CA E Narasimhan

CA E NarasimhanDear Friends,

As you are aware, ICAI has recently approved the new syllabi for CA Course, focusing on the industry and practical requirement.

The syllabus is likely to be effective from 2016, subject to the Central Government approval. Kindly note, as clarified by the Institute, the existing scheme would not be immediately discontinued post notification of the new scheme and it is expected that the existing and new would continue for a few exams.

I have made an attempt to simplify and summarize the key changes to the proposed new syllabus of ICAI.

Foundation Route

CA Foundation

  1. CPT to be called Foundation Course.
  2. Register AFTER Class XII till June 30 / Dec 31.
  3. To appear in Foundation Exam AFTER passing Class XII.
  4. CPT exams to be held in May & Nov (similar to IPCC & Final)
  5. Effectively the earliest a student can write the Foundation exam is in Nov of the same year when
    he/she passes Class XII. (Currently it is possible for him/her to write in June of the same year)

CA Intermediate (Inter)

  1. IPCC to be called as Intermediate Course.
  2. Complete 8 months of study period. (Currently under IPCC there is a requirement for 9 months).
  3. Appear & pass in ATLEAST ONE group of Inter and commence practical training. (Currently passing in Group I is mandatory for commencing Practical Training. In the new scheme passing any ONE Group would also suffice to commence practical training).
  4. Complete 4 weeks of Integrated Course on IT and Softskills (ICITSS) before practical training, followed by an Assessment Test. (This substitutes the ITT / Orientation & GMCS to be done by students during pre-practical Training and initial years of Practical Training).
  5. Practical Training Tenure to continue as 3 years.

CA Final

  1. Register for Final only after passing BOTH the groups of Inter. (Practical training can be commenced after passing any one group)
  2. Complete 4 weeks of Advanced Integrated Course on IT and Softskills (ICITSS) during last 2 years of practical training followed by an Assessment Test.
  3. Appear in CA Final exam AFTER completion of practical training and advanced ICITSS.

Direct Entry Route

Commerce Graduates with 55% marks or other Graduates with 60% marks, Inter level passed students of Company Secretary Course or Cost Management Accountant Course are eligible for DIRECT Entry to Inter. The following to be noted:

  1. Register in Final year of graduation (provisional registration) or after graduation.
  2. Complete 4 weeks of Integrated Course on IT and Softskills (ICITSS) before practical training. (This substitutes the ITT / Orientation & GMCS to be done by students during pre Practical Training and initial years of Practical Training).
  3. Register for 3 years of practical training.
  4. Appear in Inter after 9 months of practical training.

In short, there shall not be any change to the existing scheme of Direct Entry, except for the 4 weeks of ICITSS

Subjects & Papers

CA Foundation – 4 Papers

# Description Type Marks
Paper 1 Principles and Practices of Accounting Subjective / Descriptive 100 Marks
Paper 2 Business Mathematics & Logical Reasoning & Statistics Objective
Part    1   – Business    Mathematics  &   Logical Reasoning 60 Marks
Part 2 – Statistics 40 Marks
Paper 3 Mercantile Law & General English Subjective / Descriptive
Part 1 – Mercantile Law 60 Marks
Part 2 – General English 40 Marks
Paper 4 Business Economics & Business Commercial Knowledge Objective
Part 1 – Business Economics 60 Marks
Part 2 – Business Commercial Knowledge 40 Marks

Note:

Passing percentage – 50% in Aggregate & 40% per subject at one sitting.

Key Impact in the Course

  1. Objective Type questions of 1 or marks.
  2. Business Mathematics & Logical reasoning introduced instead of traditional Mathematics. Seem to be a more practical approach
  3. General English a subjective paper introduced. Students would be tested on their writing skills.
  4. A new paper called Business Commercial Knowledge introduced. The contents of this will be known only once the detailed syllabus is out.
  5. Examination in the month of May & November AFTER PASSING Class XII

CA Inter – 8 Papers

# Description Marks
Group I
Paper 1 Accounting 100 Marks
Paper 2 Corporate & Other Laws
Part 1 – Corporate Laws 60 Marks
Part 2 – Other Laws 40 Marks
Paper 3 Costing 100 Marks
Paper 4 Direct Tax Laws & Indirect Tax Laws
Part 1 – Direct Tax Laws 60 Marks
Part 2 – Indirect Tax Laws 40 Marks

# Description Marks
Group II
Paper 5 Advanced Accounting 100 Marks
Paper 6 Auditing & Assurance 100 Marks
Paper 7 Financial Management & Business Economic Environment
Part 1 – Financial Management 60 Marks
Part 2 – Business Economic Environment 40 Marks
Paper 8 Information Technology & Strategic Management (IT&SM)
Part 1 – Information Technology 60 Marks
Part 2 – Strategic Management 40 Marks

Key Impact in the Course

  1. 8 papers in contrast with the existing 7 papers.
  2. IT & SM retained with IT having 60 marks & SM only 40 Marks
  3. Costing to be a 100 Marks Paper
  4. Financial Management to be a 60 Marks Paper
  5. New paper called Business Economic Environment introduced for 40 Marks.
  6. Ethics & Communicated removed & Other Laws introduces. Marks for Corporate Law increased from existing 30 to 60 Marks.
  7. DT to have 60% weightage and IDT 40% weightage.

CA Final – 8 Papers

# Description Marks
Group I
Paper 1 Financial Reporting 100 Marks
Paper 2 Strategic Financial Management 100 Marks
Paper 3 Advanced Auditing & Professional Ethics 100 Marks
Paper 4 Corporate Laws & Other Economic Laws 100 Marks

# Description Marks
Group II
Paper 5 Advanced Management Accounting 100 Marks
Paper 6 Financial Services and Capital Markets    & Information Systems Control & Audit
Part 1 – Financial Services and Capital Markets 50 Marks
Part 2 – Information Systems Control & Audit 50 Marks
Paper 7 Advanced Direct Taxes & International Taxation
Part 1 – Advanced Direct Taxes 70 Marks
Part 2 – International Taxation 30 Marks
Paper 8 Advanced Indirect Taxes 100 Marks

Key Impact in the Course

  1. Group ‘I’ left untouched with the exception of Economic Laws replacing other allied laws.
  2. ISCA which is currently 100 marks reduced to 50 marks and a new paper on Capital Markets introduced in the syllabus for 50 Marks
  3. International Taxation which was already existing in the syllabus now gets an allocated 30 Marks.
  4. CA Final exam to be written ONLY after completion of Practical Training.

Ca.narasi23@gmail.com

( Author is a Bangalore based CA and a Faculty for CA Course and can be reached at ca.narasi23@gmail.com)

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5 responses to “Summary of ICAI Proposed New Syllabus”

  1. Aruna says:

    Need clarification regarding Paper – 6 in Ca final Examination for May 2016.

    Whether it combines ISCA as well as FSCM 50:50 or 100 marks for Financial Services and Capital Markets (FSCM).

    If i google search for Syllabus applicable for May 2016 examination, got information so.

    Kindly clarify.

  2. Kalyan says:

    Nice article Narshimhan. Keep it up

  3. Mitu says:

    is practical training in any industry recognized under new syllabus? or still it should be with PCA

  4. Mahendra Bagrecha FCA says:

    Very informative

  5. PC Daviz says:

    CA and CMA syllabus are same now
    Self learning is important
    Questions will be more practical oriented that can be achieved by self learning.
    Good syllabus
    PC Daviz
    Company Secretary

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