CA Final Nov. 2015 : IndAS not applicable, Applicability of amendments in Tax/Co. law, etc.

Applicability of Standards/Guidance Notes/Legislative Amendments etc. for November, 2015 – Final Examination

Paper 1: Financial Reporting

I. Framework for the Preparation and Presentation of Financial Statements.

II. Accounting Standards

AS No.

AS Title

1 Disclosure of Accounting Policies
2 Valuation of Inventories
3 Cash Flow Statements
4 Contingencies and Events Occurring after the Balance Sheet Date
5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
6 Depreciation Accounting
7 Construction Contracts (Revised 2002)
9 Revenue Recognition
10 Accounting for Fixed Assets
11 The Effects of Changes in Foreign Exchange Rates (Revised 2003)
12 Accounting for Government Grants
13 Accounting for Investments
14 Accounting for Amalgamations
15 Employee Benefits
16 Borrowing Costs
17 Segment Reporting
18 Related Party Disclosures
19 Leases
20 Earnings Per Share
21 Consolidated Financial Statements
22 Accounting for Taxes on Income
23 Accounting for Investment in Associates in Consolidated Financial Statements
24 Discontinuing Operations
25 Interim Financial Reporting
26 Intangible Assets
27 Financial Reporting of Interests in Joint Ventures
28 Impairment of Assets
29 Provisions, Contingent Liabilities and Contingent Assets
30 Financial Instruments: Recognition and Measurement
31 Financial Instruments: Presentation
32 Financial Instruments: Disclosure

III. Guidance Notes on Accounting Aspects

  1. Guidance Note on Accrual Basis of Accounting.
  2. Guidance Note on Accounting Treatment for Excise Duty.
  3. Guidance Note on Terms Used in Financial Statements.
  4. Guidance Note on Availability of Revaluation Reserve for Issue of Bonus Shares.
  5. Guidance Note on Accounting Treatment for MODVAT/CENVAT.
  6. Guidance Note on Accounting for Corporate Dividend Tax.
  7. Guidance Note on Accounting for Employee Share-based Payments.
  8. Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under the Income Tax Act, 1961.
  9. Guidance Note on Measurement of Income Tax for Interim Financial Reporting in the context of AS 25.
  10. Guidance Note on Applicability of Accounting Standard (AS) 20, Earnings per Share.
  11. Guidance Note on Remuneration paid to key management personnel – whether a related party transaction.
  12. Guidance Note on Applicability of AS 25 to Interim Financial Results.
  13. Guidance Note on Turnover in case of Contractors.
  14. Guidance Note on the Revised Schedule VI to the Companies Act, 1956*

[*Schedule III to the Companies Act, 2013.]

IV. Applicability of the Companies Act, 2013 and other Legislative Amendments

The relevant notified Sections of the Companies Act, 2013 up to 31st March, 2015 and other legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authority up to 30th April, 2015.

Non-Applicability of Ind ASs:

The Ministry of Corporate Affairs has notified Roadmap for applicability of Indian Accounting Standards (Ind AS) vide Notification No. G.S.R…….(E) dated 16 February, 2015, for compliance by the class of companies specified in the said roadmap. The notification has been uploaded on www.mca.gov.in along with the thirty nine (39) Indian Accounting Standards (Ind AS). Students may note that these Ind ASs are not applicable for November, 2015 Examination.

Paper 3: Advanced Auditing and Professional Ethics

I. Statements and Standards

1. Statement on Reporting under Section 227(1A) of the Companies Act, 1956 (Section 143 of the Companies Act, 2013).

2. Framework for Assurance Engagements.

II. Engagements and Quality Control Standards on Auditing

S.No SA Title of Standard on Auditing
1 SQC 1 Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements
2 SA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing
3 SA 210 Agreeing the Terms of Audit Engagements
4 SA 220 Quality Control for Audit of Financial Statements
5 SA 230 Audit Documentation
6 SA 240 The Auditor’s responsibilities Relating to Fraud in an Audit of Financial Statements
7 SA 250 Consideration of Laws and Regulations in An Audit of Financial Statements
8 SA 260 Communication with Those Charged with Governance
9 SA 265 Communicating Deficiencies in Internal Control to Those Charged with Governance and Management
10 SA 299 Responsibility of Joint Auditors
11 SA 300 Planning an Audit of Financial Statements
12 SA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment
13 SA 320 Materiality in Planning and Performing an Audit
14 SA 330 The Auditor’s Responses to Assessed Risks
15 SA 402 Audit Considerations Relating to an Entity Using a Service Organization
16 SA 450 Evaluation of Misstatements Identified during the Audits
17 SA 500 Audit Evidence
18 SA 501 Audit Evidence – Specific Considerations for Selected Items
19 SA 505 External Confirmations
20 SA 510 Initial Audit Engagements-Opening Balances
21 SA 520 Analytical Procedures
22 SA 530 Audit Sampling
23 SA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
24 SA 550 Related Parties
25 SA 560 Subsequent Events
26 SA 570 Going Concern
27 SA 580 Written Representations
28 SA 600 Using the Work of Another Auditor
29 SA 610 Using the Work of Internal Auditors
30 SA 620 Using the Work of an Auditor’s Expert
31 SA 700 Forming an Opinion and Reporting on Financial Statements
32 SA 705 Modifications to the Opinion in the Independent Auditor’s Report
33 SA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report
34 SA 710 Comparative Information – Corresponding Figures and Comparative Financial Statements
35 SA 720 The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements
36 SA 800 Special Considerations-Audits of Financial Statements Prepared in Accordance with Special Purpose Framework
37 SA 805 Special Considerations-Audits of Single Purpose Financial Statements and Specific Elements, Accounts or Items of a Financial Statement
38 SA 810 Engagements to Report on Summary Financial Statements
39 SRE 2400 Engagements to Review Financial Statements
40 SRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity
41 SAE 3400 The Examination of Prospective Financial Information
42 SAE 3402 Assurance Reports on Controls At a Service Organisation
43 SRS 4400 Engagements to Perform Agreed Upon Procedures Regarding Financial Information
44 SRS 4410 Engagements to Compile Financial Information

III. Guidance Notes and other publications

  1. Code of Ethics
  2. Guidance Note on Independence of Auditors.
  3. Guidance Note on Audit Reports and Certificates for Special Purposes.
  4. Guidance Note on Audit under Section 44AB of the Income-tax Act (Revised in view of Latest Form 3CA, 3CB and 3CD notified on 25th July).
  5. Guidance Note on Audit of Inventories.
  6. Guidance Note on Audit of Debtors, Loans and Advances.
  7. Guidance Note on Audit of Investments.
  8. Guidance Note on Audit of Cash and Bank Balances.
  9. Guidance Note on Audit of Liabilities.
  10. Guidance Note on Audit of Revenue.
  11. Guidance Note on Audit of Expenses.
  12. Guidance Note on Computer Assisted Audit Techniques (CAATs).
  13. Guidance Note on Audit of Payment of Dividend.
  14. Guidance Note on Audit of Capital and Reserves.

IV Applicability of the Companies Act, 2013 and Other Legislative Amendments:

(i) The relevant notified Sections of the Companies Act, 2013 up to 31st March, 2015 alongwith other legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authorities cut-off date will be 30th April, 2015.

(ii) Companies (Auditor’s Report) Order, 2015 [CARO] issued by Ministry of Corporate Affairs on 10th April, 2015 is applicable for November 2015 Examination.

Paper 4 : Corporate and Allied Laws

I Applicability of Relevant Amendments/Circulars/ Notifications/Regulations etc.

1. The Companies Act, 2013

The relevant sections of the Companies Act, 2013, notified up to 31st March, 2015 along with relevant Rules/ Notifications/ Circulars/ Clarification/ Orders issued by the Ministry of Corporate Affairs upto 30th April, 2015.

2. SEBI (Issue of Capital and Disclosure Requirement) Regulations, 2009

SEBI vide Notification dated 24th March, 2015 has issued SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2015.

The amendments have been carried out in regulation 4 and 54 of SEBI (ICDR) Regulations, 2009.

3. The Insurance Act, 1938 and the Insurance Regulatory and Development Authority Act, 1999

Vide Notification dated 23rd March, 2015, Ministry of Law and Justice further amended the Insurance Act, 1938 and the Insurance Regulatory and Development Authority Act, 1999 by enacting the Insurance Laws (Amendment) Act, 2015. It shall be deemed to have come into force on the 26th day of December, 2014.

II Non-Applicability of the following Amendments/Circulars/Notifications

S.No. Subject Matter
1. Chapter 9 of the study material (October, 2014 edition) covering provisions relating to Revival and Rehabilitation of Sick-Industrial Companies.
2. Chapter 15 of the study material (October, 2014 edition) covering provisions relating to the National Company Law Tribunal and Appellate Tribunal.

Paper 7 : Direct Tax Laws & Paper 8 : Indirect Tax Laws

Applicability of Finance Act, Assessment Year etc. for November, 2015 Examination

The provisions of direct and indirect tax laws, as amended by the Finance (No.2) Act, 2014, including notifications and circulars issued up to 30th April, 2015, are applicable for November, 2015 examination. The relevant assessment year for Paper 7: Direct Tax Laws is A.Y.2015-16.

In Paper 7: Direct Tax Laws, the Wealth-tax Act, 1957 and Rules thereunder are not applicable for November 2015 examination.

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