The next examinations of Chartered Accountancy (CA) Final course will be held in May, 2015 and therefore the Institute of Chartered Accountants of India (ICAI) has announced the applicability of Standards, Guidance Notes and Legislative Amendments etc. for May, 2015 – Final Examination. Accordingly, following are the relevant Accounting Standards (ASs), Standards on Auditing (SAs), Guidance Notes (GNs), Circulars, Notifications, Companies Act and Finance Act etc. which are very important for CA Final May 2015 examinations.
Paper 1: Financial Reporting:
35 Indian Accounting Standards (Ind AS) have been prepared by the National Advisory Committee on Accounting Standards (NACAS) and the Ministry of Corporate Affairs (MCA) has hosted all Ind ASs without announcing their applicability date. Accordingly, any question based on particular Ind AS will not be asked in CA Final May, 2015 examinations. However, a full updated chapter-2 on IFRS (International Financial Reporting Standards) is present in the current CA Final course syllabus of Financial Reporting. Hence, you should have overall knowledge and understanding of Ind AS since they generally correspond to IFRSs except certain carve outs. Note that the expression Ind AS is used in India in place of IFRS. Following are the list of all 31 Accounting Standards which are fully applicable for CA Final May, 2015 examinations:
Accounting Standards:
AS 1: Disclosure of Accounting Policies
AS 2: Valuation of Inventories
AS 3: Cash Flow Statements
AS 4: Contingencies and Events Occurring after the Balance Sheet Date
AS 5: Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies AS 6: Depreciation Accounting
AS 7: Construction Contracts (Revised 2002)
AS 9: Revenue Recognition
AS 10: Accounting for Fixed Assets
AS 11: The Effects of Changes in Foreign Exchange Rates (Revised 2003)
AS 12: Accounting for Government Grants
AS 13: Accounting for Investments
AS 14: Accounting for Amalgamations
AS 15: Employee Benefits
AS 16: Borrowing Costs
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 Investment in Associates in Consolidated Financial Statements
AS 24: Discontinuing Operations
AS 25: Interim Financial Reporting
AS 26: Intangible Assets
AS 27: Financial Reporting of Interests in Joint Ventures
AS 28: Impairment of Assets
AS 29: Provisions, Contingent Liabilities and Contingent Assets
AS 30: Financial Instruments: Recognition and Measurement
AS 31: Financial Instruments: Presentation
AS 32: Financial Instruments: Disclosure
Following are the list of 14 Guidance Notes which are fully applicable for CA Final May, 2015 examinations:
Guidance Notes:
1. Guidance Note on Accrual Basis of Accounting.
2. Guidance Note on Accounting Treatment for Excise Duty.
3. Guidance Note on Terms Used in Financial Statements.
4. Guidance Note on Availability of Revaluation Reserve for Issue of Bonus Shares.
5. Guidance Note on Accounting Treatment for MODVAT/CENVAT.
6. Guidance Note on Accounting for Corporate Dividend Tax.
7. Guidance Note on Accounting for Employee Share-based Payments.
8. Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under the Income Tax Act, 1961.
9. Guidance Note on Measurement of Income Tax for Interim Financial Reporting in the context of AS 25.
10. Guidance Note on Applicability of Accounting Standard (AS) 20, Earnings per Share.
11. Guidance Note on Remuneration paid to key management personnel – whether a related party transaction.
12. Guidance Note on Applicability of AS 25 to Interim Financial Results.
13. Guidance Note on Turnover in case of Contractors.
14. Guidance Note on the Revised Schedule VI to the Companies Act, 1956 (Schedule III to the Companies Act, 2013). The Guidance Note on Treatment of Reserves created on Revaluation of Fixed Assets and the Guidance Note on Accounting for Depreciation in Companies shall not be applicable in May, 2015 CA Final exams. Note that the same was applicable in last term i.e. Nov 2014 exams.
The Companies Act, 2013:
1. Accounting related sections of the Companies Act, 2013, notified up 30th September 2014, along with the clarifications issued by the Ministry of Corporate Affairs are applicable for May, 2015 Examination.
2. The cut-off date for any other legislative amendments including relevant Notifications, Circulars, Rules and Guidelines issued by Regulating Authority will be six months i.e. upto 31st October, 2014.
Paper 3: Advanced Auditing and Professional Ethics:
The statement on reporting under Section 227(1A) of the Companies Act, 1956 corresponding to section 143 of the Companies Act, 2013 shall be applicable for May, 2015 Examination.
Additionally, all auditing related sections of the Companies Act, 2013 up to 30th September 2014 will be applicable for CA Final May, 2015 Exams and for other legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authority cut-off date will be 6 months.
Engagements and Quality Control Standards on Auditing:
Following are the lists of all 44 Engagements and Quality Control Standards on Auditing which are applicable in CA May, 2015 exams.
SQC 1: Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements
SA 200: Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing
SA 210: Agreeing the Terms of Audit Engagements
SA 220: Quality Control for Audit of Financial Statements
SA 230: Audit Documentation
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 265: Communicating Deficiencies in Internal Control to Those Charged with Governance and Management
SA 299: Responsibility of Joint Auditors
SA 300: Planning an Audit of Financial Statements
SA 315: Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment
SA 320: Materiality in Planning and Performing an Audit
SA 330: The Auditor’s Responses to Assessed Risks
SA 402: Audit Considerations Relating to an Entity Using a Service Organization
SA 450: Evaluation of Misstatements Identified during the Audits
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 520: Analytical Procedures
SA 530: Audit Sampling
SA 540: Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
SA 550: Related Parties
SA 560: Subsequent Events
SA 570: Going Concern
SA 580: Written Representations
SA 600: Using the Work of Another Auditor
SA 610: Using the Work of Internal Auditors
SA 620: Using the Work of an Auditor’s Expert
SA 700: Forming an Opinion and Reporting on Financial Statements
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 in Documents Containing Audited Financial Statements
SA 800: Special Considerations-Audits of Financial Statements Prepared in Accordance with Special Purpose Framework
SA 805: Special Considerations-Audits of Single Purpose Financial Statements and Specific Elements, Accounts or Items of a Financial Statement
SA 810: Engagements to Report on Summary Financial Statements
SRE 2400: Engagements to Review Financial Statements
SRE 2410: Review of Interim Financial Information Performed by the Independent Auditor of the Entity
SAE 3400: The Examination of Prospective Financial Information
SAE 3402: Assurance Reports on Controls At a Service Organisation
SRS 4400: Engagements to Perform Agreed Upon Procedures Regarding Financial Information
SRS 4410: Engagements to Compile Financial Information
Guidance Notes and other publications:
1. Code of Ethics
2. Guidance Note on Independence of Auditors
3. Guidance Note on Audit Reports and Certificates for Special Purposes
4. Guidance Note on Audit under Section 44AB of the Income-tax Act ((Revised in view of Latest Form 3CA, 3CB and 3CD notified on 25th July).
5. Guidance Note on Audit of Inventories
6. Guidance Note on Audit of Debtors, Loans and Advances
7. Guidance Note on Audit of Investments
8. Guidance Note on Audit of Cash and Bank Balances
9. Guidance Note on Audit of Liabilities
10. Guidance Note on Audit of Revenue
11. Guidance Note on Audit of Expenses
12. Guidance Note on Sections 227(3)(e) and (f) of the Companies Act, 1956(Section 143 of the Companies Act, 2013).
13. Guidance Note on Computer Assisted Audit Techniques (CAATs)
14. Guidance Note on Audit of Payment of Dividend
15. Guidance Note on Audit of Capital and Reserves
The Guidance Note on Audit of Abridged Financial Statements, the Guidance Note on Audit of Miscellaneous Expenditure, the Guidance Note on Certificate of Corporate Governance and the Guidance Note on Auditing of Accounts of Liquidators shall not be applicable for May, 2015 Examinations. Note that these Guidance Notes were applicable for Nov, 2014 CA Final Examination.
Paper 4: Corporate and Allied Laws:
1. The Companies Act, 2013: The relevant notified Sections of the Companies Act, 2013 before first day of October, 2014 will be applicable for May, 2015 Examination and for other legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authority cut-off date will be 6 months i.e. till 31/10/2014.
2. The SEBI Act, 1992: The Ministry of Law and Justice vide Notification dated 25th August, 2014 has issued Securities Laws (Amendment) Act, 2014.
3. SEBI (Issue of Capital and Disclosure Requirement) Regulations, 2009: SEBI vide Notification dated 25th August, 2014 has issued SEBI (Issue of Capital and Disclosure Requirement) (Second Amendment) Regulations, 2014. Click here to download the same.
Non-Applicability of the following Amendments/Circulars/Notifications
1. Chapter 9 of the study material (October, 2014 edition) covering provisions relating to Revival and Rehabilitation of Sick-Industrial Companies.
2. Chapter 15 of the study material (October, 2014 edition) covering provisions relating to the National Company Law Tribunal and Appellate Tribunal.
You may download the Study Material (October 2014 edition) from ICAI official website icai.org under BoS Knowledge Portal. You may also buy hard copy of the same from CA Institute nearest branch office. Paper
7: Direct Tax Laws:
&
Paper 8: Indirect Tax Laws:
Amendments made in the provisions of Direct Tax and Indirect Tax Laws by the Finance (No.2) Act, 2014 including various circulars and notifications issued upto 31st October, 2014 will be applicable for CA Final May, 2015 examinations. Accordingly, the applicable assessment year shall be A.Y. 2015-16 for Direct Tax Laws for CA Final May, 2015 Examination.
Paper 1: Financial Reporting:
35 Indian Accounting Standards (Ind AS) have been prepared by the National Advisory Committee on Accounting Standards (NACAS) and the Ministry of Corporate Affairs (MCA) has hosted all Ind ASs without announcing their applicability date. Accordingly, any question based on particular Ind AS will not be asked in CA Final May, 2015 examinations. However, a full updated chapter-2 on IFRS (International Financial Reporting Standards) is present in the current CA Final course syllabus of Financial Reporting. Hence, you should have overall knowledge and understanding of Ind AS since they generally correspond to IFRSs except certain carve outs. Note that the expression Ind AS is used in India in place of IFRS. Following are the list of all 31 Accounting Standards which are fully applicable for CA Final May, 2015 examinations:
Accounting Standards:
AS 1: Disclosure of Accounting Policies
AS 2: Valuation of Inventories
AS 3: Cash Flow Statements
AS 4: Contingencies and Events Occurring after the Balance Sheet Date
AS 5: Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies AS 6: Depreciation Accounting
AS 7: Construction Contracts (Revised 2002)
AS 9: Revenue Recognition
AS 10: Accounting for Fixed Assets
AS 11: The Effects of Changes in Foreign Exchange Rates (Revised 2003)
AS 12: Accounting for Government Grants
AS 13: Accounting for Investments
AS 14: Accounting for Amalgamations
AS 15: Employee Benefits
AS 16: Borrowing Costs
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 Investment in Associates in Consolidated Financial Statements
AS 24: Discontinuing Operations
AS 25: Interim Financial Reporting
AS 26: Intangible Assets
AS 27: Financial Reporting of Interests in Joint Ventures
AS 28: Impairment of Assets
AS 29: Provisions, Contingent Liabilities and Contingent Assets
AS 30: Financial Instruments: Recognition and Measurement
AS 31: Financial Instruments: Presentation
AS 32: Financial Instruments: Disclosure
Following are the list of 14 Guidance Notes which are fully applicable for CA Final May, 2015 examinations:
Guidance Notes:
1. Guidance Note on Accrual Basis of Accounting.
2. Guidance Note on Accounting Treatment for Excise Duty.
3. Guidance Note on Terms Used in Financial Statements.
4. Guidance Note on Availability of Revaluation Reserve for Issue of Bonus Shares.
5. Guidance Note on Accounting Treatment for MODVAT/CENVAT.
6. Guidance Note on Accounting for Corporate Dividend Tax.
7. Guidance Note on Accounting for Employee Share-based Payments.
8. Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under the Income Tax Act, 1961.
9. Guidance Note on Measurement of Income Tax for Interim Financial Reporting in the context of AS 25.
10. Guidance Note on Applicability of Accounting Standard (AS) 20, Earnings per Share.
11. Guidance Note on Remuneration paid to key management personnel – whether a related party transaction.
12. Guidance Note on Applicability of AS 25 to Interim Financial Results.
13. Guidance Note on Turnover in case of Contractors.
14. Guidance Note on the Revised Schedule VI to the Companies Act, 1956 (Schedule III to the Companies Act, 2013). The Guidance Note on Treatment of Reserves created on Revaluation of Fixed Assets and the Guidance Note on Accounting for Depreciation in Companies shall not be applicable in May, 2015 CA Final exams. Note that the same was applicable in last term i.e. Nov 2014 exams.
The Companies Act, 2013:
1. Accounting related sections of the Companies Act, 2013, notified up 30th September 2014, along with the clarifications issued by the Ministry of Corporate Affairs are applicable for May, 2015 Examination.
2. The cut-off date for any other legislative amendments including relevant Notifications, Circulars, Rules and Guidelines issued by Regulating Authority will be six months i.e. upto 31st October, 2014.
Paper 3: Advanced Auditing and Professional Ethics:
The statement on reporting under Section 227(1A) of the Companies Act, 1956 corresponding to section 143 of the Companies Act, 2013 shall be applicable for May, 2015 Examination.
Additionally, all auditing related sections of the Companies Act, 2013 up to 30th September 2014 will be applicable for CA Final May, 2015 Exams and for other legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authority cut-off date will be 6 months.
Engagements and Quality Control Standards on Auditing:
Following are the lists of all 44 Engagements and Quality Control Standards on Auditing which are applicable in CA May, 2015 exams.
SQC 1: Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements
SA 200: Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing
SA 210: Agreeing the Terms of Audit Engagements
SA 220: Quality Control for Audit of Financial Statements
SA 230: Audit Documentation
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 265: Communicating Deficiencies in Internal Control to Those Charged with Governance and Management
SA 299: Responsibility of Joint Auditors
SA 300: Planning an Audit of Financial Statements
SA 315: Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment
SA 320: Materiality in Planning and Performing an Audit
SA 330: The Auditor’s Responses to Assessed Risks
SA 402: Audit Considerations Relating to an Entity Using a Service Organization
SA 450: Evaluation of Misstatements Identified during the Audits
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 520: Analytical Procedures
SA 530: Audit Sampling
SA 540: Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
SA 550: Related Parties
SA 560: Subsequent Events
SA 570: Going Concern
SA 580: Written Representations
SA 600: Using the Work of Another Auditor
SA 610: Using the Work of Internal Auditors
SA 620: Using the Work of an Auditor’s Expert
SA 700: Forming an Opinion and Reporting on Financial Statements
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 in Documents Containing Audited Financial Statements
SA 800: Special Considerations-Audits of Financial Statements Prepared in Accordance with Special Purpose Framework
SA 805: Special Considerations-Audits of Single Purpose Financial Statements and Specific Elements, Accounts or Items of a Financial Statement
SA 810: Engagements to Report on Summary Financial Statements
SRE 2400: Engagements to Review Financial Statements
SRE 2410: Review of Interim Financial Information Performed by the Independent Auditor of the Entity
SAE 3400: The Examination of Prospective Financial Information
SAE 3402: Assurance Reports on Controls At a Service Organisation
SRS 4400: Engagements to Perform Agreed Upon Procedures Regarding Financial Information
SRS 4410: Engagements to Compile Financial Information
Guidance Notes and other publications:
1. Code of Ethics
2. Guidance Note on Independence of Auditors
3. Guidance Note on Audit Reports and Certificates for Special Purposes
4. Guidance Note on Audit under Section 44AB of the Income-tax Act ((Revised in view of Latest Form 3CA, 3CB and 3CD notified on 25th July).
5. Guidance Note on Audit of Inventories
6. Guidance Note on Audit of Debtors, Loans and Advances
7. Guidance Note on Audit of Investments
8. Guidance Note on Audit of Cash and Bank Balances
9. Guidance Note on Audit of Liabilities
10. Guidance Note on Audit of Revenue
11. Guidance Note on Audit of Expenses
12. Guidance Note on Sections 227(3)(e) and (f) of the Companies Act, 1956(Section 143 of the Companies Act, 2013).
13. Guidance Note on Computer Assisted Audit Techniques (CAATs)
14. Guidance Note on Audit of Payment of Dividend
15. Guidance Note on Audit of Capital and Reserves
The Guidance Note on Audit of Abridged Financial Statements, the Guidance Note on Audit of Miscellaneous Expenditure, the Guidance Note on Certificate of Corporate Governance and the Guidance Note on Auditing of Accounts of Liquidators shall not be applicable for May, 2015 Examinations. Note that these Guidance Notes were applicable for Nov, 2014 CA Final Examination.
Paper 4: Corporate and Allied Laws:
1. The Companies Act, 2013: The relevant notified Sections of the Companies Act, 2013 before first day of October, 2014 will be applicable for May, 2015 Examination and for other legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authority cut-off date will be 6 months i.e. till 31/10/2014.
2. The SEBI Act, 1992: The Ministry of Law and Justice vide Notification dated 25th August, 2014 has issued Securities Laws (Amendment) Act, 2014.
3. SEBI (Issue of Capital and Disclosure Requirement) Regulations, 2009: SEBI vide Notification dated 25th August, 2014 has issued SEBI (Issue of Capital and Disclosure Requirement) (Second Amendment) Regulations, 2014. Click here to download the same.
Non-Applicability of the following Amendments/Circulars/Notifications
1. Chapter 9 of the study material (October, 2014 edition) covering provisions relating to Revival and Rehabilitation of Sick-Industrial Companies.
2. Chapter 15 of the study material (October, 2014 edition) covering provisions relating to the National Company Law Tribunal and Appellate Tribunal.
You may download the Study Material (October 2014 edition) from ICAI official website icai.org under BoS Knowledge Portal. You may also buy hard copy of the same from CA Institute nearest branch office. Paper
7: Direct Tax Laws:
&
Paper 8: Indirect Tax Laws:
Amendments made in the provisions of Direct Tax and Indirect Tax Laws by the Finance (No.2) Act, 2014 including various circulars and notifications issued upto 31st October, 2014 will be applicable for CA Final May, 2015 examinations. Accordingly, the applicable assessment year shall be A.Y. 2015-16 for Direct Tax Laws for CA Final May, 2015 Examination.
