assessment Year etc. for November, 2015 Examination
The provisions of direct and indirect tax laws, as amended by the Finance (No.2) Act, 2014, including notifications and circulars issued up to 30th April, 2015, are applicable for November, 2015 examination. The relevant assessment year for Paper 7: Direct Tax Laws is A.Y.2015-16.
In Paper 7: Direct Tax Laws, the Wealth-tax Act, 1957 and Rules thereunder are not applicable for November 2015 examination.

CHANGES AND AMENDMENTS APPLICABLE FOR CA IPCC FOR NOVEMBER 2015

Applicability of Standards/Guidance Notes/Legislative Amendments etc. for November, 2015 – Intermediate (IPC) Examination


Paper 1: Accounting 

Accounting Standards
AS 1 : Disclosure of Accounting Policies
AS 2 : Valuation of Inventories
AS 3 : Cash Flow Statements
AS 6 : Depreciation Accounting
AS 7 : Construction Contracts (Revised 2002)
AS 9 : Revenue Recognition
AS 10 : Accounting for Fixed Assets
AS 13 : Accounting for Investments
AS 14 : Accounting for Amalgamations

Paper 5: Advanced Accounting

Accounting Standards
AS 4 : Contingencies and Events occurring after the Balance Sheet Date
AS 5 : Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
AS 11 : The Effects of Changes in Foreign Exchange Rates (Revised 2003)
AS 12 : Accounting for Government Grants
AS 16 : Borrowing Costs
AS 19 : Leases
AS 20 : Earnings Per Share
AS 26 : Intangible Assets
AS 29 : Provisions, Contingent Liabilities and Contingent Assets.

Note Regarding Applicability for Paper 1 and Paper 5:
The relevant notified Sections of the Companies Act, 2013 up to 31st March, 2015 and for other legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authority up to 30th April, 2015
.
Non-Applicability of Ind ASs:

The Ministry of Corporate Affairs has notified Roadmap for applicability of Indian Accounting Standards (Ind AS) vide Notification No. G.S.R…….(E) dated 16 February, 2015, for compliance by the class of companies specified in the said roadmap. The notification has been uploaded on www.mca.gov.in along with the thirty nine (39) Indian Accounting Standards (Ind AS). Students may note that these Ind ASs are not applicable for November, 2015 Examination.

Paper 2: Business Laws, Ethics and Communication

The Companies Act, 2013 : The relevant sections of the Companies Act, 2013, notified up to 31st March, 2015 along with significant Rules/ Notifications/ Circulars/ Clarifications/ Orders issued by the Ministry of Corporate Affairs upto 30th April, 2015.
Paper 4: Taxation
Applicability of the Finance Act, Assessment Year etc. for November, 2015 examination
The provisions of income-tax and indirect tax laws, as amended by the Finance (No.2) Act, 2014, including circulars and notifications issued upto 30th April, 2015, are applicable for November, 2015 examination. The relevant assessment year for income-tax is A.Y. 2015-16.
Paper 6: Auditing and Assurance

I. Standards on Auditing (SAs)

S.No
SA
Title of Standard on Auditing
1 SA 200
Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing
2 SA 210
Agreeing the Terms of Audit Engagements
3 SA 220
Quality Control for Audit of Financial Statements
4 SA 230
Audit Documentation
5 SA 240
The Auditor’s responsibilities Relating to Fraud in an Audit of Financial Statements
6 SA 250
Consideration of Laws and Regulations in An Audit of Financial Statements
7 SA 260
Communication with Those Charged with Governance
8 SA 265
Communicating Deficiencies in Internal Control to Those Charged with Governance and Management
9
SA 299
Responsibility of Joint Auditors
10
SA 300
Planning an Audit of Financial Statements
11
SA 315
Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment
12
SA 320
Materiality in Planning and Performing an Audit
13
SA 330
The Auditor’s Responses to Assessed Risks
14
SA 402
Audit Considerations Relating to an Entity Using a Service Organization
15
SA 450
Evaluation of Misstatements Identified during the Audits
16
SA 500
Audit Evidence
17
SA 501
Audit Evidence - Specific Considerations for Selected Items
18
SA 505
External Confirmations
19
SA 510
Initial Audit Engagements-Opening Balances
20
SA 520
Analytical Procedures
21
SA 530
Audit Sampling
22
SA 540
Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
23
SA 550
Related Parties
24
SA 560
Subsequent Events
25
SA 570
Going Concern
26
SA 580
Written Representations
27
SA 600
Using the Work of Another Auditor
28
SA 610
Using the Work of Internal Auditors
29
SA 620
Using the Work of an Auditor’s Expert
30
SA 700
Forming an Opinion and Reporting on Financial Statements
31
SA 705
Modifications to the Opinion in the Independent Auditor’s Report
32
SA 706
Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report
33
SA 710
Comparative Information – Corresponding Figures and Comparative Financial Statements
34
SA 720
The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements
II. Statements
Statement on Reporting under Section 227(1A) of the Companies Act, 1956 (Section 143 of the Companies Act, 2013).
III. Guidance Notes
1. Guidance Note on Audit of Inventories.
2. Guidance Note on Audit of Debtors, Loans and Advances.
3. Guidance Note on Audit of Investments.
4. Guidance Note on Audit of Cash and Bank Balances.
5. Guidance Note on Audit of Liabilities.
6. Guidance Note on Audit of Revenue.
7. Guidance Note on Audit of Expenses.
IV Applicability of the Companies Act, 2013:
(i) The relevant notified Sections of the Companies Act, 2013 up to 31st March, 2015 alongwith other legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authorities cut-off date will be 30th April, 2015.
(ii) Companies (Auditor’s Report) Order, 2015 issued by Ministry of Corporate Affairs on 10th April, 2015 is applicable for November 2015 Examination.

CHANGES IN ICAI SYLLABUS WITH EFFECT FROM 2016

ICAI HAS ANNOUNCED SIGINIFICANT CHANGES IN CA COURSE FROM THE YEAR 2016 ONWARD.

AS DECIDED EARLIER ABOUT EXCLUSION OF ISCA FROM FINAL COURSE, ICAI ON THE CONTRARY HAS KEPT ISCA

CA Course Changes From 2016. The Institute of Chartered Accountants of India (ICAI) released anotification regarding revised scheme of education and training for CA Course.  Here we are providing full details of CA Course Changes From 2016 in CPT, IPCC and Final. In Foundation course Paper 2 and Paper 4 will be Objective type papers and remaining are descriptive papers. ICAI didn’t remove Information Technology and Strategic Management Paper in CA IPCC Group – 2 and also ICAI didn’t remove Information Systems Control and Audit paper in CA Final. Read remaining changes as per new syllabus in CA CPT, IPCC and CA Final from May 2016 !!

Under the Foundation Course Route, the following steps are required

• Register with Board of Studies (BoS) after appearing in Class XII till June 30/Dec 31.
  
• Be eligible to appear for Foundation examination after passing Class XII examination. The first Foundation examination can be taken in November/May, as applicable, following passing of Class XII examination.
• Qualify Foundation Course.
• Register with the BoS for the Intermediate Course.
• Complete 8 months of study
• Appear and Pass in either or both Groups of Intermediate Course

• Successfully complete Four Weeks Integrated Course on Information Technology and Soft Skills (ICITSS) before commencement of the practical training
• Register for Three years Practical Training on passing either or both the Groups of Intermediate.
• Register for the Final Course after qualifying both the Groups of Intermediate Course.
• Successfully complete Four Weeks Advanced ICITSS during the last two years of Practical Training.
• Complete Practical Training.
• Appear in Final examination after completion of practical training and Advanced ICITSS.
• Become Member.

‪Note‬: ICAI has decided in principle the above mentioned Scheme. However, the scheme will be notified inthe official Gazette in due course.

Chartered Accountant Course New Scheme | Direct Entry Route

As per the existing scheme, it is proposed to allow Commerce Graduates/Post – Graduates ( with minimum 55 % marks ) or Other Graduates/Post – Graduates ( with minimum 60 % marks )  to enter directly to the Intermediate Course. The following steps are required to be undertaken by the eligible Graduates and Post Graduates under this route:

• Register with the BoS for the Intermediate course (provisional registration allowed to the Final year students )
• Complete Three Weeks Integrated Course on Information Technology and Soft Skills ( ICITSS ) before commencement  of the practical training.
• Register for Three Years Practical Training.
• Appear in Intermediate Examination after Twelve months of Practical Training.
• Qualify Intermediate Examination.
• Register for the Final Course after qualifying both Groups of Intermediate Course
• Complete Three Weeks Advanced ICTTSS during the last two years of Practical Training.
• Complete Practical Training.
• Appear in Final examination after completion of practical training.
• Become Member

Note: Candidates who have passed Intermediate level examination of ICSI or ICWAI and enter the CA Intermediate course directly shall be treated at par with Foundation passed students and shall have to undergo the CA course in the manner ak into the Foundation passed students.

CA Course Changes | Foundation Course

Number of Papers – 4

Paper 1: Principles and Practices of Accounting (100 Marks)

Paper 2*: Business Mathematics and Logical Reasoning & Statistics (100 Marks)

• Part I: Business Mathematics and Logical Reasoning (60 Marks)
• Part II: Statistics (40 Marks)

Paper 3: Mercantile Law & General English (100 Marks)

• Part I: Mercantile Law (60 Marks)
• Part II: General English (40 Marks)

Paper 4*: Business Economics & Business and Commercial Knowledge (100 Marks)

• Part I: Business Economics (60 Marks)
• Part II: Business and Commercial Knowledge (40 Marks)

Two papers will be MCQ based papers.

*Paper 2 and Paper 4 will be Objective type papers

Note :

1. Passing percentage:Aggregate- 50% and Subject-wise- 40% at one sitting.

2. Objective type question of I or more marks.

3. Examination: In the month of November and May after passing Class XII

CA Course Changes | Intermediate Course

Number of Papers – 8

Group I

Paper I : Accounting (100 Marks)

Paper 2: Corporate Laws & Other Laws (100 Marks)

• Part I: Corporate Laws (60 Marks)
• Part II: Other Laws (40 Marks)

Paper 3: Cost Accounting (100 Marks)

Paper 4: Direct Tax Laws & Indirect Tax Laws (100 Marks)

• Part I: Direct Tax Laws (60 Marks)
• Part II: Indirect Tax Laws (40 Marks)

Group II

Paper 5: Advanced Accounting (100 Marks)

Paper 6: Auditing and Assurance (100 Marks)

Paper 7: Financial Management & Business Economic Environment (100 Marks)

• Part I: Financial Management (60 Marks)
• Part II: Business Economic Environment (40 Marks)

Paper 8: Information Technology & Strategic Management (100 Marks)

• Part I: Information Technology (60 Marks)
• Part II: Strategic Management (40 Marks)

Four Weeks Integrated Course on Information Technology and Soft Skills (ICITSS)

Duration: 4 weeks (2 weeks for soft skills and 2 weeks for IT)

When to complete: Students registering for the Intermediate course shall be required to do ICITSS before commencement of practical training.

Assessment Test: An assessment test shall be conducted at the end of the course which the students have to qualify for being able to appear in the Intermediate examination.

Practical Training

Duration of Practical Training: Three Years

Commences after completing Integrated Course on Information Technology and Soft Skills (ICITSS) and passing Either or Both Groups of Intermediate.

For direct entrants coming through Graduation and Post Graduation route, the practical training commences immediately after they complete four weeks ICITSS.

Advance Four Weeks Integrated Course on Information Technology and Soft Skills (AICITSS)

Duration: 4 weeks (2 weeks for soft skills and 2 weeks for Advance IT)

When to complete: Students undergoing Practical training shall be required to do AICITSS during the last 2 years of Practical training but to complete the same before appearing in the Final Examination.

Assessment Test: An assessment test shall be conducted at the end of the course which the students have to qualify for being eligible to appear in the Final Examination.

CA Course Changes | Final Course

Number of Papers – 8

Group I

Paper I: Financial Reporting (100 Marks)

Paper 2 : Strategic Financial Management (100 Marks)

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

Paper 4 : Corporate Laws and other Economic Laws (100 Marks)

Group II

Paper 5 : Advanced Management Accounting (100 Marks)

Paper 6 : Financial Services and Capital Markets & Information Systems Control and Audit (100 Marks)

• Part I: Financial Services and Capital Markets (50 Marks)
• Part II: Information Systems Control and Audit (50 Marks)

Paper 7: Advanced Direct Tax Laws & International Taxation

• Part I: Advanced Direct Tax Laws (70 Marks)
• Part II: International Taxation (30 Marks)

Paper – 8: Advanced Indirect Tax Laws (100 Marks)

CHANGES IN ITR FORMS EVERY CA STUDENT SHOULD KNOW

The government on Tuesday notified the new income tax returns forms. As per the new norms, an individual or HUF who does not have capital gains, income from business/profession or foreign asset/foreign income can file a shorter version of ITR2, i.e. ITR 2A.

In case you sold any asset during the year then old ITR form 2 needs to be filed. As the software for these forms is under preparation, they are likely to be available for e-filing shortly. ITR1 and ITR4S have been enabled. Therefore, the time limit for filing these returns is extended up to 31 August.

Actually, there would be less than 20 percent of the taxpayers who have capital gain or foreign assets in ITR 2 but one needs to file the bulky form. Hence, for approx 80 percent of these filers, ITR-2A would be more relevant and user friendly. ITR-2A has been introduced which will not ask for capital gains income or foreign assets information.

For the last few years, the income tax department is trying to catch the tax evaders by introducing newer requirement in tax returns and simultaneously projecting itself to be taxpayer-friendly. It goes well with the political agenda of the government too, i.e. controlling black money and imparting effective governance.

But such hypes have a problem – only 5 percent of what is talked about is achieved and the rest 95 percent remain as before. The end result? Neither will the tax to GDP ratio improve, nor will the taxpayers’ perception about the income tax department change.

Here’s how the new ITR forms will change your life:

Passport number to be disclosed whereas travel expense details are not required (ITR2/2A): It seems that the income tax department will get some data from visa authorities based on passport number which will be matched with the return data to catch the tax evaders. To be sure, this is not a fool proof system or very effective one to control the use of black money in domestic travel. Only time will tell whether this hyped change, which actually delayed return filing by one month, is worth it or not.

All bank account numbers to be disclosed: In the current scenario, bank account details of any one of the operating bank account is required to be filled in the ITR Forms. With the passing of the black money Bill, it has become expedient to include details of all bank accounts held during the year. The closing bank balance as of 31 March 2015 is not required in the income tax returns, though.

After a lot of representations from various forums regarding such disclosures, the government now has come up only with the mandatory disclosure of IFS code, account number of all the current/savings account held at any time during the previous year. The balance in accounts will not be required to be furnished. Details of dormant accounts which are not operational during the last three years are not required to be furnished.

Exempt income from fully exempt source can file Sahaj without any ceiling: In the current scenario, individuals/HUFs having any exempt income like long-term capital gains, agricultural income or interest income have to file their returns in ITR-2 or ITR-4 depending on the nature of income. With a view to providing for a simplified form for individuals/HUFs who have earned exempt income without any limit, it is proposed to use ITR-1 Sahaj (Only individuals can use ITR-1) or ITR-4S (Both individuals and HUFs can use ITR-4S), the simplest of all forms. Exempt income without any ceiling refers to those incomes which are fully exempt from tax. Example of income which is fully exempt from tax is long-term capital gains on sale of shares. Example of income which is not fully exempt from tax is agricultural income.

Relief for foreign citizens: Those taxpayers who are not Indian citizens and have come to India on a business, employment or student visa (expatriate), have been exempt from reporting foreign assets acquired by him/her during the previous years in which he was non-resident if no income is derived from such assets during the relevant previous year. This is a relief for these assesses.

Aadhaar card holders need not send ITR-V to Bangalore: The government has come up with an idea of dispensing with the formality of posting the duly signed ITR-V form to CPC, Bengaluru, after e-filing of the income tax returns if the Aadhaar number of the assessee is furnished in the returns. Aadhar number is optional as of now.

IPCC MAY 2015 SUGGESTED ANSWERS GIVEN BY GURU KRIPA

DOWNLOAD LINK


 ICAI has not yet published the suggested answers for IPCC May exams but Gurukripa and Master Mind Institute has, which i am sharing with you now. The file i have attached here contains the solution papers of all the subjects except ITSM . The solutions shared by “Gurukripa” of theory subjects only contains the reference of page numbers of their own book, so for those subjects i have shared answers by Master Mind Institute.

CHANGES IN IPCC AND FINAL SYLLABUS FROM NOVEMBER 2015 ONWARDS

ICAI HAS ISSUED NOTIFICATION REGARDING CHANGES IN IPCC AND FINAL SYLLABUS FROM NOVEMBER 2015 ONWARDS

CHANGES IN IPCC SYLLABUS:

The topic of “Financial Reporting of Electricity Companies ” would be excluded from the syllabus of  Intermediate (IPC)  Paper 5 : Advanced Accounting and the same would not be applicable from  November, 2015 Examination and onwards. OFFICIAL ANNOUNCEMENT CHANGES IN FINAL SYLLABUS The topic of “Overview of International Accounting Standards (IAS) /  International Financial Reporting Standards (IFRS),  Interpretations by International Financial Reporting Interpretation Committee (IFRIC), Significan t differences vis-a-vis Indian Accounting Standards; Understanding of US GAAPs, Applications of IFRS and US” would be excluded from the syllabus of  Final Paper 1 : Financial Reporting and the same would not be applicable from November, 2015 Examination. Further, the topic of “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)” would be included in the syllabus of  Final Paper 1 : Financial Reporting and the same would be applicable from May, 2016 Examination. OFFICIAL ANNOUNCEMENT

CA FINAL AUDIT PROFESSIONAL ETHICS SCHEDULE 1 MNEMONICS

Easy to learn 15 min audit ca final mnemonics of audit professional  ethics schedule 1

Ca ipcc costing and fm important topics for may 2015 exams

All the best students

CA IPCC STRATEGIC MANAGEMENT(SM) ULTRA SUMMARISED 10 PAGES NOTES

|STRATEGIC MANAGEMENT LATEST SUMMARIZED NOTES FOR IPCC PDF|

DOWNLOAD LINK

Section B: Strategic Management (50 marks)

Objectives

(a)	To develop an understanding of the general and competitive business environment;
(b)	To develop an understanding of strategic management concepts and techniques;
(c)	To be able to solve simple cases.

Contents:

1.	Business Environment
	General environment - demographic, socio-cultural, macro-economic, legal/political, technological, and global; competitive environment.
2.	Business Policy and Strategic Management
	Meaning and nature; strategic management imperative; vision, mission and objectives; strategic levels in organisations.
3.	Strategic Analyses
	Situational analysis – SWOT analysis, TOWS matrix, portfolio analysis - BCG matrix.
4.	Strategic Planning
	Meaning, stages, alternatives, strategy formulation.
5.	Formulation of Functional Strategy
	Marketing strategy, financial strategy, production strategy, logistics strategy, human resource strategy.
6.	Strategy Implementation and Control
	Organisational structures; establishing strategic business units; establishing profit centers by business, product or service, market segment or customer; leadership and behavioural challenges.
7.	Reaching Strategic Edge
	Business process re-engineering, benchmarking, total quality management, six sigma, contemporary strategic issues.

Company act 2013 Directors and meeting Bird eye view

Dear Students,
Examination 2015 are few weeks from now. I am
giving below the summary of the topic “BOARD
OF DIRECTORS UNDER COMPANIES ACT, 2013
Sections 149 to 204 of the new Act deal with
Board of Directors in all its parameters. This
topic “Board of Directors” in the examination
paper may fetch 30 to 35 per cent of marks As
we know Companies Act 2013 is rules driven act.
On Board of Directors , rules framed are
(i) Companies (Appointment and Qualification of
Directors) Rules containing 18 rules
(ii) Companies (Meetings of Board and its
powers) Rules containing 17 rules
(iii) Companies (Appointment and Remuneration
of Managerial Personnel) Rules containing 10
rules.
Below is the summary of the topic “BOARD OF
DIRECTORS UNDER COMPANIES ACT 2013 ´ This
summary is in 28 parts connected with Board of
Directors ((Relevant sections and rules are also
indicated )
(1) : Company to have Board of Directors
(Sections 149, 150)
(A) Minimum & Maximum no. of directors and
Resident Director
Woman Director.
Independent Director (ID)
• Who cannot be ID ?
• Qualifications for being ID
• Remuneration & Terms of ID
• Obligations / Liabilities
Schedule IV – Code for Independent Director
(B) Maintenance of Data Bank & Its object to
select the independent directors from this Data
Bank Companies ( Appointment of Directors )
Rules
Rule 3 - class of companies for woman director
Rule 4 - Class of companies for Independent
Director
Rule 5 – Necessary qualifications for I.D.
Rule 6 - Maintenance of Data Bank .
(2) Appointment of Directors (Section 152)
(1) First Directors – how are they appointed ?
(2) Appointment of Directors in public co. &
proportion of directors retiring by rotation.
(3) Procedure for the retirement
(4) Appointment of Directors in Private Company
(3) For Appointment of Directors , they be voted
individually (Section 162)
• Two or more than 2 directors not to be
appointed by a single resolution
Appointment of directors to be voted individually
( Section 162)
(4) Defects in Appointment of Director will not
invalidate actions taken ( Section 176)
Act done by a person as a director shall not be
invalid
(a) if subsequently it was noticed that his
appointment was invalid by reason of defect or
disqualification Acts done by a director shall not
be valid
If they are done after his appointment has been
noticed by the company to be invalid or to have
been terminated.
(5) Appointment of Director elected by Small
Shareholders (Section 151)
Section 151 and rule 7 of Companies
(Appointment & Qualification of Directors) Rules
enable the small shareholders to have their
representation in the Board of Directors
Section 151 of Companies Act, 2013 Rule 7 of
Companies(appointment & qualification of
directors ) Rules 2014
(6) Meetings of Board of Directors (Sections
173, 174 and 175)
1. Number of Board Meetings.
2. Notice for Board Meeting.
3. Participation of Directors
4. Quorum for Board Meeting
5. Adjournment of Board Meeting
6. Resolution by Circulation
Rules
3. and 4 and 5 of (Meetings of Board and
Powers ) Rules 2014
Regulations
68, 70, 67 of Table F
(7) Additional Director, Director in Casual
Vacancy, Alternate Director, Nominee Director,
Director of proportional Representation
( Sections 161, 163)
(i) Appointment of Additional director/s
(ii) To fill in the casual vacancy.
(iii) Appointment of Alternate Director
(iv) Appointment of directors by proportional
representation
(v) Nominee director.
( 8) Number of Directorship (Section 165
1. Person cannot be director in more than 20
companies.
2. Number of public companies not to exceed 10
companies.
( 9 ) How a person other than retiring director
may stand for Directorship ? (Section 160)
• Person other than director retiring by rotation
eligible for appointment
• Procedure for the appointment Companies
(Appointment of Directors) Rules 2014
• Rule 13 prescribes procedure for informing
members
(10 ) How the director to file the consent to act
as director ( Section 152 (5)
• Person appointed as director has to give the
consent. Rule 8 Companies
(Appointment of Director) Rules, 2014
To furnish consent in writing in FORM DIR-1
(11 ) Disqualification for Directorship
• Grounds of Disqualifications applicable to all
companies.
• Additional Grounds of Disqualifications
• Articles of Private Company may provide
additional grounds of disqualifications
( 12 ) Vacation of the office of Director (Section
167)
.1. Grounds of Vacation of the office.
2. Director is punishable when he functions as a
director despite his knowledge that he has
vacated.
3.. Position when all directors vacate their
office.
4.Additional Grounds of vacation can be provided
by Private Company
( 13 ) Removal of Director by Shareholders and
its procedure (Section 169)
1.Removal of directors by shareholders.
2.Procedure for the removal.
3.To fill in the vacancy.
4. Section does not affect.
( 14 ) Resignation by the Director and Managing
Director (Section 168)
1. Right of director to resign
2. Obligation of Board of Directors
3. Obligation & Liability of director 4. Date from
which resignation to take effect.
5. Consequences when all directors resign.
(15 ) Compensation for Loss of Office ( Section
202)
A)Compensation payable
(B)Compensation not payable.
(C)Compensation payable but not be paid in
specified cases.
D) Compensation not payable when winding up
commences and amount insufficient.
(E) Amount of remuneration not prohibited.
(F)Amount of compensation.
(16) Duties of Director ( Section 166)
A director of a company shall act in accordance
with the articles of the company . Articles means
the articles of association of a company as
originally framed or as altered from time to
time. Articles of a company contain the
regulations for the management of the company.
A director of a company
(a) shall act in good faith to promote the objects
of the company
(b) will act for the benefits of its members as a
whole
(c) Will act in the interest of the company, its
employees, the shareholders, the community
and
(d) Will take efforts for the protection of
environment
( 17 ) Appointment and Remuneration of
Managerial Personnel ( Sections 196, 197, 198,
199, 200, 203)
• Section 196 deals with the appointment and
disqualifications of managing director, whole
time director or manager.
• Section 197 refers to the overall managerial
remuneration payable and remuneration payable
individually. Section also deals with the mode of
payment.
• Section 198 provides for the calculation of
profit.
• Section 199 specifies the circumstances when
remuneration paid can be recovered.
• Section 200 deals with considerations the
Central govt. will take into account while fixing
the limit.
• Section 203 refers to class of companies
where the key managerial personnel should be
appointed.
Companies (Appointment & Remuneration of
Managerial Personnel ) Rules, 2014
• Rules 3, 4,5, 6,7, 8
( 18) Related Party Transactions (Section 188)
Contract
1.Contract with related party requires Board’s
consent.
2 Who is related party ?
3 .When prior special resolution is needed ?
4.Non applicability of the section when the
contract is made in ordinary course of business
Appointment
Appointment of related party to place of profit.
Requires Board’s consent and in specified cases
the special resolution
( 19 ) Disclosure of Interest by Director ( Section
184)
1. Director to disclose his interest in a company
or firm etc.
2. Director to disclose his interest in contract
entered or to be entered
3. Consequence if the disclosure not made
(20) Loans to Directors (Section 185)
• Shall not Advance any loan to any of its
director
• OR
• to any other person in whom the director is
interested • Shall not give any guarantee or
provide any security for loan taken by director
or taken by such other person in whom the
director is interested.
( 21 ) Powers of Board of Director (Sections
179, 180 & 181)
All powers with the board except
.Section 179 (1) deals with general powers.
Board of Directors under this section will
exercise all powers except the powers reserved
for general meeting. Powers by directors in their
meeting
For matters listed in section 179 (3) of
Companies Act 2013 directors must sit in board
meeting. Company is entitled to their collective
wisdom.
Powers by Board with consent of general
meeting
For matters listed in sections 180, 181, Board
to exercise with consent of general meeting.
( 22 ) Contribution fo Political Party (Section
182)
(1) Who can or who cannot contribute?
(2) Limits of contribution
(3) Expenses by co. on advertisement.
(4) Procedural safeguards.
(5) Penalties.
-- Contribution to National Defence Fund under
section 183 of the new act.
( 23 ) Loan and Investment by company
Loans and Investment by Company in other body
corporate ( Section 186 (2)
• How and when can the company give any loan
to any person or other body corporate ?
• How and when can the company give guarantee
or provide security in connection with loan to
any body corporate or person ?
• How can the company acquire by way of
subscription or purchase the securities of any
other body corporate. ?
• These questions are being dealt and answered
in this chapter.
Consent of all directors present in Board
meeting & special resolution
(a)Up to 60 per cent of paid up capital and free
reserve and securities premium or 100 per cent
of free reserve and securities premium
whichever is higher - Board’s consent is needed
(b) Limit is exceeded , board’s consent and
special resolution needed.
(c)Section does not apply in certain cases.
Companies (Meetings & Powers of Board of
Directors Rules, 2014
1.Rule 11 Loan to wholly owned subsidiary and
limit exceeds . Special resolution is not needed.
2.Rule 12 refers to maintenance of register.
( 24 ) Constitution of Committees (Sections
177 , 178)
Under Section 177:
1. Audit Committee
2. Vigil Mechanism
Will be constituted. Under Section 178
1. Nomination & Remuneration Committee
2. Stakeholders Relationship Committee
Shall be constituted.
( 25 ) Director Identification Number (DIN)
(Sections 153, to 159)
1.Application for allotment of DIN
2.Allotment of DIN
3.Director to inform to company of DIN
4Company to inform the Registrar
5.Obligations Companies ( Appointment of
Directors ) Rules, 2014
Rule 9 – Application for allotment
Rule 10-Allotment of DIN
Rule 11- cancellation of DIN
( 26 ) Maintenance of Registers of Directors, Key
Managerial Personnel and Register of Contracts
( Sections 170, 171, 189, 190)
1.Register of Key Managerial Personnel.
2.register of contracts in which directors
interested.
3.Register of contracts of employment of MD
etc. Companies (Appointment of Directors )Rules
Rule 17 –
Rule 18
( 27 ) Restrictions on Non cash transaction
( Section 192),
Contracts by one person company ( Section 193)
etc. etc.
(a) Restriction in non-cash transactions. (Section
192 of the new companies act)
- No co. shall enter into arrangement without
prior approval of company in general meeting.
Etc.
- Notice
(b) Contract by one person company (section
193)
(c) Prohibition on forward dealing in securities of
company by director or key managerial person
section 194 of the new act.
(d) Prohibition of Insider Trading. Section 195 of
the new act.
- Insider Trading meaning
- Price sensitive information
(28 ) Secretarial Audit for Bigger Companies &
Functions of Company Secretary
1.Secretariat Audit Report be annexed
2.Functions of Company Secretary
Companies (Appointment and Remuneration )
Rules, 2014
1.Rule No. 9 what are the companies where
Secretarial Audit Repot shall be annexed To
annex Secretariat Audit report in specified
2.Rules No. 10 – Duties of Company Secretary.

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