Detailed view on Changes in CA syllabus for May’24

CA FOUNDATION-

General-

1. Registration for CA Foundation will be valid for 4 years. Before there was no validity period.
2. Removed 2 subjects Business Correspondence & Reporting and Business & Commercial Knowledge.
3. Paper 1 & 2 are subjective and Paper 3 & 4 are objective. There will be negative marking of 0.25 marks for every wrong answer in objective type papers.

Changes in Syllabus-

3. Paper 1 - Accounting
   1. 1. In the old syllabus Chapter 6 Accounting for Special Transactions has been renamed to Bills of exchange & Promissory notes and all other special transactions such as Sale of goods on approval or return basis, consignments, Average due date & Account current has been removed
      2. A new chapter 9 Accounts from Incomplete records has been added in new syllabus
      3. In Partnership Accounts LLPs importance has increased
4. Paper 2- Business Laws
   1. 1. there is addition of Chapter 7 The Negotiable Instruments Act, 1881 in the new syllabus
      2. Section B- Business Correspondence & Reporting has been removed
5. Paper 4- Business Economics

1. Addition of the following chapters. Chapter 5-Determination of National Income, Chapter 7- Public Finance, Chapter 8-Money Market, Chapter9- International Trade & Chapter 10- Indian Economy.

CA INTER-

General-

1. Registration for CA Inter will be valid for 5 years. Revalidation is permitted for 5 more years with payment of prescribed fees.
2. Exemption in a subjects can be carried indefinitely in the new syllabus but 50% is yet needed in the other subjects to clear the group.
3. CA Inter papers will also have 30% MCQ questions. There will be no negative marking for incorrect objective answer.
4. Reduced to 6 Papers from 8 Papers. Paper 1 & 5 have been combined into 1 paper called Advanced Accounting & Enterprise Information Systems has been removed from Paper 7 while Economics for Finance has been removed from Paper 8. The remaining material has been merged into Paper 6 as Financial Management and Strategic Management.
5. Business Law portion of Chapter 2 will be covered in CA Foundation itself.

Changes in Syllabus-

1. Paper 1- Advanced Accounting- (Combination of Paper 1 & 5 of old syllabus)
   1. 1. Includes all AS’s as mentioned in Paper 1 & Paper 5 of Old Syllabus. Additional AS’s have been introduced which are:

• AS 15- Employee Benefits
• AS 25- Interim Financial Reporting
• AS 28- Impairment of Assets
  1. 2. From Paper 1- Accounting (OLD) the following chapters have been removed-

• Profit & Loss Pre & Post Incorporation
• Accounting of bonus issue & rights issue
• Redemption of preference shares
• Redemption of debentures
• Insurance Claim for Loss of stock or Loss of profit
• Hire purchase.
• Departmental Accounts
• Accounts for Incomplete Records

• 1. 3. From Paper 5- Advanced Accounting (OLD) the following chapters have been removed-
• Partnership Accounts
• Accounting for ESOPs
• Liquidation of Companies
• Banking Companies
• NBFCs

2. Paper 2- Corporate & Other Laws
   1. 1. Following New Chapters have been added:

• Companies incorporated outside India (Part of CA Final in Old Course)
• Limited Liability Partnership Act, 2008
• The Foreign Exchange Management Act, 1999 (Part of CA Final in Old Course)
  1. 2. Following Chapters have been deleted-

• Indian Contract Act, 1957
• Negotiable Instruments Act, 1881

3. Paper 3- Taxation
   1. 1. In Section A- Chapter 3 as per Old Syllabus Income which do not form part of total income has been reclassified into different chapters. All concepts are yet present.
      2. In Section B- GST the following chapters have been added-

• Place of Supply
• Accounts & Records (Part of CA Final in Old Syllabus)
• Tax deducted at source & Tax collected at source (Part of CA Final in Old Syllabus)
• E-way bill is considered as a separate chapter

4. Paper 4- Cost and Management Accounting

1. From Chapter 9 Contract Costing has been removed.

5. Paper 5- Auditing & Ethics

1. Audit in an Automated Environment has been removed
2. Audit Evidence & Audit Documentation are 2 separate chapters now
3. Concepts of Chapter 5 Fraud has been combined in the chapter relating to Reporting
4. Chapter 7: Audit Sampling & Chapter 8: Analytical Procedures have been combined under Audit Evidence
5. CARO has been shifted to Reporting Chapter in New Syllabus
6. Company Audit has been removed
7. Professional Ethics Introduction has been added (Part of CA Final Old Syllabus)

6. Paper 6A- Financial Management

1. Chapter 8 Risk Analysis in Capital Budgeting is removed. (Similar to new chapter in CA Final Advanced Financial Management)

7. Paper 6B- Strategic Management

1. In new syllabus Chapter 1: Introduction to Strategic Management includes both Chapter 1 & Chapter 3: Strategic Management Process of the Old Syllabus
2. In new syllabus Chapter 3: Strategic Analysis Internal Environment  includes c
3. In new syllabus Chapter 5: Strategy Implementation & Evaluation includes both Chapter 6: Organization & Strategic Leadership  & Chapter 7: Strategy Implementation & Control.
4. In new syllabus Chapter 4: Strategy Analysis Internal Environment includes both Chapter 5: Business Level Strategies  & Chapter 6: Functional Level Strategies
5. New Chapter. Chapter 3: Strategy Analysis External Environment has been added

CA FINAL-

General-

1. Registration for CA Final will be valid for 10 years. Revalidation is for prescribed fees.
2. Exemption in a subjects can be carried indefinitely in the new syllabus but 50% is yet needed in the other subjects to clear the group.
3. CA Final papers will also have 30% MCQ questions. There will be no negative marking for incorrect objective answer.
4. Articleship period has been reduced to 2 years from 3 years but students are allowed only 12 days leave per year.
5. ICAI has introduced self paced modules. There are 4 sets:

1. Set A: Corporate & Economic Law (Compulsory)
2. Set B: Strategic Cost & Performance Management (Compulsory)
3. Set C: Elective (Choice is given)
4. Set D: Incorporating Multi-disciplinary approach envisaged in NEP, 2020 (Choice is given)

6. Reduced to 6 Papers from 8 Papers. 2 papers from the old attempt have been incorporated in self-paced modules.

Changes in Syllabus-

1. Paper 1- Financial Reporting

1. Addition of the following chapters-

• Chapter 16- Professional & Ethical Duty of a CA
• Accounting & Technology

2. Following Chapters have been removed-

• Integrated Reporting
• Corporate Social Responsibility

2. Paper 2- Advanced Financial Management

1. Chapter 3 Advanced Capital Budgeting Decisions is added. (Similar to chapter in CA Inter FM Risk Analysis in Capital Budgeting)

3. Paper 3- Advanced Auditing, Assurance & Professional Ethics

1. SA’s & Company Audit has been divided into multiple chapters
2. Following new chapters have been added-

• Specialized Areas
• Audit-related services
• Review of Financial Information
• Prospective Financial Information and other Assurance Services
• Emerging Areas- Sustainable Development Goals & ESG Assurance

4. Paper 4- Direct Taxes

 Study Material is yet to be provided by ICAI

5. Paper 5- Indirect Taxes

Study Material is yet to be provided by ICAI

6. Paper 6- Interdisciplinary Studies

Will include case studies on all CA Final Papers along with self-paced modules of SET A & B.

7. SET A- Corporate & Economic Law

1. E-filing is a new chapter added.
2. The following chapters have been removed-

• Companies incorporated outside India (shifted to CA Inter)
• Corporate Secretarial Practice
• The Prevention of Money Laundering Act
• The Arbitration & Conciliation Act

8. SET B- Strategic Cost and Performance Evaluation

1. The following are the new chapters added:

• Management of Cost strategically for emerging business models
• In Introduction to Strategic Performance Management there are many new concepts added.

2. Performance Measurement & Evaluation has been divided into 4 chapters
3. Chp 10- Budgetary Control has been removed and the concepts of activity based budgeting have been shifted to Chapter 7- Strategic Profit Management
4. Chp 9- Strategic Analysis of Operating Income has been removed and concepts have been shifted to Chapter 7- Strategic Profit Management.