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CA Intermediate Amendments May 2018 | Account Audit Law Tax ITSM

Download applicable Accounting Standards (AS), Guidance Notes, amendments and updates officially announced by ICAI for CA Intermediate (IPC) May 2018 exams.

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

The Institute of Chartered Accountants of India (ICAI) has announced that the following Accounting Standards (Ass), Guidance Notes (GNs), Legislative Amendments and updates applicable for May, 2018 – Intermediate (IPC) Examination.

CA INTERMEDIATE (IPC) COURSE
Edition applicable for May 2018 IPCC Exams
Accounting
Study Material (Module 1 to 2)
July, 2015 Edition along with RTP May 2018
Practice Manual
April, 2016 Edition
Business Laws & Ethics and Communication
Study Material (Module 1 to 3)
July, 2015 Edition along with RTP May, 2018
Practice Manual
April, 2016 Edition
Supplementary BLEC
June, 2017 Edition
Cost Accounting
Study Material (Module 1 to 2)
April, 2016 Edition
Practice Manual
April, 2016 Edition
Financial Management
Study Material (Module 1 to 2)
April, 2016 Edition
Practice Manual
April, 2016 Edition
Taxation
Section A – Income Tax
Study Material for New Course Intermediate
Paper 4 will be applicable for Existing Intermediate (IPC) also with the exception of two topics:
i) Tax Collection at Source – Basic concept in pages 9.60 to 9.65 in Chapter 9; and
Section B – Indirect Taxes
ii) Self-Assessment in page 10.28 in Chapter 10 under Section A.
Study Material incorporates questions from Practice Manual and amendments.
RTP for May 2018 will contain Statutory update.
Advanced Accounting
Study Material (Module 1 to 3)
July, 2015 Edition + RTP May 2018
Practice Manual
April, 2016 Edition
Auditing and Assurance
Study Material (Module 1 to 2)
July, 2015 Edition + RTP May, 2018
SM Auditing Pronouncement
July, 2017 Edition for Intermediate Course (New)
Practice Manual
April, 2016 Edition
Information Technology Section-A
Study Material
July, 2015 Edition along with RTP May, 2018
Practice Manual
June, 2017 Edition
Strategic Management Section-B
Study Material
July 2015 Edition
Practice Manual
April, 2016 Edition

Paper 1: Accounting

Accounting Standards:

The Ministry of Corporate Affairs (MCA) has notified Companies (Accounting Standards) Amendment Rules, 2016 [G.S.R. 364(E) w.e.f. 30.03.2016]. Following accounting standards shall be applicable for paper-1 CA IPCC may 2018 examinations.

AS 1: Disclosure of Accounting Policies
AS 2: Valuation of Inventories
AS 3: Cash Flow Statements
AS 6: Depreciation Accounting (Omitted w.e.f. 1-4-2016)
AS 7: Construction Contracts (Revised 2002)
AS 9: Revenue Recognition
AS 10: Property, Plant and Equipment
AS 13: Accounting for Investments
AS 14: Accounting for Amalgamations

The revisions in AS 2, AS 10, AS 13 and AS 14 are relevant for Students appearing in CA IPCC May 2018 Examinations. Those students who have July 2015 Edition of Paper 1 “Accounting” are advised to ignore Para 2.4.4 on Deprecation Accounting and Para 2.4.7 on Accounting for Fixed Assets because AS 6 ‘Deprecation Accounting’ And AS 10 ‘Accounting for Fixed Assets’ have been withdrawn after issuance of AS 10 ‘Property, Plant and Equipment’.

The students are also advised to ignore the questions numbered 21 to 33 (based on AS 6) and 46 to 55 ( based on AS 10) given in April, 2016 Edition of Practice Manual. They are also suggested to refer the Supplementary material on AS 10, Property, Plant and Equipment along with the RTP for May, 2018 Examination.

Download Study Material and Practice Manual

ICAI has announced that supplementary material on AS 10 (Revised) shall be applicable in CA Intermediate (IPC) May 2018 examination.

Paper 5: Advanced Accounting

Accounting Standards:

Following accounting standards shall be applicable for paper-5 CA IPCC may 2018 examinations.

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.

The revisions in AS 4, AS 14 and AS 29 are applicable for Students appearing for Paper 5 “Advanced Accounting” in May, 2018 Examinations. Those students who have July 2015 Edition of Paper 5 Advanced Accounting are advised to refer the CA IPCC RTP for May, 2018 Examination.

Note Regarding Applicability for Paper 1 and Paper 5:

All accounting related sections of the Companies Act, 2013 notified up to 31st October, 2017 will be applicable for CA Intermediate (IPC) May, 2018 Exams.

However, you should refer other legislative amendments including relevant Notifications, Circulars, Rules and Guidelines issued by Regulating Authority 6 months before or prior to the month of commencement of CA IPC exam i.e. up to 30th April, 2017.

Companies (Accounting Standards) Rules, 2006:

Amendments made by MCA on 30.3.2016 in the Companies (Accounting Standards) Rules, 2006 are applicable for May, 2018 examination. The Ministry of Corporate Affairs (MCA) has notified Companies (Accounting Standards) Amendment Rules, 2016 vide Notification No. G.S.R. 364(E) dated 30.03.2016.

MCA has omitted AS 6, Depreciation Accounting and amended the following Accounting Standards issued under Companies (Accounting Standards) Rules, 2006:

  • AS 2, Valuation of Inventories
  • AS 4, Contingencies and Events Occurring After the Balance Sheet Date
  • AS 10, Property, Plant and Equipment
  • AS 13, Accounting for Investments
  • AS 14, Accounting for Amalgamations
  • AS 21, Consolidated Financial Statements [Not covered at Intermediate (IPC) level]
  • AS 29, Provisions, Contingent Liabilities and Contingent Assets.

Download the details by ICAI

(Announcement dated 20th January 2017)

Non-Applicability of Ind ASs for May, 2018 Examination:

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, 2016, 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). However, any question based on Ind AS will not be asked in CA IPCC May, 2018 examinations.

Paper 2: Business Laws, Ethics and Communication

The Companies Act, 2013:

The relevant sections of the Companies Act, 2013, notified up to 31st October, 2017 along with significant Rules/ Notifications/ Circulars/ Clarifications/ Orders issued by the Ministry of Corporate Affairs up to 31st October, 2017.

Non-applicability the Companies Act, 2013:

Following sections of the Companies Act, 2013 shall not be applicable for CA IPCC May 2018 examinations.

Section 48: Variation of shareholders’ right
Section 66: Reduction of share capital

 Paper 4: Taxation

The provisions of income-tax and indirect tax laws, as amended by the Finance Act, 2017, including circulars and notifications issued up to 31st October, 2017 shall be applicable in CA IPC May, 2018 examination. Therefore, the relevant assessment year for income-tax is A.Y. 2018-19.

The Council of ICAI has decided that Goods and Services Tax (GST) will be examined in Part II: Indirect Taxes of Paper 4: Taxation of Intermediate (IPC) Course from May, 2018 examination onwards.

 Goods and Services Tax (GST):

The Council of ICAI has decided that Goods and Services Tax (GST) will be examined in Part II: Indirect Taxes of Paper 4: Taxation of Intermediate (IPC) Course from May, 2018 examination onwards.

GST will be examined in May, 2018 IIPC examination in Section B – Indirect Taxes of Paper 4: Taxation (carrying 50 Marks) under old scheme of education and training.Detailed syllabus of Section B – Indirect Taxes of Paper 4: Taxation under old scheme of education and training is provided in Annexure A.

Further, GST will be examined in May, 2018 Intermediate examination in Section B – Indirect Taxes of Paper 4: Taxation (carrying 40 Marks)under new scheme of education and training. Detailed syllabus of Section B – Indirect Taxes of Paper 4: Taxation under new scheme of education and training is hosted at official website of ICAI Resources.

Study Materials:

Announcement for May 2018 & November 2018 IIPCE – Study Material applicable for IIPCC Paper 4: Taxation – (28-09-2017) – Students of IIPCC, appearing in May 2018 and November 2018 examinations, may note that the new Study Material for Intermediate Paper 4: Taxation under the Revised Scheme of Education and Training is relevant for IIPCC Paper 4: Taxation as well, with the exception of the following topics in Section A: Income-tax Law discussed under the following headings –

  • “8. Tax Collection at Source – Basic Concept [Section 206C]” in pages 9.60 to 9.65 in Chapter 9
  • “19. Self-Assessment” in page 10.28 in Chapter 10

Consequently, the summary of the above two topics forming part of “Let us recapitulate” at the end of these chapters is also not relevant for IIPCC Paper 4: Taxation.

It may be noted that the content of Section A of the Study Material is based on the income-tax law as amended by the Finance Act, 2017. The relevant assessment year is A.Y.2018-19. The Study Guidelines, containing the list of topic-wise exclusions from the syllabus of New Intermediate Course Paper 4: Taxation, Section A: Income-tax law, given in pages ix – xix forming part of the initial pages of Module 1 of the Study Material, is applicable for IIPCC Paper 4: Taxation Section A Income-tax, also. In effect, the provisions/sections given in the Study Guidelines will be excluded from the syllabus of IIPCC Paper 4 Taxation, as well.

Section B: Indirect Taxes comprises of GST, the syllabus for which is the same in both old course and new course, and hence, the Study Material for new course is applicable for the old course.

Students may note that the marks allocation for Sections A & B is 50:50 in IIPCC Paper 4: Taxation and 60:40 in new Intermediate Paper 4: Taxation.

Practice Manuals:

Part I: Income-tax and Part II: Indirect Taxes – October 2016 Edition, wherein the questions have been modified/adapted and answered on the basis of the provisions of tax laws as amended by the Finance Act, 2016 and significant notifications and circulars issued upto 30.4.2016.

Download Study Material and Practice Manual

ICDSs Applicable for May 2017:

The Central Government has notified 10 New Income Computation and Disclosure Standards (ICDSs) to be applicable from A.Y.2017-18 vide Notification No.S.O.3079(E) dated 29-9-2016.

Since the relevant assessment year for CA IPCC May 2017 Exam is A.Y.2017-18 and notifications and circulars issued up to 31.10.2016 are applicable for the said examination, the New ICDSs notified on 29.9.2016 would be applicable from May 2017 examination.

Download ICDSs in PDF file

Therefore, CA IPCC students should prepare for their CA IPCC May 2018 exam for Paper 4 Taxation [Part I: Income-tax] from the Annexure to October 2016 edition of the Practice Manual.

Supplementary Study Paper:

Supplementary Study Paper – 2017 explaining the amendments made by the Finance Act, 2017 and significant notifications and circulars issued upto 30.4.2017. The amendments in the Supplementary Study Paper 2017 have been grouped chapter-wise in line with the Study Material to facilitate combined reading therewith.

Download Supplementary Study Paper

Paper 6: Auditing and Assurance

Following are the lists of 34 Engagements and Quality Control Standards on Auditing which are applicable in CA IPCC May, 2018 exams.

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

Statements:

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 CA IPCC May, 2017 Examination.

Guidance Notes:

Following guidance notes shall be applicable for CA IPCC May 2017 examinations.

  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.
  8. Guidance Note on Reporting under section 143 (3) (f) and (h) of the Companies Act, 2013.

Applicability of the Companies Act, 2013:

The relevant notified Sections of the Companies Act, 2013 before first day of November, 2016 will be applicable for CA IPCC May, 2017 Examination. For other legislative amendments including relevant Notifications, Circulars, Rules and Guidelines issued by Regulating Authority the cut-off date will be 31st October, 2016.

Companies (Auditor’s Report) Order, 2016 [CARO-2016] issued by Ministry of Corporate Affairs on 29th March, 2016 is applicable for May 2018 Examination.

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