A GUIDE TO CA COURSE – 2

DETAILED SYLLABUS

The ICAI conducts all the three levels of CA examinations twice per year (generally May and November), as per the prescribed syllabus. The general steps and the overview of the examination has already been discussed in the part one of this series. This blog will provide you with detailed information and syllabus for each stage of the examination.

CA Syllabus PDF: ICAI CA Syllabus PDF Download

CA FOUNDATION SYLLABUS

• This is the first level of CA exam, compulsory for those who enter through the foundation route (discussed in the previous blog).
• It includes 4 papers of 100 marks each.
• The first two papers (Accounting and business laws) are subjective, to be completed within 3 hours.
• The last two papers (Business mathematics, logical reasoning & statistics and business economics) are objective, to be completed within 2 hours.
• CA Foundation Syllabus PDF: ICAI CA foundation syllabus PDF Download

PAPER 1

PRINCIPLES AND PRACTICE OF ACCOUNTING (100 MARKS)

1. Theoretical framework
2. Accounting process
3. Bank reconciliation statement
4. Inventories
5. Concept and accounting of depreciation
6. Accounting for special transactions
   1. Bills of exchange and promissory notes
   1. Sale of goods on approval or return basis
   1. Consignments
   1. Average due Date
   1. Account Current
7. Final Accounts of Sole Proprietors
8. Partnership Accounts
9. Financial Statements of Not-for-Profit Organizations
10. Introduction to Company Accounts

PAPER 2

BUSINESS LAWS AND BUSINESS CORRESPONDENCE AND REPORTING 

SECTION A : BUSINESS LAWS (60 MARKS)

1. The Indian Contract Act, 1872
2. The Sale of Goods Act, 1930
3. The Indian Partnership Act, 1932
4. The Limited Liability Partnership Act, 2008
5. The Companies Act, 2013

SECTION B : BUSINESS CORRESPONDENCE AND REPORTING (40 MARKS)

Part 1 : communication

Types; Directions; Network; Process; Problems; Barriers; Types of Communication a) Interpersonal Skills b) Listening Skills c) Emotional Intelligence

Part 2: Sentence types and word power

Definition; classification -Assertive, Interrogative, Imperative sentences, Exclamatory sentences, Optative sentences; structure; clauses, direct-indirect speech; active-passive voice.

Vocabulary, synonyms and antonyms, collocations and idioms

Part 3: Comprehension passages and note making

Part 4: Writing skills

Basics, precis writing, article writing, report, formal mails and letters, resume and meetings.

PAPER 3: BUSINESS MATHEMATICS, LOGICAL REASONING AND STATISTICS

PART A: BUSINESS MATHEMATICS (40 MARKS)

1. Ratio and Proportion, Indices and Logarithms
2. Equations
3. Linear Inequalities with Objective Functions and Optimization w.r.t. objective function.
4. Time value of Money

(i) Simple Interest

(ii) Compound interest

(iii) Depreciation

(iv) Effective Rate of Interest

(v) Present Value

(vi) Net Present Value

(vii) Future Value

(viii) Perpetuity

(ix) Annuities

(x) Sinking Funds

(xi) Valuation of Bonds

(xii) Calculating of EMI

(xiii) Calculations of Returns

• Permutations and Combinations
• Sequence and Series – arithmetic and geometric progressions 
• Sets, Relations and Functions
• Basic applications of Differential and Integral calculus

PART B: LOGICAL REASONING (20 MARKS)

1. Number series, Coding and Decoding and odd man out.

2. Direction Tests

3. Seating Arrangements

4. Blood Relations

PART C: STATISTICS (40 MARKS)

1. Statistical description of data
2. Measures of central tendency and dispersion
3. Probability
4. Theoretical distributions
5. Correlation and regression
6. Index numbers

PAPER 4: BUSINESS ECONOMINS AND BUSINESS AND COMMERCIAL KNOWLEDGE

PART 1: BUSINESS ECONOMICS (60 MARKS)

1. Introduction to business economics
2. Theory of demand and supply
3. Theory of production and cost
4. Price determination in different markets
5. Business cycles

PART 2: BUSINESS AND COMMERCIAL KNOWLEDGE (40 MARKS)\

1. Introduction
2. Business environment
3. Business organizations
4. Government policies for business growth
5. Organizations facilitating business – RBI, SEBI, CCI, IRDAI, NABARD
6. Common business terminologies

CA INTERMEDIATE SYLLABUS

• Eligibility: students who qualified ca foundation OR undergraduates (through direct entry route)
• This level consists of two groups, with four papers each of 100 marks.
• The time allocated for each paper is 3 hours.
• The candidate can appear for one or both the groups at a time.
• Group 1: Accounting; corporate and other laws; cost management and accounting; taxation.
• Group 2: advanced accounting; auditing and assurance; enterprise information system and strategic management; financial management and economics for finance.
• It is necessary to clear all the papers of both groups to qualify for CA finals.
• CA Intermediate syllabus PDF: ICAI CA intermediate syllabus PDF download

PAPER 1 –  ACCOUNTING (100 MARKS)

1. Process of formulation of Accounting Standards.
2. Framework for Preparation and Presentation of Financial Statements.
3. Application of accounting standards
4. Company accounts
5. Accounting for special transactions – investment, insurance claims.
6. Special type of accounting – departmental, foreign branches and incomplete records.

PAPER 2 – CORPORATE AND OTHER LAWS

PART 1: COMPANY LAW (60 MARKS)

The companies act, 2013 – sections 1 to 148

1. Preliminary
2. Incorporation of Company and Matters Incidental thereto
3. Prospectus and Allotment of Securities
4. Share Capital and Debentures
5. Acceptance of Deposits by companies
6. Registration of Charges
7. Management and Administration
8. Declaration and payment of Dividend
9. Accounts of Companies
10. Audit and Auditors.

PART 2: OTHER LAWS (40 MARKS)

1. Indian contract act, 1872
2. The negotiable instruments act, 1881
3. The general clauses act, 1897
4. Interpretation of statutes

PAPER 3 – COST AND MANAGEMENT ACCOUNTING  (100 MARKS)

1. Overview of cost and management accounting
   1. Introduction – objectives, role in an organisation, installation of costing system, terms and concepts, cost reduction and cost control, elements of cost, behavior pattern, methods and techniques of costing, cost accounting with IT.
   1. Elements of cost and preparation of cost sheets

• Ascertainment of cost and cost accounting system
  • Material cost
  • Employee cost
  • Overheads
  • Concepts and activity based costing
  • Recording and accounting of costs

• Methods of costing
  • Single output/unit costing
  • Job costing
  • Batch costing
  • Contract costing
  • Process/operation costing
  • Costing of service sectors

• Cost control and analysis
  • Standard costing
  • Marginal costing
  • Budget and budgetary control

PAPER 4: TAXATION

SECTION A: INCOME TAX LAW (60 MARKS)

1. Basic concepts – income tax act,1961 – definitions, previous year and assessment year, basis of charge and rates of tax.
2. Residential status and scope of total income
3. Income which do not form part of total income
4. Heads of income and the provisions governing computation of income under different heads – salary, income from property, profits of business, capital gains, other sources.
5. Income of other persons included in assessee’s total income
6. Aggregation of income
7. Deductions from gross total income
8. Computation of total income and tax liability of individuals
9. Advance tax, tax deduction at source and introduction to tax collection at source
10. Provisions for filling return of income and self-assessment

SECTION B: INDIRECT TAXES (40 MARKS)

1. Concept of indirect taxes
2. GST laws

GROUP 2

PAPER 5: ADVANCED ACCOUNTING (100 MARKS)

1. Application of accounting standards
2. Special aspects of company accounts
3. Reorganization of liquidation of companies
4. Banking companies and non banking financial companies and regulatory requirements thereof.
5. Consolidated Financial Statements
6. Dissolution, amalgamation and conversion of partnership firms into a company; issues related to accounting in limited liability partnership.

PAPER 6 – AUDITING AND ASSURANCE (100 MARKS)

1. Nature, objective and scope of audit – standard setting process, engagement standards
2. Audit strategy, audit planning and audit programme
3. Audit documentation and audit evidence
4. Risk assessment and internal control
5. Fraud and responsibilities of author in this regard
6. Audit in automated environment
7. Audit sampling
8. Analytical procedures
9. Audit of items of financial statements – sale of products and services, interest income, rental income, dividend income, net gain/loss on sale of investments, etc.
10. The company audit
11. Audit report
12. Audit of banks
13. Audit of different types of entities

PAPER 7 – ENTERPRISE INFORMATION SYSTEMS AND STRATEGIC MANAGEMENT

SECTION A: ENTERPRISE INFORMATION SYSTEMS (50 MARKS)

1. Automated business processes
2. Financial and accounting systems
3. Information systems and its components
4. E- commerce, M commerce and emerging technologies
5. Core banking systems (CBS) – components and architecture; core modules of banking and business process flow and related risks and controls; reporting system and MIS, data analytics and business intelligence; regulatory and compliance requirements.

SECTION B: STRATEGIC MANAGEMENT (50 MARKS)

1. Introduction to strategic management
2. Dynamics of competitive strategy
3. Strategic management process
4. Corporate level strategies
5. Business level strategies
6. Functional level strategies
7. Organisation and strategic leadership
8. Strategy implementation and control

PAPER 8 – FINANCIAL MANAGEMENT AND ECONOMICS FOR FINANCE

SECTION A: FINANCIAL MANAGEMENT (60 MARKS)

1. Financial management and financial analysis
   1. Introduction to financial management function
   1. Financial analysis through ratios
2. Financial decisions
   1. Sources of finance
   1. Cost of capital
   1. Capital structure decisions
   1. Leverages
3. Capital investment and dividend decisions
   1. Capital investment decisions
   1. Adjustment of risk and uncertainty in capital budgeting decision
   1. Dividend decisions
4. Management of working capital

SECTION B: ECONOMICS FOR FINANCE (40 MARKS)

1. Determination of national income – macroeconomic aggregates and measurement; Keynesian theory
2. Public finance
3. The money market – important theories of demand for money; the concept of money supply; monetary supply.
4. International trade

CA FINAL SYLLABUS

• Eligibility – completed both groups of intermediate course and at least 2.5 years of practical training.
• Time allotted for each paper = 3 hours
• Each paper holds 100 marks
• Paper 6 is choice based – to be chosen from 6 alternatives.
• CA final syllabus PDF: ICAI CA Final syllabus pdf download

PAPER 1: FINANCIAL REPORTING (100 MARKS)

1. Framework for preparation and presentation of financial statements
2. Application of Indian accounting standards with reference to general purpose financial statements.
3. Indian accounting standards on group accounting
4. Accounting and reporting of financial instruments
5. Analysis of financial statements
6. Integrated reporting
7. Corporate social responsibility reporting

PAPER 2: STRATEGIC FINANCIAL MANAGEMENT (100 MARKS)

1. Financial policy and corporate strategy
2. Risk management
3. Security analysis – fundamental and technical
4. Security valuation
5. Portfolio management
6. Securitization
7. Mutual funds
8. Derivative analysis and valuation 
9. Foreign exchange exposure and risk management
10. International financial management
11. Interest rate risk management – interest rate risk and hedging interest rate risk.
12. Corporate valuation
13. Mergers, acquisition and corporate restructuring
14. Startup Finance

PAPER 3: ADVANCED AUDITING AND PROFESSIONAL ETHICS (100 MARKS)

1. Auditing Standards, Statements and Guidance Notes
2. Audit Planning, Strategy and Execution
3. Risk Assessment and Internal Control
4. Special aspects of Auditing in an Automated Environment:
5. Audit of Limited Companies
6. Audit Reports
7. Audit Committee and Corporate Governance
8. Audit of Consolidated Financial Statements
9. Special features of audit of banks, insurance and non banking financial companies
10. Audit under Fiscal Laws
11. Audit of Public Sector Undertakings
12. Liabilities of Auditors
13. Internal Audit, Management and Operational Audit
14. Due Diligence, Investigation and Forensic Audit
15. Peer review and quality review
16. Professional Ethics

PAPER 4: CORPORATE AND ECONOMIC LAWS

PART 1: CORPORATE LAWS (70 MARKS)

SECTION A: COMPANY LAW

1. The companies act, 2013
   1. Appointment and Qualifications of Directors
   1. Appointment and remuneration of Managerial Personnel
   1. Meetings of Board and its powers
   1. Inspection, Inquiry and Investigation
   1. Compromises, Arrangements and Amalgamations
   1. Prevention of Oppression and Mismanagement
   1. Winding Up
   1. Companies incorporated outside India
   1. Miscellaneous Provisions
   1. Compounding of offences, Adjudication, Special Courts
   1. National Company Law Tribunal and Appellate Tribunal

• Corporate secretarial practice

SECTION B: SECURITIES LAWS

1. The securities contract (regulation) act, 1956 and the securities contract (regulation) act, 1957: introduction and important provisions.
2. the securities exchange board of India act, 1992 and SEBI regulations, 2015.

PART 2: ECONOMIC LAWS (30 MARKS)

1. The Foreign Exchange Management Act, 1999
2. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
3. The Prevention of Money Laundering Act, 2002
4. Foreign Contribution Regulation Act, 2010
5. The Arbitration and Conciliation Act, 1996
6. The Insolvency and Bankruptcy Code, 2016

PAPER 5: STRATEGIC COST MANAGEMENT AND PERFORMANCE EVALUATION

PART A: STARTEGIC COST MANAGEMENT AND DECISION MAKING

SUB PART 1: STRATEGIC COST MANAGEMENT

1. Introduction to strategic cost management
2. Modern business environment
3. Lean system and innovation
4. Cost management techniques
5. Cost management for specific sectors

SUB PART 2: STRATEGIC DECISION MAKING

1. Decision making
2. Pricing strategies/decision

PART B: PERFORMANCE EVALUATION AND CONTROL

SUB PART 1: PERFORMANCE EVALUATION AND REPORTING

1. Performance measurement and evaluation
2. Divisional transfer pricing
3. Strategic analysis of operating income

SUB PART 2: MANAGERIAL CONTROL

1. Budgetary control
2. Standard costing

PART C: CASE STUDY

PAPER 6A: RISK MANAGEMENT – ICAI CA Syllabus PDF Download

PAPER 6B: FINANCIAL SERVICES AND CAPITAL MARKETS – ICAI CA Syllabus PDF Download

PAPER 6C: INTERNATIONAL TAXATION – ICAI CA Syllabus PDF Download

PAPER 6D: ECONOMICS LAWS – ICAI CA Syllabus PDF Download

PAPER 6E: GLOBAL FINANCIAL REPORTING STANDARDS – ICAI CA Syllabus PDF Download

PAPER 6F: MULTI DISCIPLINARY CASE STUDY – ICAI CA Syllabus PDF Download

PAPER 7: DIRECT TAX LAWS AND INTERNATIONAL TAXATION

PART 1: DIRECT TAX LAWS (70 MARKS)

Law and Procedures under the Income-tax Act, 1961

1. Basis of charge, residential status, income which do not form part of total income, heads of income, income of other persons included in assessee’s total income, aggregation of income, set-off and carry forward of losses, deductions from gross total income, rebates and reliefs
2. Special provisions relating to companies and certain persons other than a company1
3. Provisions relating to charitable and religious trusts and institutions, political parties and electoral trusts
4. Tax Planning, Tax Avoidance & Tax Evasion
5. Collection & Recovery of Tax, Refunds
6. Income-tax Authorities, Procedure for assessment, Appeals and Revision
7. Settlement of Tax Cases, Penalties, Offences & Prosecution
8. Liability in Special Cases
9. Miscellaneous Provisions and Other Provisions

PART 2: INTERNATIONAL TAXATION (30 MARKS)

1. Taxation of international transactions and Non-resident taxation
   1. The provisions under the Income-tax Act, 1961, including
      1. Specific provisions relating to Non-residents
      1. Double Taxation Relief
      1. Transfer Pricing & Other Anti-Avoidance Measures
      1. Advance Rulings
   1. Equalisation levy
   1. Overview of Model Tax Conventions – OECD & UN
   1. Application and interpretation of Tax Treaties
   1. Fundamentals of Base Erosion and Profit Shifting

PAPER 8: INDIRECT TAX LAWS

PART 1: GOODS AND SERVICES TAX (75 MARKS)

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

PART 2: CUSTOMS AND FTP (25 MARKS)

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

• Introduction to customs law including Constitutional aspects
  • Levy of and exemptions from customs duties – All provisions including application of customs law, taxable event, charge of customs duty, exceptions to levy of customs duty, exemption from custom duty
  • Types of customs duties
  • Classification and valuation of imported and export goods
  • Officers of Customs; Appointment of customs ports, airports etc.
  • Import and Export Procedures including special procedures relating to baggage, goods imported or exported by post, stores
  • Provisions relating to coastal goods and vessels carrying coastal goods
  • Warehousing
  • Drawback
  • Demand and Recovery; Refund
  • Provisions relating to prohibited goods, notified goods, specified goods, illegal importation/exportation of goods
  • Searches, seizure and arrest; Offences; Penalties; Confiscation and Prosecution
  • Appeals and Revision; Advance Rulings; Settlement Commission
  • Other provisions

2. Foreign Trade Policy to the extent relevant to the indirect tax laws

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