PAPER 1 : ADVANCED ACCOUNTING (100 MARKS)

Objective

To acquire the ability to apply specific accounting standards and legislations to different transactions and events and in preparation and presentation of financial statements of various business entities.

Contents

1. Process of formulation of Accounting Standards including Indian Accounting Standards (IFRS converged standards) and IFRSs; Convergence vs Adoption; Objective and Concepts of carve outs.

2. Framework for Preparation and Presentation of Financial Statements (as per Accounting Standards).

3.

i Applicability of Accounting Standards to various entities.

ii Application of 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 7 Construction Contracts

AS 9 Revenue Recognition

AS 10 Property, Plant and Equipment

AS 11 The Effects of Changes in Foreign Exchange Rates

AS 12 Accounting for Government Grants

AS 13 Accounting for Investments

AS 14 Accounting for Amalgamations (excluding inter-company holdings)

AS 15 Employee Benefits

AS 16 Borrowing Costs Leases

AS 17 Segment Reporting

AS 18 Related Party Disclosures

AS 19 Leases

AS 20 Earnings Per Share

AS 21 Consolidated Financial Statements of single subsidiaries (excluding problems involving acquisition of Interest in Subsidiary at Different Dates, Cross holding, Disposal of a Subsidiary and Foreign Subsidiaries)

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

4. Company Accounts

(i) Schedule III to the Companies Act, 2013 (Division I)

(ii) Preparation of financial statements – Statement of Profit and Loss, Balance Sheet and Cash FlowStatement

(iii) Buy back of securities

(iv) Accounting for reconstruction of companies

5. Accounting for Branches including foreign branches

                                                                                            PAPER 2: CORPORATE AND OTHER LAWS (100 MARKS)

                                                                    PART I– COMPANY LAW AND LIMITED LIABILITY PARTNERSHIP LAW (70 MARKS)

Objective

To develop an understanding of the legal provisions and acquire the ability to analyse and apply the laws inpractical situations.

Contents

I. The Companies Act, 2013: including important rules and drafting of notices, resolutions etc.–

    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

   11. Companies Incorporated Outside India

II. The Limited Liability Partnership Act, 2008 including important Rules

PART II- OTHER LAWS (30 MARKS)

Objective

a. To develop an understanding of the General Clauses Act.

b. To develop an understanding of the rules for interpretation of statutes.

c. To have basic understanding of the Foreign Exchange Management Act, 1999.

Contents

1. The General Clauses Act, 1897: Important Definitions, Extent and Applicability, General Rules of Construction, Powers and Functionaries, Provisions as to Orders, Rules, etc. made under Enactments and Miscellaneous provisions.

2. Interpretation of Statutes: Rules of Interpretation of Statutes, Aids to Interpretation, Rules ofInterpretation/Construction of Deeds and Documents.

3. The Foreign Exchange Management Act, 1999: Significant definitions and concepts of Current andCapital Account Transactions.

Note: If any new legislation(s) is/are enacted in place of the existing legislation(s), the syllabus would includethe corresponding provisions of such new legislation(s) with effect from a date notified by the Institute.

The specific inclusion(s)/exclusion(s) in the various topics covered in the syllabus will be effected every yearby way of Study Guidelines, if required.

PAPER 3: TAXATION (100 MARKS)

SECTION A: INCOME TAX LAW (50 MARKS)

Objective

a. To develop an understanding of the provisions of income-tax law.

b. To acquire the ability to apply such provisions to solve problems and address application orientedissues.

Contents

1. Basic Concepts:

(i) Income-tax law: An introduction

(ii) Significant concepts in income-tax law, including person, assessee, previous year, assessmentyear, income, agricultural income

(iii) Basis of Charge

(iv) Procedure for computation of total income and tax payable in case of individuals

2. Residential status and scope of total income:

(i) Residential status

(ii) Scope of total income

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

(i) Salaries

(ii) Income from house property

(iii) Profits and gains of business or professionCapital gains

(iv) Income from other sources

4. Provisions relating to clubbing of income, set-off or carry forward and set-off of losses, deductions fromgross total income.

5. Advance Tax, Tax deduction at source and tax collection at source.

6. Provisions for filing return of income and self-assessment.

7. Computation of total income and income-tax payable by an individual under the alternative taxregimes under the Income-tax Act, 1961 to optimise tax liability.

Note: If any new legislation(s) are enacted in place of an existing legislation(s), the syllabus will accordinglyinclude 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(s) on income tax lawceases to be in force, the syllabus will accordingly exclude such legislation(s) with effect from the date to benotified by the Institute.

Further, the specific inclusion(s)/exclusion(s) in any topic covered in the syllabus will be effected by way ofStudy 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.

SECTION B: GOODS AND SERVICES TAX (GST)(50 MARKS)

Objective

a. To develop an understanding of the provisions of goods and services tax law.

b. To acquire the ability to apply such provisions to address/ solve issues in moderately complexscenarios.

Contents

1. GST Laws: An introduction including Constitutional aspects.

2. Levy and collection of CGST and IGST:

(i) Application of CGST/IGST law

(ii) Concept of supply including composite and mixed supplies

(iii) Charge of tax including reverse charge

(iv) Exemption from tax

(v) Composition levy

3. Basic concepts of:

(i) Classification

(ii) Place of supply

(iii) Time of supply

(iv) Value of supply

(v) Input tax credit

4. Computation of GST liability.

5. Registration.

6. Tax invoice; Credit and Debit Notes; Electronic way bill.

7. Accounts and Records.

8. Returns.

9. Payment of tax.

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.

Consequential/ corresponding amendments made in the provisions of the Goods and Services Tax laws covered in the syllabus of this paper which arise out of the amendments made in the provisions not coveredin the syllabus will not form part of the syllabus. Further, the specific inclusion(s)/ exclusion(s) in the varioustopics covered in the syllabus will be effected every year by way of Study Guidelines. The specific inclusion(s)/ exclusion(s)may also arise due to additions/ deletions every year by the annual Finance Act.

PAPER 4: COST AND MANAGEMENT ACCOUNTING (100 MARKS)

Objective

a. To develop an understanding of the basic concepts and applications to establish the cost associated with the production of products and provision of services and apply the same to determine prices.

b. To develop an understanding of cost accounting statements.

c. To acquire the ability to apply information for cost ascertainment, planning, control and decisionmaking.

d. To apply costing methods to determine the costs for different purposes.

e To apply appropriate techniques to support short term decisions.

Contents

1. Overview of Cost and Management Accounting:

(i) Introduction to Cost and Management Accounting:

a. Objectives and Scope of Cost and Management Accounting.

b. The users of Cost and Management accounting information, Functions of managementaccounting.

c. Role of cost accounting department in an organisation and its relation with otherdepartments.

d. Installation of Costing System.

e. Relationship of Cost Accounting, Financial Accounting, Management Accounting andFinancial Management.

f. Cost terms and Concepts.

g. Cost Reduction and Cost Control

h. Elements of Costs.

i Cost behavior pattern, Separating the components of fixed, variable, semi-variable and stepcosts.

j Methods of Costing, Techniques of Costing.

k Digital Costing.

(ii) Elements of Cost and preparation of Cost Sheets:

a. Functional classification and ascertainment of cost.

b. Preparation of Cost Sheets for Manufacturing sector and for Service sector.

2. Ascertainment of Cost and Cost Accounting System:

(i) Material Cost:

a. Introduction to procurement procedures. Valuation of receipts, issue and closing stock of Material, Stock verification.

b. Material requirement analysis through digital costing including Government e-Marketplace (GeM). Introduction to Costing through Enterprise Resource Planning (ERP). Process of tender and quotation.

c. 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, Fast, Slow moving and Non moving (FSN), High, Medium, Low (HML), Vital, Essential, Desirable (VED), Just-in-Time (JIT)- Stock taking and perpetual inventory system, use of inventory control ratios, Digital Inventory control.

d. Treatment of Normal/Abnormal Losses w.r.t. waste, scrap, spoilage, defective, obsolescence.

(ii) Employee Cost:

a. Introduction to Attendance and Payroll procedures.

b. Elements of wages- Basic pay, Dearness Allowance, Overtime, Bonus, Holiday and leavewages, Allowances and perquisites.

c. Employee Cost Control.

d. Employee Turnover- Methods of calculating employee turnover, causes of employee turnover, effects of employee turnover.

e. Remuneration systems and incentive schemes- Premium Bonus Method (Halsey Plan andRowan Plan).

(iii) Direct Expenses:

Identification of direct expenses with the main product or service and its treatment.

(iv) Overheads:

a Functional analysis- Factory, Administration, Selling, Distribution, Research and Development.

b Behavioral analysis- Fixed, Variable and Semi-Variable.

c Allocation and Apportionment of overheads using Absorption Costing Method.

d Factory Overheads- Primary and secondary distribution.

e. Administration Overheads- Method of allocation to cost centres or products.

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

g. Treatment of Research and development cost in cost accounting.

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

(vi) Integration of cost and financial data:

a. Recording of financial data and its segregation.

b. Introduction to Non-integrated and Integrated Accounting system.

c. Items included in cost accounts only but financial accounts and vice versa.

d. Reconciliation of profit as per Cost and Financial Accounts (under Non-Integrated AccountingSystem).

3. Methods of Costing

(i) Single Output/ Unit Costing.

(ii) Job Costing:

Job cost cards and databases, collecting direct costs of each job, attributing overheads to jobs, Application of job costing.

(iii) Batch Costing:

Determination of optimum batch quantity, Ascertainment of cost for a batch, Preparation ofbatch cost sheet, Treatment of spoiled and defective work.

(iv) Process/ Operation Costing:

a. Process cost recording, Process loss, Abnormal gains and losses, Equivalent units ofproduction, Inter-process profit, Valuation of work in process.

b. Joint Products-Apportionment of joint costs, Methods of apportioning joint cost over jointproducts.

c. By-Products-Methods of apportioning joint costs over by- products, treatment of By-Productcost.

(v) Costing of Service Sectors:

Determination of Costs and Prices of services.

4. Cost Control and Analysis:

(i) Standard Costing:

a. Setting up of Standards, Types of Standards, Standard Costing as method of performancemeasurement.

b. Calculation and Reconciliation of Material Cost, Labour cost, Variable Overhead, FixedOverhead.

(ii) Marginal Costing:

a. Basic concepts of marginal costing, Contribution margin, Break- even analysis, Break–even and profit volume charts, Contribution to sales ratio, Margin of Safety, Angle of Incidence, Cost-Volume- Profit Analysis (CVP).

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

c. Comparison of Marginal costing with absorption costing method- Reconciliation of profit under both the methods.

d. Short term decision making:

  • Make or buy decision
  • Discontinuation decision
  • Multiproduct break-even analysis
  • Limiting factor (key factor)

(iii) Budget and Budgetary Control:

a. Meaning of Budget, Essentials of Budget, Budget Manual, Budget setting process, Preparation of Budget and monitoring procedures.

b. The use of budget in planning and control.

c. Flexible budget, Preparation of Functional budget for operating and non-operating functionsd Cash budget, Master budget.

d. Introduction to Principal/ Key budget factor, Zero Based Budgeting (ZBB), Performancebudget, Control ratios and Budget variances.

e. Budgets and motivation. f. Feedback and Feed forward controlling in budgeting.