CA-IPCC: Overview

There are 8 papers in CA IPCC new scheme from 2016. In the previous notification, ICAI said that they are going to remove Information Technology and Strategic Management Paper from CA IPCC Group – 2 completely. But in the new notification, Information Technology & Strategic Management paper also included. In new syllabus Direct tax laws for 60 marks and Indirect tax laws for 40 Marks.

Each subject contains 100 Marks. A student needs to score 40% marks in each subject and 50% of total marks to pass IPCC exam. Exam can be given group wise or both groups together. The advantage of both group exam is that 50% of the total will be calculated on a total basis not group wise.

Minimum – 9 months

It is the period starting from the time the student gets registered for the course, to the time the student completes the coaching and other formalities required for being eligible for appearing at the main examination at this level.

This period is a minimum of 9 months.

  • The CA course at the IPCC level (Integrated Professional Competence Course)) consists of theoretical examinations as well as practical training in the form of compulsory computer course. There are 11 subjects to be studied arranged into 2 groups of 4 papers of 100 marks each in Group I and 3 papers of 100 marks each in Group II.To pass a student has to obtain a minimum of 40% in each paper and an aggregate of 50% in all the papers of both the groups together if attempting both the groups or all the papers of a single group, failing which the student has to reappear in all the papers of that group/groups again.

CA-IPCC Course Syllabus

Paper 1: Accounting 1 IPCC Syllabus

1. A General Knowledge of the framing of the accounting standards, national and international accounting authorities, adoption of international financial reporting standards.

2. Accounting Standards

AS 1:   Disclosure of Accounting Policies
AS 2:     Valuation of Inventories
AS 3:     Cash Flow Statements
AS 6:     Depreciation Accounting
AS 7:     Construction Contracts (Revised 2002)
AS 9:     Revenue Recognition
AS 10:   Accounting for Fixed Assets
AS 13:   Accounting for Investments
AS 14:   Accounting for Amalgamations

3. Company Accounts

(a)        Preparation of financial statements – Profit and Loss Account, Balance Sheet and Cash Flow Statement
(b)        Profit (Loss) prior to incorporation
(c)        Alteration of share capital, Conversion of fully paid shares into stock and stock into shares, Accounting for bonus issue
(d)        Simple   problems   on   Accounting   for   business   acquisition,   Amalgamation, and reconstruction (excluding problems of amalgamation on inter-company holding)

4. Average Due Date, Account Current, Self-Balancing Ledgers

5. Financial Statements of Not-for-Profit Organisations

6.  Accounts from Incomplete Records

7. Accounting for Special Transactions

(a)       Hire purchase and installment sale transactions
(b)       Investment accounts
(c)        Insurance claims for loss of stock and loss of profit.

9.  Issues in Partnership Accounts

Final accounts of partnership firms  – Admission, retirement, and death of a partner including treatment of goodwill;

10. Accounting in Computerised Environment

An overview of computerized accounting system – Salient features and significance, Concept of a grouping of accounts, Codification of accounts, Maintaining the hierarchy of ledger, Accounting packages and consideration for their selection, Generating Accounting Reports.

Note :
If  either old Accounting Standards (ASs),  Announcements and Limited  Revisions to ASs are withdrawn or new ASs, Announcements and Limited Revisions to ASs are  issued   by   the   Institute   of   Chartered   Accountants   of   India   in   place   of   existing   ASs, Announcements and Limited Revisions to ASs, the syllabus will accordingly include/exclude such new developments in   place of the existing ones with effect from the date to be notified by the Institute.

Paper 2: IPCC Law Syllabus

Below I have given IPCC syllabus for Law, Ethics & Communication subject which is paper 2 for IPCC exams for May-Nov 2016. Company law is going to change in upcoming attempts for IPCC syllabus as new company’s bill has been passed already.

Business Laws (30 marks)
Acts to study in Business laws for CA IPCC are given below.
1.         The Indian Contract Act, 1872
2.         The Negotiable Instruments Act, 1881
3.         The Payment of Bonus Act, 1965
4.         The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952
5.         The Payment of Gratuity Act, 1972.

Company Law (30 marks)
The Companies Act, 1956 – Sections 1 to 197
(a)        Preliminary
(b)        Board of Company Law Administration – National Company Law Tribunal; Appellate Tribunal
(c)        Incorporation of company and matters incidental thereto
(d)        Prospectus and allotment, and other matters relating to use of shares or debentures
(e)        Share capital and debentures
(f)        Registration of charges
(g)         Management and administration  – general provisions  – registered office and name, restrictions on commencement of business, registers of members and debentures holders, foreign registers of members or debenture holders,  annual returns,  general provisions regarding registers and returns, meetings and proceedings.
(h)        Company Law in a computerized environment – e-filing.

Note:    If new legislations are enacted in place of the existing legislation, the syllabus would include the corresponding provisions of such new legislation with effect from a date notified by the Institute.

Part II: Ethics (20 marks)

Chapter to study in IPCC Ethics are mentioned below.

1.         Introduction to Business Ethics

2.         Environment Issues

3.         Ethics in Workplace

4.         Ethics in Marketing and Consumer Protection

5.         Ethics in Accounting and Finance

Part III: Communication (20 marks)

Chapters to study in IPCC communication subjects are mentioned below.

1.         Elements of Communication

2.         Communication in Business Environment

3.         Basic Understanding of Legal Deeds and Documents

Paper 3: Costing & FM IPCC Syllabus

Chapters to study in IPCC Costing & FM subject in IPCC Syllabus are mentioned in below. This subject is always tricky looking to most of the students. But as a part of IPCC syllabus, you must take it seriously.

Part I: Cost Accounting (50 marks)

Chapters for Cost Accounting for IPCC syllabus includes following chapters.

1.          Introduction to Cost Accounting

2.         Cost Ascertainment
(a)        Material Cost
(b)        Employee Cost
(c)        Direct Expenses
(d)        Overheads

3.         Cost Book-keeping

4.         Costing Systems
(a)        Job Costing
(b)        Batch Costing
(c)        Contract Costing
(d)        Process Costing
(e)        Operating Costing System

5.         Marginal Costing

6.         Standard Costing

7.         Budgets and Budgetary Control

Part II: Financial Management (50 marks)

Financial management part has following chapters as an important part of IPCC syllabus. Generally, this section of IPCC syllabus will require much, more concentration and practice to get confidence and attempt all the questions in the paper.

1.         Scope and Objectives of Financial Management

2.         Time Value of Money

3.         Financial Analysis and Planning
(a)        Ratio analysis for performance evaluation and financial health
(b)        Application of ratio analysis in decision making
(c)        Analysis of cash flow statement.

4.         Financing Decisions
(a)        Cost of Capital – weighted average cost of capital and marginal cost of capital
(b)        Capital   Structure   decisions –   capital   structure   patterns,   designing   optimum
(c)        Business risk and financial risk  –  operating and financial leverage,  trading on equity.

5.         Types of Financing

6.         Investment Decisions

7.         Management of working capital
(a)        Working capital policies
(b)        Funds flow analysis
(c)        Inventory management
(d)        Receivables management
(e)        Payables management
(f)        Management of cash and marketable securities
(g)        Financing of working capital.

Paper 4: IPCC Taxation Syllabus

Chapters included in IPCC syllabus for Taxation in old IPCC Syllabus are as mentioned below.

Part I: Income-tax (50 marks)1.         Important definitions in the Income-tax Act, 1961

2.         Basis of charge; rates of taxes applicable for different types of assessees

3.         Concepts of previous year and assessment year

4.         Residential  status  and  scope  of  total  income;  Income  deemed  to be  received/deemed to accrue or arise in India

5.         Incomes which do not form part of total income

6.         Heads of income and the provisions governing computation of income under different heads

7.         Income of other persons included in assessee’s total income

8.         Aggregation of income; set-off or carry forward and set-off of losses

9.         Deductions from gross total income

10.       Computation of total income and tax payable; rebates and reliefs

11.       Provisions concerning advance tax and tax deducted at source

12.       Provisions for the filing of return of income.


Part II: Service tax (25 marks) and VAT (25 marks)[Applicable up to May 2017 Examination]

Service tax (25 marks)

1.         Service tax – concepts and general principles

2.         Charge of service tax and taxable services

3.         Valuation of taxable services

4.         Payment of service tax and filing of returns

VAT (25 marks)

5.         VAT – concepts and general principles

6.         Calculation of VAT Liability including input Tax Credits

7.         Small Dealers and Composition Scheme

8.         VAT Procedures.

Note:    If new legislations are enacted in place of the existing legislation the syllabus will accordingly include the corresponding provisions of such new legislation in the place of the existing legislation with effect from the date to be notified by the  Institute. Students shall not be examined with reference to any particular State VAT Law.

1.   Introduction to excise duty, customs duty, central sales tax and VAT – Constitutional aspects,
Basic concepts relating to levy, taxable event and related provisions

2.   Significant provisions of service tax

(i)       Constitutional Aspects

(ii)      Basic Concepts and General Principles

(iii)     Charge of service tax including negative list of services

(iv)     Point of taxation of services

(v)      Exemptions and Abatements

(vi)     Valuation of taxable services

(vii)    Invoicing for taxable services

(viii)   Payment of service tax

(ix)     Registration

(x)      Furnishing of returns

(xi)     CENVAT Credit [Rule 1 -9 of CENVAT Credit Rules, 2004]

Note: If new legislations are enacted in place of the existing legislation the syllabus will accordingly include the corresponding provisions of such new legislation in place of the existing legislation with effect from the date to be notified by the Institute.   Students shall not be examined with reference to any particular State VAT Law.

Paper 5: IPCC Syllabus for Advanced Accounting

IPCC accounts syllabus for paper 5 includes following chapters. IPCC syllabus for advanced accounting (paper 5) is much advanced than that of IPCC syllabus for accounting (paper 1).

1.         Conceptual Framework for Preparation and Presentation of Financial Statements

2.         Accounting Standards:
AS 4:   Contingencies and Events occurring after the Balance Sheet Date
AS 5:   Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
AS 11:   The Effects of Changes in Foreign Exchange Rates (Revised 2003) AS 12:   Accounting for Government Grants
AS 16:   Borrowing Costs
AS 19:   Leases
AS 20:   Earnings Per Share
AS 26:   Intangible Assets
AS 29: Provisions, Contingent Liabilities, and Contingent Assets.

3.         Advanced Issues in Partnership Accounts

4.         Company Accounts
(a)         Accounting   for   employee   stock   option   plan,   Buyback   of   securities,   Equity   shares   with differential rights, Underwriting of shares and debentures, Redemption of debentures
(b)        Advanced   problems   for   business   acquisition,   Amalgamation, and   reconstruction (excluding problems of amalgamation of inter-company holding)
(c)         Accounting involved in the liquidation of companies,  Statement of Affairs  (including deficiency/surplus accounts) and Liquidator’s statement of account of the winding up.
(d)        Financial Statements of B@nking, Insurance and Electricity Companies

5.          Accounting for Special Transactions

Departmental and branch accounts including foreign branches Note :

Note: If   either old Accounting Standards (ASs), Announcements and Limited Revisions to ASs are withdrawn or new ASs,    Announcements and Limited Revisions to ASs are issued   by   the   Institute   of   Chartered   Accountants   of India   in   place   of   existing   ASs, Announcements and Limited Revisions to ASs, the syllabus will accordingly include/exclude such new developments in place of the existing ones with effect from the date to be notified by the Institute.

Paper 6: Audit IPCC Syllabus

Following numbered chapters are in the IPCC syllabus for the Auditing subject.

1.       Auditing  Concepts  –

2.         Auditing and Assurance Standards – Overview, Standard-setting process, Role of International  Auditing and Assurance Standards Board and Auditing and Assurance Standards Board in India.

3.         Auditing engagement  –  Audit planning,  Audit programme,  Control of quality of audit work- Delegation and supervision of audit work.

4.          Documentation   –   Audit working papers,   Audit files:  Permanent and current audit files, Ownership and custody of working papers.

5.            Audit evidence – Audit procedures for obtaining evidence, Sources of evidence, Reliability of audit evidence,  Methods of obtaining audit evidence,  Physical verification,  Documentation, Direct confirmation,  Re-computation,   Analytical review techniques,  Representation by management.

6.          Internal  Control –  Elements of internal control,  Review, and documentation,  Evaluation of internal control system,  Internal control questionnaire,  Internal control checklist,  Tests of control, Application of the concept of materiality and audit risk, Concept of internal audit.

7.         Internal Control and Computerized Environment,   Approaches to Auditing in Computerised Environment.

8.         Audit Sampling – Types of sampling, Test checking, Techniques of test checks.

9.         Analytical review procedures.

10.       Audit of payments  – General considerations, Wages, Capital expenditure, Other payments and expenses, Petty cash payments, B@nk payments, B@nk reconciliation.

11.       Audit of receipts – General considerations, Cash sales, Receipts from debtors, Other Receipts.

12.       Audit of Purchases – Vouching for cash and credit purchases, Forward purchases, Purchase returns, Allowance received from suppliers.

13.       Audit of Sales  – Vouching of cash and credit sales, Goods on consignment, Sale on approval basis, Sale under the hire-purchase agreement, Returnable containers, Various types of allowances given to customers, Sale returns.

14.       Audit of suppliers’ ledger and the debtors’ ledger – Self-balancing and the sectional balancing system,   Total or control accounts,   Confirmatory statements from credit customers and suppliers, Provision for bad and doubtful debts, Writing off of bad debts.

15.         Audit of impersonal ledger – Capital expenditure, deferred revenue expenditure and revenue expenditure,  Outstanding expenses and income,  Repairs and renewals,  Distinction between reserves and provisions,  Implications of change on the basis of accounting.

16.       Audit of assets and liabilities.

17.       Company Audit – Audit of Shares, Qualifications, and Disqualifications of Auditors, Appointment of auditors, Removal of auditors, Powers and duties of auditors,     Branch audit, Joint audit, Special audit, Reporting requirements under the Companies Act, 1956.

18.       Audit    Report  –    Qualifications, Disclaimers, Adverse opinion, Disclosures, Reports, and certificates.

19.       Special points in an audit of different types of undertakings, i.e., Educational institutions, Hotels, Clubs, Hospitals, Hire-purchase and leasing companies (excluding b@nks, electricity companies, cooperative societies, and insurance companies).

20.       Features and basic principles of government audit, Local bodies and not-for-profit organizations, Comptroller and Auditor General and its constitutional role.

Note:   Candidates are expected to have the working knowledge of relevant. Auditing and Assurance Standards issued by the ICAI with reference to above-mentioned topics.

In IPCC syllabus for audit, it’s worth to note that the language demanded by the ICAI is of the module if you are preferring other handbook or material, then please be aware, the IPCC syllabus given in the module for auditing is the one which ICAI give marks. I am saying this from my own experience, and IPCC syllabus of module give good mark with compare to other author books. IPCC syllabus of the module is very important for all the theory subjects of IPCC.

Paper 7: IT & SM IPCC Syllabus

Section A: Information Technology (50 Marks)

1.         Business Process Management & IT
Introduction to various Business processes – Accounting, Finances, Sale, Purchase etc.,

Business Process Automation – Benefits & Risks, Approach to mapping systems: Entity

Diagrams, Data Flow Diagrams, Systems Flow diagrams, Decision trees/tables,   Accounting systems vs. Value chain automation,   Information as a business asset, Impact of IT on business processes, Business Risks of failure of IT, Business Process Re-engineering

2.         Information Systems and IT Fundamentals

Understand importance of IT in business and relevance to Audit with case studies, Understand working of computers and networks in business process automation from business information  perspective, Concepts of Computing (Definition provided by ACM/IEEE and overview of  related terminologies), Overview of IS Layers – Applications, DBMS, systems software,  hardware, networks & links and people, Overview of Information Systems life cycle and key phases, Computing Technologies & Hardware – Servers, end points, popular computing architectures, emerging computing architectures & delivery models – example: SaaS, Cloud Computing,   Mobile computing,   etc., Example: Overview of latest devices/technologies – i5,
Bluetooth, Tablet, Wi-Fi, Android, Touchpad, iPad, iPod, Laptop, Notebook,   Smartphone,  Ultra- Mobile PC etc.)

3.        Telecommunication and Networks

>Fundamentals of telecommunication, Components, and functions of Telecommunication
>Systems, Data networks – types of architecture, LAN, WAN, Wireless, private and public networks etc., Overview of computing architectures – centralised, de-centralised, mainframe, client-server, thin-thick client etc., Network Fundamentals – Components, Standards, and protocols, Network risks & controls – VPN, Encryption, Secure protocols,
>Network administration and management – concepts and issues, How information systems are facilitated through telecommunications, How Internet works, Internet architecture, key concepts, risks and controls, e-Commerce and M-commerce technologies

4. Business Information Systems

Information Systems and their role in businesses, IT as a business enabler & driver – ERP, Core B@nking System, CRM, SCM, HRMS, Payment Mechanisms, The relationship between organisations, information systems and business processes, Accounting Information Systems and linkages to Operational systems, Business Reporting, MIS & IT, Organisation Roles & responsibilities and table or authorities, importance of access controls, privilege controls, Specialised systems – MIS, DSS, Business Intelligence, Expert Systems, Artificial Intelligence, Knowledge Management systems etc.

5.   Business process automation through Application software

Business Applications – overview and types, Business Process Automation, relevant controls and information systems, Information Processing & Delivery channels and their role in Information Systems, Key types of Application Controls and their need, Emerging concepts – Virtualisation, Grid Computing, Cloud delivery model.

Section B: Strategic Management (50 marks)

CA  IPCC syllabus for SM subject includes following chapters.

1.         Business Environment
General environment – demographic, socio-cultural, macroeconomic, legal/political, technological, and global; competitive environment.

2.         Business Policy and Strategic Management
Meaning and nature; strategic management imperative; vision, mission, and objectives; strategic levels in organizations.

3.         Strategic Analyses
Situational analysis – SWOT analysis, TOWS matrix, portfolio analysis – BCG matrix.

4.         Strategic Planning
Meaning, stages, alternatives, strategy formulation.

5.         Formulation of Functional Strategy
Marketing strategy, financial strategy, production strategy, logistics strategy, human resource strategy.

6.         Strategy Implementation and Control
Organisational structures;  establishing strategic business units;  establishing profit centers by business,   product or service,  market segment or customer;  leadership and behavioral challenges.

7.         Reaching Strategic Edge
Business process re-engineering, benchmarking, total quality management, six sigma, contemporary strategic issues.

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