The Institute of Chartered Accountants of India (ICAI) is ushering in a new era for CA Intermediate aspirants with the introduction of an updated syllabus, set to roll out on July 1, 2023. The maiden voyage for this revamped curriculum will be the CA Intermediate 2023 exam, scheduled for May 2024. To navigate these changes seamlessly, aspiring Chartered Accountants must remain well-versed and attuned to the transformation. It's worth noting that, under the existing syllabus, the final exam is slated for November 2023.
Key Transition: CA Intermediate New Syllabus 2024
The impending alterations demand meticulous attention from students, urging them to delve into the intricacies of the CA Intermediate New Syllabus 2024. This proactive approach is vital as examinations from the upcoming year onward will strictly adhere to this refreshed curriculum. Let's delve into the essential aspects of the new syllabus and how candidates can gear up for success.
CA Intermediate New Syllabus 2024 Papers
The CA Intermediate New Syllabus 2024 has 6 main subjects. Students can take the help of some of the best CA Intermediate Books to qualify their CA Intermediate Exam. Here’s a simple breakdown of each one for a better understanding of the students:
CA Intermediate New Syllabus 2024
S. No
Paper Name
Marks
1
Advanced Accounting
100 Marks
2
Corporate And Other Laws
Part I: Company Law And Limited Liability Partnership Law
The section of the CA Intermediate New Syllabus 2024 emphasizes the practical application of accounting principles in real-world business scenarios. It involves the preparation of financial statements, incorporating Indian Accounting Standards that closely resemble International Financial Reporting Standards (IFRS). Additionally, the curriculum addresses the convergence with or adoption of IFRS, along with the framework for the preparation of financial statements.
CA Intermediate New Syllabus 2024: Advanced Accounting
Topics
Sub Topics
Application of Accounting Standards
AS1 Disclosure of Accounting Policies
AS2 Valuation of Inventories
AS3 Cash Flow Statements
AS4 Contingencies and Events Occurring After the Balance Sheet Date
AS5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
AS6 Construction Contracts
AS7 Revenue Recognition
AS8 Property, Plant and Equipment
AS9 The Effects of Changes in Foreign Exchange Rates
AS10 Accounting for Government Grants
AS11 Accounting for Investments
AS12 Accounting for Amalgamations (excluding inter-company holdings)
AS13 Employee Benefits
AS14 Borrowing Costs
AS15 Segment Reporting
AS16 Related Party Disclosures
AS17 Leases Earnings Per Share
AS18 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)
AS19 Accounting for Taxes on Income
AS20 Accounting for Investment in Associates in Consolidated Financial Statements
AS21 Discontinuing Operations
AS22 Interim Financial Reporting
AS23 Intangible Assets
AS24 Financial Reporting of Interests in Joint Ventures
AS25 Impairment of Assets
AS26 Provisions, Contingent Liabilities, and Contingent Assets
Company Accounts
Schedule III to the Companies Act, 2013 (Division I)
Preparation of financial statements – Statement of Profit and Loss, Balance Sheet, and Cash Flow Statement
Buyback of securities
Accounting for the reconstruction of companies
Accounting for Branches, including foreign branches.
CA Intermediate New Syllabus 2024 Paper 2: Corporate and Other Laws
The aim of this segment within the CA Intermediate New Syllabus 2024 is to comprehend legal statutes and their practical applications. It entails gaining insights into legal frameworks and their pragmatic utilization.
Key Learning Objectives:
Comprehend the principles and applications of the General Clauses Act.
Acquire familiarity with the statutory interpretation rules crucial for legal practice.
Develop foundational knowledge of the Foreign Exchange Management Act of 1999, particularly its provisions concerning foreign exchange and financial transactions.
CA Intermediate New Syllabus 2024: Corporate and Other Laws
Topics
Sub Topics
Part 1: COMPANY LAW AND LIMITED LIABILITY PARTNERSHIP LAW
The Companies Act 2013
Preliminary Incorporation of Company and Matters Incidental thereto, Prospectus and Allotment of Securities, Share Capital and Debentures, Acceptance of Deposits by Companies, Registration of Charges, Management and Administration, Declaration and Payment of Dividend, Accounts of Companies, Audit and Auditors, Companies Incorporated Outside India
The Limited Liability Partnership Act, 2008 including important Rules
PART 2: OTHER LAWS
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
Interpretation of Statutes
Rules of Interpretation of Statutes, Aids to Interpretation, Rules of Interpretation/Construction of Deeds and Documents
The Foreign Exchange Management Act, 1999
Significant definitions and concepts of Current and
Capital Account Transactions
CA Intermediate New Syllabus 2024 Paper 3: Taxation
The goal is to comprehend income tax regulations and employ them in practical scenarios, alongside grasping the fundamentals of the goods and services tax for addressing complex situations effectively.
Significant concepts in income-tax law, including person, assessee, previous year, assessment year, income, agricultural income
Basis of Charge
Procedure for computation of total income and tax payable in case of individuals
Residential status and scope of total income
Residential status
Scope of total income
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
Provisions relating to clubbing of income, set-off or carry forward and set-off of losses, deductions from gross total income
Advance Tax, Tax deduction at source and tax collection at source
Provisions for filing return of income and self-assessment
Computation of total income and income-tax payable by an individual under the alternative tax regimes under the Income-tax Act, 1961 to optimise tax liability
Section B: Goods And Services Tax (GST)
Objective:
To develop an understanding of the provisions of goods and services tax law.
To acquire the ability to apply such provisions to address/ solve issues in moderately complex scenarios.
GST Laws: An introduction including Constitutional aspects
Levy and collection of CGST and IGST
Application of CGST/IGST law
Concept of supply including composite and mixed supplies
Charge of tax including reverse charge
Exemption from tax Composition levy
Basic Concepts
Classification
Place of supply
Time of supply
Value of supply
Input tax credit
Computation of GST liability
Registration
Tax invoice; Credit and Debit Notes; Electronic way bill
Accounts and Records
Returns
Payment of tax
CA Intermediate New Syllabus 2024 Paper 4: Cost and Management Accounting
To grasp the fundamental concepts and use them to calculate the costs of making products and offering services, and then use this information to set prices.
To understand cost accounting statements.
To apply this knowledge for determining costs, planning, control, and decision-making, and use various methods to calculate costs for different purposes.
To employ suitable techniques for making short-term decisions.
CA Intermediate New Syllabus 2024: Cost and Management Accounting
Topics
Sub Topics
Paper 4: Cost and Management Accounting
Overview of Cost and Management Accounting:
Introduction to Cost and Management Accounting
Objectives and Scope of Cost and Management Accounting.
The users of Cost and Management accounting information, Functions of management
Accounting.
Role of the cost accounting department in an organization and its relation with other departments.
Installation of Costing System.
Relationship of Cost Accounting, Financial Accounting, Management Accounting and
Financial Management.
Cost terms and Concepts.
Cost Reduction and Cost Control
Elements of Costs.
Cost behavior pattern, Separating the components of fixed, variable, semi-variable, and step costs.
Methods of Costing, Techniques of Costing.
Digital Costing
Elements of Cost and Preparation of Cost Sheets
Functional classification and ascertainment of cost.
Preparation of Cost Sheets for the Manufacturing sector and for the Service sector.
Ascertainment of Cost and Cost Accounting System
Material Cost
Introduction to procurement procedures. Valuation of receipts, issue and closing stock of Material, Stock verification.
Material requirement analysis through digital costing including Government e-Marketplace (GeM). Introduction to Costing through Enterprise Resource Planning (ERP). Process of tender and quotation.
Inventory control:
Techniques of fixing the level of stocks- minimum, maximum, reorder point, safety stock, determination of the 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.
Treatment of Normal/Abnormal Losses w.r.t. waste, scrap, spoilage, defective, obsolescence.
Employee Cost
Introduction to Attendance and Payroll procedures.
Elements of wages- Basic pay, Dearness Allowance, Overtime, Bonus, Holiday and leave
wages, Allowances, and perquisites
Employee Cost Control
Employee Turnover- Methods of calculating employee turnover, causes of employee turnover, effects of employee turnover
Remuneration systems and incentive schemes- Premium Bonus Method (Halsey Plan and Rowan Plan
Direct Expenses
Identification of direct expenses with the main product or service and its treatment
Overheads
Functional analysis- Factory, Administration, Selling, Distribution, Research and Development.
Behavioral analysis- Fixed, Variable and Semi-Variable.
Allocation and Apportionment of overheads using the Absorption Costing Method.
Factory Overheads- Primary and secondary distribution.
Administration Overheads- Method of allocation to cost centers or products.
Selling Distribution Overheads- Analysis and absorption of the expenses in products/customers, the impact of marketing strategies, and the cost-effectiveness of various methods of sales promotion.
Treatment of Research and development cost in cost accounting
Concepts of Activity-Based Costing (ABC)
Integration of Cost and Financial Data
Recording of financial data and its segregation.
Introduction to Non-integrated and Integrated Accounting Systems.
Items included in cost accounts only but financial accounts and vice versa.
Reconciliation of profit as per Cost and Financial Accounts (under Non-Integrated Accounting System)
Methods of Costing
Single Output/ Unit Costing
Job Costing
Job cost cards and databases, collecting direct costs of each job, attributing overheads to jobs, Application of job costing.
Batch Costing
Determination of optimum batch quantity, Ascertainment of cost for a batch, Preparation of
batch cost sheet, Treatment of spoiled and defective work
Process/Operation Costing
Process cost recording, Process loss, Abnormal gains and losses, Equivalent units of
production, Inter-process profit, and Valuation of work in process.
Joint Products-Apportionment of joint costs, Methods of apportioning joint cost over joint Products.
By-Products-Methods of apportioning joint costs over by-products, treatment of By-Product cost
Costing of Service Sectors
Determination of Costs and Prices of services
Standard Costing
Setting up Standards, Types of Standards, and Standard Costing as a method of performance Measurement.
Calculation and Reconciliation of Material Cost, Labour cost, Variable Overhead, Fixed Overhead.
Cost Control and Analysis
Marginal Costing
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).
Determination of Cost of a product/ service under marginal costing method, determination of
cost of finished goods, work-in-progress.
Comparison of Marginal costing with absorption costing method- Reconciliation of profit under both methods.
Short-term decision-making:
Make or buy decision
Discontinuation decision
Multiproduct break-even analysis
Limiting factor (key factor)
Budget and Budgetary Control
Meaning of Budget, Essentials of Budget, Budget Manual, Budget setting process, Preparation of Budget and monitoring procedures.
The use of budget in planning and control.
Flexible budget, Preparation of Functional budget for operating and non-operating functions
Cash budget, Master budget.
Introduction to Principal/ Key budget factor Zero Based Budgeting (ZBB), Performance budget, Control ratios, and Budget variances.
Budgets and motivation.
Feedback and Feedforward controlling in budgeting
CA Intermediate New Syllabus 2024 Paper 5: Auditing and Ethics
The CA Intermediate New Syllabus 2024 for auditing aims to teach you auditing concepts, techniques, and ethical principles.
CA Intermediate New Syllabus 2024: Auditing and Ethics
Topics
Sub Topics
Nature, Objective, and Scope of Audit
Auditing Concepts:
Origin of Auditing,
Meaning of Audit,
Need for Audit (Benefits of Audit), Objective of the Audit, Scope of Audit, External Audit engagements,
Qualities of Auditor
Inherent Limitations of an Audit; Relationship of auditing with other disciplines.
(SA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing)
Audit Strategy, Audit Planning and Audit Program:
The auditor’s responsibility to plan an audit of financial statements. Benefits of audit planning.
Planning is a continual and iterative process.
Discussion of elements of planning with the entity’s management.
Involvement of Key Engagement Team Members in planning the audit. Preliminary engagement activities.
The auditor’s consideration of client continuance and ethical requirements. Planning activities.
Establishing an overall audit strategy- Assistance for the auditor. Development of audit plan.
Documenting the overall audit strategy and audit plan; Audit program.
Development of Audit Plan and Program
Risk Assessment and Internal Control:
Audit Risk.
Risk of Material Misstatement, Inherent Risk and Control Risk, and Detection Risk.
Sampling and Non-Sampling Risk.
Concept of Materiality, Materiality in Planning and Performing an Audit.
The auditor’s responsibility to apply the concept of materiality.
An auditor’s determination of materiality is a matter of professional judgment. Materiality and Audit
Risk.
Application of materiality in planning and performing the audit. Concept of Performance Materiality.
Determining materiality and performance materiality when planning the audit.
Use of Benchmarks in determining materiality for the financial statements as a whole. Materiality level or levels for particular classes of transactions, account balances, or disclosures.
Revision in materiality as the audit progresses. Documenting the Materiality.
(SA 320 Materiality in Planning and Performing an Audit).
Identifying and Assessing the Risk of Material Misstatement, Risk Assessment procedures.
Understanding the entity and its environment; Internal control.
Documenting the Risks.
Evaluation of internal control system.
Testing of Internal control; Internal Control and IT Environment (SA 315 Identifying and Assessing the
Risks of Material Misstatement Through Understanding the Entity and Its Environment).
Digital Audit
Key features
Impact of IT-related Risks
Impact on Controls
Internal Financial Controls as per Regulatory requirements
Types of Controls
Audit approach
Understanding and documenting Automated environment
Testing methods, data analytics for audit, assessing and reporting audit findings.
Audit Evidence
Meaning of Audit Evidence.
Relevance and Reliability of Audit Evidence
Sufficient appropriate audit evidence
Meaning of Assertions
Assertions contained in the Financial Statements. Source of audit evidence
Test of controls
Substantive Procedures- Test of details and Substantive analytical procedures, Audit procedures for obtaining audit evidence.
Evaluation of Audit Evidence (SA 500 Audit Evidence), Audit Trail
(Using the work of Internal Auditors – SA 610)
Internal audit function.
External Auditor’s Responsibility for the audit, Evaluating the internal audit function.
Basics of Internal Financial Control and reporting requirements. The distinction between Internal Financial Control and Internal Control over Financial Reporting.
Audit Sampling: (SA 530 Audit Sampling). Meaning of Audit Sampling.
Designing an audit sample; Types of sampling (Approaches to Sampling).
Sample Size and selection of items for testing; Sample selection method.
Obtaining evidence of the existence of inventory; Audit procedure to identify litigation claims.
Obtaining evidence regarding the presentation and disclosure of segment information
(SA 501 Audit Evidence – Specific Considerations for Selected Items)
External confirmation procedures.
Management’s refusal to allow the auditor to send a confirmation request; Negative Confirmations (SA 505 External Confirmations); Audit evidence about opening balances; Accounting policies relating to opening balances; Reporting with regard to opening balances (SA 510 Initial Audit Engagements-Opening Balances)
Meaning of Related Party; Nature of Related Party Relationships Transactions; Understanding the Entity’s Related Party Relationships Transactions (SA 550 Related Parties)
Analytical Procedures.
Meaning, nature, purpose, and timing of analytical procedures; Substantive analytical procedures.
Designing and performing analytical procedures prior to Audit.
Investigating the results of analytical procedures (SA 520 Analytical Procedures)
Audit of Items of Financial Statements
Audit of sale of Products and Services; Audit of Interest Income, Rental Income, Dividend Income, Net gain/loss on sale of Investments, etc.
Audit of Purchases, Employee benefits expenses, Depreciation, Interest expense, Expenditure on Power and fuel, Rent, Repair to building, Repair to Machinery, Insurance, Taxes, Travelling Expenses, Miscellaneous Expenses, etc.
Audit of Share Capital, Reserve and surplus, Long-term Term Borrowings, Trade Payables, Provisions, Short-term Term Borrowings, and other Current Liabilities.
Audit of Land, Buildings, Plant and equipment, Furniture and fixtures, Vehicles, office equipment, Goodwill, Brand/Trademarks, Computer Software, etc.
Audit of Loans and advances, Trade Receivable, Inventories, Cash and cash Equivalent, and Other Current Assets. Audit of Contingent Liabilities. (The list of items is illustrative only.)
Audit Documentation
Concept of Audit Documentation
Nature Purpose of Audit Documentation; Form, Content Extent of Audit Documentation. Completion Memorandum.
Ownership and custody of Audit Documentation (SA 230 Audit Documentation).
Completion and Review
Meaning of Subsequent Events;
Auditors’ obligations in different situations of subsequent events.
Procedures for subsequent events. (SA 560 Subsequent Events).
Responsibilities of the Auditor with regard to Going Concern Assumption; Objectives of the Auditor
regarding Going Concern.
Events or Conditions that may cast doubt about the Going Concern Assumption.
Audit Procedures when events or conditions are identified (SA 570 Going Concern). Overview and
Introduction of Evaluations of Misstatements identified during the audit (SA 450).
Written Representations as Audit Evidence.
Objective of Auditor regarding Written Representation.
Management from whom Written Representations may be requested.
Audit Report
Forming an opinion on the Financial Statements.
Auditor’s Report- basic elements (SA 700 Forming an Opinion and Reporting on Financial Statements).
Communicating key Audit Matters in the Independent Auditor’s Report (SA 701) Types of Modified Opinion, Circumstances When a Modification to the Auditor’s Opinion is Required, Qualified, Adverse Disclaimer of Opinion (SA 705 Modification 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.
Nature of Comparative Information.
Corresponding Figure; Comparative Financial Statements (SA 710 Comparative Information – Corresponding Figures and Comparative Financial Statements).
Branch audit; Joint audit; Reporting requirements under the Companies Act, 2013, including CARO
Special Features of Audit of Different Types of Entities
Appointment of Auditor,
Audit Procedure and Audit Report in respect of different Category of Entities
Government; Local bodies; Not-for-profit organizations; Trust and Societies, Partnership Firms
Audit of different types of undertakings, i.e., Educational Institutions, Hotels, Clubs, Hospitals, etc.
Basics of Limited Liability Partnerships (LLPs) Audit and Co-operative Societies Audit.
