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Curriculum for Final (New) Course
Group I Paper 1: Financial Reporting (100 Marks) Paper 2: Strategic Financial Management (100 Marks) Paper 3: Advanced Auditing and Professional Ethics (100 Marks) Paper 4: Corporate and Allied Laws (100 Marks) Section A: Company Law (70 Marks) Section B: Allied Laws (30 Marks) Group II Paper 5: Advanced Management Accounting (100 Marks) Paper 6: Information Systems Control and Audit (100 Marks) Paper 7: Direct Tax Laws (100 Marks) Paper 8: Indirect Tax Laws (100 Marks) Section A: Central Excise (40 Marks) Section B: Service Tax & VAT (40 Marks) Section C: Customs (20 Marks)
Treatment of investments in joint ventures in consolidated financial statements. Goodwill. 5. purposes of consolidated financial statements minority interest. Corporate Financial Reporting . recognition. 3. derecognition and offset. (b) To gain ability to apply valuation principles. Contents: 1.Issues and problems with special reference to published financial statements. Accounting Standards Interpretations and Guidance Notes on various accounting aspects issued by the ICAI and their applications. Consolidation procedures – Minority interests. 6. Treatment of pre. Understanding of US GAAP. Overview of International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS). Applications of IFRS and US GAAP. consolidation with foreign subsidiaries. Consolidated profit and loss account. Accounting and Reporting of Financial Instruments Meaning. Treatment of investment in associates in consolidated financial statements. 2. (d) To gain ability to solve financial reporting and valuation cases.Paper 1: Financial Reporting (One paper – Three hours – 100 marks) Level of Knowledge: Advanced knowledge Objectives: (a) To gain ability to analyze financial statements including consolidated financial statements of group companies and financial reports of various types of entities. (c) To familiarise with recent developments in the area of financial reporting. Accounting Standards. Consolidated Financial Statements of Group Companies Concept of a Group. Significant difference vis-a-vis Indian Accounting Standards. Accounting for Corporate Restructuring (including inter-company holdings). Consolidation with two or more subsidiaries. Goodwill. compound financial instruments Measurement of financial instruments Hedge accounting Disclosures 2 . Interpretations by International Financial Reporting Interpretation Committee (IFRIC). 4. balance sheet and cash flow statement.acquisition and post-acquisition profit.
Developments in Financial Reporting (a) Value Added Statement (b) Economic Value Added. the syllabus will accordingly include/exclude such new developments in the place of the existing ones with effect from the date to be notified by the Institute. 9. Shareholders’ Value Added (c ) Human Resource Reporting (d) Inflation Accounting Note: If either old Accounting Standards (ASs). Announcements and Limited Revisions to AS. Merchant bankers. Announcements and Limited Revisions to ASs are withdrawn or new ASs. 3 . Financial Reporting by Mutual funds. Announcements and Limited Revisions to AS are issued by the Institute of Chartered Accountants of India in place of existing ASs. Share based payments Meaning. Accounting Standards Interpretations (ASIs). Equity settled transactions. Transaction with employees and non. cancellation and settlement Disclosures 8. Market Value Added. Guidance Notes (GNs). Non-banking finance companies. GNs.7. ASIs. Valuation (a) Concept of Valuation (b) Valuation of Tangible Fixed Assets (c) Valuation of Intangibles including Brand Valuation and Valuation of Goodwill (d) Valuation of Liabilities (e) Valuation of Shares (f) Valuation of Business 10. GNs.employees Determination of fair value of equity instruments Vesting conditions Modification. Stock and commodity market intermediaries.
Sensitivity analysis. Contents: 1. Application of Real Options in capital budgeting. Replacement decisions.Paper 2: Strategic Financial Management (One paper – Three hours – 100 marks) Level of Knowledge: Advanced knowledge Objective: To apply financial management theories and techniques for strategic decision making. Impact of inflation on capital budgeting decisions Preparation of Project Report Social cost benefit analysis. Project Planning and Capital Budgeting Feasibility study Cash flow Projections – Impact of taxation. Financial Policy and Corporate Strategy Strategic decision making framework Interface of Financial Policy and strategic management Balancing financial goals vis-à-vis sustainable growth. Leasing decision including cross border leasing Dividend Decisions Dividend theories. inflation and working capital Capital Budgeting Decisions . Adjusted Net Present Value. Black Scholes Option Pricing Model. Gamma. index options Option valuation techniques : Binomial model. (a) Indian Capital Market including role of various primary and secondary market institutions (b) Capital Market Instruments Financial derivatives – stock futures. Risk and Return analysis. Simulation and decision tree analysis. 5. index futures. Evaluation of Risky Investment Proposals. Rho and Vega Pricing of Futures – Cost of carry model Imbedded derivatives 4 .Certainty Equivalent approach. Capital Rationing. stock options. Greeks – Delta. Determinants of dividend policies. depreciation. 4. Theta. 3. 2.
7. 8. different types of charting. Price Yield relationship. Swaptions. Portfolio Theory and Asset Pricing Efficient Market Theory – Random walk theory . Financial Services in India Investment Banking Retail Banking On Line Share Trading Depository Service.Economic analysis. 9. Global Depository Receipts. support and resistance. momentum analysis. Money market mutual funds.Formulation. Bollinger Bands. Caps. Foreign Institutional Investment. Forward Rate Agreements (FRAs). 10. Markowitz model of risk return optimization Capital Asset Pricing Model (CAPM) Arbitrage Pricing Theory (APT) Sharpe Index Model Portfolio Management . (b) International Financial Management Raising of capital abroad . 6. (b) Exchange Traded Funds. Money Market operations 11. (a) Foreign Direct Investment.American Depository Receipts.(c) Commodity derivatives (d) OTC derivatives -Swaps. Yield curve strategies Technical Analysis – market cycle model and basic trend identification. Security Analysis Fundamental analysis . Floors and Collors. price patterns. monitoring and evaluation of various schemes of Mutual funds. Bond Price forecasting – application of duration and convexity. moving averages. Monitoring and Evaluation Equity Style Management Principles and Management of Hedge Funds International Portfolio Management. (a) Mutual Funds: Regulatory framework. External Commercial Borrowings and Foreign Currency Convertible Bonds 5 . formulation. Industry analysis and Company Analysis Bond valuation.
International Capital Budgeting International Working Capital Management. 13. Spin Offs and Asset Divestitures Corporate Restructuring : Refinancing and rescue financing. 6 . Acquisitions and Restructuring Meaning of mergers and acquisition. Mergers. targeted stock offerings. due diligence. Sale of assets. Management Buyouts (MBOs). employee buyouts. post – merger integration Legal and regulatory requirements Merger and Acquisition agreement Reverse merger Potential adverse competitive effects of mergers Corporate Takeovers: Motivations. reorganizations of debtors and creditors. translation and economic exposures Hedging currency risk. Cross-border takeovers. futures. 12. purposes Process of mergers and acquisition – Identification and valuation of the target. negotiated wage give-backs. Exchange rate forecasting Foreign currency market Foreign exchange derivatives – Forward. categories. options and swaps Management of transaction. Takeover defenses Going Private and Other Control Transactions: Leveraged Buyouts (LBOs). Foreign Exchange Exposure and Risk Management Exchange rate determination. Forms of takeovers. downsizing and layoff programmes. acquisition through negotiation. Co-insurance effect.
Paper 3: Advanced Auditing and Professional Ethics (One Paper. physical verification of assets. coordination between the two. control over quality of audit work. duties. and liabilities of auditors. reliance on the work of other auditor. Dividends and divisible profits % financial. Risk Assessment and Internal Control Evaluation of internal control procedures. direct confirmation of debtors and creditors (b) (c) 6. 7. and policy considerations. Audit under computerized information system (CIS) environment Special aspects of CIS Audit Environment. 2. techniques including questionnaire. test packs. extent of delegation. Special Aspects in Audit of E-Commerce Transaction. flowchart. Audit strategy. Approach to audit in CIS Environment. statistical sampling: Special audit procedures. Significant differences between Auditing and Assurance Standards and International Standards on Auditing. drafting of reports. computerized audit programmes. internal auditor or an expert. 3. use of computers for internal and management audit purposes: audit tools. (b) To develop ability to solve cases relating to audit engagements. planning and programming Planning the flow of audit work. internal audit and external audit. Audit of branches: joint audits. Statements and Guidance Notes on Auditing issued by the ICAI. 5. planning programme and importance of supervision: review of audit notes and working papers. Special audit techniques (a) Selective verification. principal’s ultimate responsibility. Rights. need for review of internal control especially procedure controls and facility controls. Auditing Standards.100 marks) Level of Knowledge: Advanced knowledge Objectives: (a) To gain expert knowledge of current auditing practices and procedures and apply them in auditing engagements.Three hours . 7 . 4. audit strategy. Audit of limited companies Statutory requirements under the Companies Act 1956. third party liability. Statements and Guidance Notes Auditing and Assurance Standards (AASs). legal. Analytical review procedures Risk-based auditing. Contents: 1.
16. Direct and Indirect Tax Laws. inspection of special entities like banks. Certificate on Corporate Governance. Investigation and Due Diligence. Audit Reports and Certificates for Special Purpose engagements. 11. Internal Audit Standards issued by the ICAI. 12. etc. management and operational audit Nature and purpose. 18. 1949 and the Regulations thereunder. detailed observations by the statutory auditor to the management vis-a-vis obligations of reporting to the members. Salient features of Sarbanes – Oxley Act. 8 . notes on accounts. Directions of Comptroller and Auditor General of India under Section 619. Special audit assignments like audit of bank borrowers. organisation. Internal audit. manufacturing operations. purchasing operations. behavioural problems. audit of stock and commodity exchange intermediaries and depositories. Specific areas of management and operational audit involving review of internal control. Aspects relating to concurrent audit. 17. personnel policies. stock brokers. Cost audit 14. co-operative societies and non-banking financial companies. Special features of audit of banks. 9.8. 13. Specific services to non-audit clients. Certificates under the Payment of Bonus Act. Concepts of propriety and efficiency audit. Audit reports. 20.. qualifications. Audit under Fiscal Laws. viz. Audit Committee and Corporate Governance 10. insurance companies. systems and procedures. import/export control authorities. selling and distribution. 15. 2002 with special reference to reporting on internal control. Professional Ethics Code of Ethics with special reference to the relevant provisions of The Chartered Accountants Act. mutual funds. audit programme. Concept of peer review 19. Special features in audit of public sector companies. distinction between notes and qualifications. financial institutions. Audit of Consolidated Financial Statements.
managerial remuneration Meetings.powers.1992. 1956 9 . An overview of the following laws – (a) The Securities and Exchange Board of India Act. Rules and Regulations thereunder in its entirety with specific reference to (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) 2. Minutes. Arrangements and Reconstructions Prevention of Oppression and Mismanagement Revival and Rehabilitation of Sick Industrial Companies Corporate Winding up and Dissolution Producer Companies Companies incorporated outside India Offences and Penalties E-governance Corporate Secretarial Practice – Drafting of Resolution. Contents: 3. The Companies Act. powers of the Board and related party transactions Inspection and Investigation Compromises. Notices and Reports Section B: Allied Laws (30 Marks) Objective: To develop ability to analyse the requirements of laws stated in the Section. (b) The Securities Contracts (Regulation) Act. Accounts and audit Dividend Directors . Regulations and Guidelines issued thereunder. 1956. Rules.Paper 4: Corporate and Allied Laws (One paper – Three hours – 100 marks) Section A: Company Law (70 Marks) Level of Knowledge: Advanced knowledge Objective: To be able to analyze and apply various provisions of the Companies Act in practical situations Contents: 1.
1999 (d) The Competition Act. 10 . 1938. 2002 (f) 4. 2002 Interpretation of Statutes. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. Deeds and Documents. The Prevention of Money Laundering Act. 2002 (e) The Banking Regulation Act. 1999. 1949. The Insurance Act.(c) The Foreign Exchange Management Act. The Insurance Regulatory and Development Authority Act.
cost ascertainment and pricing of products and services (g) Life cycle costing (h 2. decision making and control purposes in practical situations. Shut down and divestment. synchronous manufacturing and back flush systems to reflect the importance of accurate bills of material and routings. (MRP). To develop ability to apply quantitative techniques to business problems 1. selection of products. and value analysis (e) Throughput accounting (f) Target costing. Pricing Decisions (a) Pricing of a finished product (b) Theory of price (c) Pricing policy (d) Principles of product pricing (e) New product pricing (f) Pricing strategies 11 . manufacturing resources planning. Cost Management (a) Developments in the business environment.Paper 5: Advanced Management Accounting (One paper – Three hours – 100 marks) Level of Knowledge: Advanced knowledge Objective: To apply various management accounting techniques to all types of organizations for planning. total quality management. 3. cost reduction. etc. automated manufacturing. world class manufacturing. Cost Volume Profit Analysis (a) Relevant cost (b) Product sales pricing and mix (c) Limiting factors (d) Multiple scarce resource problems (e) Decisions about alternatives such as make or buy. (b) Activity based approaches to management and cost analysis (c) Analysis of common costs in manufacturing and service industry (d) Techniques for profit improvement. just in time.
Master budget. keeping standards meaningful and relevant. 9.PERT/CPM. Principal budget factors. evolution of standards. 7. 5. Preparation and monitoring procedures. disposal of variances. 8. Capital expenditure budget. Preparation of functional budget for operating and non-operating functions. Budgets and Budgetary Control The budget manual. Budget variances. (a) Investigation and interpretation of variances and their inter relationship (b) Behavioural considerations. Financial Decision Modeling (a) Linear Programming (b) Network analysis . Standard Costing and Variance Analysis Types of standards and sources of standard cost information. variance analysis. Transfer pricing (a) Objectives of transfer pricing (b) Methods of transfer pricing (c) Conflict between a division and a company (d) Multi-national transfer pricing. Cash budgets. 6.(g) Pricing of services (h) Pareto analysis 4. Cost Management in Service Sector Uniform Costing and Inter firm comparison Profitability analysis . Flexible budgets.Product wise / segment wise / customer wise 10. resource allocation and resource leveling (c) (d) (e) (f) Transportation problems Assignment problems Simulation Learning Curve Theory (g) Time series forecasting (h) Sampling and test of hypothesis 12 . continuous -improvement.
laws and standards in computerized Information system.Paper 6: Information Systems Control and Audit (One Paper – Three hours – 100 marks) Level of knowledge: Advanced knowledge Objective: To gain application ability of necessary controls. ES 2. Control objectives (a) Information Systems Controls 13 . Systems Development Life Cycle Methodology Introduction to SDLC/Basics of SDLC Requirements analysis and systems design techniques Strategic considerations : Acquisition decisions and approaches Software evaluation and selection/development Alternate development methodologies. Prototype etc Hardware evaluation and selection Systems operations and organization of systems resources Systems documentation and operation manuals User procedures. Contents: 1. EIS. Information Systems Concepts General Systems Concepts – Nature and types of systems. attributes of information. conversion and start-up Hardware contracts and software licenses System implementation Post-implementation review System maintenance System safeguards Brief note on IS Organisation Structure 3. MIS. Management Information System – Role of information within business Business information systems –various types of information systems – TPC. training and end user computing System testing.RAD. assessment. nature and types of information. DSS.
Manual follow up) Non-computer-dependent (user) controls: Error identification controls.Need for control Effect of computers on Internal Audit Responsibility for control – Management. use and measurement (e) Control over System and program changes Change management controls Authorization controls Documentation controls Testing and quality controls Custody. privacy and security Classification of information Logical access controls 14 . personnel. Audit trails. Processing recovery controls (c) Controls over system selection. Error correction controls. IT. Error investigation controls. User Controls (Control balancing. Computer-dependent control. auditors Cost effectiveness of control procedure Control Objectives for Information and related Technology (COBIT) (b) Information Systems Control Techniques Control Design: Preventive and detective controls. acquisition/development Standards and controls applicable to IS development projects Developed / acquired systems Vendor evaluation Structured analysis and design Role of IS Auditor in System acquisition/selection (d) Controls over system implementation Acceptance testing methodologies System conversion methodologies Post implement review Monitoring. copyright and warranties Role of IS Auditor in Change Management (f) Control over Data integrity.
Audit Tests of General and Automated Controls (a) Introduction to basics of testing (reasons for testing). guidelines. excessive costs. best practices (BS7799. Information Technology Act. HIPPA. Data Encryption Standards (DES). vandalism. Risk assessment methodologies and applications: (a) Meaning of Vulnerabilities. Controls. Information Systems Auditing Standards. Risks.a practical perspective 10.(e) Disaster recovery procedural plan. Drafting of IS Security Policy. etc. interruption. error. IS Audit Reporting .) 9. (ii) Parallel testing. An over view of Enterprise Resource Planning (ERP) 8. Threats. (c) Software and data backup techniques. (b) Threat and risk management. Audit Policy. etc. virus control Role of IS Auditor in Access Control 4. Business Continuity Planning and Disaster recovery planning: (a) Fundamentals of BCP/DRP. (d) Preventive/detective/corrective strategies 6. (g) Insurance 7. Public Key Cryptography & Firewalls Data security and public networks Monitoring and surveillance techniques Data Privacy Unauthorised intrusion. (c) Risk Assessment and Risk Management.Physical access controls Environmental controls Security concepts and techniques – Cryptosystems. (iii) Concurrent Audit modules/Embedded audit modules. hacking. social costs. (b) Fraud. business. (d) Alternative processing facility arrangements. (b) Various levels/types of testing such as: (i) Performance testing. competitive disadvantage. (f) Integration with departmental plans. CMM etc. statutory sanctions. 5. 2000 15 . testing and documentation.
Further. personnel compensation plans. 16 . inter-relationship of taxation and accounting. they should have a basic understanding about the ethical considerations in tax management and compliance with taxation laws. international taxation. These may include tax considerations with regard to specific management decisions. with special reference to relevant accounting standards and other precautions to be observed to maximise tax relief. 1957 and Rules thereunder (10 marks) While covering the direct tax laws. tax incentives. students should familiarise themselves with considerations relevant to tax management. amalgamations. Note – If new legislations are enacted in place of the existing legislations relating to income tax and wealth tax. 1961 and Rules thereunder (90 marks) The Wealth-tax Act. foreign collaboration agreements. Contents: I.Paper 7: Direct Tax Laws (One paper – Three hours – 100 marks) Level of Knowledge: Advanced knowledge Objectives: (a) To gain advanced knowledge of the provisions of direct tax laws. II. the syllabus will accordingly include such new legislations in the place of the existing legislations with effect from the date to be notified by the Institute. (b) To acquire the ability to apply the knowledge of the provisions of direct tax laws to various situations in actual practice. The Income-tax Act.
customs and service tax. Contents: Section A: Central Excise (40 marks) Central Excise Act. Students shall not be examined with reference to any particular State VAT Law. VAT in relation to incentive schemes. 17 . Input tax credit. customs and service tax and also the ethical considerations involved in the compliance of these laws. 1985 and the related Rules. 1975 and the related Rules. Note – If new legislations are enacted in place of the existing legislations relating to central excise. Taxonomy of VAT 3. 1944 and the related Rules. tax invoices 4. the syllabus will accordingly include such new legislations in place of the existing legislations with effect from the date to be notified by the Institute. 1994 as amended from time to time and the related Rules. works contract. students should familiarize themselves with the interrelationship of accounting with excise. While covering the above laws. Central Excise Tariff Act. Issues related to Value Added Tax: 1. VAT and Central Sales Tax Section C: Customs (20 marks) Customs Act. Circulars and Notifications. Backdrop for State-Level VAT in India 2. (b) To acquire the ability to apply the knowledge of the provisions of the above-mentioned laws to various situations in actual practice. lease transactions and hire purchase transactions.Paper 8: Indirect Tax Laws (One paper – Three hours – 100 marks) Level of Knowledge: Advanced knowledge Objectives: (a) To gain expert knowledge of the principles of the laws relating to central excise customs and service tax. 1962 and the related Rules. Circulars and Notifications. Section B: Service tax & VAT (40 marks) Law relating to service tax as contained in the Finance Act. VAT procedures 6. Customs Tariff Act. Circulars and Notifications. Small dealers and composition scheme 5. 7.
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