CA IPCC Nov 2015 Amendments, Syllabus, Topics Excluded

November 2015 Amendments in CA IPCC Subjects applicable for November 2015 exams:

IPCC Paper 1 - Accounting Amendments:

Electricity Companies Excluded from Syllabus applicable for Nov 2015 exams:

The topic of “Financial Reporting of Electricity Companies” would be excluded from the syllabus of Intermediate (IPC) Paper 5 : Advanced Accounting and the same would not be applicable from November, 2015 Examination.

It is further clarified that these topics were permenantly excluded from CA IPCC syllabus and will not be applicable for exam there after.

Additional Director

BOS, ICAI

Exclusion of Hire Purchase Trading A/c, Stock and Debtors Method from IPCC Syllabus:

In Accounting paper, ICAI has made it clear that, these topics are no longer relevant and 

they are in wrong motion. By this, it is quite clear that ICAI has decided to exclude these topics with immediate effect and so will not be applicable for the upcoming November 2015 exams.

Amendments in Acocunting for IPCC Nov 2015 Exams:

A. Pronouncements

Accounting Standards 1, 2, 3, 6, 7, 9, 10, 13 and 14 are covered in the syllabus.  (Text of all applicable Accounting Standards are available in the Appendix I of Volume I of  ‘Accounting’ Study Material revised in November, 2014.).

B. Announcement relevant for Nov 2015 examination

Criteria for Classification of Entities and Applicability of Accounting Standards

Due to recent changes in the enhancement of tax audit limit, the Council of the ICAI has  recently decided to change the 1st criteria i.e. determination of SME on turnover basis for  Level II entities from Rs. 40 lakhs to Rs. 1 Crore with effect from the accounting year  commencing on or after April 01, 2012.

Indian ASs Issued by The Ministry of Corporate Affairs: These ASs are not applicable for students appearing in Nov 2015 Exams.

New Balance Sheet Format: Students should note that Balance sheet now should be prepared as per Schedule-III (earlier it is Schedule VI)

Download Accounts Notes for Revision

Law Ethics and Communication Amendments: 

There are no topics excluded or New amendments applicable for IPCC Nov 2015, Law Ethics and Communication paper. However, Certain section of the Companies Act, 2013 has been changed since the previous act and these will be applicable for Nov 2015 exams. Students can download the amendments material of new companies act from below:

Companies Act, 2013 Amendments 

Download Law, Ethics Notes for Revision

Costing and FM Amendments:

There are no topics excluded or New amendments applicable for IPCC Nov 2015, Cost Accounting and Financial Management paper.

Costing and FM Important Theory Questions

Download Costing FM Notes for Revision

Taxation:

For November 2015 exams, no new topics have been excluded from the Taxation syllabus.

However, ICAI has released applicable amendments for Tax Nov 2015 Exam, see them below.

                    IPCC Nov 2016 Tax Amendments

Also Read - IPCC Important questions, topics

IPCC Paper 5 - Advanced Accounting Amendments:

A. Pronouncements

Accounting Standards 4, 5, 11, 12, 16, 19, 20, 26 and 29 are covered in the syllabus.

(Text of all applicable Accounting Standards are available in the Appendix II of Volume I of ‘Advanced Accounting’ Study Material revised in November, 2014.)

B. Notification/Announcement relevant for Nov 2016 examination

1. Presentation of Foreign Currency Monetary Item Translation Difference Account (FCMITDA)

In the Revised Schedule VI format, no line item has been specified for the presentation of “Foreign Currency Monetary Item Translation Difference Account (FCMITDA)”. Therefore, the Council of the Institute at its 324th meeting held on March 24-26, 2013 at New Delhi, decided that debit or credit balance in FCMITDA should be shown on the “Equity and Liabilities” side of the balance sheet under the head ‘Reserves and Surplus’ as a separate line item.

2. Criteria for Classification of Entities and Applicability of Accounting Standards

Due to recent changes in the enhancement of tax audit limit, the Council of the ICAI has recently decided to change the 1st criteria i.e. determination of SME on turnover basis for Level II entities from Rs. 40 lakhs to Rs. 1 Crore with effect from the accounting year commencing on or after April 01, 2012.

3. Clarification on Debenture Redemption Reserve (DRR)

Ministry of Corporate Affairs vide Circular no. 04/2013 dated 11 February, 2013 has clarified the adequacy of DRR for various institutions/companies as follows:

table will be updated soon

Every company required to create/maintain DRR shall before the 30th day of April of each year, deposit or invest, as the case may be, a sum which shall not be less than fifteen percent of the amount of its debentures maturing during the year ending on the 31st day of March next following year.

4. Maintenance of Cash Reserve Ratio: RBI has decided to reduce the Cash Reserve Ratio (CRR) of Scheduled Commercial Banks by 25 basis points from 4.25 to 4.00 percent with effect from Feb 9, 2013. This rate will be applicable for May 2014 exams.

5. Statutory Liquidity Ratio for Local Area Banks be reduced from 25 per cent to 23 per cent of their Net Demand and Time Liabilities (NDTL) with effect from the fortnight beginning August 11, 2012. Therefore, a rate of 23 percent will be applicable for May 2014 Exams

6. Review of the Prudential Guidelines on Restructuring of Advances by Banks/Financial Institutions

Reserve Bank of India has reviewed the prudential guidelines on restructuring of advances by banks/ financial institutions vide circular no. DBOD.No.BP.BC.63/21.04.048/2012-13 applicable for all scheduled commercial banks excluding RRBs dated November 26, 2012 and has decided:

i) To enhance the provisioning requirement for restructured accounts classified as standard advances from the existing 2.00 per cent to 2.75 per cent in the first two years from the date of restructuring. In cases of moratorium on payment of interest/principal after restructuring, such advances will attract a provision of 2.75 per cent for the period covering moratorium and two years thereafter; and that

ii) Restructured accounts classified as non-performing advances, when upgraded to standard category will attract a provision of 2.75 per cent in the first year from the date of upgradation instead of the existing 2.00 per cent.

In accordance with the above, loans to projects under implementation, when restructured due to change in the date of commencement of commercial operations (DCCO) beyond

the original DCCO as envisaged at the time of financial closure and classified as standard advances would attract higher provisioning at 2.75 per cent as against the present requirement of 2.00 per cent as per the details given below:

Infrastructure projects

table will be updated soon

Rates of Provisioning for Non-Performing Assets for Banking Companies

For Banking companies, revised rate of NPA are given.

Category of Advances	Rate (%)
Sub- standard Advances
Secured Exposures	15
Unsecured Exposures	25
Unsecured Exposures in respect of Infrastructure loan accounts where certain safeguards such as escrow accounts are available.	20
Doubtful Advances – Unsecured Portion	100
Doubtful Advances – Secured Portion
For Doubtful upto 1 year	25
For Doubtful > 1 year and upto 3 years	40
For Doubtful > 3 years	100
Loss Advances	100

All other extant guidelines on Income Recognition, Asset Classification and Provisioning pertaining to advances will remain unchanged.

Auditing and Assurance Amendments Syllabus Amendments:.

Since the new Companies Act was made applicable, there were changes in Company Audit-1 and Company audit-2 Chapters. Students are advised to go through the recent Study Material issued by ICAI.

IT and SM Amendments:

Intermediate (IPCC), Group-II, Paper-7A: Information Technology:

The Paper-7 of the IPCC Syllabus, i.e Information Technology IT SM has been revamped. Certain topics from the old syllabus of IT SM have been excluded and few new topics were inserted in IT SM new syllabus. The New Chapters and syllabus of IT S that are applicable for November 2015 IPCC Exams are listed below:

1. Business Process Management & IT

2. Information Systems and IT Fundamentals

3. Telecommunication and Networks

4. Business Information Systems

5. Business process automation through Application software

Download the Revised Study Material

Especially for Nov 2015 certain changes were made in the Information Technology syllabus. In SM, there are no changes.