SPOM Syllabus: Strengthen Your Learning Path

SPOM Syllabus: Strengthen Your Learning Path

Subjects

SET A Corporate and Economic Laws (Mandatory) (100 Marks)

SET B Strategic Cost and Performance Management (Mandatory) (100 Marks)

SET C Elective (100 Marks)

 (Opt for any one of the below options )

  1. Management of Risk
  2. Sustainable Development and Sustainability Reporting 
  3. Government Accounting and Public Finance
  4. The Insolvency and Bankruptcy Code of 2016
  5. International Taxation
  6. The Arbitration and Conciliation Act, 1996
  7. Forensic Accounting
  8. Valuation
  9. Financial Services and Capital Markets
  10. Forex and Treasury Management

SET D Towards developing inherent traits of CA Students and incorporating Multidisciplinary approach envisaged in NEP,2020

(Opt for any one of the below options)

 

  1. The Constitution of India & Art of Advocacy
  2. Psychology and Philosophy
  3. Entrepreneurship and Start-up Ecosystem
  4. Digital Ecosystem and Controls

A student is required to complete online learning in Corporate and Economic Laws [SET A] and Strategic Cost and Performance Management [SET B] as mandatory modules. Additionally, the student must select one module from both SET C and SET D.

Syllabus

The syllabus of each subject contains an objective statement and contents. In SET A Corporate and Economic Laws and SET B Strategic Cost and Performance Management, students are expected to acquire expert knowledge. Working knowledge is expected for Self-Paced Online Modules opted in SETS C and D. 

SET C offers ten electives, from which a student can select one according to their area of interest.

Aligned with the vision of the National Education Policy, 2020 (NEP, 2020), which advocates for a holistic and multidisciplinary approach to education that nurtures intellectual, aesthetic, social, physical, emotional, and moral growth in an integrated manner, students are required to choose one of four options: The Constitution of India & Art of Advocacy, Psychology & Philosophy, Entrepreneurship & Start-Up Ecosystem, and Digital Ecosystem & Controls. This would facilitate high-quality, holistic and multidisciplinary education through online learning, emphasizing “how to think” over “what to think”.

These creative combinations of disciplines foster cross-disciplinary thinking among students, enabling them to apply innovative reasoning to real-life challenges they may face in their professional practice or employment after qualifying as Chartered Accountants.

About Examination

The assessment will be conducted online using multiple-choice questions. For SETS A and B, the questions will be scenario-based, requiring expert knowledge. These will assess a range of skills, including knowledge and comprehension, application and analysis, as well as evaluation and synthesis. For SETS C and D, the assessment will include a mix of independent MCQs and scenario-based MCQs, focusing on working knowledge. These will evaluate knowledge and comprehension, as well as application and analysis. The specific details are currently being finalized and will be shared with the students once ready.

Requirement for passing Self-Paced Online Modules

Passing Criteria for Self-Paced Online Modules: To be eligible for the Final Examination, students must complete the online modules (SETS) by achieving a minimum score of 50% in each module. There is no limit on the number of attempts allowed. Students may also change their chosen subjects for SET C and SET D, if desired. The scores obtained in these Self-Paced Online Modules will not be combined with the marks from core papers for overall assessment purposes.

SYLLABUS : SET A

PAPER : CORPORATE AND ECONOMIC LAWS (100 MARKS)

corporate and economic law

PART I : CORPORATE LAWS (70 MARKS)

      – SECTION A : COMPANY LAW (50 MARKS)

Objective

To develop the skill to analyze, interpret, and apply the provisions of Company Law in real-world scenarios.

Contents

The Companies Act, 2013, and the Rules established under it, with a specific focus on the provisions governing the following topics:

  1. Director Appointments and Qualifications
  2. Managerial Personnel: Appointment and Remuneration
  3. Board Meetings and Their Powers
  4. Inspection, Investigation, and Inquiry
  5. Compromises, Arrangement, and Amalgamations
  6. Prevention of Oppression and Mismanagement
  7. Winding Up
  8. Miscellaneous Provisions
  9. Adjudication, Special Courts, and the National Company Law Tribunal
  10. e- Filing

     – SECTION B : SECURITIES LAWS    (20 MARKS)

Objective

To acquire the ability to analyze the significant provisions of the SEBI Act.

Contents

An Overview of the Securities and Exchange Board of India Act, 1992, with references to the following Regulations:

  1. SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
  2. SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018
  3. SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011
  4. SEBI (Prohibition of Insider Trading) Regulations, 2015

PART II : ECONOMIC LAWS (30 MARKS)

Objective

To acquire the ability to analyze the essential provisions of specific Economic Laws.

Contents

  1. The Foreign Exchange Management Act, 1999 and  significant Rules and Regulations: An Introduction, Broad Structure of FEMA , Definitions, Regulation and Management of Foreign Exchange, Brief of Contraventions and Penalties, and Miscellaneous Provisions.
  2. The Foreign Contribution Regulation Act, 2010 and its Regulations: Definitions, Regulation of Foreign Contributions, and Miscellaneous Provisions.
  3. The Insolvency and Bankruptcy Code, 2016,and significant Rules and Regulations : Key concepts covered up to Section 33 of the Code.

Note: If new laws are introduced to replace existing ones, the syllabus will incorporate the relevant provisions of these new legislations, effective from the date notified by the Institute. 

The specific inclusions/exclusions in the various topics covered in the syllabus will be affected every year by way of study guidelines, if any.

SYLLABUS : SET B

PAPER : STRATEGIC COST & PERFORMANCE MANAGEMENT (100 MARKS)

strategic cost and performance management

Objective

  1. To develop the ability to apply various cost management techniques for planning and controlling performance, to set, monitor, and manage strategic objectives.
  2. To enhance skills in analysis, synthesis, and evaluation in cost management, to address challenges and issues that may impact or influence performance management within organizations.

PART A : STRATEGIC COST MANAGEMENT

1. An Introduction to Strategic Cost Management

     i.  Managing Cost Strategically: Managing Strategic Cost , Limitations of Traditional Cost Management, and Traditional vs.                   Strategic Cost Management.

     ii.  Organisational Context: Achieving Competitive Advantage, Value Proposition, and Osterwalder’s Business Model Canvas.

     iii.  External Environment Context: Industry Profitability, Basis of Competition, Key Success Factors in the Industry, and Understanding Customers and Markets.

     iv.  Information Technology the Strategic Context : IS/IT and Porter’s Five Forces, and IT/IS and the Value Chain.

     v.  The Role of the Management Accountant as a Leader: Communication, Decision-Making, and Business Ethics.

2. Modern Business Environment

      i.  Introduction/Characteristics of the Modern Business Environment

      ii.  Quality to Business Excellence: Cost of Quality and Total Quality Management

      iii.  Supply Chain Management (SCM)

      iv.  Profit Sharing Arrangements 

      v.  Downsizing, Outsourcing, and Offshoring

3. Lean System and Innovation

    i.  An Introduction to Lean System

         a.  Just-in-Time (JIT)

         b.  Kaizen Costing

         c.  5s

         d.  Total Productive Maintenance (TPM)

         e.  Cellular Manufacturing / One-Piece Flow Production Systems

         f.  Six Sigma (SS)

  ii.  Introduction to Process Innovation

4. Specialized Cost Management Techniques

     i.   Cost Management / Waste Management, and Cost Reduction 

     ii.  Target Costing

     iii. Throughput Accounting and the Theory of Constraints

     iv. Life Cycle Costing

     v.  Environment Management Accounting

5. Strategic Cost Management for Emerging Business Models

     i. Changing Business Environment: Digital Technologies, Business Ecosystems, Hyper-Competition, Transformation and Disruption, Advanced Manufacturing, Lean Start-up, Agile Organizations, Start-ups vs. Incumbents, Intrapreneurship, Innovation Hubs and Incubators, and Supply Chain Partnerships.

    ii. Business Models

         a. Hyper disruptive Business Models

         b. Models relevant to sustainability

         c. Models relevant to Emerging National Markets

    iii. Strategic Responses to New Business Models

6. Strategic Revenue Optimization

    i. Decision-Making Techniques

       a. Cost-Volume-Profit (CVP) Analysis

       b. Key Cost Concepts

    ii. Pricing Decisions

        a.  Theory and Principles of Product Pricing

        b.  Pricing Strategies: New Products, Finished Goods, Pricing of Services, and Emerging Business Models

        c.  Sensitivity Analysis in Pricing Strategies

        d.  Pricing Decisions under Special Circumstances

        e.  Ethical and Non-financial Considerations

    iii. Pricing Strategies

        a. Pricing Strategies

        b. Kano’s Performance Attributes

7. Strategic Profit Management

    i.  Analysis of Operating Profit

    ii. Activity-Based Profitability Analysis, Activity-Based Management (ABM), and Activity-Based Budgeting (ABB)

    iii. Pareto Analysis

PART B : STRATEGIC PERFORMANCE MANAGEMENT

1. An Overview of Strategic Performance Management

   i.  The Connection Between Performance Management and Strategy

   ii. The Role of Performance Management in Business Integration Through Models like the Value Chain and McKinsey’s 7S Framework

   iii. The Impact of Organizational Structure, Culture, and Strategy on Performance Measurement

   iv. Challenges of Strategic Performance in Complex Business Structures

    v. Behavioral Aspects

    vi. Predicting and Preventing Corporate Failure

2. Strategic Performance Measures in Private Sector

    i. Critical  success Factors and Their Connection to Performance Measurement, Key Performance Indicators (KPI)

    ii. Financial Metrics: Gross Profit, ROCE, ROI, EPS, RI, NPV, EVA, etc.

    iii. Non-Financial Performance Measures: Connecting Performance Measures (Balanced Scorecard); Link Strategy, Operations and Performance (Performance Pyramid); Link Between  achievement of the  Corporate Strategy and the  Human Resource Management (The Building Block Model); Triple Bottom Line

    iv. The Importance of Quality in Management Information and Performance Measurement Systems

3. Strategic Performance Measures in the Not-for-Profit Organizations

   i.  Diversity Objectives and Challenges in measuring Outputs

   ii. “Value for Money” services provision as a measure of performance in not-for-profit organisations and the public sector

   iii. Adapted Balanced Scorecard

4. Preparation of Performance Reports
5. Divisional Transfer Pricing

    i. The Meaning, Purpose, and Principles of Transfer Pricing

    ii. Transfer Pricing Methods

    iii. The Behavioral Impact arising from Divisional Structures

    iv. Global Transfer Pricing

6. Standard Costing

    i.  Analysing Advanced Variances

    ii. Combining Standard Costing with Marginal Cost Accounting

    iii. Profit Reconciliation

    iv. Variance Analysis Methods, Interpretation of Variances, Potential Interrelationships Between Variances and Reporting

     v. Behavioral Aspects of Standard Costing and Its Limitations (Including Its Application in the Contemporary Business Environment)

PART C : CASE STUDY

1. Case Study

   i. Covering Course Concepts

   ii. A mix of multiple-choice questions and extended-response questions.

General Note -

  1. The Strategic Cost & Performance Management exam builds on the skills and knowledge assessed in the “Strategic Management” and “Cost and Management Accounting” exams. At this level, candidates are expected to fully understand the subject and apply their technical knowledge to address strategic and operational issues within the organization. 
  2. The basic applications of the following quantitative techniques must be studied to connect them to the course concepts: (a) Linear Programming, (b) Learning Curve/Experience Curve.

SYLLABUS : SET C

PAPER 1 : RISK MANAGEMENT (100 MARKS)

Objective

To enhance knowledge and gain insights into the diverse risks businesses encounter, while developing an understanding of practical techniques for effective risk management in real-world scenarios.

Contents

1. Introduction & Overview

    i.  Overview of Risk and Uncertainty

    ii. Classifications and Types of Risks

    iii. Significance and Goals

    iv. Overview of  Mitigation and Controls

    v.  Career Prospects in Risk Management for Chartered Accountants

2. Risk Strategy & Governance

    i.  Frameworks for Risk Management

    ii. Implementing Risk Management Policies and Processes

    iii. Enterprise Risk and Its Relationship with Business

    iv. Governance and Ethical dimensions

    v.  Regulatory, Legal and Compliance

3. Role of Risk Stakeholders

    i.  Board Supervision

    ii.  Role of CEO, Management

    iii. Role of Risk Managers, Owners

    iv. The Role of Auditors (External/Internal)

4. Risk Assessment

    i.  Identifying Risks

    ii. Risk Evaluation (Impact/Probability)

    iii. Risk Measurement and Rating

    iv. Risk Management Quantification Tools

    v.  Risk Prioritization and Heat Matrix

5. Risk Response

   i. Risk Appetite

   ii. Techniques for Managing Risk

   iii. Risk Control

   iv. Contingency Planning

6. Risk Monitoring & Reporting

    i.  Information and Communication

    ii. Automation and Continuous Monitoring

    iii. Risk Auditing and Evaluation

    iv. Ongoing and Periodic Reporting

7. Strategic Risk

    i.  Risks in the Business Portfolio

    ii. Risks from Industry/Competition

    iii. Investment and Financing for Growth

    iv. Risks with Products and Services

8. Operational Risk

    i. Risk Management at the Process Level

    ii. Risks of Outsourcing and Third-Party Risk

    iii. Supply Chain (Sales/Purchasing)

    iv. Product/Service Quality etc.

9. Emerging Issues in ERM

    i.  External Influences

    ii. Global Developments

    iii. Technology and Automation

PAPER 2 : SUSTAINABLE DEVELOPMENT AND SUSTAINABILITY REPORTING (100 MARKS)

Objective

a. To gain an understanding of the concepts and principles of Sustainable Development.

b. To assess the impact of business decisions on Sustainable Development.

c. To identify emerging trends in sustainability.

Contents

1. Fundamentals of Sustainable Development

    i.   Origin

    ii.  Key Terms

    iii. Need for Sustainability

    iv. Understanding Sustainable Development

    v.  Advantages of Integrating Sustainability in Business

    vi. The Role of Sustainability in Modern Business Planning

2. Sustainability Reporting in India
CA Intermediate

     i. National Guidelines on Responsible Business Conduct, 2018 (NGRBC)

          -Background and Structure

          -Nine Principles of NGRBC

          -Connection to the Sustainable Development Goals (SDGs)  

     ii. Sustainability Reporting Standards Board of the ICAI

    iii. Social Stock Exchange and the Institute of Social Auditors of India

3. Business Responsibility and Sustainability Reporting (BRSR) in India

     i.  The Business Responsibility and Sustainability Report published by the Committee on Business Responsibility Reporting, Ministry of Corporate Affairs.

     ii. SEBI Circular on Business Responsibility and Sustainability Reporting (BRSR)

     iii. BRSR Disclosures

     iv. Sustainability Reporting Maturity Model (SRMM) By ICAI

     v.  Overview of Format of Business Responsibility and Sustainability Reporting (BRSR) Lite

4. Global Trends in Sustainability Reporting

     i. United Nations Sustainable Development Goals (UNSDGs) and Reporting 

         – Objective 

         – Structure

         – The 17 Goals for Sustainable Development (SDGs)

     ii. Overview of Major Global Sustainability Reporting Standards and Frameworks

     iii. The International Sustainability Standards Board (ISSB) and an Overview of Its Sustainability Reporting Standards

5. Sustainability Assurance

    i.  Assurance Standards On Sustainability – An Overview

    ii. Types of Assurance – Limited vs. Reasonable

PAPER 3 : PUBLIC FINANCE AND GOVERNMENT ACCOUNTING (100 MARKS)

Objective

To understand government economic policies, budgets, fiscal tools, government grants, public funds, and the rules, regulations, and accounting systems related to government departments and institutions of Central, State & Local Government.

Contents

  1. An Introduction to Government Operations: The role and responsibilities of Central, State, Panchayati Raj Institutions and Urban Local Bodies, Union-State-Local Government Fiscal Relations, Fiscal Federalism.
  2. Constitutional Provisions and Related Authorities: 

    Article 112. Annual Financial Statement.

    Article 113. Parliamentary Procedure Regarding Estimates. 

    Article  114. Appropriation Bills. 

    Article 115. Supplementary, Additional, or Excess Grants. 

    Article 116. Votes on Account, Votes of Credit and Exceptional Grants.

    Article  117 Special Provisions for Financial Bills. Article 148 Comptroller and Auditor-General of India.

    Article 149. Duties and Powers of the Comptroller and Auditor-General.

    Article 150. Form of Accounts for the Union and the States.

    Article 280. Finance Commission.

    Article  281. Recommendations of the Finance Commission, State Finance Commissions, CGA NITI Aayog.

  3. Public Finance: Meaning, Importance, Scope, and Categories, Fiscal and Budgetary Functions, Differences Between Private and Public Finance, Public Finance and the Economic System; Fiscal and Monetary Policies.
  4. Public Revenue: Sources of Tax and Non-Tax Revenue for Centre, States and Local Government, Efficiency and Equity in Tax Policy Design, Tax Policy and Tax Administration in India; Tax Collection by the Union, State and Local Governments.
  5. Budget: Budget Cycle: Planning, Preparation, Execution, and Monitoring; How to Interpret Data from Budget Documents; Fiscal Deficit, Primary Deficit, and Revenue and Effective Revenue Deficit.
  6. Public Debt/Bond: Meaning and Types of Public Debt; The Burden of Public Debt; Principles of Public Debt Management; Debt Profile of the Union Government; Debt Servicing; The Role of Multilateral Agencies.
  7. Public Expenditure:  Canons of Public Expenditure; Classification of Public Expenditure; Wagner’s Law of Public Expenditure; Public Expenditure as a Tool of Fiscal Policy; PFM Structure – An  Introduction and IT Intervention.
  8. Union & State Accounts: Constitutional Provisions, Structure of Various Ministries/ Departments of the Government of India; Controller General of Accounts – Hierarchy and Functions; Structure of Government Accounts and Fund Flow; Classification of Government Accounts – Consolidated Fund, Contingency Fund and Public Accounts; Classification of Government Expenditure in India, including an Introduction to the Chart of Accounts; Banking Arrangements and Bankers to the Government.
  9. Urban Local Bodies: The National Municipal Asset Valuation Manual (NMAM), State Municipal Accounts Manuals/Rules, and Accounting Standards for Local Bodies (ASLBs).
  10. Standard Internal Control and Risk Management: Internal control systems in government, including internal audit, outcome budgeting and reporting, procurement control, asset management controls, and cash controls.etc.  Types of audits, with a focus on the roles of the CAG and PAC, contingent liabilities, and parliamentary oversight. A brief introduction to IGAS, IGFRS, and IPSAS is also covered.

PAPER 4 : THE INSOLVENCY AND BANKRUPTCY CODE, 2016 (100 MARKS)

Objective

To gain an understanding of the Code and develop the ability to apply this knowledge in real-world scenarios.

Contents

To gain an understanding of the Code and develop the ability to apply this knowledge in real-world scenarios.

  1. Introduction: Tracing the development journey of the Insolvency and Bankruptcy Code and highlighting its significance
  2. Preliminary: Relevant Definitions and Application of the Code.
  3. Insolvency Resolutions and Liquidation for Corporate Persons: Corporate Insolvency Resolution Process (CIRP), Liquidation Process, Pre-Packaged Insolvency Resolution Process, Fast-Track Corporate Insolvency Resolution Process, Voluntary Liquidation of Corporate Persons,  Adjudicating Authority for Corporate Persons.
  4. Insolvency Resolution and Bankruptcy for Individuals and Partnership Firms: Preliminary (Application & Definitions), Fresh Start Process, Insolvency Resolution Process, Bankruptcy Order for Individuals & Partnership Firms, Administration & Distribution of the Estate of the Bankrupt, Adjudicating Authority, Offences & Penalties.
  5. Regulation of Insolvency Professionals, Agencies, and Information Utilities: Insolvency and Bankruptcy Board of India: Powers and functions of the Board, roles of Insolvency Professional Agencies, Insolvency Professionals, and Information Utilities, along with aspects of inspection and investigation, finance, accounts, and auditing
  6. Miscellaneous provisions: Forms 1-6 Submitted for Initiating CIRP before the NCLT, Comprehensive List of Rules and Regulations under the Insolvency and Bankruptcy Code (IBC).
  7. Key Judicial Rulings under the Insolvency and Bankruptcy Code, 2016.

Note: If new legislations replace existing ones, the syllabus will incorporate the relevant provisions of the new laws, effective from the date specified by the Institute.

Any specific inclusions or exclusions within the topics covered in the syllabus will be implemented annually through Study Guidelines, as necessary.

The Insolvency and Bankruptcy Code, 2016 Covering references of significant Rules and Regulations.

PAPER 5 : INTERNATIONAL TAXATION (100 MARKS)

Objective

To gain an understanding of the fundamental concepts, principles, and provisions of international taxation and develop the ability to apply this knowledge to practical case scenarios.

Contents

1.  Background of International Taxation

  • Origins of International Taxation
  • Global Tax Disputes and the Issue of Double Taxation
  •  Definition of a Treaty
  • Source-Based Taxation vs. Residence-Based Taxation Rules

2. Overview of the Income-tax Act, 1961

  • Levy Of Income Tax and Key Definitions
  • Residential Status (+) Management and Control
  •  Total Income & Its Scope
  •  ‘Deemed Accrual’ Concept As Per Section 9.  
  • Business Connection (Including Discussion On Significant Economic Presence).

3. Taxation Of Non-Residents

  • Types of Income and Their Taxability
  • Withholding Of Taxes
  • Tax Filing Responsibilities of Non-Residents

4. E-Commerce Transactions & Their Taxation (Including Equalization Levy)

5. Double Taxation – Concept & Its Relief

  • Understanding double taxation and the situations that lead to its occurrence
  • The Principle of Tax Neutrality
  • Categories of Relief
  • Certificate of Tax Residency
  • Treaty Shopping

6. Model Tax Conventions

  • Overview – OECD and UN Model Tax Conventions
  •  A Comparative Analysis of Key Articles in the OECD and UN Model Tax Conventions (with Examples from India’s DTAAs with the USA, Singapore, UK, UAE, and the Netherlands)
  •  Protocol to DTAAs (Most Favoured Nation (MFN) Clause)

7. Transfer Pricing

  • Introduction
  •  Global Transaction
  •  Associated Enterprises
  •  Specified  Domestic Transaction
  •  Arm’s-Length Price & Its Computation
  •  Safe Harbour Regulations (SHRs)
  •  Advance Pricing Agreements
  •  Secondary Adjustment and Thin Capitalisation
  • Compliances & Documentation

8. BEPS – Introduction & Overview

Note: If any new legislation(s) replace existing legislation(s), the syllabus will be updated to reflect the provisions of the new legislation(s) in place of the existing ones, effective from the date notified by the Institute. Likewise, if any existing legislation(s) on direct tax laws are no longer in effect, the syllabus will be revised to exclude such legislation(s), starting from the date to be notified by the Institute.

Any specific inclusions or exclusions within a topic covered in the syllabus will be implemented annually through Study Guidelines, as necessary. These adjustments may also result from changes introduced by the Annual Finance Act, including additions or deletions.

PAPER 6 : THE ARBITRATION AND CONCILIATION ACT, 1996 (100 MARKS)

Objectives

To gain a comprehensive understanding of Arbitration and Conciliation Law and develop the ability to apply this knowledge to real-world issues.

Contents

  1. Introduction: Introduction to the different methods of Alternative Dispute Resolution (ADR)
  2. Fundamentals of Arbitration: General Provisions, Arbitration Agreements, Management of Arbitral Proceedings, Making of Arbitral Awards and Conclusion of Proceedings, Recourse Against  Arbitral Awards, and the Finality and Enforcement of Arbitral Awards.
  3. Enforcement of Specific Foreign Awards: Different Types of Arbitration, Arbitral Awards (Adhoc, Domestic, and International Commercial Awards), and the Enforcement of Foreign Awards (New York Convention Awards and Geneva Convention Awards).
  4. Conciliation: Distinction Between Arbitration and Conciliation, Initiation of Conciliation Proceedings, Selection and Number of Conciliators, Procedure for Appointment of Conciliators, Submission of Statements to the Conciliator, Applicability of Legal Enactments to the Conciliator, Functions and Responsibilities of the Conciliator, Administrative Support in Conciliation, Communication Protocol Between the Conciliator and Parties, and Guidelines on Disclosure of Information.

Note: If new legislation replaces the existing laws, the syllabus will be updated to include the relevant provisions of the new legislation, effective from the date specified by the Institute.

Any specific inclusions or exclusions within the topics covered in the syllabus will be implemented annually through Study Guidelines, as needed.

PAPER 7 : FORENSIC ACCOUNTING (100 MARKS)

Objective

  a. To gain a solid understanding of the fundamental concepts of Forensic Accounting and its practical application in fraud investigations.

  b. To develop the ability to apply these concepts to real-world case situations.

Contents

1. Background & Overview

  • A concise overview and the development of the Forensic Accounting profession.
  • The Growing Significance of the Forensic Accounting Profession.
  • Legal & Regulatory ramifications
  • Career Opportunities in Forensic Accounting for Chartered Accountants.

2. Introduction & Basic Concepts

  • Definition of Fraud, Forensics, Forensic Accounting, and Investigations
  • Differences Between Auditing, Forensics Accounting, and Investigations Procedures
  • Duties and Responsibilities of Stakeholders
  • Fraud Theories and Its Vulnerabilities
  • An Overview of Forensic Accounting and Investigation Standards (FAIS)

3.  Nature & Types of Frauds

  • Various Types of Fraud
  • Different Nature of Frauds
  • Categories of Occupational Fraud – Fraud Tree
  • Specialized Fraud Areas/Schemes 
  •  Cybercrime/Fraud
  • Fraudulent Mechanisms

4. Financial Statement Frauds

  • Characteristics, Nature and Reasons
  • Various Forms of Financial Statement Fraud
  •  Legal and Regulatory Provisions for Financial Statement Frauds
  • Risk Factors Contributing to Financial Statement Frauds

5. Process of Forensic Investigation

  • Initiation and Defining the Mandate
  • Develop a Plan and Acquire Expertise
  • Collecting relevant Evidence
  • Conduct the Analysis
  • Documentation and Reporting
  • Legal Proceedings

6. Fraud Detection

  • Indicators of Fraud
  • Quantitative Evidence – Data Mining & Analysis 
  • Qualitative Evidence 
  • Law and Evidence
  • Applying Hypothesis

7. Digital Forensics

  • Electronic Evidence
  • Utilization of Technological Tools
  • Forensic Analysis of Physical and Digital Evidence
  • Important Legal Provisions of the Information Technology Act.

8. Interviewing Skills

  • The Art and Science of Interviews – Nature and Types
  • The Interview Procedure
  • Significance of Non-Verbal Cues
  • Recording the Statements
  • Case Studies and Role-playing Exercises

9. Writing a Forensic Investigation Report

  • Overview of Findings
  • Presenting and Reviewing the Draft Report
  •  Essential Components According to Forensic Accounting and Investigation Standards (FAIS)
  • Assumptions and Limitations

10. Fraud Prevention

  • Anti-Fraud Policies and Vigilance Mechanism
  • Internal Control Mechanisms and Systems & Processes
  • Compliance Culture
  • Disciplinary Mechanism

PAPER 8 : VALUATION (100 MARKS)

Objective

 a. To gain a conceptual understanding of valuation and its different approaches and methodologies.

 b. To gain an understanding of the regulatory requirements and the associated framework.

 c. To build a foundational understanding of applying various valuation methodologies, techniques, and approaches to business organizations.

Contents

  1. Introduction to Valuation
  • Genesis of Valuation
  • Valuation in the Current Context
  • Key Terminologies and Their Significance

        – Valuation 

        – Valuer 

       – Registered Valuer

       – Different Types of Value

       – The Difference Between Price and Value

       – Valuation Bases and Premise

2. Need and Purpose of Valuation

  • Objective of Valuation
  •  Valuation Based on Transactions
  •  Valuation Based on Regulatory and Tax Considerations
  •  Valuation Based on Additional Requirements

3. Valuation Approaches and Methodologies

  • Definition of Valuation Approaches

      – Asset-Based Valuation Approach

      – Income or Earnings-Based Approach

    • (a) Price/Earnings Ratio & Price/Growth Ratio
    • (b) Earnings Measured on a Cash Flow Basis (Discounted Cash Flow Approach)
    • (c) Earnings Measured on a Non-Cash Flow Basis (Non DCF Approach)
  • Calculation of Fair Value
  • Guidelines for Selecting Valuation Approaches or Methodologies in Different Scenarios

4. Valuation Documentation and Report

  • The Objective of Conducting Valuation
  • Valuation Driven by Transactions

5. Valuation Standards

Fundamental Overview of ICAI Valuation Standards 2018 and Their its Application

6. Other Applications of Valuation

Valuation in Particular Situations and Case Scenarios

  • Inventory Valuation
  • Investment Valuation 
  • Valuation of Fixed Income Instruments
  • Valuation of Intangible Assets
  • Valuation of Liabilities

PAPER 9 : FINANCIAL SERVICES AND CAPITAL MARKETS (100 MARKS)

Objective

a. To acquire an understanding of the financial services provided by various intermediaries, along with their roles and activities in the financial market, particularly within the capital market.

b. To develop the ability to apply this knowledge effectively in addressing real-world issues.

Contents

1. Introduction to Financial Markets

  • Overview of the Financial Market
  • The Role of Financial Markets in a Country’s Economic Development
  • Stakeholders in the Financial Market (Domestic and Global)
  • Overview of the Indian Financial Market Scenario

2. Impact of Various Policies of Financial Markets

  • Reserve Bank of India’s Credit Policy
  • Policy of the Federal Reserve (Fed)
  • Inflation-Adjusted Cost Index
  • Consumer Price Index (CPI)
  • Wholesale Price Index

3. Capital Market – Primary

i. Basis of Capital Markets

ii. Segments of Capital Markets

iii. Instruments of the Capital Market

iv. Key Aspects of the Primary Market – Types of Securities, Offer Documents, Issue Requirements, Capital Market Intermediaries, Book Building Process, Special Purpose Acquisition Companies (SPACs), Application Supported by Blocked Amount (ASBA), Green Shoe Option, Anchor Investors, Private Share Placement, Rights Issue, and Exit Offers

4. Capital Market – Secondary

  • Overview of the Secondary Market
  • Development of the Stock Market in India
  • Organization of the Stock Market in India
  • Demutualization of Stock Exchanges
  • Share Trading in the Secondary Market-Trading buy a Retail Investor, Algorithmic Trading, Basket Trading
  • Stock Market and Its Operations- Characteristics of Stock Exchanges in India, Functions of Stock Exchanges, Basics of Stock Market Indices, Index Management, Rebalancing and Reconstitution, Uses of Market Indexes.
  • Risk Management in the Secondary Market-Trading Rules and Regulations, Circuit Breaker for curbing excess volatility, Trading and Settlement, National Securities Clearing Corporation Limited (NSCCL), Market-Making System, Securities Lending and Borrowing, Short Selling, Straight Through Processing, Margin Trading, Block Mechanism in Demat Accounts 
  • Other Aspects of the Secondary Market-Buy Back of Shares, Block and Bulk Deals.
  • Indian Debt Market
  • Emerging Markets – GIFT City, Power Exchange, Energy Exchange, Social Stock Exchange

5. Money Market

    i. Fundamentals of the Money Market

    ii. Participants in the Money Market

    iii. Money Market Instruments

    iv. Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)

     v. Determination of Interest Rates – MIBOR, LIBOR, and the Replacement of LIBOR

    vi. Instruments of Money Markets – Government Securities (G Sec)

    vii. Recent Developments in the Money Market

    viii. Repo and Reverse Repo

     ix. CRR, SLR

     x. Day Count Convention

6. Bond Market

    i. Introduction to the Bond Market

    ii. Primary Bond Market vs. Secondary Bond Market

    iii. Types of Bond Market

    iv. Bond Market Strategies

    v. Bond Indices

    vi. Bond Market vs. Stock Market

7. Derivative Market

    i. Introduce to Derivatives

    ii. Forward, Futures & Options

    iii. Concept of Swaps

8. Institutions and Intermediaries

    i. Depository

    ii. Exchanging of Stock and Commodity: India and Global Markets

    iii. Intermediaries in the Capital Markets include Merchant Bankers, Issue Registrars and Share Transfer Agents, Underwriters, Bankers to an Issue, Debenture Trustees, and Portfolio Managers.

    iv. Stockbrokers, and sub-brokers

    v. Institutional Investors

    vi. Foreign Portfolio Investors (FPIs)

   vii.  Custodians

   viii. Clearing Houses – Indian and Global

9. Commodity Market

     i. Overview of Commodity Markets

     ii. Significance of Commodity Markets

     iii. Commodity Market in India: Including of Warehousing and Physical Settlement

     iv. Utilization of Derivatives in Commodity Markets

     v. International Commodity Exchanges

10. Mutual Funds

      i. Meaning

      ii. Evolution

      iii. Mutual Fund Organization

      iv. Categories of Mutual Funds

      v. Net Asset Value (NAV)

     vi. Evaluating Performance

     vii. Benefits and Drawbacks of Mutual Funds

   viii. Factors Affecting the Selection of Mutual Funds

    ix. Indicators of Investor Exit from a Mutual Fund Scheme

    x. Money Market Mutual Funds

    xi. Exchange Traded Funds (ETFs)

    xii. Real Estate Investment Trusts (ReITs)

    xiii. Infrastructure Investment Trusts (Invites)

    xiv. Other Considerations – Side Pocketing and Tracking Error

11. Private Equity

      i. Meaning of Private Equity

      ii. Categories of Private Equity

           – Venture Capital

           – Buyouts

           – Hurdle rate 

           – Paid in Capital 

           – Term Sheet

      iii. Costs of Investing in Private Equity

      iv. Exit Routes

      v. Valuation of Private Equity Transactions

      vi. Private Equity Funds (Return Distribution Between General Partner and Limited Partner)

      vii. Current Challenges in Private Equity – The rise of Patient Capital and Ethical Concerns

12. Investment Banking

      i.  Concept

      ii. Functions

      iii. Challenges

      iv. Developments in Investment Banking

      v. Merchant Banking and Management of Issues

13. Credit Rating

      i. Introduction

      ii. Rating Services

      iii. Objectives and types

      iv. Uses

      v. Credit Rating Process

     vi. Credit Rating Methodology

     vii. CAMEL Model in Credit Rating

     viii. Rating Revisions

     ix. Credit Rating Agencies in India and Globally

     x. Credit Rating Agencies and the US Sub-prime Crisis

     xi. Limitations of Credit Rating

     xii. Contemporary Issues in Credit Rating

14. Leasing

       i. Leasing: Meaning, Types, Advantages, and Disadvantages

      ii. Financial Evaluation of Lease Proposals from the Lessor and Lessee Perspectives

      iii. Break Even Lease Rental (BELR) from Lessee’s and Lessor’s Point of View

      iv. Cross Border Leasing

       v. Regulatory Aspects of Leasing

15. Factoring

     i. Concept, Definition, and Mechanism of Factoring

     ii. Types/Forms of Factoring

     iii. Functions of a Factor

     iv. Benefits of Factoring

     v. Factors inhibiting the Growth of Factoring in India

     vi. Forfaiting

     vii. Forfaiting vs. Export Factoring 

     viii. Regulatory Aspects of Factoring

16. SEBI Regulations – Compliance in Capital Markets

PAPER 10 : FOREX & TREASURY MANAGEMENT (100 MARKS)

Objective

To acquire Forex and Treasury Management expertise, deal with its complexities, and apply this knowledge in real-world scenarios.

Contents

1. Organizational Structure of Treasury

     i. Introduction to Treasury

     ii. Evolution and Objectives of Treasury

     iii. Treasury Organizational Structure – Front, Mid, and Back Office

     iv. Functions of the Treasury Department

      v. Functions of the Treasury and Treasurer in:

            – Raising Capital 

            – Managing Bank Relationships 

            – Money Management 

            – Treasury Performance Management 

            – Liquidity Management 

            – Credit Management 

            – Forex Management 

            – Risk Management

      vi. Treasurer Responsibilities

      vii. Integrated Treasury Management – Cost Centre and Profit Centre

2. Process of Treasury

     i. Treasury Management – Systems and Techniques

     ii. Treasury Policy and Procedure Manual

     iii. Delegation with Accountability:

          – Open Position Limits: Daylight Limit, Overnight Limit, Asset Position Limit, and Intraday Limit.

          – Deal Size and Individual Dealer’s Limit

          – Stop Loss Limits

     iv. Control and Reporting Requirements

      v. Dealing and Trading Operations: Ensuring Control and Orderly Conduct, Adhering to Moral and Ethical Codes, Implementing Checks and Balances, and Signing the Ethical Code Agreement.

      vi. An insight into:

         – Float, Availability, and Swaps

         – Account Analysis and Clearing Houses

         – Lockboxes and Disbursement

     vii. Benchmark Rates for Discounting Cash Flows

     viii. Liquidity and Cash Flow Management – CRR

           – Objectives, Sources, and Deployment

           – Internal Control, Netting, and Gap Management

      ix. Treasury Management Processes: Domestic and International Treasury Remittances

       x. Payment and Settlement Systems: CCIL, CLS, RTGS, NEFT, and SWIFT

      xi. Dealing Room Operations: Nostro/ Vostro/ Loro, Mirror Accounts, Open Currency Position, and Cash Position by Dealers

3. Types of Treasuries

     i. Treasury in Manufacturing and Service Corporates

     ii. Background

        – Contribution Analysis

        – Operating and Financial Leverage 

        – Liquidity Management 

        – Foreign Exchange Exposures 

        – Commodity Exposures 

        – Credit Exposures 

        – Debt Restructurings

     iii. Treasury – Banking

         – Background 

         – Capital Adequacy 

         – Yield Curve and Spreads 

         – Credit Risks

         – Foreign Exchange Risk 

         – Interest Risks 

         – Re-financing Risks 

         – Securitization 

         – Asset Liability Management

     iv. Treasury – Special Reference to:

         –  Insurance Companies (Life & General) 

         – Mutual Fund Organizations 

         – Chit Fund Organizations 

         – Housing Finance Companies 

         – Non-banking Financial Companies 

         – Government (Either State or Central) 

         – Reserve Bank of India 

         – Profit Centre Vs. Non-Profit Treasury.

4. Treasury – Domestic

     Classification of Treasury Market:

        – Domestic or National Treasury Market

        – Forex or International Treasury Markets

5. Treasury – Forex

   i. Foreign Exchange Markets:

       – Different Kinds of Inter-Bank Forex Markets  

       – Highly Traded Markets – Cash/OTC 

       – Nature of Transactions 

       – Cross Border Currency Flows 

       – Liberalization of Exchange Control 

       – Role of Banks in the Forex Market 

       – Factors Impacting the Forex Market 

       – Convertibility and BOP

    ii. Forex Concepts:

        – Exchange Rate Quotes 

        – Factors Affecting Exchange Rates 

        – Exchange Rate Mechanism 

        – Spot and Cross and Forward Rates 

        – Premium and Discount 

        – Forward Contracts-Booking, Extension, Cancellation

    iii. International Treasury:

        – Market Participants 

        – Various Forex Treasury Products 

        – Volatility of Major Currencies

        – Currency Trading 

        – Global Securities-Portfolio Management

    iv. Derivative Markets

       – Futures, Options and Swaps 

       – Price Calculation of Various Instruments 

       – Swaps – Outright Deals, Dealer Operations 

       – Trends in Futures Market 

       – Short-Term Interest Rate Futures

    v. Interest Rate Derivatives:

        – Introduction 

        – Brief terminologies 

        – Hedging

SET D

PAPER 1 : THE CONSTITUTION OF INDIA AND ART OF ADVOCACY (100 MARKS)

Objective

  1. Understanding the Basics of the Constitution governing the State, Government, and Citizens’ Rights and Duties
  2. To gain an understanding of the Indian legal system and acquire the knowledge to apply fundamental principles of drafting and pleading.

PART I: THE CONSTITUTION OF INDIA

Contents

  1. Introduction:  The Preamble, Key Features, Sources, Union and its Territory, Citizenship, Fundamental Rights, Duties, and Directive Principles of State Policy.

 

2. Government of Union: The Executive, Parliament, and Judiciary

 

3.  Government of States: The Executive, State Legislature, and High Courts 

 

4.  Relation between Union and the States: Legislative relations, Administrative relations, Financial relations.

 

5. Emergency Provisions

 

6. Procedure for Amendments

PART II: ART OF ADVOCACY

Contents

  1. Evolution of the Legal System in India
  2. Representation by Chartered Accountants in Tribunals
  3. Fundamental Principles of Drafting and Pleading

Note: If new laws are introduced to replace the existing ones, the syllabus will incorporate the relevant provisions of the new legislation, effective from the date specified by the Institute.

Any specific additions or omissions in the topics covered by the syllabus will be implemented annually through Study Guidelines, if necessary.

PAPER 2: PSYCHOLOGY & PHILOSOPHY (100 MARKS)

SECTION A: PSYCHOLOGY

  1. To build knowledge and understanding of fundamental psychology concepts and their implications in the accountancy process.
  2. To provide a practical perspective on psychological concepts applicable to both personal and professional life.

Contents

1. Introduction (Definition, Orientation, and Scope)

  1. What exactly is Psychology?
  2. Common Misunderstandings in Psychology
  3. The Applications and Scope of Psychology in Accounting and accountancy

2. Personality

  1. Understanding Personality: The HEXACO Model and the Dark Triad Theory
  2. The Role of Personality in Human Interactions within Accounting
  3.  Mindfulness and Its Impact on Decision-Making
  4. Factors Influencing Decision-Making  (Attitude: Stereotypes and Prejudices, Aptitude and Motivation)
  5. Decision Making under Uncertainty

3. Individual level psychological process

  1. The Concept of Emotional Intelligence: Self-Awareness, Self-Regulation, Self-Management, and Relationship Management
  2. Strategies to Improve Emotional Intelligence in Daily Life Activities
  3. Navrasa
  4. Communication (Verbal and Nonverbal)
  5. Managing Stress and Work-Life Balance
  6. Understanding Stress (Eustress and Distress)
  7.  Practical ways to deal with stress

4. Psychological Processes in Organizations

  1. Teams, Leadership, and Managing Change
  2. Conceptual Understanding (Groupthink, Conformity, Social Loafing, Work Teams, Leadership, and Change Management)  and its application in modern accounting
  3. Psychological Capital (PsyCap) and Goal Setting in Accounting: Exploring Self-Efficacy, Optimism, Hope, and Resilience in Achieving Accounting Objectives.

SECTION B: PHILOSOPHY

Objective

A. To gain an understanding of how philosophy applies to and benefits contemporary life.

B. To cultivate an understanding of philosophical methods for critical thinking and analytical reasoning, while exploring self-awareness and ethical conduct.

Contents

1. General Discussions on Philosophy and Reasoning

  1. What is Philosophy?
  2. Core Branches in Philosophy (Indian and Western Perspectives)
  • Epistemology (The Theory of Knowledge – Truth, Justification, and Belief)
  • Metaphysics (The Nature of Reality – Mind-Body Dualism, Nature of Consciousness)
  • Axiology (The Study of Ethics and Aesthetics)
  1. Features of Indian Philosophy: Darshana Shastra

2. Critical Thinking and Reasoning

  1. Argument and Evaluation 
  2. Informal Fallacy

3. Ethics: Who we are & How we ought to conduct ourselves

  1. Virtue Ethics and the Theory of Excellence: Plato and Aristotle
  • Teleology (Theory of Means and End)
  •  Deontology (Concept of Duty)
  1. Indian Ethics
  • The Purpose of Life: Dharma (Duty), Artha (Wealth), Kama (Pleasure), and Moksha (Liberation).
  •  Types of Yoga: Karma Yoga (Path of Action), Bhakti Yoga (Path of Devotion), Jnana Yoga (Path of Knowledge), and Raja Yoga (Path of Meditation)
  • Meditation: Controlling Mental Fluctuations (Chitta Vritti Nirodha) and Practicing Discipline (Yama and Niyama)

4. Usefulness of Philosophy in Contemporary life (especially for CAs)

  1. Business Ethics
  • Karma Yoga for superior business performance
  • Lokasamgraha in Bhagavad Gita
  •  Leadership and Communication

2. Justice: Freedom, Responsibility and Action

3. Gender and Environment

PAPER 3: ENTREPRENEURSHIP AND START-UP ECOSYSTEM (100 MARKS)

Objective

To acquire knowledge and develop the skills necessary for success in Entrepreneurship and the Start-Up Ecosystem

Contents

  • Part A: Introduction to Entrepreneurship & Startups: The meaning and concept of entrepreneurship and startups, the history of entrepreneurship development, types of entrepreneurs, and the role of entrepreneurship and startups in economic growth. The rise of startups from a global and Indian perspective, along with the essential skills and traits needed to be an entrepreneur. Topics include creative and design thinking, the entrepreneurial decision-making process, succession planning, and managing family business.

Part B: Startup Registration: DPIIT Recognition, Benefits, Government Seed Funding, etc.

  •  Crafting business models and Lean Start-ups: Crafting Business Models and Lean Start-ups: Overview of Business Models; Developing Value Propositions – Traditional Industry Logic, Value Innovation Logic; Customer-Centric Innovation; Designing and Evaluating Business Models; Business Model Canvas; Introduction to Lean Start-ups; and Effective Business Pitching.
  • Product Development: Creating a Minimum Viable Product (MVP), Progressing Towards building “Product-Market Fit,” Real-World Case Studies of Startups Advancing from MVP to PMF, Prototyping, and Agile Development Methodologies for Tech Startups. Identifying Key Success Factors: Product (Technology), Product (Offering), Procurement, and Supply Chain.


  • Pitching Ideas and Presentations: Creating a Compelling Pitch Deck and Business Plan, Mastering the Elevator Pitch, Steps and Strategies for Effective Idea Pitching, and the Art of Persuasion.


  • Institutions Supporting Small Business Enterprises: Central-Level Organizations, State-Level Bodies, Other Agencies, Industry Associations, and Current Government Schemes Promoting Entrepreneurship.


  •  Funding & Valuation: Grasping the Fundamentals of Startup Funding and Identifying Investment Sources, Calculating Seed Capital, Key Requirements for Startup Funding, Financial Modeling for Startups, Approaching Angel Investors and Venture Capital Firms, Understanding Term Sheets, Investor Agreements, and Equity Dilution, and the Principles of Startup Valuation.


  • Legal Considerations for a Startup: Selecting the Right Business Entity and an Overview of the Registration Process, Startup Equity Distribution Among Co-Founders and Equity Vesting, ESOP Planning and Best Practices, Drafting a Co-Founder Agreement, and Registering Intellectual Property Rights (IPRs) such as Patents, Copyrights, and Trademarks.


  • Startup Incubators & Acceleration:The Difference Between Incubators and Accelerators, How to Choose the Right One (Key Factors and Their Impact), and How Incubators and Accelerators Operate


  • Miscellaneous: Case Studies on Success Stories, the Role of Startup Advisors & Funding Agents, Assembling the Right Startup Team, Founder’s Development: The Importance of PR Activities in Startup Success, Engaging with and Leading the Startup Community, and Exit Strategies.

PAPER 4: DIGITAL ECOSYSTEM AND CONTROLS (100 MARKS)

Objective

To build competencies and skill sets in evaluating controls and gathering relevant evidence within an IT environment, utilizing IT tools and techniques for the effective and efficient execution of accounting, assurance, financial technologies, and compliance services.

Contents

  1. Governance and Management of Digital Ecosystem: 
  • Key concepts of Governance and IT strategy
  • Governance, Risk and Compliance (GRC) Framework 
  • Fundamentals of Risk and Key Terminology, Sources, and Types of Risk.
  • Enterprise Risk Management Framework 
  • Information Systems Security Policy 
  • Business Continuity Planning and Disaster Recovery Planning

2. Information Systems Life Cycle:

  • Information System Acquisition
  • Methodologies for Information System Development
  • Implementation and Maintenance of Information Systems

3. Information Systems Control:

  • Information Systems Control and Its Classification
  • Overview of Information Technology Tools
  • Examples of Risks and Controls in Specific Business Processes

4. Digital Data and Analysis:

  • Data Privacy
  • Data Assurance
  • Introduction to the Personal Data Protection Bill, 2019
  • Regulatory Compliance with Relevant Sections of the Information Technology Act, 2000
  • Introduction to Data Analytics Tools and Techniques
  • Overview of Business Intelligence (BI) Tools and Techniques 

5. Digital Economy:

  • ABCD of Fintech:
  • Digital Payments, Digital Currency, and Cryptocurrency
  • E-business and the Related Risks and Controls
  • Emerging Technologies and Concepts.