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ICAI CA Final New Syllabus

PAPER – 1: FINANCIAL REPORTING

(One paper – Three hours – 100 Marks)

Objectives:

  • T o acquire the ability to integrate and solve problems in practical scenarios on Indian Accounting Standards for deciding the appropriate accounting treatment and formulating suitable accounting policies.
  • T o gain the prowess to recognize and apply disclosure requirements specified in Indian Accounting Standards while preparing and presenting the financial statements.
  • T o develop the skill to prepare financial statements of group entities which includes subsidiaries, associates and joint arrangements based on Indian Accounting Standards.
  • T o develop an understanding of the various forms of reporting (other than financial statements) and accounting for special transactions, and apply  such  knowledge  in problem solving.

Contents:

  1. Framework for Preparation and Presentation of Financial Statements in accordance with Indian Accounting Standards (Ind AS).
  2. Application of Indian Accounting Standards (Ind AS) with reference to  General Purpose Financial Statements
    • Ind AS on First time adoption of Indian Accounting Standards
    • Ind AS on Presentation of Items in the Financial Statements
    • Ind AS on Measurement based on Accounting Policies
    • Ind AS on Income Statement
    • Ind AS on Assets and Liabilities of the  Financial  Statements  including Industry specific Ind AS
    • Ind AS on Items impacting the Financial Statements
    • Ind AS on Disclosures in the Financial Statements
    • Other Ind AS

     3. Indian Accounting Standards on Group Accounting

    • Business Combinations and Accounting for Corporate Restructuring (including demerger) (as per Ind AS)
    • Consolidated and Separate Financial Statements (as per Ind AS)

    4. Accounting and Reporting of Financial Instruments (as per Ind AS)

    5. Analysis of Financial Statements

    6. Integrated Reporting

   7. Corporate Social Responsibility Reporting

  Notes:

1.  If either a new Indian Accounting Standard (Ind AS) or Announcements and Limited Revisions to Ind AS are issued or the earlier one are withdrawn or new Ind AS, Announcements and Limited Revisions to Ind AS are issued in place of existing Ind AS, Announcements and Limited Revisions to Ind AS, the syllabus will accordingly include / exclude such new developments in the place of  the  existing  ones  with  effect from  the date to be notified by the institute.

2. The specific inclusions / exclusions in any topic covered in the syllabus will be effected every year by way of Study Guidelines.

 

PAPER – 2 : STRATEGIC FINANCIAL MANAGEMENT

(One paper – Three hours – 100 marks)

Objective:

To acquire the ability to apply financial management theories and techniques in  strategic decision making.

Contents:

 1. Financial Policy and Corporate Strategy

    • Strategic decision making framework
    • Interface of Financial Policy and strategic management
    • Balancing financial goals vis-à-vis sustainable growth.

 2. Risk Management

    • Identification of types of Risk faced by an organisation
    • Evaluation of Financial Risks
    • Value at Risk (VAR)
    • Evaluation of appropriate method  for  the  identification  and  management of  financial risk.

 3. Security Analysis

    • Fundamental Analysis
    • T echnical Analysis
      1. Meaning
      2. Assumptions
      3. T heories and Principles
      4. Charting T echniques
      5. Efficient Market Hypothesis (EMH) Analysis

 4. Security Valuation

    • Theory of Valuation
    • Return Concepts
    • Equity Risk Premium
    • Required Return on Equity
    • Discount Rate Selection in Relation to Cash Flows
    • Approaches to Valuation of Equity Shares
    • Valuation of Preference Shares
    • Valuation of Debentures/ Bonds

 5. Portfolio Management

    • Portfolio Analysis
    • Portfolio Selection
    • Capital Market T heory
    • Portfolio Revision
    • Portfolio Evaluation
    • Asset Allocation
    • Fixed Income Portfolio
    • Risk Analysis of Investment in Distressed Securities
    • Alternative Investment Strategies in context of Portfolio Management

 6. Securitization

    • Introduction
    • Concept and Definition
    • Benefits of Securitization
    • Participants in Securitization
    • Mechanism of Securitization
    • Problems in Securitization
    • Securitization Instruments
    • Pricing of Securitization Instruments
    • Securitization in India

 7. Mutual Fund

    • Meaning
    • Evolution
    • Types
    • Advantages and Disadvantages of Mutual Funds

 8. Derivatives Analysis and Valuation

    • Forward/ Future Contract
    • Options
    • Swaps
    • Commodity Derivatives

 9. Foreign Exchange Exposure and Risk Management

    • Exchange rate determination
    • Foreign currency market
    • Management of transaction, translation and economic exposures
    • Hedging currency risk
    • Foreign exchange derivatives – Forward, futures, options and swaps

10. International Financial Management

    • International Capital Budgeting
    • International Working Capital Management
      1. Multinational Cash Management
        • Objectives of Effective Cash Management
        • Optimization of Cash Flows/ Needs
        • Investment of Surplus Cash
      2. Multinational Receivable  Management
      3. Multinational Inventory Management

 11. Interest Rate Risk Management

    • Interest Rate Risk
    • Hedging Interest Rate Risk
      1. T raditional Methods
      2. Modern Methods including Interest Rate Derivatives

 12. Corporate Valuation

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

 13. Mergers, Acquisitions and Corporate Restructuring

    • Conceptual Framework
    • Rationale
    • Forms
    • Mergers and Acquisitions
      1. Financial Framework
      2. T akeover Defensive Tactics
      3. Reverse Merger
    • Divestitures
      1. Partial Sell off
      2. Demerger
      3. Equity Carve outs
    • Ownership Restructuring
      1. Going Private
      2. Management/ Leveraged Buyouts
    • Cross Border Mergers

14. Startup Finance

    • Introduction including Pitch Presentation
    • Sources of Funding
    • Start up India Initiative

 

PAPER – 3 : ADVANCED AUDITING AND PROFESSIONAL ETHICS

(One paper – Three hours – 100 marks)

Objective:

  • T o acquire the ability to analyse current auditing practices and  procedures  and  app ly them in auditing engagements;
  • T o acquire the ability to solve cases relating to audit

Contents:

  1. Auditing Standards, Statements and Guidance Notes: Engagement & Quality Control Standards, Statements and Guidance Notes on Auditing issued by the ICAI; Elements of system of quality control,  leadership  responsibilities  for  quality  within  the  firm, Acceptance and Continuance of clients relationships and specific engagements, Engagement Performances, etc. (SQC 1 Quality  Control  for  Firms  that  Perform  Audits and Reviews of Historical Financial Information and  Other  Assurance  and  Related Services Engagements).
  2. Audit Planning, Strategy and Execution: Planning the  flow  of  audit  work;  audit strategy, audit plan, audit programme and importance of supervision; principal’s ultimate responsibility; extent of delegation; control over  quality  of  audit  work;  Analytical  Procedures prior to audit as well as towards finalization; Concept of Principal Auditor and Other Auditor, Acceptance as Principal Auditor, Procedures to be performed by Principal Auditor, Co-ordination  between  the  Principal  Auditor  and  Other  Auditor  (SA  600  Using the Work of Another Auditor); Concept  of  Internal  Audit  Functions  and  its  evaluation, Using the work of the internal audit function, Using internal auditors to provide direct assistance (SA 610 Using the Work of  Internal  Auditors);  Auditor’s  Expert  –  Meaning, Need for an Auditor’s Expert, Understanding the Auditor’s Expert, Agreement with the Auditor’s Expert, Adequacy of the Auditor’s Expert’s Work (SA 620 Using the Work of an Auditor’s Expert).
  3. Risk Assessment and Internal Control: Evaluation of internal control procedures; Components of internal controls; Internal control and risk assessment; Risk-based audit- audit risk analysis, general  steps;  Internal  audit;  Reporting  on  internal  control weaknesses (SA 265 Communicating Deficiencies in Internal Control to  T hose Charged With Governance and Management); Framework on Reporting of Internal Controls.
  4. Special aspects of Auditing in an Automated Environment:  Key  features  of automated environment, related risks  and  controls,  Standards,  Guidelines  and procedures, using relevant frameworks and  best  practices,  understanding  and documenting automated environment, Enterprise Risk management overview, assessing IT -related risks and controls, evaluating risks and controls  at  entity  level  and  process  level, Considerations of automated environment at each phase of  audit  cycle,  using relevant analytical procedures and tests using data analytics, key concepts of auditing in real-time automated environments such as E-Commerce, ERP, Core Banking, etc..
  1. Audit of Limited Companies: Application of Relevant Provisions under the Companies Act, 2013 relating to  Audit  and  Auditors  and  Rules  made  thereunder;  Powers/rights, duties of auditors; Branch Audit; significance of true and fair view; Dividends and divisible profits- financial, legal, and policy considerations;  depreciation;  Special  features  of  audit of Limited Liability Partnerships (LLPs)- Eligibility for audit, appointment of auditor, remuneration, etc. Audit report under the Companies Act, 2013; Reporting under CARO.
  2. Audit Reports: Basic elements of auditor’s report; T ypes of opinion; Notes on accounts; Distinction between notes and qualifications; Distinction between audit reports and certificates; Communication to Management and those charged with Governance; Self Review threats; Drafting of different types of Audit Reports.
  3. Audit Committee and Corporate Governance: Audit committee; Role of auditor in Audit Committee and Certification of Compliance of Corporate Governance; Compliances with Laws and Regulations (SA 250 Consideration of Laws and Regulations in an Audit of Financial Statements); Disclosure requirements including those of SEBI; Regulatory requirements of Corporate Governance, Report on Corporate Governance.
  4. Audit of Consolidated Financial Statements: Provisions under the  Companies  Act, 2013 in respect of Accounts of Companies and Rules made thereunder; Audit of Consolidated Financial Statements- responsibility of parent company, auditor of the consolidated financial statements; audit considerations- permanent consolidation, current period consolidation; reporting.

     9.  Special features of audit of Banks, Insurance & Non Banking Financial Companies,

  1. Audit under Fiscal Laws: Audit under Fiscal Laws, viz, Direct and Indirect T ax Laws including documentation for Form 3CD etc.
  2. Audit of Public Sector Undertakings: Special features, Directions of Comptroller and Auditor General of India; Concept of propriety audit; Performance audit; Comprehensive audit.
  3. Liabilities of Auditors: Professional negligence; Civil liabilities; Criminal liabilities; Liabilities under different statutes – for example Income T ax Act, Companies Act.
  4. Internal Audit, Management and Operational 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; Management audit and Operational audit.
  1. Due Diligence, Investigation and Forensic Audit: Due Diligence Review; Audit versus Investigation; Steps for investigation; T ypes of investigation; procedure, powers, etc. of investigator; T ypes of Fraud, indicators of fraud, follow-up  thereof;  Forensic  audit- meaning, difference between statutory audit and forensic audit, forensic audit techniques, forensic audit report etc.

15.  Peer Review and Quality Review

  1. Professional Ethics: Code of Ethics with special  reference  to the relevant provisions of the Chartered Accountants Act, 1949 and the Regulations thereunder.

Note:

  • T he specific inclusions/exclusions, in any topic covered in the syllabus, will be effected every year by way of Study Guidelines.
  • The provisions of the Companies Act, 1956 which are still in force would form part of the syllabus till the time their corresponding or new provisions of the Companies Act, 2013 are enforced.
  • If new legislations/ Engagement and Quality Control Standards /Guidance Notes/Statements are enacted in place of the existing legislations, the syllabus would include the corresponding provisions of such new legislations with effect from a date notified by the T he changes in this regard would also form part of Study Guidelines.

 

PAPER – 4: CORPORATE AND ECONOMIC LAWS

(One paper – Three hours – 100 marks)

PART – I: CORPORATE LAWS (70 Marks)

SECTION A: COMPANY LAW

 

Objective:

To acquire the abilityto analyze, interpret and apply the provisions of the companylaw in practic al situations

Contents:

  1. The Companies Act, 2013 and Rules framed thereunder in its entirety with specific reference to section 149 onwards:
    • Appointment and Qualifications of Directors
    • Appointment and remuneration of Managerial Personnel
    • Meetings of Board and its powers
    • Inspection, inquiry and Investigation
    • Compromises, Arrangements and Amalgamations
    • Prevention of Oppression and Mismanagement
    • Winding Up
    • Producer Companies
    • Companies incorporated outside India
    • Miscellaneous Provisions
    • Compounding of  offences,  Adjudication,   Special Courts
    • National Company Law T ribunal  and Appellate  Tribunal
  2. Corporate Secretarial Practice– Drafting of Notices, Resolutions, Minutes and Reports

    Note: The provisions of the Companies Act, 1956 which are still in force would form part of the syllabus till the           time their  corresponding  or  new provisions of the Companies Act, 2013 are enforced.

 

SECTION B: SECURITIES LAWS

Objective:

To acquire the ability to analyse the signific ant provisions of selec t sec urities laws

  1. The Securities Contract (Regulation) Act, 1956 and the Securities Contract (Regulation) Rules, 1957: Introduction and important provisions
  2. The Securities Exchange Board of India Act, 1992, SEBI (Issue of Capital  and Disclosure Requirements) Regulations,  2009  and  SEBI  (Listing  Obligations  and Disclosure Requirement) Regulations, 2015

PART II : ECO NO M I C L AWS (30 M ARKS)

Objective:

To acquire the ability to analyse the signific ant provisions of selec t ec onomic laws:

Contents:

  1. The Foreign Exchange Management Act, 1999: -Introduction, broad structure of FEMA, Definition, Regulation and Management of Foreign Exchange, Contraventions  and Penalties in brief, miscellaneous provisions
  2. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002– Important Definitions, Regulation of Securitisation and Reconstruction of Financial Assets of Banks and Financial Institutions, Enforcement of Security Interest, Offences and Penalties, Miscellaneous Matters
  3. The Prevention of Money Laundering Act, 2002– Definitions, Punishment for  the Offence of Money laundering, Obligation  of  Banking  Companies,  Financial  Institutions and Intermediaries or a person carrying  on  a  designated  business  or  profession,  Appellate T ribunal, Special Court, Procedure for Attachment and Confiscation of Property and Recovery of fines and penalties.
  4. Foreign Contribution Regulation Act, 2010 – Definitions, Regulation of Foreign contribution and miscellaneous provisions
  5. The Arbitration and Conciliation  Act, 1996– General  Provisions, Arbitration agreement, T ribunal, Conciliation
  6. The Insolvency and Bankruptcy Code, 2016– Preliminary, Corporate insolvency resolution process, Liquidation process and other provisions

Note: If new legislations are enacted in place of the existing legislations, the syllabus would include the corresponding provisions of such new legislations with effect from a date notified by the Institute. Similarly if any existing legislation ceases  to  have effect, the syllabus will accordingly exclude such legislation with effect from the date to be notified by the Institute.

The specific inclusions/exclusions in the various topics covered in the syllabus will be effected every year by way of Study Guidelines, if required.

 

PAPER – 5 : STRATEGIC COST MANAGEMENT AND PERFORMANCE EVALUATION

(One Paper- Three hours- 100 Marks)

Objective:

  • T o apply various cost management techniques for  planning and controlling performance in order to set, monitor and control strategic
  • T o develop skills of analysis, synthesis and evaluation in cost management to address challenges and issues which might affect or influence the management of performance within organisations.

PART – A

STRATEGIC COST MANAGEMENT AND PERFORMANCE EVALUATION
Sub Part
‒I

Strategic  Cost Management

 1.  Introduction to Strategic Cost Management

    • Concept of Strategic Cost Management
    • Limitations of T raditional Cost Management
    • T raditional Strategic Cost Management

 2.  Modern Business Environment

    • Introduction/ Characteristics of the Modern Business Environment
    • Cost of Quality, T otal Quality Management, Business Excellence Model
    • T hroughput Accounting and T heory of Constraints
    •  Supply Chain Management (SCM)
    • Gain Sharing Arrangements
    • Outsourcing

 3.  Lean System and Innovation

    • Introduction to  Lean System
      1. Just-in-T ime (JIT )
      2. Kaizen Costing
      3. 5 Ss
      4. Total Productive Maintenance (TPM)
      5. Cellular Manufacturing/ One-Piece Flow Production Systems
      6. Six Sigma (SS)
    • Introduction to Process Innovation and Business Process Re-engineering (BPR)

  4. Cost Management Techniques

    • Cost Control/ Waste Control, Cost Reduction
    • Target Costing
    • Value Analysis/ Value Engineering (iv) Pareto Analysis
    • Life Cycle Costing
    • Environmental Management Accounting

   5.   Cost Management for Specific Sectors

    • Agricultural Sector
    • Information T echnology Sector
    • Power Sector

Sub Part‒II

Strategic Decision Making

 1. Decision Making

    • Decision Making using CVP Analysis
    • Decision Making using Relevant Cost Concepts
    • Decision Making using Activity Based Costing
    • Ethical and Non-Financial Considerations Relevant to Decision Making

2. Pricing Strategies/ Decisions

    • Theory & Principles of Product Pricing
    • Pricing – New Product, Finished Products & Pricing of Services
    • Sensitivity Analysis in Pricing Decisions
    • Pricing Decision under Special Circumstances
    • Pricing Strategies

PART‒B

PERFORMANCE EVALUATION AND CONTROL

Sub    Part‒I

Performance Evaluation and Reporting

 1.  Performance Measurement and Evaluation

    • Responsibility Accounting
    • Linking Critical Success Factors (CSFs) to Key Performance Indicators (KPIs) and Corporate Strategy; Performance Measurement  Models‒T he Balanced  Scorecard, T he Performance Pyramid, The Performance Prism and T he Building Block Model; Divisional Performance Measures; Benchmarking Schemes
    • Performance Measurement in the Not-for-Profit Sector
    • Preparation of Performance Reports

 2.  Divisional Transfer Pricing

    • Meaning, Purpose and Principles of T ransfer Pricing
    • Methods of T ransfer Pricing
    • T he Behavioural Consequences arising from Divisional Structures
    • International T ransfer Pricing

 3. Strategic Analysis of Operating Income

    • Operating Profit Analysis
    • Advanced Activity  Based  Costing,  Activity  Based  Management (ABM),  Activity Based Budgeting (ABB)

 

Sub Part‒II

 Managerial Control

 1. Budgetary Control

    • The Concept of Feedback and Feed Forward Control
    • Behavioural Aspects of Budgeting – Imposed Style, Participative Budget
    • Behavioural Aspects of Budgetary Control
    • Beyond Budgeting

2.      Standard Costing

    • Analysis of Advanced Variances
    • Integration of Standard Costing with Marginal Cost Accounting
    • Reconciliation of Profit
    • Variance Investigation T echniques, Interpretation of   Variances, Possible Interdependence Between Variances and Reporting
    • Behavioural Aspects  of  Standard  Costing,  Limitation  of  Standard  Costing (including its use in the contemporary business environment)

 

PART – C

CASE STUDY

1. Case Study (Covering Course Concepts)

 

General Note: 

Application of the following Quantitative Techniques are required to be studiedfor linkage to the course                   concept:

(a) Linear Programming

(b) Learning Curve/Experience Curve

 

PAPER – 6A : RISK MANAGEMENT

(One paper – Three hours – 100 Marks)

 

Objective:

  • T o gain knowledge and an insight into the spectrum of risks faced  by businesses and to learn techniques of managing risks.
  • T o build capability for applying such learning to address risk  related  issues  in  real- business scenarios.

 1.  Introduction to risk

    • T he Concept of Risk
    • Risk and Uncertainty: Distinction
    • Classification of Risks
    • Dynamic Nature of Risks
    • T ypes of Risk, including
      1. Strategic and Operational Risks
      2. Business Risk
      3. Financial Risk
      4. Information Risk
      5. Liquidity Risk

  2. Source and evaluation of risks

    • Identification and Sources of Risk
    • Quantification of Risk and various methodologies
    • Impact of Business Risk
    • Identify and assess the impact upon the stakeholder involved in Business Risk
    • Role of Risk Manager and Risk Committee in identifying Risk

  3.  Risk management

    • Concept of Risk Management
    • Objective and Process of Risk Management
    • Importance of Risk Management
    • Risk Management techniques

  4.  Risk model

    • VAR
    • Stress T esting
    • Scenario Analysis
    • Country and Sovereign Risk Models and Management

  5.  Credit risk measurement and management

    • Understanding the component of credit risk
    • Evaluating credit risk
    • Mitigating Credit risk
    • Qualitative and Quantitative techniques to manage risk
    • Credit scoring models

  6. Risk associated with corporate governance

    • Evaluation of Risk Associated with Governance
    • Description and evaluation of framework for Board level consideration of risk
    • OECD Guidelines for Corporate Governance

  7. Enterprise Risk Management

Definition, Scope and Techniques

  8. Operational Risk Management

Definition, Scope and Techniques

 

Following topic are covered in the paper of Financial Management (Paper 8 Part A, Intermediate Level) and Strategic Financial Management (Paper – 2, Final Level) also forms the part of the syllabus

  • Risk Analysis in Capital Budgeting Decisions
  • Foreign Exchange Risk
  • Interest Rate Risk

PAPER – 6 B: FINANCIAL SERVICES AND CAPITAL MARKETS

(One paper – Three hours – 100 Marks)

Objective:

  • T o gain knowledge of financial services rendered by intermediaries and  banks  and  their role and activities  in the financial market in general and capital markets in particular;
  • T o acquire the ability  to  apply such knowledge to  address  issues in practical scenarios.

Contents:

 1. Global Financial Markets

    • Introduction to Global Financial Market
    • Role of Financial Market in Economic Development of a country
    • Stakeholders in Financial Market (Domestic and Global)
    • Indian Financial Market scenario

  2.   Impact of various Policies of Financial Markets

    • Credit Policy of RBI
    • Fed Policy
    • Inflation Index, CPI, WPI, etc

  3.  Capital Market – Primary

    • New Issue Market – Domestic and Global
    • Private Placement , QIP, Disinvestment
    • Right Issue

   4.  Capital Market – Secondary

    • Secondary Market
    • Stock Market Operations
    • Indian Debt Market

   5. Money Market

    • Basics of Money Market
    • Money Market Participants
    • Money Market Instruments
    • Repo and Reverse Repo
    • CRR, SLR
    • MIBOR, LIBOR
    • Government Securities Market

   6. Institutions and Intermediaries

    • Depository
    • Stock and Commodity Exchanges – Indian and Global
    • Intermediaries
    • Institutional Investors
    • FPIs
    • Custodians
    • Clearing Houses

   7.  Commodity Market

    • What are Commodity Markets
    • Role of Commodity Markets
    • Commodity Market in India
    • Application of Derivative in Commodities
    • Global Commodities Exchanges

  8.  Banking as source of Capital including NBFCs

    • Concept of Project Financing
    • Working Capital Management
    • Reverse Mortgage

  9. Mutual Funds

    • Meaning
    • Evolution
    • T ypes
    • Performance Measures, NAV
    • Mutual Fund Organisation
    • Advantages and Disadvantages of Mutual Fund
    • Exchange T raded Funds (ETFs)
    • Real Estate Investment T rusts  (ReIT s)
    • Infrastructure Investment  T rusts (Invits)

 10. Private Equity

    • Meaning and Classification
      1. Venture Capital
      2. Buyouts
      3. Special Cases
      4. Hurdle rate
      5. Paid in Capital
      6. T erm Sheet
        • Cost of Investing in Private Equity
        • Exit Routes
        • Valuation of Private Equity Transactions
        • Private Equity Funds (Distribution of returns  in  General  Partner  and Limited Partners)

  11. Investment Banking

    • Concept
    • Functions
    • Challenges
    • Developments in Investment Banking
    • Merchant Banking and issue management

 12. Credit Rating

    • Introduction
    • Rating Services
    • Objectives and types
    • Uses
    • Credit Rating Process
    • Credit Rating Methodology
    • Rating Revisions
    • Credit Rating Agencies in India and abroad
    • Limitations with case studies

 13. Treasury Operations

    • Raising and Deployment of Funds
    • Risk Management

 14. Risk Management

    • Preventive Controls
    • Early Signals
    • Credit Risk

15.  Credit Derivatives

    • Credit Default Swaps
    • Collateralized Debt Obligations (CDO)
    • Pricing of Credit Derivative Instruments

16.   SEBI Guidelines

    Following topic are covered in the paper of Strategic Financial Management (Paper – 2) and                  Corporate and Economic Laws (Paper – 4) also forms the part of the syllabus

    • Securitization
    • Fixed Income Securities (Valuation of Bonds/ Debentures)
    • Derivatives
    • Interest Rate Risk
    • T he Securities and Exchange Board of India Act, 1992
    • Legislative framework on listing agreements
    • T he Securities Contract (Regulation) Act, 1956
    • Chapter III-D of the RBI Act, 1934

 

PAPER – 6 C: INTERNATIONAL TAXATION

(One paper – Three hours – 100 Marks)

 

Objective:

To develop an understanding of the concepts,  principles  and  provisions  relevant  to international taxation and acquire the ability to  apply such  knowledge  to  make  computations and address issues in practical case scenarios.

Content:

Part I – Taxation of International Transactions and Non -resident

Taxation in India (50 Marks)

 1. Transfer Pricing provisions under the Income-tax Act, 1961

    • Arm’s Length Price
    • International T ransactions
    • Most Appropriate Method
    • Functions, Assets and Risk Analysis
    • Documentation & Compliances
    • Specific Reporting Regime in respect of  Country  by  Country  reporting  and  master file
    • Advance Pricing Agreements

 2  Other Provisions relating to taxation of international transactions and non -resident taxation                under the Income-tax Act, 1961

    • Non-resident T axation (including Source Rule of T axation)
    • Double T axation Relief
    • Advanc e Rulings

3.  Law and Procedures under the Black Money (Undisclosed Foreign Income and Assets) and                     Imposition of Tax Act, 2015 – An Overview.

Part I I – O ther aspects of International T axation (50 M arks)

 

  1. Overview of Model Tax Conventions

    • OECD Model T ax Convention
    • UN Model T ax Convention
    • US Model T ax Convention

 2.  Tax treaties, Application and Interpretation

    • Features of T ax treaties
    • Overview of T ax Information Exchange Agreements
    • Commentaries and their importance
    • Role of Vienna Convention in application and interpretation of tax treaties

 3.  Anti Avoidance Measures

    • Controlled Foreign Corporations
    • Base Erosion  and  Profit Shifting
    • Other Anti   Avoidance Measures

  4.  Taxation of E-Commerce Transactions

    • Introduction
    • Emerging issues
    • Equalisation levy

Note –

  • T ransfer Pricing in Part I to carry weightage of 30 marks.
  • If any new legislation(s) are enacted in place of an existing legislation(s), the syllabus will accordingly include the corresponding provisions of such  new  legislation(s)  in  the place of the existing legislation(s) with effect from the date to  be  notified  by  the  Similarly, if any existing legislation(s)on direct tax laws ceases to  be in force, the syllabus  will accordingly exclude such legislation(s)with effect from the date to be notified by the Institute.
  • T he specific inclusions/exclusions in any topic covered in the syllabus will  be effected by way of Study Guideline every year, if required.  Specific  inclusions/exclusions  in  a  topic may also arise due to additions/deletions made every year by the Annual Finance Act.

 

PAPER  – 6 D: ECONOMIC LAWS

(One  paper  – Three  hours  –  100 Marks)

Objective:

T o develop an understanding of the provisions of different economic  laws  and  acquire  the ability to apply such knowledge to address issues in practical case scenarios.

Contents:

  1. World T rade Organization (WT O) covering its Role, Principles, Functions and Dispute Settlement Mechanism
  2. Competition Act, 2002 and Rules/ Regulations
  3. Real Estate (Regulation and Development)  Act,  2016  [Central  Act and  Rules/ Regulations]
  4. Insolvency and Bankruptcy Code, 2016 and Rules/ Regulations
  5. Prevention of Money Laundering Act, 2002 and Rules/ Regulations
  6. Foreign Exchange Management Act, 1999 and Rules/ Regulations
  7. Prohibition of Benami Property T ransactions Act, 1988 and Rules/ Regulations

Note: If new legislations are enacted in place of the existing legislations, the syllabus would include the corresponding provisions of such new legislations with effect from a date notified by the Institute. Similarly,  if  any  existing legislation ceases to have effect, the syllabus will accordingly exclude such legislation with effect from the date to be notified by the Institute.

The specific inclusions/exclusions in the various topics covered in the syllabus will be effected every year by way of Study Guidelines, if required.

 

 

PAPER – 6 E: GLOBAL FINANCIAL REPORTING STANDARDS

(One paper – Three hours – 100 Marks)

 

Objective:

  • T o develop an understanding of the key concepts and principles of International Financial Reporting Standards and to acquire the ability to apply such knowledge to make computations and address issues in practical case
  • T o develop an understanding of the significant differences between IFRS and US GAAPs and apply the same in practical case

Content:

 

1.    Conceptual Framework for Financial Reporting as per IFRS Marks –     10
2.    Application of International Financial Reporting Standards Marks –     70
3.    Significant differences between IFRS and US GAAPs Marks –      20

 

PAPER – 6 F: MULTIDISCIPLINARY CASE STUDY

(One paper – Three hours – 100 Marks)

Objective:

T o analyse and integrate the concepts, principles and provisions of accounting, auditing,  taxation, corporate laws, finance and business strategy and management to address issues in practical case scenarios

Coverage:

This paper will include Case Studies covering the following areas:

  1. Financial Accounting and Reporting
  2. Audit and Assurance
  3. Taxation
  4. Finance and Financial Management
  5. Management Accounting
  6. Corporate Laws
  7. Business Strategy and Management

 

PAPER – 7 : DIRECT TAX LAWS AND INTERNATIONAL TAXATION

(One paper ─ Three hours –100 Marks)

Part I : Direct Tax Laws (70 Marks)

Objective:

T o acquire the ability to analyze and interpret the provisions of direct tax laws and recommend solutions to practical problems.

Contents:

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 trust and institutions, political parties and electoral trusts
  4. T ax Planning, T ax Avoidance & Tax Evasion
  5. Collection & Recovery of Tax, Refunds
  6. Income-tax Authorities, Procedure for assessment, Appeals and Revision
  7. Settlement of T ax Cases, Penalties, Offences & Prosecution
  8. Liability in Special Cases2
  9. Miscellaneous Provisions and Other Provisions3

 

1.  Including firms, LLPs, T rusts, AOPs, BOIs, Securitsation T rusts, Business T rusts, Investment Fund etc.

2 Representative assessees, Executors etc.1 Including firms, LLPs, T rusts, AOPs, BOIs, Securitsation T rusts, Business T rusts, Investment Fund etc.

3 T he entire income-tax law is included at the Final level. Any residuary provision under the Income-tax Act, 1961, not covered under any of the above specific provisions or under Part II: International T axation would be covered under “Other Provisions”. Further, if any new Chapter is included in the Income-tax Act, 1961, the syllabus will accordingly include the provisions relating thereto.

 

Part II: International Taxation (30 Marks)

Objective:

T o  develop  an   understanding  of  the  concepts,  principles  and  provisions   of  International   T axation and acquire the ability to apply such  knowledge  to  make  computations  and  to address application-oriented issues.

Contents:

  1. T axation of international transactions and Non-resident taxation
    • T he provisions under the Income-tax Act, 1961, including
      1. Specific provisions relating to Non-residents
      2. Double T axation Relief
      3. T ransfer Pricing & Other Anti-Avoidance Measures
      4. Advance Rulings
    • Equalisation levy
  2. Overview of Model T ax Conventions – OECD & UN
  3. Application and interpretation of T ax T reaties
  4. Fundamentals of Base Erosion and Profit Shifting

Note: If any new legislation(s) are  enacted  in  place of an  existing  legislation(s),  the  syllabus will accordingly include the corresponding provisions of such new  legislation(s) in  the  place of the existing legislation(s) with  effect from  the  date  to  be  notified  by the  Institute.  Similarly, if any existing legislation(s)on direct tax laws ceases to be in force, the syllabus will accordingly exclude such legislation(s)with effect from the date to be notified by the Institute.

Further, the specific  inclusions/exclusions  in  any topic  covered  in the syllabus will  be effected by way of Study Guidelines every year,  if  required.  Specific  inclusions/exclusions  in  a  topic may also arise due to additions/deletions made every year by the Annual Finance Act.

 

PAPER  8 :  INDIRECT  TAX LAWS

(One  paper  – Three  hours  –  100 Marks)

Part-I: Goods and Services Tax (75 Marks)

Objective:

T o acquire the ability to analyze and  interpret the provisions of  the goods and services tax law and recommend solutions to practical problems.

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:

    • Introduction to GST in India including Constitutional aspects
    • Levy and collection of CGST and IGST – Application of CGST /IGST law; Concept of supply including composite and mixed supplies, inter-State supply, intra-State supply, supplies in territorial waters; Charge of tax including reverse charge; Exemption from tax; Composition levy
    • Place of supply
    • T ime and Value of supply
    • Input tax credit
    • Computation of GST liability
    • Procedures under GST including registration, tax invoice, credit and debit notes, electronic way bill, accounts and records, returns, payment of tax including tax deduction at source and tax collection at source, refund, job work
    • Liabilityto pay in certain cases
    • Administration of GST ; Assessment and Audit
    • Inspection, Search, Seizure and Arrest
    • Demand and Recovery
    • Offences and Penalties
    • Advance Ruling
    • Appeals and Revision
    • Other provisions1

 

Part-II: Customs & FTP (25 Marks)

Objectives:

  • T o develop an understanding of the customs laws and acquire the ability to analyze and interpret the provisions of such
  • T o develop an understanding of the basic concepts of foreign trade policy to the extent relevant to indirect tax laws, and acquire the ability to analyse such

Contents: 

  1. 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
    • T ypes 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 provisions2

 

1 The entire CGST and IGST laws are  included  in  the  syllabus  at  the  Final  level.  Any  residuary  provision under the CGST Act, 2017 and  IGST  Act, 2017,  not  covered  under  any  of  the  above  specific  provisions, would be covered under “Other provisions”. Further, if any new Chapter is included in the CGST Act, 2017 and IGST Act, 2017, the syllabus will accordingly include the provisions relating thereto.

 

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

  • Introduction to FT P – legislation governing FT P, salient features of an FT P, administration of FT P, contents of FT P and other related provisions
  • Basic concepts relating to import and export of goods
  • Basic concepts relating to export promotion schemes provided under FT P

Note – If any new  legislation(s) is enacted  in  place of an  existing  legislation(s), the  syllabus  will accordingly include the corresponding provisions of such new legislation(s) in place of the existing legislation(s) with effect from the date to be notified by the Institute.  Similarly, if any existing legislation ceases to have effect, the syllabus will  accordingly exclude such legislation with effect from the date to be notified by the Institute. Students shall not be examined with reference to any particular State GST Law.

Further, the specific inclusions/exclusions in any topic covered in the syllabus will  be effected every year by way of Study Guidelines, if required.

 

2 The entire customs law is included in the syllabus  at  the  Final  level.  Any  residuary  provision  under  the Customs Act, 1962 or Customs  Tariff  Act, 1975,  not  covered  under  any  of  the  above  specific  provisions,  would be covered under “Other Provisions”. Further, if any new Chapter is included in the Customs Act, 1962 or Customs Tariff Act, 1975, the syllabus will accordingly include the provisions relating thereto.