CA Intermediate syllabus modifications & reductions: ICAI revised from 2019

27-June-2019
CA-Inter
By Team Koncept

CA Intermediate (New) Course
Announcement
Modifications & Reductions in the scope of syllabi of select subjects

Board of Studies, ICAI has by way of an announcement dated 24-06-2019,

brought modifications in the scope of syllabi of select subjects in CA INTERMEDIATE Course. Few Modifications will be effective from November 2019 and few from May 2020.

Thus, in the November 2019 attempt of CA INTER Exam and henceforth, the syllabus stands modified in certain subjects.

To get this announcement from the ICAI, click the link below –

ICAI Syllabus Changes

This announcement has been divided in 2 parts -

Part 1 talks about the deletions from the syllabi of select subjects with effect from November 2019.
Part 2 talks about the modification in the syllabi of select subjects with effect from May 2010.

However, if we analyze the announcement, there has been major deletions as compared to any addition in the syllabus. YEAH! YEAH! YEAH!

At KonceptCA, we have provided a detailed analysis of each & every such modification along with the page numbers of the study material that you can now CUT, CUT, CUT, CUT!

Please refer below such modifications –

PART 1

Exclusion of topics from the scope of syllabi of select subjects

[To be effective from November, 2019 Examination]

PAPER 2 - Corporate Laws & Other Laws

Chapter	Section No.	Heading	Page No.	Content
Prospectus and Allotment of Securities	24	Power of SEBI to regulate, issue & transfer of securities, etc.	3.5 – 3.6	This section gives power to SEBI to regulate all the aspects related to securities. Not just issue & transfer of securities, matters related to non-payment of dividend is also to be monitored by SEBI.
	30	Advertisement of Prospectus	3.19	This section prescribes the contents of the advertisement whenever an advertisement of prospectus is published.
	33	Abridged Prospectus	3.19	A short or edited prospectus in the prescribed manner which accompanies the application form for securities. This is usually added to provide an idea to a prospective investor who is buying the securities for the 1st time & has not been able to go through the complete prospectus. We do not wish to miss any opportunity to guide the investor in the best manner.
	38	Punishment for Personation for Acquisition, etc of securities.	3.25	This section attracts the severe punishment under section 447 for anyone who – Makes/ abets making of an application in Fictitious name Makes/ abets making of an application in multiple names Induces directly/ indirectly to allot/ transfers securities in a fictitious name
	41	Global Depository Receipt	3.26-3.28	This section along with The Companies (Issue of Global Depository Receipts) Rules, 2014 talks about how we can bring money from overseas. Getting the Big International Investment Appetite.
Share Capital and Debentures	44	Nature of Shares or Debentures	4.14	This section states that the shares or debentures shall be movable property transferable in the manner provided by the AOA.
	45	Numbering of Shares	NO AS SUCH	This section states that every share in a company shall be distinguished by its distinctive number.
	60	Publication of Authorised, Subscribed and Paid up Capital	4.18 – 4.19	This section states that where any notice/ advt or official publication contains authorized capital, it shall also in equally conspicuous characters, contain the subscribed & paid up capital.
	65	Unlimited Company to Provide for Reserve Share Capital on Conversion into Limited Company	4.25	This section states that an when an unlimited company converts into a limited company, it has to do either or both of the following – Increase the nominal amount of its share capital Provide that a specified portion of its uncalled share capital shall not be capable of being called up Except in the event & for purpose of winding up of the company
	72	Power to Nominate	4.35	This section gives the right to a holder of securities to nominate a person to whom his securities shall vest in the event of death of his death.
Acceptance of Deposits by Companies	75	Damages for Fraud	5.13	This section provides the repercussion when a company fails to repay the deposit or interest thereon as referred to in section 74. If it is proved that it was done with the intent of defrauding, penalty under section 447 would be invoked.
Registration of Charges	81	Register of Charges to be kept by Registrar	6.6	This section provides the requirement of maintenance of the register of charges by the Registrar which shall keep it in such form & manner as prescribed.
	85	Company’s register of charges	6.6	This section provides the requirement of register of charges to be maintained by the company in such form & manner as prescribed.

PAPER 3 - Cost and Management Accounting

Chapter 2 – Material Costing
Page 2.53, 54, 55,
- Identification with products of cost centers
- Basis for consumption entries in financial accounting
- Monitoring consumption

Chapter 3 – Employee Costing

Page 3.21, 22, 23, 24, 25, 26, 27, 28, 29, 38,39 –

Time Based	Output Based	Combination T/O	Group Bonus Scheme
- Stright Time Rate	- Stright Piece Rate	- Gantt	- Priestman
- Differential Time Rate	- Differential Piece Rate (a) Taylor (b) Merrick	- Emerson	- Nunn-Bush
		- Point Scheme (a) Bedaux	- Scanlon
			- Rucker

Page 3.53, 54
- Direct Expenses
- Nature of direct or Chargeable expenses
- Sub-contracting
- Control on material movement
- Identification with the main product or services
Chapter – 12 Service Costing
Page 12.1 – Only heading change and internal items removed no change in syllabus

PAPER 6 - Auditing & Assurance

Chapter – The Company Audit
Section 143(1)
PN 10.24
The entire section has not been removed. Only one sub section – (1) has been removed. This sub section talks about the rights of the auditor to access the books of accounts, seek information from officers and make certain specific inquiries –
- Loans & Advances – prejudicial?
- Personal expenses charged to revenue?
- Loans & Advances – shown as deposits?
Chapter – Audit Documentation & Evidence
SA 330 – The Auditor’s Response to Assessed Risks
PN 3.8 to 3.23
This is a huge deletion. As this SA only talks about the various audit procedures – Tests of Controls, Substantive Procedures, etc.

PAPER 8 – Financial Management

Chapter 7 - Capital Budgeting –
Waiting for Further Clarification
Chapter 8 - Risk analysis in Capital Budgeting
Page - 8.18, 19, 20, 21, 22, 23, 24, 25
- Monte Carlo Simulation
- Decision Tree Analysis

PART 2

Additions/Modifications in the syllabi of select subjects

[to be effective from May, 2020 Examination onwards]

Paper

Additions/Modifications

Paper 1: Accounting

Topics shifted from Paper 1 to Paper 5:

Application of Accounting Standards: AS 4; AS 5; AS 17 and AS 22
Dissolution of partnership firms including piecemeal distribution of assets; amalgamation of partnership firms; conversion of partnership firm into a company and Sale to a company; Issues related to accounting in Limited Liability Partnership.

Paper 4A: Income-tax Law

Computation of AMT included (in relation to section 35AD and 10AA) through Study Guidelines in the topic “Computation of total income and tax liability of individuals”

Paper 5: Advanced Accounting

Topics shifted from Paper 1 to Paper 5:

Application of Accounting Standards: AS 4; AS 5; AS 17 and AS 22
Dissolution of partnership firms including piecemeal distribution of assets; Amalgamation of partnership firms; Conversion of partnership firm into a company and Sale to a company; Issues related to accounting in Limited Liability Partnership.

Topics removed from the syllabus:

Underwriting of Shares and Debentures
Application of Guidance Notes issued by the ICAI on specified accounting aspects
Valuation of Goodwill
Financial Reporting of Insurance Companies and Mutual Funds and regulatory requirements thereof #
# Topic 5 of the syllabus content will accordingly be restricted to Banking companies and NBFCs.

Paper 8A: Financial Management

No.	Topic	Exclusion/Modification
1.	Types of Financing	Introduction to Lease Financing has been included.
2.	Lease Financing	The entire topic has been excluded.

As such, we can infer that there has been more deletions & few additions. This in itself provides somewhat relief to the CA INTER Aspirants.

ICAI CA Intermediate Syllabus Covered

The CA Inter Exam is classified in two groups covering 8 subjects as follows –

Group I

Paper-1: Accounting (100 Marks)
Paper-2: Corporate Laws & Other Laws (100 Marks)
- Part I: Company Law (60 Marks)
- Part II: Other Laws (40 Marks)
Paper-3: Cost and Management Accounting (100 Marks)
Paper-4: Taxation (100 Marks)
- Section A: Income-Tax Law (60 Marks)
- Section B: Indirect Taxes (40 Marks)

Group II

Paper-5: Advanced Accounting (100 Marks)
Paper-6: Auditing and Assurance (100 Marks)
Paper-7: Enterprise Information Systems & Strategic Management (100 Marks)
- Section A: Enterprise Information Systems (50 Marks)
- Section B: Strategic Management (50 Marks)
Paper-8: Financial Management & Economics for Finance (100 Marks)
- Section A: Financial Management (60 Marks)
- Section B: Economics for Finance (40 Marks)

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CA Intermediate syllabus modifications & reductions: ICAI revised from 2019
What modifications & reductions made by ICAI in CA Inter Syllabus?