CA Final May 2017 -Applicable Standards /Guidance Notes/ Amendments

By | January 17, 2017
(Last Updated On: February 4, 2017)

CA Final May 2017 Applicable Amendments Standards/Guidance Notes 

Following are the CA Final May 2017 Applicable Amendments issued by ICAI  for CA Students Final Examination

Paper 1: Financial Reporting

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

[  Related Post CA Final May 2017 Books / Latest Books for CA Final Exam ]

II. Accounting Standards

AS No.AS Title
1Disclosure of Accounting Policies
2Valuation of Inventories
3Cash Flow Statements
4Contingencies and Events Occurring after the Balance Sheet Date
5Net    Profit   or   Loss   for   the   Period,   Prior   Period   Items   and   Changes  in
Accounting Policies
7Construction Contracts (Revised 2002)
9Revenue Recognition
10Property, Plant and Equipment (2016)
11The Effects of Changes in Foreign Exchange Rates (Revised 2003)
12Accounting for Government Grants
13Accounting for Investments
14Accounting for Amalgamations
15Employee Benefits
16Borrowing Costs
17Segment Reporting
18Related Party Disclosures
19Leases
20Earnings Per Share
21Consolidated Financial Statements
22Accounting for Taxes on Income
23Accounting for Investment in Associates in Consolidated Financial Statements
24Discontinuing Operations
25Interim Financial Reporting
26Intangible Assets
27Financial Reporting of Interests in Joint Ventures
28Impairment of Assets
29Provisions, Contingent Liabilities and Contingent Assets

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 Accounting Treatment for MODVAT/CENVAT.

5. Guidance Note on Accounting for Corporate Dividend Tax.

6. Guidance Note on Accounting for Employee Share-based Payments.

7. Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under the Income Tax Act, 1961.

8. Guidance Note on Measurement of Income Tax for Interim Financial Reporting in the context of AS 25.

9. Guidance Note on Applicability of AS 25 to Interim Financial Results.

10. Guidance Note on Turnover in case of Contractors.

11. Guidance Note on the Schedule III to the Companies Act, 2013.

12. Guidance Note on Accounting for Expenditure on Corporate Social Responsibility Activities.

13. Guidance Note on Accounting for Derivative Contracts.

14. Guidance Note on Accounting for Depreciation in Companies in the context of Schedule II 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 and legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authority up to 31st October, 2016 will be applicable for May, 2017 Examination.

V. Applicability of Indian Accounting Standard (Ind AS)

Topic of “Introduction of Indian Accounting Standards (Ind AS); Comparative study of ASs vis-a-vis Ind ASs; Carve outs/ins in Ind ASs vis-à-vis International Financial Reporting Standards (IFRSs)” has been made applicable in place of “Overview of International Accounting Standards (IAS) / International Financial Reporting Standards (IFRS), Interpretations by International Financial Reporting Interpretation Committee (IFRIC), Significant differences vis-a-vis Indian Accounting Standards; Understanding of US GAAPs, Applications of IFRS and US GAAPs”.

Considering the significance and relevance of the Ind AS, the above topic has been included in the syllabus and the students are expected to have an overall knowledge of the contents covered therein. However, considering the extensive coverage of the contents covered in such topic, from the examination perspective, simple problems involving conceptual or application issues may be asked in the examination.

VI. Applicability of Amendments made by MCA in the Companies (Accounting Standards) Rules, 2006 and Companies (Indian Accounting Standards) Rules, 2015

Amendments made by MCA on 30.3.2016 in the Companies (Accounting Standards) Rules, 2006 and Companies (Indian Accounting Standards) Rules, 2015 are applicable for May, 2017 examination.

VII. Non-applicability of AS 30, 31 and 32 on the topic ‘Accounting and Reporting of Financial Instruments’

Ind AS 32 “Financial Instruments: Presentation”, Ind AS 107 “Financial Instruments: Disclosures” and Ind AS 109 “Financial Instruments” have been made applicable to the topic ‘Accounting and Reporting of Financial Instruments’ instead of AS 30 “Financial Instruments: Recognition and Measurement”, AS 31 “Financial Instruments: Presentation” and AS 32 “Financial Instruments: Disclosures”.

In view of the complexities involved, simple practical problems involving conceptual issues or application issues may be asked in the 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 (1) of the Companies Act, 2013).

2. Framework for Assurance Engagements.

II. Engagements and Quality Control Standards on Auditing

S.NoSATitle of Standard on Auditing
1SQC 1Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements
2SA 200Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing
3SA 210Agreeing the Terms of Audit Engagements
4SA 220Quality Control for Audit of Financial Statements
5SA 230Audit Documentation
6SA 240The Auditor’s    responsibilities  Relating to   Fraud  in  an Audit of
Financial Statements
7SA 250Consideration of Laws and Regulations in An Audit of Financial Statements
8SA 260Communication with Those Charged with Governance
9SA 265Communicating Deficiencies in Internal Control to Those Charged with Governance and Management
10SA 299Responsibility of Joint Auditors
11SA 300Planning an Audit of Financial Statements
12SA 315Identifying   and  Assessing   the   Risks  of Material    Misstatement
through Understanding the Entity and its Environment
13SA 320Materiality in Planning and Performing an Audit
14SA 330The Auditor’s Responses to Assessed Risks
15SA 402Audit    Considerations   Relating  to   an   Entity   Using  a   Service
Organization
17SA 500Audit Evidence
18SA 501Audit Evidence – Specific Considerations for Selected Items
19SA 505External Confirmations
20SA 510Initial Audit Engagements-Opening Balances
21SA 520Analytical Procedures
22SA 530Audit Sampling
23SA 540Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
24SA 550Related Parties
25SA 560Subsequent Events
26SA 570Going Concern
27SA 580Written Representations
28SA 600Using the Work of Another Auditor
29SA 610 (Revised)Using the Work of Internal Auditors
30SA 620Using the Work of an Auditor’s Expert
31SA 700Forming an Opinion and Reporting on Financial Statements
32SA 705Modifications to the Opinion in the Independent Auditor’s Report
33SA 706Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report
34SA 710Comparative      Information     –      Corresponding     Figures     and
Comparative Financial Statements
35SA 720The Auditor’s Responsibility in     Relation to Other Information in
Documents Containing Audited Financial Statements
36SA 800Special Considerations-Audits of Financial Statements Prepared in Accordance with Special Purpose Framework
37SA 805Special     Considerations-Audits    of    Single    Purpose    Financial

Statements    and  Specific   Elements,   Accounts   or   Items   of a
Financial Statement

38SA 810Engagements to Report on Summary Financial Statements
39SRE 2400 (Revised)Engagements to Review Historical Financial Statements
40SRE 2410Review    of    Interim    Financial   Information    Performed   by    the
Independent Auditor of the Entity
41SAE 3400The Examination of Prospective Financial Information
42SAE 3402Assurance Reports on Controls At a Service Organisation
43SAE 3420 (New)Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus
44SRS 4400Engagements to Perform Agreed Upon Procedures Regarding Financial Information
45SRS 4410 (Revised)Compilations Engagements

 III. Guidance Notes and other publications

1. Code of Ethics

2. Guidance Note on Independence of Auditors.

3. Guidance Note on Audit under Section 44AB of the Income-tax Act.

4. Guidance Note on Audit of Inventories.

5. Guidance Note on Audit of Debtors, Loans and Advances.

6. Guidance Note on Audit of Investments.

7. Guidance Note on Audit of Cash and Bank Balances.

8. Guidance Note on Audit of Liabilities.

9. Guidance Note on Audit of Revenue.

10. Guidance Note on Audit of Expenses.

11. Guidance Note on Computer Assisted Audit Techniques (CAATs).

12. Guidance Note on Audit of Payment of Dividend.

13. Guidance Note on Audit of Capital and Reserves.

14. Guidance Note on Audit of Banks.

15. Guidance Note on Audit of Internal Financial Controls over Financial Reporting.

16. Guidance Note on Reporting under section 143(3)(f) and (h) of the Companies Act, 2013.

17. Guidance Note on Reporting on Fraud under section 143(12) of the Companies Act, 2013.

18. Guidance Note on the Companies (Auditor’s Report) Order, 2016.

IV Applicability of the Companies Act, 2013:

(i) The relevant notified Sections of the Companies Act, 2013 and other legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authorities, cut-off date will be 31st October, 2016.

(ii) SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Companies (Auditor’s Report) Order, 2016 are applicable for May, 2017 Examination.

Paper 4 : Corporate and Allied Laws

Applicability of the following Amendments/Circulars/Notifications:

(I) The Companies Act, 2013

The relevant sections of the Companies Act, 2013, along with significant Rules/ Notifications/ Circulars/ Clarification/ Orders issued by the Ministry of Corporate Affairs upto 31st October 2016.

For updates, see http://www.mca.gov.in/

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

Vide Notification No. SEBI/LAD-NRO/GN/2016-17/003 dated 25th May, 2016, SEBI hereby further amend the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 through the enforcement of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Third Amendment) Regulations,2016 from the date of their publication in the Official Gazette.

Amendments have been made in relevant Regulations 2, 4, 73 & 84 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 and these shall be applicable to issuers filing offer documents with the Registrar of companies on or after the date of commencement of these regulations.

For amendment, refer the following Link

http://www.sebi.gov.in/cms/sebi data/attachdocs/1 46424532001 0.pdf

(III) The Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act, 2016

Ministry of Law and Justice on 16th August, 2016 has published for general information, the Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act, 2016.

It is an Act further to amend four laws: (i) Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI), (ii) Recovery of Debts due to Banks and Financial Institutions Act, 1993 (RDDBFI), (iii) Indian Stamp Act, 1899 and (iv) Depositories Act, 1996, and for matters connected therewith or incidental thereto.

Chapter II, of this amendment Act deals with the amendments to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, whereby, it is an act to regulate securitisation and reconstruction of financial assets and enforcement of security interest and to provide for a central database of security interests created on property rights, and for matters connected therewith or incidental thereto.

For amendment, refer the following Link

http://financialservices.gov.in/Banking/LAWS.pdf

Non-Applicability of the following Amendments/Circulars/Notifications / chapters of the Study material:

Chapter 9 of the study material (January 2016 edition) covering provisions relating to Revival and Rehabilitation of Sick-Industrial Companies.

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

Applicability of Finance Act, Assessment Year etc. for May, 2017 Examination

The provisions of direct tax laws and indirect tax laws, as amended by the Finance Act, 2016, including notifications and circulars issued up to 31st October, 2016, are applicable for May, 2017 examination. The relevant assessment year for Paper 7: Direct Tax Laws is A.Y.201 7-1 8.

Download PDF on Applicability of Standards/Guidance Notes/Legislative Amendments etc. for May, 2017 – Final Examination


Related book  –Advanced Auditing & Professional Ethics for CA Final May 2017 Exams & Onwards

CA Final May 2017 Applicable Amendments

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