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Amendments and Publications for CA Final Examination Nov, 2013

ICAI has announced the following amendments and updates which are most important for every CA Final student who will appear for Final Nov, 2013 Exams.

Amendments and Publications for CA Final Examination Nov, 2013
As ICAI examinations are more practical, all students should thoroughly go through the relevant amendments which the CA Institute has published from time to time. Therefore, all students must be aware of the Institute’s Pronouncements, Publications and other notifications for the coming exam to be held in May and November every year.

Further, if you analyse/ evaluate the pattern of even the last 3-5 attempt Question Papers then you come to know that the institute has given more stress on their Study Materials, Practice Manuals and Revision Test Papers (RTP) and therefore all the materials provided by CA Institute are more than enough for scoring good marks in your coming examination.

Never go for selective study as because ICAI is evaluating their students by asking questions from each and every topic of the syllabus. Try to avoid unnecessary and irrelevant answers and write to the point as the level of knowledge of a CA Final student should be Expert Knowledge and not working Knowledge.

You may visit download section of AUBSP for latest Study Material, Practice Manuals, Supplementary Paper, RTPs and other relevant updates.

However, ICAI has announced that the following relevant amendments and topics are most important for every student who will appear for their CA Final Nov, 2013 Examination:

Paper 1: Financial Reporting


1) Framework for the Preparation and Presentation of Financial Statements

2) Following 16 Guidance Notes on Accounting Aspects: Fully Applicable.
1. Guidance Note on Treatment of Reserves created on Revaluation of Fixed Assets.
2. Guidance Note on Accrual Basis of Accounting.
3. Guidance Note on Accounting Treatment for Excise Duty.
4. Guidance Note on Terms Used in Financial Statements.
5. Guidance Note on Accounting for Depreciation in Companies.
6. Guidance Note on Availability of Revaluation Reserve for Issue of Bonus Shares.
7. Guidance Note on Accounting Treatment for MODVAT/CENVAT
8. Guidance Note on Accounting for Corporate Dividend Tax.
9. Guidance Note on Accounting for Employee Share-based Payments.
10. Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under the Income Tax Act, 1961.
11. Guidance Note on Measurement of Income Tax for Interim Financial Reporting in the context of AS 25.
12. Guidance Note on Applicability of Accounting Standard (AS) 20, Earnings per Share.
13. Guidance Note on Remuneration paid to key management personnel – whether a related party transaction.
14. Guidance Note on Applicability of AS 25 to Interim Financial Results.
15. Guidance Note on Turnover in case of Contractors.
16. Guidance Note on the Revised Schedule VI to the Companies Act, 1956

3) Accounting Standards - AS 1 to AS 29: Fully Applicable.

4) Presentation of Foreign Currency Monetary Item Translation Difference Account (FCMITDA):


The Council of the CA Institute at its 324th meeting held on March 24-26, 2013 at New Delhi, decided that debit or credit balance in FCMITDA should be shown on the “Equity and Liabilities” side of the balance sheet under the head ‘Reserves and Surplus’ as a separate line item.

Note that the Ministry of Corporate Affairs (MCA) has clarified vide Circular No. 25/2012 dated 09.08.2012 that Para 6 of AS 11 “The Effects of Changes in Foreign Exchange Rates” and Para 4(e) of the AS 16 “Borrowing Costs” shall not apply to a company which is applying clause Para 46A of AS 11.

Newly Inserted Para 46A of AS-11 vide notification number G.S.R. 914(E) dated 29.12.2011:

(1) In respect of accounting periods commencing on or after the 1st April, 2011, for an enterprise which had earlier exercised the option under paragraph 46 and at the option of any other enterprise (such option to be irrevocable and to be applied to all such foreign currency monetary items), the exchange differences arising on reporting of long term foreign currency monetary items at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, in so far as they relate to the acquisition of a depreciable capital asset, can be added to or deducted from the cost of the asset and shall be depreciated over the balance life of the asset, and in other cases, can be accumulated in a ‘‘Foreign Currency Monetary Item Translation Difference Account” in the enterprise’s financial statements and amortized over the balance period of such long term asset or liability, by recognition as income or expense in each of such periods, with the exception of exchange differences dealt with in accordance with the provisions of paragraph 15 of the said rules.

(2) To exercise the option referred to in sub-paragraph (1), an asset or liability shall be designated as a long-term foreign currency monetary item, if the asset or liability is expressed in a foreign currency and has a term of twelve months or more at the date of origination of the asset or the liability:

Provided that the option exercised by the enterprise shall disclose the fact of such option and of the amount remaining to be amortized in the financial statements of the period in which such option is exercised and in every subsequent period so long as any exchange difference remains unamortized.”

5) Criteria for Classification of Entities and Applicability of ASs


As per the ICAI announcement, there are three levels of entities viz. Level I, Level II and Level III. The Level II and Level III entities are considered as the Small and Medium Entities (SMEs).

However, the Council of the CA Institute has recently changed the first criteria in order to determine SMEs on the basis of turnover for Level II entities and the same amended criteria is effective from the accounting year commencing on or after April 01, 2012.

Thus, non-corporate entities which are not Level I entities but fall in any one or more of the following categories are classified as Level II entities:

(i) All commercial, industrial and business reporting entities, whose turnover (excluding other income) exceeds rupees Rs. 1 Crore but does not exceed rupees fifty crore in the immediately preceding accounting year.

(ii) All commercial, industrial and business reporting entities having borrowings (including public deposits) in excess of rupees one crore but not in excess of rupees ten crore at any time during the immediately preceding accounting year.

(iii) Holding and subsidiary entities of any one of the above.

The above amendment has been made by ICAI because of recent changes in the enhancement of tax audit limit specified u/s 44AB of Income Tax Act, 1961 which will apply to the assessment year 2013-14 and subsequent assessment years.

Did you know? Under the amended provisions of section 44AB applicable with effect from 1st April, 2013, every person carrying on:

- Business is required to get his accounts audited if the total sales, turnover or gross receipts in the previous year exceed Rs. 100 lakh rupees.

- Profession is required to get his accounts audited if the total sales, turnover or gross receipts in the previous year exceed Rs. 25 lakh rupees.

6) Accounting Standards - AS 30 to AS 32:

In view of the complexities involved, only simple practical problems involving conceptual issues (since separate chapter No. 6 ‘Financial Instruments’ in Vol-II is included in the curriculum) may be asked.

7) Indian Accounting Standards converged with the IFRS (Known as Ind AS): NOT Applicable.

Paper 3: Advanced Auditing and Professional Ethics


8) Code of Ethics
9) Framework for Assurance Engagements
10) All 44 Engagements and Quality Control Standards on Auditing (SQC/SA/SRS/SRE/SAE)
11) Statement on Reporting under Section 227 (1A) of the Companies Act, 1956.
12) Companies (Auditor’s Report) Order, 2003 (2005 Edition).
13) Following 21 Guidance Notes:

1. Guidance Note on Independence of Auditors.
2. Guidance Note on Audit Reports and Certificates for Special Purposes.
3. Guidance Note on Audit under Section 44AB of the Income-tax Act.*
4. Guidance Note on Audit of Abridged Financial Statements.
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 Miscellaneous Expenditure.
9. Guidance Note on Audit of Cash and Bank Balances.
10. Guidance Note on Audit of Liabilities.
11. Guidance Note on Audit of Revenue.
12. Guidance Note on Audit of Expenses.
13. Guidance Note on Sections 227(3)(e) and (f) of the Companies Act, 1956.
14. Guidance Note on Certificate of Corporate Governance
15. Guidance Note on Computer Assisted Audit Techniques (CAATs).
16. Guidance Note on Audit of Payment of Dividend.
17. Guidance Note on Audit of Capital and Reserves.
18. Guidance Note on Provision for Proposed Dividend.
19. Guidance Note on Auditing of Accounts of Liquidators.
20. Guidance Note on Section 293A of the Companies Act and the Auditor.
21. Guidance Note on Audit of Consolidated Financial Statements.

Note: Guidance Note on Audit under section 44 AB of the Income-tax Act, 1961 (2005 edition) along-with the supplementary guidance note (excluding the portion relating to Fringe Benefit Tax Provisions) published in September, 2006.

Paper 4: Corporate and Allied Laws


14) Appointment of Cost Auditor by companies:

The Ministry of Corporate Affairs vide General Circular No. 36/2012 dated 6th November, 2012 has provided some changes in the procedure for the appointment of cost auditor under section 233B of the Companies Act, 1956 to be followed by the companies and the cost auditor.

15) Filing of returns under XBRL taxonomy:

The Ministry of Corporate Affairs vide General Circular No. 43/2012 dated 26th December, 2012 has decided that all cost auditors and the companies concerned are allowed to file their Cost Audit Reports and Compliance Reports for the year 2011-12 with the Central Government in the XBRL mode, without any penalty, within 180 days from the close of the company’s financial year to which the report relates or by January 31, 2013, whichever is later.

16) Companies (Directors Identification Number) Rules, 2006:

The Ministry of Corporate Affairs vide Notification No. G.S.R. 173(E) dated 15th March, 2013 has issued Companies Directors Identification Number (Amendment) Rules, 2013 by amending the Companies (Directors Identification Number) Rules, 2006.

17) SEBI (Issue of Capital and Disclosure Requirement) Regulations, 2009:

SEBI vide Notification No. LAD-NRO/GN/2012-13/32/4947 dated 27th February, 2013 has issued SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2013 by amending SEBI (Issue of Capital and Disclosure Requirement) Regulations, 2009.

18) As Companies (Second Amendment) Act, 2002 has not come into force till date, questions should be asked only from the General Provisions of winding up as covered under Paragraph 9.4 of the study material.

19) Provisions relating to Revival and Rehabilitation of Sick-Industrial Companies.

Paper 7: Direct Tax Laws (DTL)


20) The amendments made by the Finance Act, 2012 in DTL.
21) The provisions of direct tax laws as applicable for the assessment year 2013-14.
22) The significant notifications and circulars issued upto 30th April, 2013.
23) BOS Publications relevant for Nov 2013 Final Examination:

a) Study Material on DTL (Vol. I and II):

October, 2012 edition of the Study Material is based on the provisions of the Income-tax Act, 1961 and Wealth-tax Act, 1957, as amended by the Finance Act, 2012 and applicable for A.Y.2013-14, and the significant notifications and circulars issued upto 30.6.2012 and are hence relevant for Nov 2013 examination.

b) Practice Manual on DTL (Vol. III): 

In October, 2012 edition of the Practice Manual, questions set at the past Final examinations of chartered accountancy course have been modified and adapted and answered on the basis of the provisions of law applicable for A.Y.2013-14.

c) Supplementary Study Paper - 2012 (DTL):

This publication explains the amendments made by the Finance Act, 2012 in DTL as well as the significant circulars and notifications issued between 1.7.2011 and 30.6.2012.

It is especially relevant in case you have the earlier edition of the DTL Study Materials (i.e., the November 2011 and December 2011 editions, respectively), which is based on the provisions of law as amended by the Finance Act, 2011.

d) Select Cases in Direct Tax Laws:

This publication is relevant for students appearing in Nov, 2013 examination. This publication is a compilation of significant recent judicial decisions of Supreme Court and High Courts which, when read in conjunction with the DTL Study Materials, will enable you to appreciate the significant issues involved in interpretation and application of tax laws.

e) Revision Test Paper (RTP) for Nov 2013 Exam:

The RTP for Nov 2013 would, therefore, contain the significant notifications and circulars issued after the date up to which they are covered in the DTL Study Materials i.e. the significant notifications and circulars issued between 1st July, 2012 and upto 30th April, 2013.

Paper 8: Indirect Direct Tax Laws (IDTL)


As we know that the Finance Act, 2012 has introduced the concept of negative list in the service tax law whereby all services are liable to service tax except those covered under the negative list and the exempted services.

On 1st day of April, 2013, ICAI has announced that all students who are going to appear for May, 2013 examination onwards are advised to study Paper 8: Indirect tax laws from latest edition (November, 2012) of the Study Material.

However, you may prepare for the examination on the basis of the earlier edition of the Study Materials and Practice Manuals, say, the January, 2012 edition. In other words, students having earlier editions of Study Material should refer to the Supplementary Study Paper-2012 (Final) for being updated with the amendments made vide the Finance Act, 2012.

24) The amendments made by the Finance Act, 2012 in IDTL.
25) The provisions of direct tax laws as applicable for the assessment year 2013-14.
26) The significant notifications and circulars issued upto 30th April, 2013.
27) BOS Publications relevant for Nov 2013 Final Examination:

a) Study Material on IDTL (Vol. I and II):

CA institute has recommended to students appearing in CA Final Nov 2013 exams to read November, 2012 edition of the Study Material, since the concept of taxation of services has undergone a complete change from a positive to negative approach. Therefore, the service tax portion of the Study Material has been completely revamped.

b) Practice Manual on IDTL (Vol. III): The questions contained in November, 2012 edition of the Practice Manual have been adapted/modified and solved on the basis of the provisions of law as amended by the Finance Act, 2012 and significant notifications and circulars issued upto 30.6.2012.

c) Supplementary Study Paper - 2012 (IDTL):

This publication explains the amendments made by the Finance Act, 2012 in IDTL as well as the significant circulars and notifications issued between 1.7.2011 and 30.6.2012.

It is especially relevant in case you have the earlier edition of the IDTL Study Materials (i.e., the November 2011 and December 2011 editions, respectively), which is based on the provisions of law as amended by the Finance Act, 2011.

d) Select Cases in Indirect Tax Laws:

This publication is relevant for students appearing in Nov, 2013 examination. This publication is a compilation of significant recent judicial decisions of Supreme Court and High Courts which, when read in conjunction with the IDTL Study Materials, will enable you to appreciate the significant issues involved in interpretation and application of tax laws.

e) Revision Test Paper (RTP) for Nov 2013 Exam:

The RTP for Nov 2013 would, therefore, contain the significant notifications and circulars issued after the date up to which they are covered in the IDTL Study Materials i.e. the significant notifications and circulars issued between 1st July, 2012 and upto 30th April, 2013.



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