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CA Final Amendments and Updates Applicable for May 2018 Exams

Download relevant amendments, updates, accounting standards and guidance notes announced by ICAI for the coming examinations of CA Final May 2018.

The next examinations of Chartered Accountancy Final course after Nov 2017, will be held in May, 2018. The Institute of Chartered Accountants of India (ICAI) has announced the applicability of Standards, Guidance Notes and Legislative Amendments etc. for May, 2018 – Final Examination.

Accordingly, you may go through these topics and amendments viz. Accounting Standards (ASs), Standards on Auditing (SAs), Guidance Notes (GNs), Circulars, Notifications, Companies Act and Finance Act etc. which are very important and relevant for CA Final May 2018 examinations.

Applicable Material for CA Final [Old Syllabus] May 2018 Exam

CA FINAL COURSE
Edition applicable for May 2018 Final Exams
Financial Reporting
Study Material
January 2017 + RTP May 2018;
Practice Manual
October, 2017 (updated) alongwith RTP May, 2018
Accounting Pronouncements
January, 2017 alongwith RTP May, 2018
Strategic Financial Management
Study Material
January 2015
Practice Manual
January 2017
Supplementary SFM
January 2016
Advanced Auditing and Professional Ethics
Study Material
January 2017 alongwith RTP May, 2018
Practice Manual
January 2017 alongwith RTP May, 2018
Auditing Pronouncements
January 2017 alongwith RTP May, 2018
Corporate and Allied Laws
Study Material
January 2016 alongwith RTP May, 2018
Practice Manual
January 2017
Supplementary Study Paper
Overview of Insolvency and Bankruptcy Code, 2016
Part I – January, 2017
Part II – August, 2017
Advanced Management Accounting
Study Material
January 2015
Practice Manual AMA Part – A
January 2017
Practice Manual AMA Part – B
January 2017
Information Systems Control and Audit
Study Material
January 2016 + RTP May, 2018
Practice Manual
January 2017
Direct Tax Laws
Study Material

The Study Materials of 7 for New Course would be applicable for the old course as well.

Three Chapters in Module 4 on International Taxation namely, Chapter 6: Overview of Model Tax Conventions, Chapter 7: Application & Interpretation of Tax Treaties and Chapter 8: Base Erosion and Profit Shifting will not be applicable for Students of old Course.

Practice Manual
The Questions from Practice Manual, amendments and case laws have been incorporated in the new study material.
Indirect Tax Laws
Study Material
The Study Materials of 8 for New Course would be applicable for the old course as well.
Three Chapters in Module 4 on International Taxation namely, Chapter 6: Overview of Model Tax Conventions, Chapter 7: Application & Interpretation of Tax Treaties and Chapter 8: Base Erosion and Profit Shifting will not be applicable for Students of old Course.
Practice Manual
The Questions from Practice Manual, amendments and case laws have been incorporated in the new study material.
Supplementary Study Paper Final Course DT & IDT
RTP for May 2018 will contain Statutory update.
Select Cases in Direct and Indirect Taxes
RTP for May 2018 will contain Statutory update.

Click here to Download CA Final (NEW) Course Amendments for May 2018 Exams

Paper 1: Financial Reporting

Update[25-JAN-2018]: Students appearing in CA Final May, 2018 or forthcoming examinations under old course, may note that the existing Accounting Standards will continue to be applicable for all chapters of the Final Paper 1 : Financial Reporting Study Material except for chapters 2 and 6 which are Ind AS based.

Therefore, in respect of the following two chapters the relevant Ind AS would be applicable:

  • Chapter 2 “Introduction of Indian Accounting Standards (Ind AS); Comparative study of AS vis-a-vis Ind AS; Carve outs/ins in Ind AS vis-à-vis International Financial Reporting Standards (IFRS)” and
  • Chapter 6 ‘Accounting and Reporting of Financial Instruments’ which is based on Ind AS 32, 107 and 109.

Students under old course, may further note that with respect to Chapter 2 of the Study Material, they are expected to have an overall knowledge of the contents covered in the topic of “Introduction of Indian Accounting Standards (Ind AS); Comparative study of AS vis-a-vis Ind AS; Carve outs/ins in Ind AS vis-à-vis International Financial Reporting Standards (IFRS)” as discussed in the Study Material.

However, in view of the complexities involved in Ind AS, concepts of all the Ind AS have been discussed broadly in the chapter by sidestepping the intricacies involved in it. Accordingly, the students would be expected to answer simple knowledge / application based questions testing their conceptual understanding of the Ind AS as discussed in the chapter.

All 39 IFRS converged Indian accounting standards (Ind AS) has been hosted on MCA official website MCA.GOV.IN along with the Companies (Indian Accounting Standards) Rules, 2015 which has come into force on the 1st day of April, 2015. After notification of Ind AS in February, 2015, the CA Institute has also announced dated 23/11/2015 that Ind AS 32, Ind AS 107 and Ind AS 109 would be applicable in place of AS 30, AS 31 and AS 32 to the topic ‘Accounting for Financial Instruments’.

Accordingly, Ind AS 32 “Financial Instruments: Presentation”, Ind AS 107 “Financial Instruments: Disclosures” and Ind AS 109 “Financial Instruments” shall be applicable on the topic ‘Accounting for Financial Instruments’ instead of AS 30 “Financial Instruments: Recognition and Measurement”, AS 31 “Financial Instruments: Presentation” and AS 32 “Financial Instruments: Disclosures” in May, 2018 examinations for Paper-1: Financial Reporting at the Final level. In view of the complexities involved, simple practical problems involving conceptual issues or application issues may be asked in the examination.

Accounting Standards:

Following are the list of all 28 Accounting Standards (AS) which are fully applicable for CA Final May, 2018 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: Property, Plant and Equipment (2016)
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

Amendments made by MCA on 30.3.2016 in the Companies (Accounting Standards) Rules, 2006 and Companies (Indian Accounting Standards) Rules, 2015 are applicable for May, 2017 examination.

Guidance Notes:

Following are the list of 14 Guidance Notes which are fully applicable for CA Final May, 2018 examinations:

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 Accounting Treatment for MODVAT/CENVAT.
5. Guidance Note on Accounting for Corporate Dividend Tax.
6. Guidance Note on Accounting for Employee Share-based Payments.
7. Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under the Income Tax Act, 1961.
8. Guidance Note on Measurement of Income Tax for Interim Financial Reporting in the context of AS 25.
9. Guidance Note on Applicability of AS 25 to Interim Financial Results.
10. Guidance Note on Turnover in case of Contractors.
11. Guidance Note on the Schedule III to the Companies Act, 2013.
12. Guidance Note on Accounting for Expenditure on Corporate Social Responsibility Activities.
13. Guidance Note on Accounting for Derivative Contracts.
14. Guidance Note on Accounting for Depreciation in Companies in the context of Schedule II to
the Companies Act, 2013

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 May, 2018 CA Final exams.

The Companies Act, 2013:

Accounting related sections of the Companies Act, 2013, notified up to 31/10/2017 along with the clarifications issued by the Ministry of Corporate Affairs are applicable for May, 2018 Examination.

The cut-off date for any other legislative amendments including relevant Notifications, Circulars, Rules and Guidelines issued by Regulating Authority will be six months i.e. up to 31st October, 2017.

Paper 2: Strategic Financial Management

Generally, CA Institute not made amendment in Paper 3 (SFM) of CA Final Course and therefore, you may refer your new course study materials.

Paper 3: Advanced Auditing and Professional Ethics

  1. The statement on reporting under Section 143 of the Companies Act, 2013 (Section 227(1A) of the Companies Act, 1956) shall be applicable for May, 2017 Examination. Companies (Auditor’s Report) Order, 2016 [CARO] issued by Ministry of Corporate Affairs on 29th March, 2016 is applicable for CA Final May 2017 Exams.
  2. All auditing related sections of the Companies Act, 2013 up to 31-10-2017 shall be applicable for CA Final May, 2018 Exams. All other legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authority up to 31st October, 2017 is applicable for May 2018 Examination.
  3. SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Companies (Auditor’s Report) Order, 2016 are applicable for May, 2018 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 May, 2018 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 (Revised): 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 (Revised): 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
SAE 3420 (New): Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus
SRS 4400: Engagements to Perform Agreed Upon Procedures Regarding Financial Information
SRS 4410 (Revised): 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 May, 2018 exams:

1. Code of Ethics
2. Guidance Note on Independence of Auditors
3. 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).
4. Guidance Note on Audit of Inventories
5. Guidance Note on Audit of Debtors, Loans and Advances
6. Guidance Note on Audit of Investments
7. Guidance Note on Audit of Cash and Bank Balances
8. Guidance Note on Audit of Liabilities
9. Guidance Note on Audit of Revenue
10. Guidance Note on Audit of Expenses
11. Guidance Note on Computer Assisted Audit Techniques (CAATs).
12. Guidance Note on Audit of Payment of Dividend.
13. Guidance Note on Audit of Capital and Reserves.
14. Guidance Note on Audit of Banks.
15. Guidance Note on Audit of Internal Financial Controls over Financial Reporting.
16. Guidance Note on Reporting under section 143 (3) (f) and (h) of the Companies Act, 2013.
17. Guidance Note on Reporting on Fraud under section 143(12) of the Companies Act, 2013.
18. Guidance Note on the Companies (Auditor’s Report) Order, 2016.

Paper 4: Corporate and Allied Laws

1. The Companies Act, 2013:

The relevant notified Sections of the Companies Act, 2013 and other legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authority up to 31st October, 2017 will be applicable for May, 2018 Examination.

2. The Companies (Amendment) Act, 2017:

This amendment Act was enacted by Parliament in the Sixty-eighth Year of the Republic of India. However, the Companies (Amendment) Act, 2017 is not applicable for May 2018 examination.

3. Relevant Study Material for May 2018 Examination:

New Course study material shall be applicable for CA Final May 2018 examination. Additionally, the RTP of May, 2018 examination shall be referred side by side so as to know what is applicable/not applicable for May, 2018 examination.

Paper 5 : Advanced Management Accounting

New Course study material shall be applicable for CA Final May 2018 examination. which contain Study Material, Practice Manual, PowerPoint Presentations, Podcasts. Practice Manual AMA Part – A January, 2017 and Practice Manual AMA Part – B January, 2017 edition shall be applicable in May 2018 examination.

Paper 6: Information Systems Control and Audit

Till the new edition released by ICAI, January 2016 Edition of Study Material, Practice Manual, PowerPoint Presentations, Podcasts of CA Final Course shall be applicable for May 2018. You may download the soft copy of these materials from official website of ICAI under.

Paper 7 and 8 (DTL and IDTL)

Study Materials:

The Study Materials of Paper 7 and 8 for New Course would be applicable for the old course as well. The Questions from Practice Manual, amendments and case laws have been incorporated in these study materials.

Three Chapters in Module 4 on International Taxation namely,

  • Chapter 6: Overview of Model Tax Conventions,
  • Chapter 7: Application & Interpretation of Tax Treaties and
  • Chapter 8: Base Erosion and Profit Shifting

will not be applicable for Students of old Course.

You should read RTP for May 2018 which will contain Statutory updates applicable in May 2018 CA Final course examination.

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7 Comments on "CA Final Amendments and Updates Applicable for May 2018 Exams"

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Alok kumar
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You can also download CA final amendments ICAI site

Abhishek
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Abhishek

Sir, My attempt is in November 2018 , i am in old syllabus of ca final . Should i prepare AS or IND AS ? I am very very confused about planning my studies . Pls guide me .

Golla Sneha Latha
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Golla Sneha Latha

Send me CA Final Syallabus applicable for May 2017 attempt

Dhanush
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Dhanush

Sir,
What about those who are in current syllabus and are writing the exam in May 2017 ?

Please do Respone sir !

Aishwarya
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Aishwarya

This update is relevant for the revised syllabus right?which has not yet become effective?what about those who are in current syllabus and willing to take exam in May 2017?

Please clarify.

Anki
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Anki

Sir are 39 Ind AS fully applicable in FR? Or only differences?

Sir where exactly we can find notifications for audit upto 31st oct 2016????

Please reply soon

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