CA Final New Syllabus 2024 | Complete Subject-wise Details

Objective

1. Gaining the skills necessary to apply Indian Accounting Standards (Ind AS) to real-world situations and solve problems in order to determine the proper accounting treatment and create acceptable accounting policies.
2. To develop the ability to understand and implement the disclosure standards outlined in Indian Accounting Standards (Ind AS) when compiling and presenting the financial statements.
3. To acquire the knowledge necessary to create financial statements for group businesses, including associates, subsidiaries, and joint ventures, in accordance with Indian Accounting Standards (Ind AS).
4. To improve knowledge of certain accounting standards and find solutions to issues in real-world situations when the treatment is different in both standards.

Contents

Introduction to General Purpose Financial Statements as per Indian Accounting Standard (Ind AS)

Statutory provisions: Applicability criteria

Division II of Schedule III to the Companies Act, 2013 and Guidance Note thereupon

Conceptual Framework for Financial Reporting under Indian Accounting Standards (Ind AS)

1. Application of Ind AS with reference to General Purpose Financial Statements
   1. Ind AS on Presentation of Items in the Financial Statements Ind AS 1 “Presentation of Financial Statements”

Ind AS 34 “Interim Financial Reporting” Ind AS 7 “Statement of Cash Flows”

1. Ind AS on Measurement based on Accounting Policies

Ind AS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” Ind AS 10 “Events after the Reporting Period”

Ind AS 113 “Fair Value Measurement”

1. Ind AS on Income Statement

Ind AS 115* “Revenue from Contracts with the Customers”

1. Ind AS on Assets and Liabilities of the Financial Statements Ind AS 2 “Inventories”

Ind AS 16 “Property, Plant and Equipment” Ind AS 116* “Leases”

Ind AS 23 “Borrowing Costs”

Ind AS 36 “Impairment of Assets” Ind AS 38 “Intangible Assets”

Ind AS 40 “Investment Property”

Ind AS 105 “Non-current Assets Held for Sale and Discontinued Operations” Ind AS 19 “Employee Benefits”

Ind AS 37 “Provisions, Contingent Liabilities and Contingent Assets”

1. Ind AS on Items impacting the Financial Statements Ind AS 12* “Income Taxes”

Ind AS 21 “The Effects of Changes in Foreign Exchange Rates”

1. Ind AS on Disclosures in the Financial Statements Ind AS 24 “Related Party Disclosures”

Ind AS 33 “Earnings per Share” Ind AS 108 “Operating Segments”

1. Other Ind AS

Ind AS 20 “Accounting for Government Grants and Disclosure of Government Assistance” Ind AS 102 “Share Based Payment”

Ind AS 41 “Agriculture”

1. Ind AS on Financial Instruments (it includes Ind AS 32, Ind AS 109, Ind AS 107) Financial Instruments: Scope and Definitions

Classification and Measurement of Financial Assets and Financial Liabilities Financial Instruments: Equity and Financial Liabilities

Derivatives and Embedded Derivatives

Recognition and Derecognition of Financial Instruments Hedge Accounting

Disclosures

Ind AS on Group Accounting

1. Business Combinations (Ind AS 103)
2. Consolidated and Separate Financial Statements (it includes Ind AS 110, Ind AS 111, Ind AS 27, Ind AS 28, Ind AS 112)

First time adoption of Indian Accounting Standards (Ind AS 101)

1. Analysis of financial statements (as per Ind AS)
2. Ethics with Accounting Concepts

Identify and explain the key ethical issues

Technology and Accounting

Evolution of Accounting in the technological environment

Objective

• To develop the capacity to integrate ideas and methods of financial management into strategic decision-making.

Contents

I Financial Policy and Corporate Strategy

i Advanced role of CFO in various matters including Value Creation

ii Strategic decision making framework

iii Interface of Financial Policy and strategic management 

iv Balancing financial goals vis-à-vis sustainable growth

Risk Management

i Identification of types of Risk faced by an organisation

ii Evaluation of Financial Risks

1. Value at Risk (VAR)
2. Evaluation of appropriate method for the identification and management of financial risk

Advanced Capital Budgeting Decisions

i Current trends in Capital Budgeting

• Impact of Inflation on Capital Budgeting Decisions
• Impact of change in technology on Capital Budgeting
• Impact of change in Government Policies on Capital Budgeting ii Dealing with Risk in Investment Decisions

iii Internal and External Factors affecting capital budgeting decision 

iv Methods of incorporating risk in Capital Budgeting

1. Adjusted Present Value
2. Optimum Replacement Cycle

Security Analysis

i Fundamental Analysis

ii Technical Analysis

• Meaning
• Assumptions
• Theories and Principles
• Charting Techniques – Basics
• Efficient Market Hypothesis (EMH) Analysis iii Equity Research and tools available

Security Valuation

i Theory of Valuation 

ii Return Concepts

1. Equity Risk Premium
2. Required Return on Equity
3. Discount Rate Selection in Relation to Cash Flows 

vi Approaches to Valuation of Equity Shares

vii Valuation of Preference Shares 

viii Valuation of Debentures/ Bonds

1. Role and Responsibilities of Valuers
2. Precautions need to be taken by a Valuer before accepting any valuation assignment

Portfolio Management

i Portfolio Analysis 

ii Portfolio Selection

iii Capital Market Theory 

iv Portfolio Revision

v Portfolio Evaluation vi Asset Allocation

1. Fixed Income Portfolio
2. Risk Analysis of Investment in Distressed Securities
3. Alternative Investment Avenues
   • Real Estate
   • Gold
   • Private Equity
   • REITs
   • Hedge Funds
   • ETFs
   • Mutual Funds
   • Commodities

Securitization

• Introduction
• Concept and Definition 

iii Benefits of Securitization

iv Participants in Securitization 

v Mechanism of Securitization 

vi Problems in Securitization

1. Securitization Instruments
2. Pricing of Securitization Instruments
3. Risks in Securitization 

x Tokenization

xi Securitization in India

Mutual Funds

i Meaning

ii Types

iii Advantages and Disadvantages of Mutual Funds 

iv Evaluation of Mutual Funds

v Role of Fund Manager in Mutual Funds 

vi Hedge Funds

vii Role of FIIs in Mutual Funds

Derivatives Analysis and Valuation

i Introduction to Forwards, Futures and Options 

ii Futures Market

iii Pricing of Forwards and Futures 

iv Hedging using Futures

v Options

• Option Pricing
• Option Greeks
• Exotic Options vi Credit Derivatives

1. Real Options
2. Derivative Mishaps and Lessons
3. Swaps
4. Commodity Derivatives 

xi Weather Derivatives

xii Electricity Derivatives

Foreign Exchange Exposure and Risk Management

i Factors affecting foreign exchange rate

ii Role of SWIFT in Foreign Exchange

1. National and International Payment Gateways
2. Exchange rate determination 

v Foreign currency market

vi Management of Foreign Exchange Risk

International Financial Management

1. International Capital Budgeting
   • Offshore Investment Strategies vis-à-vis Domestic Capital Budgeting
   • Project vis-à-vis Parent Cash Flows
   • Discounting Rate and Adjusting Cash Flows
   • Adjusted Present Value
2. Raising funds from International Sources iii Sovereign Funds
3. International Financial Centre (GIFT City)
4. International Working Capital Management
   • Multinational Cash Management
     • Objectives of Effective Cash Management
     • Optimization of Cash Flows/ Needs
   • Multinational Receivable Management
   • Multinational Inventory Management

Interest Rate Risk Management

i Benchmark Rates 

ii Interest Rate Risk

iii Hedging Interest Rate Risk

• Traditional Methods
  • Asset and Liability Management (ALM)
  • Forward Rate Agreement (FRA)
• Modern Methods including Interest Rate Derivatives
  • Interest Rate Futures
  • Interest Rate Options
  • Swaps
  • Swaptions

Business Valuation

i Conceptual Framework of Valuation 

ii Approaches/ Methods of Valuation

• Assets Based Valuation Model
• Earning Based Models
• Cash Flow Based Models
• Measuring Cost of Equity
  • Capital Asset Pricing Model (CAPM)
  • Arbitrage Pricing Theory
  • Estimating Beta of an unlisted company
• Relative Valuation
  • Steps involved in Relative Valuation
  • Equity Valuation Multiples
  • Enterprise Valuation Multiple
• Other Approaches to Value Measurement
  • Economic Value Added (EVA)
  • Market Value Added (MVA)
  • Shareholder Value Analysis (SVA)
• Arriving at Fair Value

iii Going concern and Non Going concern valuation

iv Valuation of Distressed Companies

1. Valuation of Startups
2. Valuation of Digital Platforms
3. Valuation of Professional/ Consultancy Firms viii Impact of ESG on valuation

Mergers, Acquisitions and Corporate Restructuring

i Conceptual Framework 

ii Rationale

1. Forms
2. Mergers and Acquisitions
   • Financial Framework
   • Takeover Defensive Tactics
   • Reverse Merger 

v Divestitures

• Partial Sell off
• Demerger
• Equity Carve outs

1. Ownership Restructuring
   • Going Private
   • Management/ Leveraged Buyouts
2. Unlocking the value through Mergers & Acquisitions and Business Restructuring

viii Cross Border Mergers

ix Special Purpose Acquisition Companies (SPACs)

Startup Finance

i Introduction including Pitch Presentation 

ii Concept of Unicorn

iii Startup Initiative of GOI 

iv Sources of Funding

v Succession planning in Business

Objective

1. To develop the skills necessary to evaluate current auditing practices and use them in auditing engagements.
2. To improve one’s case-solving skills in relation to audit engagements.

Contents

I Quality Control

SQC 1 Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information and Other Assurance and Related Services Engagements

SA 220 Quality Control for an Audit of Financial Statements

General Auditing Principles and Auditors Responsibilities

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 299 Joint Audit of Financial Statements

SA 402 Audit Considerations Relating to an Entity Using a Service Organisation

Audit Planning, Strategy, and Execution

SA 300 Planning an Audit of Financial Statements; (Content is covered in depth at Intermediate level, therefore, application part of SA 300 may be discussed in the form of Case Study at Final level.)

SA 450 Evaluation of Misstatements identified During the Audit SA 520 Analytical Procedures

SA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates and Related Disclosures

SA 610 Using the Work of Internal Auditors SA 620 Using the Work of an Auditor’s Expert

Materiality, Risk Assessment and Internal Control

Evaluation of Internal Control Procedures; Components of Internal Controls; Internal Control and Risk Assessment; Auditor’s response to assessed risks; Risk-Based Audit- Audit Risk Analysis; Reporting on Internal Control Weaknesses, Framework on Reporting of Internal Controls

SA 265 Communicating Deficiencies in Internal Control to Those Charged with Governance and Management

SA 330 The Auditor’s Responses to Assessed Risks

Audit Evidence

(Note: At the Intermediate level, there is a thorough discussion of the material in 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 530 Audit Sampling, and SA 550 Related Parties. Therefore, at the final level, the application portion of the aforementioned SAs may be explored as a case study.)

Completion and Review

(Note: At the Intermediate level, there is a thorough discussion of the material in SA 560 Subsequent Events, SA 570 Going Concern, and SA 580 Written Representation. Therefore, at the final level, the application portion of the aforementioned SAs may be explored as a case study.)

Reporting

SA 700 Forming an Opinion and Reporting on Financial Statements

SA 701 Communicating Key Audit Matters in the Independent Auditor’s Report 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

Specialised Areas

Basic and Overview of SA 800 Special Considerations-Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks

Basic and Overview of SA 805 Special Considerations-Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement

Basic and Overview of SA 810 Engagements to Report on Summary Financial Statements

Audit-related Services

Basic and Overview of SRS 4400 Engagements to Perform Agreed-upon Procedures Regarding Financial Information

Basic and Overview of SRS 4410 Compilation Engagements

Review of Financial Information

Basic and Overview of SRE 2400 Engagements to Review Historical Financial Statements

Basic and Overview of SRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity

Prospective Financial Information and Other Assurance Services

Basic and Overview of SAE 3400 The Examination of Prospective Financial Information Basic and Overview of SAE 3402 Assurance Reports on Controls at a Service Organisation

Basic and Overview of SAE 3420 Assurance Engagements to Report on the Compilation of Pro Forma Financial IJnfoorminatiUonsIncolundedTien alePgrorsapemctushttp://t.me/canotes_final

Digital Auditing and Assurance

Auditing digitally and Digital auditing, Usage of Automated Tools such as CAAT, Data Analytics, Artificial Intelligence, etc., Remote Auditing

Group Audits

Audit of Consolidated Financial Statements – Responsibility of Parent Company, Auditor of the Consolidated Financial Statements; Audit Considerations – Permanent Consolidation, Current Period Consolidation; Reporting

Audit of Group Financial Statements including the work of Component Auditors (SA 600 Using the Work of Another Auditor)

Special Features of Audit of Banks & Non-Banking Financial Companies

1. Overview of Audit of Public Sector Undertakings: Concept of Propriety Audit; Performance Audit; Comprehensive Audit
2. Internal Audit : Provisions of Internal Audit as per Companies Act, 2013; Scope of Internal Auditing; Relationship between Internal and External Auditor; Basics of Internal Audit Standards issued by the ICAI; Drafting of Internal Audit Report; Audit Trail, Internal Audit as a Management Function
3. Due Diligence, Investigation and Forensic Accounting: Due Diligence Review; Audit versus Investigation; Steps for Investigation; Types of Investigation; Procedure, Powers, etc. of Investigator; Types of Fraud, Indicators of Fraud, Follow-up thereof; Forensic Accounting- meaning, difference between Statutory Audit and Forensic Accounting, Forensic Accounting and Investigation Report, Introduction of Forensic Accounting and Investigation Standards

Emerging Areas: Sustainable Development Goals (SDG) & Environment, Social and Governance (ESG) Assurance, etc.

1. Professional Ethics and Liabilities of Auditors: Introduction of Code of Ethics as per IESBA and Code of Ethics with special reference to the relevant provisions of the Chartered Accountants Act, 1949 and the Regulations thereunder; Application of Fundamental Principles; Application of Threats, Evaluation of Threats; Addressing Threats and Safeguards; Conceptual Framework; Important Provisions of Chartered Accountants Act,1949 and Chartered Accountants Regulations 1988

Objective

1. To develop the ability to analyse and interpret direct tax law provisions and to suggest the best, most tax-efficient answers to real-world issues. 
2. To apply direct tax law provisions and the ideas, rules, and guidelines of international taxation to suggest answers to problems arising from cross-border transactions.

Contents

Comprehensive computation of income-tax liability of companies and other entities under the alternative tax regimes under the Income-tax Act, 1961 to optimise tax liability

• General provisions under the Act for computation of total income and tax liability of companies and other entities
• Special tax regimes under the Act for companies and other entities
• Optimisation of tax liability of companies and other entities through tax planning

Special Provisions relating to charitable and religious trust and institutions, political parties and electoral trusts, business trusts, securitisation trusts, investment funds and other funds/trusts

Anti-avoidance provisions under the Act

Provisions to address tax challenges on digitalisation

Tax Administration and Appellate Mechanism

i Deduction, Collection and Recovery of Tax 

ii Income-tax Authorities

1. Assessment Procedures
2. Appeals and Revision; and Dispute Resolution
3. Provisions to counteract unethical tax practices
   • Taxation of undisclosed income under the Income-tax Act, 1961
   • Taxation of undisclosed foreign income and assets
   • Penalties and offences and prosecution
4. Miscellaneous Provisions
5. Tax Audit

International Taxation

1. Taxation of cross border transactions and Non-resident taxation under the Income-tax Act, 1961, including
   • Transfer Pricing
   • Non-resident Taxation
   • Double Taxation Relief
   • Advance Ruling
2. Other Aspects of International Taxation, namely,
   • Significant articles of OECD and UN Model Tax Conventions
   • Fundamentals of BEPS
   • Application and Interpretation of Tax Treaties
   • Latest developments in International Taxation

PART I: GOODS AND SERVICES TAX (80 MARKS)

Objective

To develop the capacity to evaluate, understand, and offer suggestions for cases regarding the provisions of the goods and services tax law.

Contents

Goods and Services Tax (GST) Law as contained in the Central Goods and Services Tax (CGST) Act, 2017 and Integrated Goods and Services Tax (IGST) Act, 2017 including

1. Case studies based on following:

Levy and collection of CGST and IGST – Application of CGST/IGST law; Concept of supply, inter-State supply, intra-State supply, supplies in territorial waters; Charge of tax including reverse charge; Classification; Exemption from tax; Place of supply; Time of Supply; Value of supply; Input tax credit;

Computation of GST liability

1. Procedures under GST including registration, tax invoice, credit and debit notes, electronic way-bill, accounts and records, returns, payment of tax
2. Refunds and case studies based on refund provisions 

iv Job work

1. Liability to pay in certain cases
2. Administration of GST; Assessment and Audit 

vii Inspection, Search, Seizure and Arrest

viii Demand and Recovery; Offences and Penalties 

ix Appeals and Revision

x Advance Ruling xi Ethics under GST

xii Other provisions *

PART II: CUSTOMS & FTP (20 MARKS)

Objective

To gain knowledge of customs laws and foreign trade policy, as well as the skills necessary to evaluate and comprehend its contents.

Contents

Customs Law as contained in the Customs Act, 1962 and the Customs Tariff Act, 1975

1. Introduction to customs law including Constitutional aspects
2. Levy of customs duties including application of customs law, taxable event, charge of customs duty, exceptions to levy of customs duty, exemption from custom duty
3. Types of customs duties
4. Classification and valuation of imported and export goods
5. Import and Export Procedures including special procedures relating to baggage, goods imported or exported by post, stores
6. Warehousing
7. Refund

Foreign Trade Policy

1. Introduction to FTP – legislation governing FTP, salient features of an FTP, administration of FTP, contents of FTP and other related provisions
2. Basic concepts relating to import and export
3. Basic concepts relating to export promotion schemes provided under FTP

(MULTI-DISCIPLINARY CASE STUDY WITH STRATEGIC MANAGEMENT)

Objective

In order to address problems in realistic case studies, it is necessary to analyse and integrate the concepts, principles, and rules of accounting, auditing, taxation, corporate law, finance, and business strategy and management.

Contents

This paper will be entirely case study based and would assess the integrated knowledge of following subjects:-

Financial Reporting

1. Advanced Financial Management
2. Advanced Auditing, Assurance and Professional Ethics
3. Direct Tax Laws & International Taxation
4. Indirect Tax Laws
5. Corporate and Economic Laws
6. Strategic Cost & Performance Management