2024 New Syllabus - CA Intermediate

 2024 New Syllabus – CA Intermediate

CA Inter New Syllabus 2024:

The Institute of Chartered Accountants of India (ICAI) has officially announced the CA Intermediate syllabus for the new scheme of education and training on July 1, 2023. The upcoming CA Intermediate exam, based on this new syllabus, is scheduled to take place in May 2024. It’s crucial for aspiring CAs to stay updated on these recent changes. This article provides comprehensive information about the CA Intermediate new syllabus under the ICAI’s new scheme (2024), including details about all the papers and the topics covered in each.

CA Intermediate New Syllabus Papers 2024:

Here is an overview of the papers included in the CA Intermediate syllabus under the new ICAI scheme 2024:

Sl. No Paper Name Marks
1 Advanced Accounting 100 Marks
2 Corporate And Other Laws
Part I: Company Law And Limited Liability Partnership Law 70 Marks
Part II: Other Laws 30 Marks
3 Taxation
Section A: Income Tax Law 50 Marks
Section B: Goods and Services Tax 50 Marks
4 Cost and Management Accounting 100 Marks
5 Auditing and Ethics 100 Marks
6 Financial Management And Strategic Management
Section A: Financial Management 50 Marks
Section B: Strategic Management 50 Marks

Detailed CA Intermediate New Scheme Syllabus 2024

The new syllabus of CA Intermediate course under the ICAI’s new scheme (2024) comprises six subjects, and here are the details of each subject:

Paper 1: Advanced Accounting

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
Process of formulation of Accounting Standards Including Indian Accounting Standards (IFRS converged standards) and IFRSs; Convergence vs Adoption; Objective and Concepts of carve outs
Framework for Preparation and Presentation of Financial Statements (as per Accounting Standards)
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
AS18 Earnings Per Share
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
Buy back of securities
Accounting for reconstruction of companies
Accounting for Branches including foreign branches

PAPER 2: CORPORATE AND OTHER LAWS

Objective To develop an understanding of the legal provisions and acquire the ability to analyze and apply the laws in practical situations

Part I: 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 II- OTHER LAWS
Objective
  • To develop an understanding of the General Clauses Act.
  • To develop an understanding of the rules for interpretation of statutes.
  • To have a basic understanding of the Foreign Exchange Management Act, 1999
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

Paper 3: Taxation

Section A: Income Tax Laws
Objective
– To develop an understanding of the provisions of income-tax law.
– To acquire the ability to apply such provisions to solve problems and address application-oriented issues.

Basic Concepts

Topics
– Income-tax law: An introduction
– 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 optimize 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

Topics
– 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

Topics
– 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 waybill
– Accounts and Records
– Returns
– Payment of tax

PAPER 4: COST AND MANAGEMENT ACCOUNTING (100 MARKS)

Objective
  • 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.
  • To develop an understanding of cost accounting statements.
  • To acquire the ability to apply information for cost ascertainment, planning, control, and decision making.
  • To apply costing methods to determine the costs for different purposes.
  • To apply appropriate techniques to support short-term decisions.

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 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 Manufacturing sector and for 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 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 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, impact of marketing strategies, 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
– Batch Costing
– Process/Operation Costing
– Joint Products
– By-Products
– Costing of Service Sectors

Cost Control and Analysis
– Standard Costing
– Marginal Costing
– Short term decision making
– Budget and Budgetary Control
– Feedback and Feedforward controlling in budgeting

PAPER 5: AUDITING AND ETHICS

Objective
– To develop an understanding of the concepts in auditing and of the generally accepted auditing procedures, techniques, and skills, and acquire the ability to apply the same in audit and attestation engagements.
– To understand and apply the concept of ethics while performing an audit

Nature, Objective, and Scope of Audit
– 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

Audit Strategy, Audit Planning, and Audit Program
– 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
– Establishing an overall audit strategy
– 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
– Detection Risk
– Sampling and Non-Sampling Risk
– Concept of Materiality
– Risk Assessment procedures
– Understanding the entity and its environment
– Internal control
– Documenting the Risks

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

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, etc.
  •  Audit of Share Capital, Reserve & Surplus, Long Term Borrowings, Trade Payables, Provisions, Short Term Borrowings & Other Current Liabilities
  •  Audit of Land, Buildings, Plant & Equipment, Furniture & Fixtures, Vehicles, Office Equipment, Goodwill, etc.
  •  Audit of Loan & Advances, Trade Receivable, Inventories, Cash & Cash Equivalent, Other Current Assets

Paper 6: FINANCIAL MANAGEMENT AND STRATEGIC MANAGEMENT

Section A: Financial Management

Objective
– Develop understanding of various aspects of Financial Management
– Understand finance functions like financing decision, investment decision, dividend decision
– Understand working capital management and its components

Financial Management and Financial Analysis
– Introduction to Financial Management Function
– Objective and scope of financial management
– Profit Maximisation, Wealth Maximisation, and Value Creation
– Role of Financial Manager and Financial Controller
– Financial management environment
– Functions of finance executives in an organisation
– Financial distress and insolvency
– Financial Analysis through Ratios

Financing Decisions and Cost of Capital
– Sources of Finance
– Cost of Capital

Capital Structure Decisions
– Significance of capital structure
– Determinants of capital structure
– Theories of Capital Structure and value of the firm
– Leverages
– Under/Over Capitalisation

Capital Investment and Dividend Decisions
– Capital Investment Decisions
– Dividend Decisions
– Management of Working Capital
– Credit Management
– Management of Cash

Section B: Strategic Management (50 Marks)

Objective
– Develop understanding of strategic management concepts and techniques
– Acquire the ability to apply strategic management in business situations

Introduction to Strategic Management
– Meaning and Nature of Strategic Management
– Importance and Limitations of Strategic Management
– Strategic Intent – Vision, Mission, Goals, and Values
– Strategic Levels in Organizations

Strategic Analysis: External Environment
– International and Macro Environment: PESTLE Analysis
– Defining the industry for analysis
– Porter’s Five Forces – Industry environment analysis
– Understanding customers and markets
– Competition in the industry

Strategic Analysis: Internal Environment
– Understanding key stakeholders
– Strategic drivers
– The role of resources and capabilities
– Combining external and internal analysis
– Gaining competitive advantage

Strategic Choices
– Strategic Choices
– How to Develop Strategic Options

Strategy Implementation and Evaluation
– Implementation
– Strategic Change through Digital Transformation
– Organisation Structure
– Culture
– Strategic Leadership
– Strategic Control
– Strategic Performance Measures
For CA Foundation/ Intermediate: VISIT HERE

Conclusion for CA New Syllabus 2024

In conclusion, the introduction of the new CA Intermediate syllabus in 2024 marks a significant step forward in the evolution of the Chartered Accountancy program 2024. This revised syllabus (2024) reflects the dynamic and ever-changing landscape of finance, accounting, and business management. It equips aspiring Chartered Accountants with the latest knowledge and skills needed to excel in a highly competitive global business environment. The 2024 syllabus covers a wide range of topics, from financial management and cost accounting to strategic management and ethical considerations, ensuring that CA professionals are well-prepared to address contemporary challenges and opportunities.

Furthermore, this new syllabus (2024) underscores the profession’s commitment to upholding the highest standards of ethical conduct and professional integrity. It places a strong emphasis on understanding the ethical dimensions of financial decision-making, which is crucial in today’s complex financial and regulatory landscape. With its comprehensive and forward-looking curriculum, the CA Intermediate syllabus for 2024 reaffirms the CA designation as a symbol of excellence and expertise in the field of accounting and finance, paving the way for the next generation of Chartered Accountants to make meaningful contributions to businesses, economies, and society as a whole.

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