2. The Indian Contract Act, 1872 (Specific contracts covered from section 76 onwards): Contract of Indemnity and Guarantee, Bailment, Pledge, Agency

3. The Negotiable Instruments Act, 1881: Meaning of Negotiable Instruments, Characteristics, Classification of Instruments, Different provisions relating to Negotiation, Negotiability, Assignability, Right and Obligation of parties, presentment of Instruments, Rules of Compensation

4. The Payment of Bonus Act, 1965: Applicability, Definitions, Entitlement of payment of bonus, Minimum and Maximum bonus, Calculation of bonus, Miscellaneous provisions

5. The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952: Introduction, Definition, Various Schemes and other provisions

6. The Payment of Gratuity Act, 1972: Extent & Applicability, Definitions, Payment of Gratuity, Calculation, Nominations & Miscellaneous provisions

7. Interpretation of statutes and Drafting of simple deeds and documents: Rules of Interpretation of statutes, Aids to interpretation, Rules of Interpretation/construction of Deeds and Documents, Drafting of simple deeds, Resolution, Minutes, Notices and Reports.

8. The Prevention of Money Laundering Act, 2002- Basic structure: Preliminary and Punishment for the Offence of Money laundering

9. The Consumer Protection Act, 1986: Definitions and Application of the Act, Consumer disputes redressal agencies and Miscellaneous provisions.

10. Tabular Format of major Labour Acts covering their name, preamble and basic comments

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.

CA IPCC New Syllabus For May 2017 | Cost Accounting

Paper 3 : Cost Accounting (Cost and Management Accounting) CA IPCC New Syllabus

A. Overview of Cost and Management Accounting

(a) Introduction to Cost and Management Accounting

(i) Objectives and Scope of Cost and Management Accounting,

(ii) The users of Cost and Management accounting information- Functions of management accounting.

(iii) Role of cost accounting department in an organisation and its relation with other departments.

(iv) Installation of Costing System

(v) Relationship of Cost Accounting, Financial Accounting, Management Accounting and Financial Management.

(vi) Cost terms and Concepts

(vii) Cost Reduction and Cost Control (viii) Elements of Costs

(ix) Cost behavior pattern, Separating the components of semi-variable costs, step costs.

(x) Methods of Costing, Techniques of Costing.

(xi) Coding Systems.

(b) Elements of Cost and preparation of Cost Sheet

(i) Functional classification and ascertainment of cost

(ii) Preparation of Cost Sheet

B. Ascertainment of Cost and Cost Accounting System

(a) Material Cost

(i) Procurement procedures- Store procedures and documentation in respect of receipts and issue of stock, Stock verification,

(ii) Valuation of material receipts,

(iii) Inventory control

• Techniques of fixing level of stocks- minimum, maximum, re-order point, safety stock, determination of optimum stock level,
• Determination of Optimum Order quantity- Economic Order Quantity (EOQ),
• Techniques of Inventory control- ABC Analysis, FSN, HML, VED, Just-in-Time (JIT)- Stock taking and perpetual inventory system, use of control ratios,

(iv) Inventory Accounting

(v) Consumption- Identification with products of cost centres, Basis for consumption entries in financial accounts, monitoring consumption.

(b) Employee Cost

(i) Attendance and Payroll procedures

• Elements of wages- Basic wages, Dearness Allowance, Overtime, Bonus, Holiday and leave wages, Allowances and perquisites.

(ii) Labour Cost Control

(iii) Labour Turnover- Methods of calculating labour turnover, causes of labour turnover, effects of labour turnover.

(iv) Utilisation of labour, Direct and indirect labour, charging of labour cost, Identifying labour hours with work orders or batches or capital jobs.

(v) Remuneration systems and incentive schemes

• Time Rate System, Piece Rate System, Differential piece rate system, Calculation of wages, Effective Wages.

(c) Direct Expenses

(i) Direct expenses and Direct Material

(ii) Nature of Direct or Chargeable expenses.

(iii) Sub-contracting- Control on material movements, Identification with the main product or service.

(d) Overheads

(i) Functional analysis- Factory, Administration, Selling, Distribution, Research and Development.

(ii) Behavioral analysis- Fixed, Variable, Semi- Variable and Step cost.

(iii) Allocation and Apportionment of overheads using Absorption Costing Method.

(iv) Factory Overheads- Primary distribution and secondary distribution,

(v) Administration Overheads- Method of allocation to cost centres or products,

(vi) Selling & Distribution Overheads- Analysis and absorption of the expenses in products/ customers, impact of marketing strategies, cost effectiveness of various methods of sales promotion.

(vii) Concepts of Activity Based Costing (ABC).

(e) Recording and Accounting of Costs

(i) Non-integrated Accounting system- Ledger under non-integral system

(ii) Integrated Accounting system- Ledgers under integral system.

(iii) Relationship and difference between the Non- integrated Accounting system and Integrated Accounting system.

(iv) Reconciliation of Cost and Financial Accounts.

C. Methods of Costing

(a) Job Costing: Job cost cards and databases, collecting direct costs of each job, attributing overheads to jobs, Application of job costing.

(b) Batch Costing: Determination of optimum batch quantity, Ascertainment of cost for a batch, Preparation of batch cost sheet, Treatment of spoiled and defective works.

(c) Contract Costing

(i) Ascertainment of cost of a contract, Progress payment, Retention money, Escalation clause, Cost plus
contract, Value of work certified, Cost of Work not certified.

(ii) Determination Value of work certified, Cost of work not certified, Notional and Estimated profit from a contact.

(d) Process/ Operation Costing

(i) Double entry book keeping, Process loss, Abnormal gains and losses, Equivalent units, Inter-process profit, Valuation of work in progress.

(ii) Joint Products- Apportionment of joint costs, Methods of apportioning joint cost over joint products,

(iii) By-Products- Methods of apportioning joint costs over by-products, treatment of By-product cost in Cost Accounting.

(e) Operating Costing System

(i) Determination of Costs, Profit and Prices of services of following sectors/ Industries:
– Transport, Hospitals, Canteen/ Restaurants, Hotels/ Lodges, Schools/ Colleges, Financial Institutions/ Banks

D. Cost Control and Analysis

(a) Marginal Costing

(i) Determination of Cost of a product/ service under marginal costing method, determination of cost of finished goods, work-in-progress,

(ii) Comparison of Marginal costing with absorption costing method- Reconciliation of profit under the both methods,

(iii) Basic concepts of marginal costing, Contribution margin, Break-even analysis, Break -even and profit volume charts, Contribution sales ratio, Margin of Safety, Angle of Incidence, Cost-Volume-Profit Analysis (CVP), Multi- product break- even analysis, Limiting factor (key factor),

(iv) Short term decision making using the above concepts (basic level).

(b) Standard Costing

(i) Setting up of Standards, Types of Standards, Standard Costing as method of performance measurement.

(ii) Calculation of Variances

• Material Cost Variance, Labour Cost Variance, Variable Overheads Variance, Fixed Overhead Variance and Sales Variances.

(c) Budget and Budgetary Control

(i) Meaning of Budget, Essentials of Budget, Budget Manual, Budget setting process, Preparation of Budget and monitoring procedures.

(ii) The use of budget in planning and control

(iii) Flexible budget, Preparation of Functional budget for operating and non operating functions, Cash budget, Master budget,

(iv) Introduction to Principal budget factor, Zero Based Budgeting (ZBB), Performance budget, Control ratios and Budget variances.

Note: The relevant Cost Accounting Standards (CASs) as notified by MCA as per Companies Act 2013 will be complied with.

CA IPCC New Syllabus For May 2017 | Direct Tax and Indirect Tax

CA IPCC New Syllabus For May 2017 Exam :

Paper 4 : Direct Tax Laws and Indirect Tax Laws CA IPCC New Syllabus

Part 1 : Direct Tax Laws (60 Marks)

1. Basic Concepts

• Income-tax law: An introduction
• Important definitions in the Income-tax Act, 1961
• Basis of Charge and Rates of Tax
• Concept of previous year and assessment year

2. Residential status and scope of total income

• Residential status
• Scope of total income
• Deemed receipt and accrual of income in India

3. Incomes which do not form part of total income

• Incomes not included in total income
• Tax holiday for newly established units in Special Economic Zones
• Charitable and religious trusts and institutions: Basic concepts

4. Heads of income and the provisions governing computation of income under different heads

• Salaries
• Income from house property
• Profits and gains of business or profession
• Capital gains
• Income from other sources

5. Income of other persons included in assessee’s total income

• Clubbing of income: An introduction
• Transfer of income without transfer of assets
• Income arising from revocable transfer of assets
• Clubbing of income of income arising to spouse, minor child and son’s wife in certain cases
• Cross transfers
• Conversion of self-acquired property into property of HUF
• Other provisions relating to clubbing of income

6. Aggregation of income; Set-off, or carry forward and set-off of losses

• Aggregation of income
• Concept of set-off and carry forward and set-off of losses
• Inter-source and Inter-head adjustments
• Provisions governing set-off and carry forward and set-off of losses under different heads of income
• Order of set-off of losses
• Other provisions relating to set-off and carry forward of losses

7. Deductions from gross total income

• General provisions
• Deductions in respect of payments
• Specific deductions in respect of income
• Other deductions

8. Computation of total income and tax liability of resident Individuals

• Meaning of total income
• Income to be considered while computing total income of resident individuals
• Special provisions for spouses governed by Portuguese civil code
• Procedure for computation of total income and tax liability of resident individuals

9. Provisions concerning advance tax and tax deducted at source

• Introduction
• Direct Payment
• Provisions concerning deduction of tax at source
• Certificate for deduction of tax at a lower rate
• No deduction in certain cases
• Miscellaneous Provisions relating to deduction of tax at source
• Advance payment of tax
• Interest for defaults in payment of advance tax and deferment of advance tax

10. Provisions for filing return of income

• Return of Income
• Compulsory filing of return of income
• Interest for default in furnishing return of income
• Specified class or classes of persons to be exempted from filing return of income
• Return of loss
• Return of income of charitable trusts and institutions, political parties, universities, colleges etc.
• Provisions relating to belated return, revised return etc.
• Permanent account number
• Persons authorized to verify return of income
• Other provisions relating to return of income

Part 2 : Indirect Tax Laws (40 Marks)

1. Concept of indirect taxes – General principles, Constitutional aspects

• Concept and features of indirect taxes
• Constitutional provisions of indirect taxes
• Principal indirect taxes
• Administration of indirect taxes

2. Introduction to Central Excise Duty and Customs Duty – Basic concepts relating to levy, classification and valuation

• Concept of excise duty, Types of excise duties, Sources of central excise law
• Taxable event, Charge of excise duty, Concept of goods and excisable goods, Manufacture, Collection of excise duty,
• Classification and valuation of excisable goods
• Small Scale Industry (SSI) exemption
• Concept of customs duty, Types of customs duties, Sources of customs law
• Taxable event, Charge of customs duty including exceptions thereof
• Classification and valuation of imported/export goods
• Date for determining the rate of duty and tariff valuation of imported and exported goods

3. Central Sales Tax

• Basic concepts relating to inter-State sale
• Sale outside a State
• Sale in the course of import or export
• Charge of central sales tax
• Inter-State stock transfer
• Rates of tax on inter-State sale
• Determination of turnover
• Levy and collection of central sales tax and goods of special importance in inter-State trade

4. Value Added Tax

• Basic concepts relating to VAT including its variants, different methods of computation and merits and demerits
• State-Level VAT
• Backdrop for State-Level VAT in India
• Concepts relating to input tax credit
• Computation of net VAT liability
• VAT rates
• Composition scheme for small dealers
• VAT in relation to incentive schemes
• Works contract
• Lease transactions and hire purchase transactions

5. Service tax

• Basic concepts and general principles
• Concept of service, charge of service tax, negative list of services, date of determination of rate of tax, value of taxable service and rate of exchange
• Point of taxation of services
• Exemptions and abatements
• Valuation of taxable services
• Registration
• Invoicing for taxable service
• Payment of service tax including reverse charge
• Furnishing of returns

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 VAT Law. Further, considering that Goods and Services Tax may be implemented in India in near future, the syllabus will accordingly be modified to include the same with effect from the date to be notified by the Institute.

Consequential/corresponding amendments made in the provisions of the direct and indirect tax laws covered in the syllabus of this paper which arise out of the amendments made in the provisions not covered in the syllabus will not form part of the syllabus. Further, the specific inclusions/exclusions in the various topics covered in the syllabus will be effected by way of Study Guide before each examination.

Illustrative list of Inclusions and Exclusions in the syllabus of new Intermediate Course Paper 4: Direct Tax Laws & Indirect Tax Laws

CA IPCC New Syllabus For May 2017 Exam :

(1) In respect Part I: Direct Tax Laws, under “2. Residence and Scope of total income”, the provisions of section 9A are excluded from the syllabus.

(2) In respect of Part I:Direct Tax Laws, under “7. Deductions from gross total income” – “Specified deductions in respect of income”, only deductions under section 80JJAA,80QQB, 80RRB and 80TTA are included in the syllabus. All other deductions in respect of income are excluded from the syllabus of new Intermediate course.

(3) In respect of Part I:Direct Tax Laws, under “4.Heads of income and the provisions governing computation of income under different heads” under “Profits and gains of business or profession”, the provisions of section 44B, 44BB, 44BBA, 44BBB, 44C, 44D and 44DA relating to non-residents/foreign companies are excluded from the syllabus of new Intermediate course.

(4) In respect of Part II: Indirect Taxes “2. Introduction to Central Excise Duty and Customs Duty”, in point “Classification and valuation of excisable goods”, an overall idea of concept of classification and scheme of valuation under central excise law is covered in the syllabus. Related rules are excluded from the syllabus of new Intermediate course.

(5) In respect of Part II: Indirect Taxes “2. Introduction to Central Excise Duty and Customs Duty”, in point “Classification and valuation of imported and export goods”, an overall idea of concept of classification and scheme of valuation under customs law is covered in the syllabus. Related rules are excluded from the syllabus of new Intermediate course.

(6) In respect of Part II: Indirect Taxes “5. Service Tax”, Declared service [Section 66E], Determination of place of provision of service [Section 66C and Place of Provision of Services Rules, 2012], Bundled Services [Section 66F] and related provisions covered in any of the topics mentioned in the syllabus are excluded from the syllabus of new Intermediate course.

Specific inclusions/exclusions in the syllabus may be effected by way of Study Guide, approved by the Board of Studies, before each examination. Since tax laws are dynamic in nature, the specific inclusions/exclusions in syllabus may undergo a change with the passing of the Finance Act every year. In Indirect Taxes, the changes may also be on account of notifications and circulars. Accordingly, specific inclusions/exclusions in the syllabus would be effected by way of Study Guide, which would be approved by the Board of Studies, before each examination.

CA IPCC New Syllabus For May 2017 | Advanced Accounting

Paper 5 : Advanced Accounting (100 Marks) CA IPCC New Syllabus

1. Accounting Standards: 

• AS 14 : Accounting for Amalgamations
• AS 15 : Employee Benefits
• AS 17: Segment Reporting
• AS 18 : Related Party Disclosures
  
• AS 19 : Leases
  
• AS 20 : Earnings Per Share
  
• AS 21 : Consolidated Financial Statements
  
• AS 22 : Accounting for Taxes on Income
  
• AS 23 : Accounting for Investments in Associates in Consolidated Financial Statements
  
• AS 24 : Discontinuing Operations
  
• AS 25 : Interim Financial Reporting
  
• AS 26 : Intangible Assets
  
• AS 27 : Financial Reporting of Interest in Joint Ventures
  
• AS 28 : Impairment of Assets
  
• AS 29 : Provisions, Contingent Liabilities and Contingent Assets.
  

2. Company Accounts

(a) Accounting for employee stock option plan, Buy back of securities, Equity shares with differential rights, Underwriting of shares and debentures, Redemption of debentures;

(b) Accounting for business acquisition, Amalgamation and reconstruction;

(c) Accounting involved in liquidation of companies, Statement of Affairs (including deficiency/surplus accounts) and Iiquidator’s statement of account of the winding up;