The Institute of Chartered Accountants of India (ICAI) conducts the Chartered Accountancy (CA) examinations of Final Course twice i.e. May and November every year. Accordingly, after CA Final May Exam 2016, the next CA Final course exam will be held in November, 2016.
You must go through the latest amendments and updates happened at least 6 months prior to the commencement of your CA Final Course examination. Accordingly, you may download Study Materials (latest edition), Additional Reading material, Supplementary Study Materials, Practice Manual, Compilation, Revision Test Papers (RTP) and Mock Test Papers (MTP) from ICAI official website icai.org under Board of Studies (BoS) Knowledge Portal. You may also buy hard copy of the same from CA Institute’s nearest branch office sales counter.
CA Institute announce the approved list of applicability of Standards, Guidance Notes and Legislative Amendments etc. for each term of CA Final Examination well in advance before commencement of exams. Accordingly, following are the relevant Accounting Standards (ASs), Standards on Auditing (SAs), Guidance Notes (GNs), Circulars, Notifications, Companies Act and Finance Act etc. which are very important for CA Final November 2016 examinations.
Paper 1: Financial Reporting
Indian Accounting Standard (Ind AS):
39 Indian Accounting Standards (Ind AS) have been prepared by the National Advisory Committee on Accounting Standards (NACAS) and the Ministry of Corporate Affairs (MCA) has now notified Roadmap for applicability of Ind AS in February, 2015 under the Companies Act, 2013. Accordingly, the CA Institute has now included following topics based on Indian Accounting Standards in the Final Course curriculum applicable for Nov, 2016 examination.
- Introduction of Indian Accounting Standards (Ind AS);
- Comparative study of ASs vis-a-vis Ind ASs; and
- Carve outs/ins in Ind ASs vis-à-vis International Financial Reporting Standards (IFRSs).
As a result of which, the following topics has been excluded from the syllabus of CA Final and the same would also not be applicable for November, 2016 Examination:
- International Financial Reporting Standards (IFRS);
- Overview of International Accounting Standards (IAS);
- Significant differences vis-a-vis Indian Accounting Standards;
- Understanding of US GAAPs, Applications of IFRS and US GAAP.
- Interpretations by International Financial Reporting Interpretation Committee (IFRIC);
Companies (Ind AS) Rules, 2015:
CA. Vandana Nagpal (Director- Board of Studies) vide annoucement dated 15th June, 2016 stated that any new AS or Ind AS or revised version of AS or Ind AS, notified by the MCA, is being made applicable for CA examination only after one year of its notification.
Accordingly, amendments made by the Ministry of Corporate Affairs (MCA) vide G.S.R. 365 (E) dated 30th March, 2016 in the Companies (Accounting Standards) Rules, 2006 and Companies (Indian Accounting Standards) Rules, 2015 are not applicable for CA Final November, 2016 examination.
Accounting Standards (AS):
Following are the list of 28 Accounting Standards (AS) which are fully applicable for CA Final November, 2016 examinations:
- AS 1: Disclosure of Accounting Policies
- AS 2: Valuation of Inventories
- AS 3: Cash Flow Statements
- 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 6: Depreciation Accounting
- AS 7: Construction Contracts (Revised 2002)
- AS 9: Revenue Recognition
- AS 10: Accounting for Fixed Assets
- AS 11: The Effects of Changes in Foreign Exchange Rates (Revised 2003)
- AS 12: Accounting for Government Grants
- AS 13: Accounting for Investments
- AS 14: Accounting for Amalgamations
- AS 15: Employee Benefits
- AS 16: Borrowing Costs
- AS 17: Segment Reporting
- AS 18: Related Party Disclosures
- AS 19: Leases
- AS 20: Earnings Per Share
- AS 21: Consolidated Financial Statements
- AS 22: Accounting for Taxes on Income
- AS 23: Accounting for Investment in Associates in Consolidated Financial Statements
- AS 24: Discontinuing Operations
- AS 25: Interim Financial Reporting
- AS 26: Intangible Assets
- AS 27: Financial Reporting of Interests in Joint Ventures
- AS 28: Impairment of Assets
- AS 29: Provisions, Contingent Liabilities and Contingent Assets
Ind AS instead of AS 30, 31 and 32:
AS-30 “Financial Instruments: Recognition and Measurement”, AS-31 “Financial Instruments: Presentation” and AS-32 “Financial Instruments: Disclosures” shall not be applicable for CA Final Nov 2016 examination. However, the following Ind AS shall be applicable instead of AS 30, AS 31 and AS 32:
- Ind AS 32 “Financial Instruments: Presentation”,
- Ind AS 107 “Financial Instruments: Disclosures” and
- Ind AS 109 “Financial Instruments”.
Thus, the above Ind AS 32, 107 and 109 has been made applicable by CA Institute to the topic ‘Accounting and Reporting of Financial Instruments’ for Nov 2016 Exams. In view of the complexities involved, simple practical problems involving conceptual issues or application issues may be asked in the examination.
Following are the list of 14 Guidance Notes which are fully applicable for CA Final November, 2016 examinations:
- Guidance Note on Accrual Basis of Accounting.
- Guidance Note on Accounting Treatment for Excise Duty.
- Guidance Note on Terms Used in Financial Statements.
- Guidance Note on Availability of Revaluation Reserve for Issue of Bonus Shares.
- Guidance Note on Accounting Treatment for MODVAT/CENVAT.
- Guidance Note on Accounting for Corporate Dividend Tax.
- Guidance Note on Accounting for Employee Share-based Payments.
- Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under the Income Tax Act, 1961.
- Guidance Note on Measurement of Income Tax for Interim Financial Reporting in the context of AS 25.
- Guidance Note on Applicability of AS 25 to Interim Financial Results.
- Guidance Note on Turnover in case of Contractors.
- Guidance Note on the Schedule III to the Companies Act, 2013.
- Guidance Note on Accounting for Expenditure on Corporate Social Responsibility Activities. [New]
- Guidance Note on Guidance Note on Accounting for Derivative Contracts.[New]
Note that the Guidance Note on Applicability of Accounting Standard (AS) 20, Earnings per Share, the Guidance Note on Remuneration paid to key management personnel – whether a related party transaction, the Guidance Note on Treatment of Reserves created on Revaluation of Fixed Assets and the Guidance Note on Accounting for Depreciation in Companies shall not be applicable in November, 2016 CA Final exams.
The Companies Act, 2013:
The relevant notified Sections of the Companies Act, 2013 and legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authority up to 30th April, 2016 will be applicable for Nov, 2016 Examination.
Dividend Distribution Tax:
You should note the following updates regarding DDT.
- With effect from 01-10-2014 dividend and income distribution tax is leviable on gross divided / income and not on the net dividend / income distributed to shareholders and unit holders as per Income-tax Act, 1961.
- The rate of DDT is 15% [excluding surcharge of 12% plus secondary and heigher secondary cess is 3% (2+1)].
Paper 3: Advanced Auditing and Professional Ethics
The statement on reporting under Section 227(1A) of the Companies Act, 1956 corresponding to section 143(1) of the Companies Act, 2013 shall be applicable for November, 2016 Examination.
Companies (Auditor’s Report) Order, 2016 [CARO] issued by Ministry of Corporate Affairs (MCA) vide Order No. S.O. 1228(E) on 29th March, 2016 is applicable for CA Final Nov 2016 Exams.
Additionally, all auditing related sections of the Companies Act, 2013 up to 31st March, 2016 will be applicable for CA Final November, 2016 Exams. All other legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authority up to 30th April, 2016 is applicable for November 2016 Examination.
Engagements and Quality Control Standards on Auditing
Following are the lists of all 44 Engagements and Quality Control Standards on Auditing which are applicable in CA November, 2016 exams.
SQC 1: Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements
SA 200: Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing
SA 210: Agreeing the Terms of Audit Engagements
SA 220: Quality Control for Audit of Financial Statements
SA 230: Audit Documentation
SA 240: The Auditor’s responsibilities relating to Fraud in an Audit of Financial Statements
SA 250: Consideration of Laws and Regulations in an Audit of Financial Statements
SA 260: Communication with Those Charged with Governance
SA 265: Communicating Deficiencies in Internal Control to Those Charged with Governance and Management
SA 299: Responsibility of Joint Auditors
SA 300: Planning an Audit of Financial Statements
SA 315: Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment
SA 320: Materiality in Planning and Performing an Audit
SA 330: The Auditor’s Responses to Assessed Risks
SA 402: Audit Considerations Relating to an Entity Using a Service Organization
SA 450: Evaluation of Misstatements Identified during the Audits
SA 500: Audit Evidence
SA 501: Audit Evidence – Specific Considerations for Selected Items
SA 505: External Confirmations
SA 510: Initial Audit Engagements-Opening Balances
SA 520: Analytical Procedures
SA 530: Audit Sampling
SA 540: Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
SA 550: Related Parties
SA 560: Subsequent Events
SA 570: Going Concern
SA 580: Written Representations
SA 600: Using the Work of Another Auditor
SA 610: Using the Work of Internal Auditors
SA 620: Using the Work of an Auditor’s Expert
SA 700: Forming an Opinion and Reporting on Financial Statements
SA 705: Modifications to the Opinion in the Independent Auditor’s Report
SA 706: Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report
SA 710: Comparative Information – Corresponding Figures and Comparative Financial Statements
SA 720: The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements
SA 800: Special Considerations-Audits of Financial Statements Prepared in Accordance with Special Purpose Framework
SA 805: Special Considerations-Audits of Single Purpose Financial Statements and Specific Elements, Accounts or Items of a Financial Statement
SA 810: Engagements to Report on Summary Financial Statements
SRE 2400: Engagements to Review Financial Statements
SRE 2410: Review of Interim Financial Information Performed by the Independent Auditor of the Entity
SAE 3400: The Examination of Prospective Financial Information
SAE 3402: Assurance Reports on Controls at a Service Organisation
SRS 4400: Engagements to Perform Agreed Upon Procedures Regarding Financial Information
SRS 4410: Engagements to Compile Financial Information
Guidance Notes and other publications
Following are the list of 14 Guidance Notes and other publications which are fully applicable for CA Final November, 2016 exams:
- Code of Ethics
- Guidance Note on Independence of Auditors.
- Guidance Note on Audit Reports and Certificates for Special Purposes.
- Guidance Note on Audit under Section 44AB of the Income-tax Act.
- Guidance Note on Audit of Inventories.
- Guidance Note on Audit of Debtors, Loans and Advances.
- Guidance Note on Audit of Investments.
- Guidance Note on Audit of Cash and Bank Balances.
- Guidance Note on Audit of Liabilities.
- Guidance Note on Audit of Revenue.
- Guidance Note on Audit of Expenses.
- Guidance Note on Reporting under section 143 (3) (f) and (h) of the Companies Act, 2013.
- Guidance Note on Computer Assisted Audit Techniques (CAATs).
- Guidance Note on Audit of Payment of Dividend.
- Guidance Note on Audit of Capital and Reserves.
Paper 4: Corporate and Allied Laws
The Companies Act, 2013:
The relevant notified Sections of the Companies Act, 2013 before first day of May, 2016 will be applicable for November, 2016 Examination and for other legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authority cut-off date will be 6 months i.e. till 30th April 2016.
SEBI (ICDR) Regulations, 2009:
The Securities and Exchange Board of India (SEBI) has issued following regulations to amend SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 which are applicable for Nov 2016 examination:
- Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Fifth Amendment) Regulations, 2015 issued by SEBI vide Notification No. SEBI/LAD-NRO/GN/2015-16/012 w.e.f 1 January, 2016.
- Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)(Seventh Amendment) Regulations, 2015 issued by SEBI vide Notification No. SEBI/ LAD-NRO/GN/2015-16/025w.e.f 1 December, 2015.
- The SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2016 vide Notification SEBI/LAD-NRO/GN/2015-16/031 dated 21st January, 2016.
- The SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2016 vide Notification SEBI/LAD-NRO/GN/2015-16/036 dated 17th February, 2016.
Foreign Exchange Management Act, 1999:
Following amendments made in various regulations under FEMA are applicable for November, 2016 examination.
- Foreign Exchange Management (Permissible Capital Account Transactions) (Fourth Amendment) Regulations, 2015 vide Notification No. FEMA. 345/2015-RB dated November 16, 2015.
- Vide Notification no. RBI/FED/2015-16/3 dated January 01, 2016, Reserve Bank of India issues directions to Authorized Persons under Section 11 of the Foreign Exchange Management Act (FEMA), 1999 to lay down the modalities as to how the foreign exchange business has to be conducted by the Authorized Persons with their customers/ constituents with a view to implementing the Liberalized Remittance Scheme.
- Foreign Exchange Management (Export of Goods & Services) Regulations, 2015 vide Notification No. FEMA 23(R)/2015-RB dated January 12, 2016.
The Competition Act, 2002:
Following amendments made in the Competition Act, 2002 are applicable for November, 2016 examination.
- Vide Notification no. S.O. 673(E), dated the 4th March, 2016, in exercise of the powers conferred by clause (a) of section 54 of the Competition Act, 2002 (12 of 2003), the Central Government, in public interest, hereby exempts the ‘Group’ exercising less than fifty per cent. of voting rights in other enterprise from the provisions of section 5 of the said Act for a period of five years with effect from the date of publication of this notification in the official gazette.
- Vide Notification no S.O. 674(E), in exercise of the powers conferred by clause (a) of section 54 of the Competition Act, 2002 (12 of 2003), the Central Government, in public interest, hereby exempts an enterprise, whose control, shares, voting rights or assets are being acquired has either assets of the value of not more than rupees three hundred and fifty crores in India or turnover of not more than rupees one thousand crores in India from the provisions of section 5 of the said Act for a period of five years from the date of publication of the notification in the official gazette.
- Vide Notification no S.O. 675(E),in exercise of the powers conferred by sub-section (3) of Section 20 of the Competition Act, 2002 (12 of 2003), the Central Government in consultation with the Competition Commission of India, hereby enhances, on the basis of the wholesale price index, the value of assets and the value of turnover, by hundred per cent for the purposes of section 5 of the said Act, from the date of publication of this notification in the Official Gazette.
Non-Applicability of Chapters:
Following two chapters are not applicable for Nov 2016 term of CA Final Examinations.
- Chapter 9 of the study material (January 2016 edition) covering provisions relating to Revival and Rehabilitation of Sick-Industrial Companies.
- Chapter 15 of the study material (January, 2016 edition) covering provisions relating to the National Company Law Tribunal and Appellate Tribunal.
Paper 5: Advanced Management Accounting
There is no any amendments has been made in Paper-5 (Advanced Management Accounting) of CA Final Course. Therefore, you may refer the reprinted edition of Study Materials (January 2015 Edition) for your Nov 2016 Examinations.
Further, you should use January 2016 Edition of Practice Manual which contain more than 350 practicle questions along with some relevant theory and simple basic knowledge base. Additionally, the CA Institute has also hosted a compilation of Suggested Answers to Questions set from May, 2004 – November, 2014 examinations.
Paper 6: Information Systems Control and Audit
ICAI has hosted January 2016 edition of Study Material, Practice Manual, Power Point Presentations and Podcasts related to Paper-6 (ISCA) and the same would be applicable for November, 2016 examination and onwards. You should also refer the compilation of suggested answers to questions set of last 23 term exams starting from CA Final Nov 2003 to Nov 2014 examinations.
Paper 7: Direct Tax Laws (DTL)
Amendments made in the provisions of Direct Tax Laws by the Finance Act, 2015 including various circulars and notifications issued up to 30th April, 2016 will be applicable for CA Final November, 2016 examinations. Accordingly, the applicable assessment year shall be A.Y. 2016-17 for Direct Tax Laws for CA Final November, 2016 Examination.
Study Material of November 2015 Edition has been released and it is based on the provisions of direct tax laws as amended by the Finance Act, 2015 and applicable for A.Y.2016-17.
December 2015 Edition of Practice Manual on DTL having thoroughly revised and updated questions solved on the basis of provisions of law applicable for A.Y.2016-17.
You should also read the Supplementary Study Paper of July 2015 edition which explains the amendments made by the Finance Act, 2015 in DTL as well as the significant circulars and notifications issued between 01-05-2014 and 30-04-2015.
Select cases for better understanding of latest amendments made in DTL for CA Final Nov 2016 examinations. Further, CA Institute has also issued addendum to Select Cases relevant for November 2016. However, Hindi Medium candidates may click here to download the Supplementary Study Paper – 2015 relevant for their November 2016 examinations.
Note that the Wealth-tax Act, 1957 and Rules thereunder covered in Paper-7 (Direct Tax Laws) are not applicable for November 2016 examination.
The Revision Test Paper (RTP) for November 2016 Examination shall contain the significant amendments by way of notifications and circulars issued between 1st May, 2015 and 30th April, 2016.
ICDS Not Applicable for November, 2016 Exam:
CA Final students appearing in November, 2016 examination may note that Income Computation and Disclosure Standards (ICDS) shall not be applicable.Accordingly, you are not required to apply ICDS for computation of income or for answering application based or knowledge based questions. This is because the applicability of ICDS has been postponed to the assessment year 2017-18 and subsequent assessment years by CBDT vide Notification No.S.O.3079(E) dated 29.9.2016. However, the new ICDS would be relevant from CA Final May, 2017 examinations.
Paper 8: Indirect Tax Laws (IDTL)
Latest amendments and updates made in the provisions related to Indirect Tax Laws by the Finance Act, 2015 including various notifications and circulars issued up to 30/04/2016 will be applicable for CA Final November, 2016 examinations.
Study Material on IDTL November 2015 Edition is relevant for Nov 2016 exam. This edition of study material is based on the provisions of indirect tax laws as amended by the Finance Act, 2015.
December 2015 Edition of Practice Manual on IDTL having thoroughly thoroughly revised and updated questions adapted/modified and solved on the basis of provisions of Indirect Tax laws as amended by the Finance Act, 2015.
You should also download the Supplementary Study Paper of July 2015 Edition which contain amendments made by Finance Act, 2015 and significant circulars/notifications issued between May 2014 to April 2015 and new foreign trade policy 2015-2020. ICAI has issued corrigendum (issued Feb 2016 and April 2016 ) to July 2015 edition of supplementary study paper. Hindi Medium students may click here to download the Supplementary Study Paper – 2015 relevant for November 2016 examinations.
Click here to download the August 2015 edition of Select Cases in Indirect Tax Laws relevant for CA Final Course examinations to be held in Nov 2016. You will find the significant judicial decisions reported from year 2010 to April 2015.
Revision Test Paper (RTP) for CA Final Course November, 2016 Examination is a revision material for self-assessment and updation and covers the circulars and notifications issued upto 30-04-2016.
For November, 2016 examination, the amendments made vide the Finance Act, 2015 as well as Notifications and circulars issued upto 30.04.2016 are relevant. Therefore, provisions relating to Krishi Kalyan Cess (KKC) will not be applicable for November, 2016 examination as the same have become effective from 01.06.2016.