Vi New Proposed Scheme of Education & Training (An Invitation to Comment) 4 Building excellence on pillars of knowledge and competence The Institute of Chartered Accountants of India (Setup by an Act of Parlement) wuvicei.org —————————————ICAI Motto Ya esa suptesu jagarti kamam kamam Puruso nirmimanah | Tadeva sukram tad brahma tadevamrtamucyate | ‘Tasminlokah sritah sarve tadu natyeti Kasean | etad vai tat || (Thar person who is awake in those thacsleep, shaping desire after desire, that, indeed, is the pure. That is Brahman, that, indeed, is called the immortal. Init all che worlds restand no one ever goes beyond it. This, verily, is char, kamam kamam : desire after desire, really objects of desire. Even dream objects like objects of walking consciousness are due to the Supreme Person, Even dream consciousnessis a proof of the existence of the self: Noone ever goes beyond it: cf, Eckhart:‘On reaching God all progress ends.’) Source : Kathopanishadt President's Communication DearAll, You will all appreciate that asa result ofthe unprecedented changes induced by technology and slobalization, all professions inchiding Chartered Accountancy profession are forced wo te-think their method of management and delivery of services. We have o think globally but act locally. Chartered Accountancy is one of che most dynamic subjects ofthe world, So, to keep pace with of the world we also have ro change, by addition and subtraction of the the changing ‘existing curriculum of the Chartered Accountancy education in India. Accordingly she Committee for Review of Education and Training (CRET), serup in 2014 has formalated 2 new scheme oF education and training for the new incumbent to the CA course. This boolslet outlines the broad aspects of the sew scheme of education and training and summarises the 1 changesand reasonsthercof, May'I request youto respond in large numbers th Best Wishes Kala. CA, K. Reghu. President, ‘The Institute of Chartered Accountatns of IndiaAbout the New Proposed Scheme of Education and Training ‘The Committe for Review of Education and Teaining (CRET) was secup in 2014 asa parcof the periodical exercise of the Institute 1 review itsaystem of Education ard Training and examine its adequacy in the context of existing requirements and anticipated changes ia the environment, Following a mulei-pronged methodology consisting of Regional CRET meetings with Past Presidents and Regional Council Members: meetings with academicians, represcatatives of industry, regulators; conducting survey of members, students, users af CA services and academicians by means of questionnaires; undertaking detailed study of the syscem of education, and training being followed by the leading Aecouncancy bodies; soliciting views and suggestions from branchesdepartincnts/commintees of the Instiewe and holding of « Special Council ‘meeting, the Insciate formalated.a New Proposed Scheme of Fducation and Training. Briefly. the New Scheme proposes 10 keep the existing shree tier structure bur with the new yomenclature as Foundation, Intermediate and Final respectively. The Foundation examination shall be partly deseriprive in norure-and shall also consist of a new paper of General English and Business Communication apart fom the existing papers of Accounting, Mercantile Law, General Economies and Quantitative Methods. At the Intermediate level, there will be eight papers instead of the present seven papers. The Final course consisting of eight papers shall also undergo some change. As in the existing Scheme, the Practical Training of Three Veurs shall start afier passing Group One of che Intermediate bur ie shall have to be completed before one writes the Finalessrnination. Its also proposed to integrate Orientation Course, General Management and Communication Skills Courses (1 and 11) and Informarion Technology Training (ITT) and ‘Advanced ITT and instead have weo Integrated Courses of three weeks each on Tnformation “Technology and Sole Skil, The Proposed New Scheme is aailable on the Institute's website wwwicai.ong and is open for public comments from 12ch February, 2015 to 28th February, 2015.The readers are requested. ‘osend their comments on the Proposed Scheme by sending an e-mail co cre: @icai.in.Broad Agenda Periodical Review of Fducation and Teaining ‘Tens of Reference Methodology Significant Issues Proposed Overall Scheme of Education and Training * Entry Routesand Namberof Levels * Routel-Foundation CourseRoute * Rourell Direct Entry Route # Numberand Tite of Papers © Foundation Course # Imermediate Course = FinalCourse Integrated Course on Information Technology are! Soft Skills © Prictieal Training + Advanced Integrated Courscon Information Technology and Soft Skills Significant Changesand Reasons Thereof.Periodical Review of Educa and Training 1953 1959 1963 1968-70 1972-73 1975-78 1985-88, 1995-98 2004-05 2014. AdhocCommmirree Special Co soce (relating to Tsining for entry inca profession of CA) ReviewCommittce Special Commitice on Education and Tiaining Review Committee (Te examine arlequacy of academic inputs required for fuiure chartered aecoursianis) Review Committee for Accounting dncation Comamitzee for Review of Education and Training (Commitcee for Review of Education and Training Commieree for Review of Education and Training Constivution of the Commie for Review of Education and Training.Terms of Reference “To review the appropriateness of the existing scheme of education and practical training for membership of the Instiwte and formulate a new scheme having regard wo anccipated changes in the global economic envizonmentand requirements of various stalceholders, “To review the existing scheme of theoretical education including the stages of professional accountancy education, clasification and coverage of subjects at cach stage in light of ‘relevant incernational education standards and good practices adopted by international accountancy bodies, “To review the effectiveness of the scheme of practical training, including supervision and ‘monitoring, to ensure inculeation of professional values, ethics and articudes as well 2s professional skills necessary for development of versatile and compecent professional “To review and modify the existing methods of assessment to ensure objective evaluation of professional competence achieved at each stage of profesional accountancy education, “To review the appropriateness of the existing scheme of education and training relating to Accounting Technicians and revise the same having regard to the requirements of various sectors oF the economy: To consider other matcers of similar navure arising from the above as the Committee may considerMethodology Analysis of Major Trends-Undertaking intensive comparative seudy of education and ‘raining of some significant Intemational Accountancy Bodies. Study of Current State of Higher/Professional Education: Developments in Education Sectorin India particularly with reference to higher and professional education Mectings with Stakeholdets: Regional CRET Meetings with members, users of services including industry, egulators and academicians Specific Issues based response from Branches Questionnaire - based Survey: Questionnaires for Members, Seudents, Users of services and Academicians were hosted on the Institute's website. The respective responses were recorded. andanalyzed. Benchmarking Intemational Education Standards: International Education Standards including various reports, documents and other releases particularly relating to professional ‘education were henchmarked. Significant Issues Encry Level Requirements Practical Tsining ‘Theoretical lnsiruction and Course Curriculura ‘Assessment MethodsProposed Overall Scheme of Education and Training Entry Routes and Number of Levels CA Course | Foundation Course Route Foundation Intermediate Final Direct Entry Intermediate Route | FinalRoute I - Foundation Course Route Under she Foundation Course Route, a Class X pass student may register itself with the Board of Studies (BoS) of the Insticute for the Foundation Course. The stepsareas follows Register and complete months of cheoretical education forthe Foundation Course. Appearfor Foundation examination afterappearing in Class XI examination, (Qualify Foundation Examination Register and complete 12 months of theoretical education ofthe Tncermediate course, Appearand Passat least Group Tof Intermediate Examination, Complete Three Weeks Integrated Course on Information Technology and Soft Skills (ICITSS) before commencementof the practical training, Register for Thice years Practical Trainingon passing.at least Group Register for the Final Course alter qualifying both Groups fIarermediate Course. ‘Complete Three Weeks Advanced ICITSS during the lst rwo yeurs of Practical Training ‘Complete Practical Training, Appearin Final examination after completion of practical training. Become Member Note: Candidates who have passed Intermediate vel examination of Instieuce of Company Secretaries ofIndia or Institute of Cose Accountants of ladia are exempe from Foundation Course, ‘They shall register for che CA Intermediate course directly and shall have to undergo the CA course in the manner akin to dhe Foundation passed students i.e. chey will undergo seeps from. BullerPoint 4 (given above) onwardsRoute II — Direct Entry Route [As per che existing tcheme, it is proposed to allow Commerce Graduates{Post-Graduates (with ‘minimum55% marks) or Other Graduates/Post-Graduates (with minimum 60% marks)to enser directly 9 the Intermediate Course. The following steps are required ro be undertaken by dhe cligible Graduates and Post Graduates under this route: @ Register with the BoS for the Intermediate course (provisional registration allowed co the Final year studenss 4 Complete Three Weeks Integrated Course on Information Technology and Soft Skills (ICITSS) beforecommencerent afthe practical taining © Reger Ties You Pacts Tain, Se eeretri ta erates Ueonimeeetic Ureie perripentieescel ean ig Qualify steretinpeEentontion 4 Regsterforthe Final Coueseafte-qualfying both Groups FlatermediatsCovrse PB Comedese Thre West Avene ICT SS caring tel mt ene steed sg Complete Pracea! Training 4 Appearin Final examination aftercompletion of practical raining Become MemberNumber and Title of Papers Foundation Course: Number of Papers ~ 4 Tea Paper? Paper 3A Paper 3B Papert Paper dB Fundamentals of Acconnring (100 mares) Quantitative Aptirude (100marks) ‘Mercantile Law (60 marks) General Economics (40 marks) General English (50 marks) Business Communication (50 marks) ‘Foo paperswill he MCQ based papersIntermediate Course: Number of Papers — 8 Group I Paper-1 Paper-2 Paper-3 Paper-4 Group II Paper-5 Paper-6 Paper—7 Paper-8 Accounting (100 asks) Company Laws Other Lawsand Ethics (100 mals) Pacts Company Law (60 mars) Part 11: Other aws (20 marks) Part IIL: Ethies 20 mnarks) Cost Accounting (100 maths) Direct Taxes (10 marks) Advanced Accounting (100 masks) Audi sand Assurance (100 marks) wancial Management (100 marks) Indirecr Taxes (100 marks)Final Course:Number of Papers: 8 Group I Papert Paper-2 Paper-3 Paper Group I Paper-5 Paper-6 Paper-7 Paper-8 Financial Reporting (100 Masks) Strategic Financial Management (100 Masks} ‘Advanced Auditingand Professional Ethies(100 Marks) Corporate Lawsand Other FeonomicLaws(100 Marks) Advanced Management Accounting (100 Macks) Financial Services ane! Capital Markers (10 Marks) Advanced Tax Management (60 Marks) and International Taxation (40 Marks) Indirect Tax Laws (100 Marks)Integrated Course on Information Technology and Soft Skills (ICITSS) ‘Objective: To shaspen the technical and soft skillsofCA students, Duration : Three Weeks ‘Who shall do: Srudents registering for the Intermediate course shall be required to do ICTTSS before commencing practical raining, Assessment Test: An assessment test shall be conducted at the end of the cousse which the students have to qualifyPractical Training Duration of Practical Training : Three Years Commences afier one completes Integrated Course on Information Technology and Solt Skills ECITSS) and passes at east Group LoFlintermediae. For dizce: entrants coming through Graduation and Post Graduation route, the pra ‘raining commences immediately ater they complete three weeks ICITSS.Integrated Course on Information Technology and Soft Skills (ICITSS) ©) Objective To firther enhance the echnicaland ofiskilsoCA cadens. jay Derstigu Ties Weck sp Wha chal da Sealer tenging practical raining shall be dotig ris cree during the Jastewo yearsof their practical raining. Assessment Test: Ant assessment test shall be conducted at the end of the course which the students have ro qualifySignificant Changes & Reasons Thereof SN, Change Reason 1, [Change of Nomenclature 10] The eater nomenclatares viz. Foundation, Foundation, Intermediate Final, | Intermediate and Final are quite familiar and swell known othe sciey 2, [ATime gap of Nine months | Adequate time gap is given so that students get ecreereceiertl inane ee ra toaly tees phe Feoadane astra Sececterises Rade lartnre aiesttetial mnadihionaffillpapee 3. [Foundation Examination willbe | The present MCQ based system for all papers | partly descriptive in nature. erent corer othe ner undeserving students reach the next level giving | se 10 false hopes I affects the qualcy oF the | profession, Moreover witing skillsare not tested Eerie hearers paren of esaniear 5th | He Foanditen Couns Fundamentals of Accounting and Quantitative Number of Papers ~ 4 Paper 1: Fundamentals of Accounting (100 marks) Paper 2: Quantitative Apritude (0.00 Marks) Paper 3: Mercantile Law (60 Marks) and General Economics (40Marks) Paper 4: General English (50 Marks) ane Business Communication (50 marks) Aptinide ate raised to fall papers of 100 marks | having regard to their importance and ensuring | steong foundations of CA students Mercantile Law is for 60 marks as the Contract | Acx, 1872 willbe exclusively covered here Gencral English and Business Consmunication | added as new subject secing its importance im the modern business world and preparing the CAs for tomorrow. This will aso provide an opportunity to test writing skills of porensial entrants |SN. Change Reason 5. |/Twelve months study period for] Keoping in view the fact that ie is proposed t0 | Intermediatestudentsfrom the date| have Eight Fill papers atthe Intermediate level, of registration for the lntermediste| the study period has been mised 0 Twelve Course. months. 6. | Intermedia ‘The existing Communication paper of20 marks Group I isproposed tobe dropped from the Inermediate Beet Cassie level ait i¢ now 50 marks paper at the (100 marks) Foundation lve. Paper-2: Company Law, Ocher | Baines Laws of 30 marks has been dropped Laws and Eshies (100 marks) Pare — 1: Company Law (60 marks) Part =H: Other Laws (20 marks) Part ~ IT; Ethics (20 marks) Paper-3: Coste Accounting (100 mares) Paper -4: Direct Taxes (100 marks) Group It Paper-5: Advanced Accounting (100 mars) Paper 6: Auditing and Assurance (100 marks) Paper~7: Financial Management (100 marks) Paper - 8: Indirect Taxes (100 marks) from the Intermediate Course 2s itis included as a full paperacthe Foundation level Allocation of marks for Company Law has been razed 10 GO matks in view of its scope and coverage Select Allied Laws are proposed to be taught at Intermediate level Paper on Information Technology (IT) has heen proposed be dropped as there ate ovo Tiaining courses of three weeks each on TT. This would ako provide che flexibility 1 modify course contents to be in tandem with changing Farther, it is ako propesed to introduce Assessment Test to rest the eo students Paper on Strategic Management (SM) dropped asmany aspects are proposed to he covered in the Ineegeated Course on Information Technology and Soft Skills Financial Management and Cost Accounting are proposed co be made full papers of 100 marks cach, having regerd to their course contents. wpetence ofSN, Change Reason Practical Tiaining of 3 years will] The condition of successfully completing the ‘commence alter quolifying either! ICITSS before Practical Training sto ensure thet Group I oF both the Groups of] students ateain a reasonable level of Techical Intermediate and after successfull and Soft Skills required for carrying out their completion i.e, passing an| worleasCA profesionals assessment test oF Three Weeks) The ITT and GMCS have been merged s0 as 0 Integrated Course on Information) aye time, resources and energy of all involved. Technology and Soft Skills (ICITSS). “he see hay fo unde) The AICFSS wil ese vanced noe successfully Three Weeks Advanced| of Technical and Soft Skills relevant for the Integrated Course on Informacion | profession. Technology and Soft Skills qalcrr: of Practical Trsining. | Their completion during ehe last evo years will censure chat students get the necessary and useful ) daring the lat ewo years skillsduringthecourscof their uaining. 9. Sees rane ne CATT uae cea arsine ates ad Examination after completion of] practical taining, three years of Practical Training,Change Resson 10, | Final Number of Papers: 8 International Taxation for 40 marks has been Group | added in view of increasing importance of Paper: Financial Reporting thesbjectin the present globalized world (100 Masks) 4 Sa Paper 2: Strategic Financial | @ The nomenclarure Corporate Laws. and | Management (100 Marks) other Economic Laws has been kept to make | ieee MEE OTe shename more representativeof the subject. bedineresonat ees ‘ =| (100 Masts) # The subject Information Systems Control Paper - 4: Corporate Laws and and Audit (ISCA) has been dropped in view other Economic Laws (100 Marks) | oreherwo Courceson I. ae Wick © A new subject ‘Financial Services and Capital ie ge Market’ has been included ro make CA more Management Accounting (100 Macs) cin dhe finance telatcd arcs, Paper 6: Finance! Services nd Capital Markers (100 Marks) Paper-7: Advanced Tax Management (60 Marks) and Anteenstional Taxation (40 Marks) Paper 8: Indicect Tax Laws (100 Macks) 11 | Ta introduce an integrated Ir would help texting overall knowledge, | question covering diverse topics in | understanding and application skills of the | cach paper of Final Examination | studentswho would be entering the profession in | sear Faure‘The Proposed New Scheme of Education and Training for Chartered. “Accountancy course is being exposed to the public for comments and shall be finalized by the Council of the Institute based on the public comments. Thereafter, the due process of drafting the CA Regulations, raking, approval from the Central Government and exposing the draft Regulations to public comments for 45 days would be followed. All the steps would involve considerable time. Once the Scheme is approved, the Implementation Scheme, including Transition Provisions for stuclents of the existing Scheme of Education and Training, shall be formulated. Timelines -will be so ser that the students get « reasonable opportunity for smoothly shifting eo the New Scheme, While formulasing the Transition Scheme, reasonable cate shall be taken 10 allow exemption co the students in respect of subjects which they have cleared under the current Scheme, Hence, till such time, students are advised to continue studying regularly as perthe existing course curriculum.At the Helm » «ih Vice-President (CA.K. Raghu, ECA, ‘CA, Manoj Fads, FCA, ee SWAY. Sagara aml CCA. Chhajed rafal Prensbuis Manbal = & = A Fadnis Nuno A & (A. Ghia TicenJamadas CA. Goal An res Nt “hacia Gal ¢ 2203 A.Gi Samana XGupaNareAND. ——CAGepuAnlKimar CA. Gap iy Kemer als Ne ‘Now DeiMembers of the Twenty Second Council Fors feet eote eS Netere CANT 9. dim £ 9. , } ? @< : gv Bangle Tyla Chana Chaat 2 3 as CA.Suk Dh Adwinbhsi — CANenkatechwarls]. CA.Vikamiey Nis Siny CA. Zvate Shai Hb ‘vm yeind Mie neNominated Members 2 9 ‘Sui Manoj Kamar She P Sesh Kamae Shei JS Despae Toit eae Tiisaarene Main Scery Misiiye Caper Ain of ofthe Compras Msi of Caeser adiey NevDuh Aas Gece of lady Ney De Now Deh Se Bastar hates ‘She Sidr Kure Bsa Seal ered TieairCoaaal CEO Piers FICE Vie Pes, ASSOCHAN Inca Ise of prt As New Dh ola ‘New Dol ‘Shi Sal Sng Shei RK. Jui ‘tables Sexy Clidgiie Canal Reel ee ieee emer New Dai New DehThe Institute of Chartered Accountants of India (Setup by an Act of Pariamert) ‘www.icai.org