CA Final Subjects & Syllabus
The CA Final consists of two groups, each having three papers. That’s a total of six papers.
🔹 Group 1
📝 Paper 1: FINANCIAL REPORTING (100 Marks)
Objective 🎯
- To develop skills to incorporate and solve problems in real life situations on Indian Accounting Standard (Ind AS) to make appropriate accounting treatment and develop appropriate accounting policies.
- To acquire skills and expertise to identify, implement disclosure requirements as required in Indian Accounting Standards (Ind AS) in the preparation and presentation of such financial statements.
- To gain the skills to prepare the financial statements of the group entities that comprise subsidiaries, associates and joint arrangements in accordance with the Indian Accounting Standards (Ind AS).
- To generate familiarity with some of the Accounting Standards and also to be able to resolve the problem in a practical situation where in both the standards and the treatment is not the same.
Contents 📑
1. General Purpose Financial Statements Introduction under Indian Accounting Standard (Ind AS)
Statutory provisions: Applicability criteria
Division II of Schedule III to the companies Act, 2013 and Guidance Note thereupon
2. Conceptual Framework for Financial Reporting under Indian Accounting Standards (Ind AS)
3. Application of Ind AS with reference to General Purpose Financial Statements
- Ind AS on Presentation of Items in the Financial Statements
Ind AS 1 “Presentation of Financial Statements”
Ind AS 34 “Interim Financial Reporting”
Ind AS 7 “Statement of Cash Flows”
- Ind AS on Measurement based on Accounting Policies
Ind AS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”
Ind AS 10 “Events after the Reporting Period”
Ind AS 113 “Fair Value Measurement”
- Ind AS on Income Statement
Ind AS 115* “Revenue from Contracts with the Customers”
- Ind AS on Assets and Liabilities of the Financial Statements
Ind AS 2 “Inventories”
Ind AS 16 “Property, Plant and Equipment”
Ind AS 116* “Leases”
Ind AS 23 “Borrowing Costs”
Ind AS 36 “Impairment of Assets”
Ind AS 38 “Intangible Assets”
Ind AS 40 “Investment Property”
Ind AS 105 “Non-current Assets Held for Sale and Discontinued Operations”
Ind AS 19 “Employee Benefits”
Ind AS 37 “Provisions, Contingent Liabilities and Contingent Assets”
- Ind AS on Items impacting the Financial Statements
Ind AS 12* “Income Taxes”
Ind AS 21 “The Effects of Changes in Foreign Exchange Rates”
- Ind AS on Disclosures in the Financial Statements
Ind AS 24 “Related Party Disclosures”
Ind AS 33 “Earnings per Share”
Ind AS 108 “Operating Segments”
- Other Ind AS
Ind AS 20 “Accounting for Government Grants and Disclosure of Government Assistance”
Ind AS 102 “Share Based Payment”
Ind AS 41 “Agriculture”
- Ind AS on Financial Instruments (it includes Ind AS 32, Ind AS 109, Ind AS 107)
Financial Instruments: Scope and Definitions
Classification and Measurement of financial assets and financial Liabilities
Financial Instruments: Equity and Financial Liabilities
Derivatives and Embedded Derivatives
Recognition and Derecognition of Financial Instruments
Hedge Accounting
Disclosures
4. Ind AS on Group Accounting
- Business Combinations (Ind AS 103)
- Consolidated and Separate Financial Statements (it includes Ind AS 110, Ind AS 111, Ind AS 27, Ind AS 28, Ind AS 112)
5. First time adoption of Indian Accounting Standards (Ind AS 101)
6. Analysis of financial statements (as per Ind AS)
7. Ethics with Accounting Concepts
Identify and explain the key ethical issues
8. Technology and Accounting
Evolution of Accounting in the technological environment
Notes: 📝
- *Discussion on AS 7, AS 9, AS 19 and AS 22 will be provided and respectively Ind AS 115, Ind AS 116 and Ind AS 12.
- If either a new Ind AS or Announcements and Limited Revisions to Ind AS are issued or the earlier one is withdrawn or new Ind AS, Announcements and Limited Revisions in case of issuance of Ind AS replacing the existing Ind AS, the syllabus will either include / exclude such new developments in lieu of the existing ones with effect from the date as may be notified by the Institute.
- The specific inclusions / exclusions in any topic covered in the syllabus will be affected every year by way of Study Guidelines
📝 Paper 2: ADVANCED FINANCIAL MANAGEMENT (100 Marks)
Objective 🎯
Gain the skills of using theories and tools of financial management to make strategic decisions.
Contents 📑
1. Financial Policy and Corporate Strategy
- Innovative role of CFO in different issues such as Value Creation
- Strategic decision making framework
- iii. Interface of Financial Policy and strategic management
- Balancing financial goals vis-à-vis sustainable growth
2. Risk Management
- Identification of types of Risk faced by an organisation
- Evaluation of Financial Risks
- Value at Risk (VAR)
- Evaluation of appropriate method for the identification and management of financial risk
3. Advanced Capital Budgeting Decisions
- Current trends in Capital Budgeting
- Impact of inflation on Capital Budgeting Decisions
- Impact of change in technology on Capital Budgeting
- Impact of change in Government Policies on Capital Budgetin
2. Dealing with Risk in Investment Decisions
3. Internal and External Factors affecting capital budgeting decision
4. Methods of incorporating risk in Capital Budgeting
5. Adjusted Present Value
6. Optimum Replacement Cycle
4. Security Analysis
- Fundamental Analysis
- Technical Analysis
- Meaning
- Assumptions
- Theories and Principles
- Charting Techniques – Basics
- Efficient Market Hypothesis (EMH) Analysis
3. Equity Research and tools available
5. Security Valuation
- Theory of Valuation
- Return Concepts
- Equity Risk Premium
- Required Return on Equity
- Selection of Discount Rate regarding Cash Flows
- Approaches to Valuation of Equity Shares
- Valuation of Preference Shares
- Valuation of Debentures/ Bonds
- Role and Responsibilities of Valuers
- A Valuer should take precautions before accepting any assignment of valuation
6. Portfolio Management
- Portfolio Analysis
- Portfolio Selection
- Capital Market Theory
- Portfolio Revision
- Portfolio Evaluation
- Asset Allocation
- Fixed Income Portfolio
- Risk Analysis of Investment in Distressed Securities
- Alternative Investment Avenues
- Real Estate
- Gold
- Private Equity
- REITs
- Hedge Funds
- ETFs
- Mutual Funds
- Commodities
7. Securitization
- Introduction
- Concept and Definition
- Benefits of Securitization
- Participants in Securitization
- Mechanism of Securitization
- Problems in Securitization
- Securitization Instruments
- Pricing of Securitization Instruments
- Risks in Securitization
- Tokenization
- Securitization in India
8. Mutual Funds
- Meaning
- Types
- Advantages and Disadvantages of Mutual Funds
- Evaluation of Mutual Funds
- Hedge Funds
- Role of FIIs in Mutual Funds
9. Derivatives Analysis and Valuation
- Introduction to Forwards, Futures and Options
- Futures Market
- Pricing of Forwards and Futures
- Hedging using Futures
- Options
- Option Pricing
- Option Greeks
- Exotic Options
6. Credit Derivatives
7. Real Options
8. Derivative Mishaps and Lessons
9. Swaps
10. Commodity Derivatives
Weather Derivatives
Electricity Derivatives
10. Foreign Exchange Exposure and Risk Management
- Factors affecting foreign exchange rate
- Role of SWIFT in Foreign Exchange
- National and International Payment Gateways
- Exchange rate determination
- Foreign currency market
- Management of Foreign Exchange Risk
11. International Financial Management
- International Capital Budgeting
- Offshore Investment Strategies vis-à-vis Domestic Capital Budgeting
- Project vis-à-vis Parent Cash Flows
- Discounting Rate and Adjusting Cash Flows
- Adjusted Present Value
2. Raising funds from International Sources
3. Sovereign Funds
4. International Financial Centre (GIFT City)
5. International Working Capital Management
- Multinational Cash Management
– Objectives of Effective Cash Management
– Optimization of Cash Flows/ Needs
Multinational Receivable Management
Multinational Inventory Management
12. Interest Rate Risk Management
- Benchmark Rates
- Interest Rate Risk
- iii. Hedging Interest Rate Risk
- Traditional Methods
– Asset and Liability Management (ALM)
– Forward Rate Agreement (FRA)
- Modern Methods including Interest Rate Derivatives
– Interest Rate Futures
– Interest Rate Options
– Swaps
– Swaptions
13. Business Valuation
- Conceptual Framework of Valuation
- Approaches/ Methods of Valuation
– Assets Based Valuation Model
– Earning Based Models
– Cash Flow Based Models
– Measuring Cost of Equity
- Capital Asset Pricing Model (CAPM)
- Arbitrage Pricing Theory
- Estimating Beta of an unlisted company
– Relative Valuation
- Steps involved in Relative Valuation
- Equity Valuation Multiples
- Enterprise Valuation Multiple
– Other Approaches to Value Measurement
- Economic Value Added (EVA)
- Market Value Added (MVA)
- Shareholder Value Analysis (SVA)
– Arriving at Fair Value
3. Valuation of non going concern and Going concern
4. Valuation of Distressed Companies
5. Valuation of Start ups
6. Valuation of Digital Platforms
7. Valuation of Professional/ Consultancy Firms
8. Impact of ESG on valuation
14. Mergers, Acquisitions and Corporate Restructuring
- Conceptual Framework
- Rationale
- Forms
- Mergers and Acquisitions
– Financial Framework
– Takeover Defensive Tactics
– Reverse Merger
5. Divestitures
– Partial Sell off
– Demerger
– Equity Carve outs
6. Ownership Restructuring
– Going Private
– Management/ Leveraged Buyouts
7. Unlocking the value through Mergers & Acquisitions and Business Restructuring
8. Cross Border Mergers
9. Special Purpose Acquisition Companies (SPACs)
15. Startup Finance
- Introduction including Pitch Presentation
- Concept of Unicorn
- Startup Initiative of GOI
- Sources of Funding
- Succession planning in Business
📝 Paper 3: ADVANCED AUDITING, ASSURANCE AND PROFESSIONAL ETHICS (100 Marks)
Objective 🎯
- To acquire the capacity to examine available auditing processes and procedures and implement them in auditing appointments.
- In order to build upon the capacity to tackle cases that are associated with audit engagements.
Contents 📑
1. Quality Control
SQC 1 Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information and Other Assurance and Related Services Engagements
SA 220 Auditing: Quality Control of the Financial Statement
2. General Auditing Principles and Auditors Responsibilities
SA 240 The Roles of Auditor with Regards to the Fraud during an Audit of Financial Statements
SA 250 Consideration of Laws and Regulations in an Audit of Financial Statements
SA 260 Communication with Those Charged with Governance
SA 299 Joint Audit of Financial Statements
SA 402 Considerations on Audit of an Entity Using a Service Organisation
(Note: Content of SA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing; SA 210 Agreeing the Terms of Audit Engagements and SA 230 Audit Documentation is covered in depth at Intermediate level. Thus, the application part of above SAs may be discussed in the form of Case Study at Final level.)
3. Audit Planning, Strategy, and Execution
SA 300 Planning an Audit of Financial Statements; (Content is covered in depth at Intermediate level, therefore, application part of SA 300 may be discussed in the form of Case Study at Final level.)
SA 450 Consideration of Misstatements observed in the course of the Audit
SA 520 Analytical Procedures
SA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates and Related Disclosures
SA 610 Using the Work of Internal Auditors
SA 620 Using the Work of an Auditor’s Expert
4. Materiality, Risk Assessment and Internal Control
Evaluation of Internal Control Procedures; Components of Internal Controls; Internal Control and Risk Assessment; Auditor’s response to assessed risks; Risk-Based Audit- Audit Risk Analysis; Reporting on Internal Control Weaknesses, Framework on Reporting of Internal Controls
SA 265 Communication about Weaknesses in the Internal Control to Those Charged with Governance and Management
SA 330 The Auditor’s Responses to Assessed Risks
(Note: Content of SA 315 Identifying and Assessing the Risk of Material Misstatement through Understanding the Entity and its Environment and SA 320 Materiality in Planning and Performing an Audit is covered in depth at Intermediate level. Thus, the application part of above SAs may be discussed in the form of Case Study at Final level.)
5. Audit Evidence
(Note: At intermediate level, there is content in SA 500 Audit Evidence; SA 501 Audit Evidence – Specific Considerations for Selected Items; SA 505 External Confirmations; SA 510 Initial Audit Engagements Opening Balances; SA 530 Audit Sampling & SA 550 Related Parties. Thus, the application part of above SAs may be discussed in the form of Case Study at Final level.)
6. Completion and Review
(Note: SA 560 Subsequent Event; SA 570 Going Concern and SA 580 Written Representation is dealt in detail at the level of Intermediate. Thus, the application part of above SAs may be discussed in the form of Case Study at Final level.)
7. Reporting
SA 700 Forming an Opinion and Reporting on Financial Statements
SA 701 Communicating Key Audit Matters in the Independent Auditor’s Report
SA 705 Changes to the Opinion in the Independent Auditor Report
SA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report
SA 710 Comparative Information – Corresponding Figures and Comparative Financial Statements
SA 720 The Auditor’s Responsibility in Relation to Other Information
8. Specialized Areas
An Overview and Basic- SA 800 Special Considerations-audits of financial statements prepared in accordance with special purpose frameworks
Basic and Overview of SA 805 Special Considerations-Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement
An Overview and Basic of SA 810 Engagements to Report on Summary Financial Statements
9. Audit-related Services
An Overview and Basic of SRS 4400 Engagements to Perform the Agreed-upon Procedures About the Finances
Basic and Overview of SRS 4410 Compilation Engagements
10. Review of Financial Information
Basic and Overview of SRE 2400 Engagements to Review Historical Financial Statements
Basic and Overview of SRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity
11. Prospective Financial Information and Other Assurance Services
Introduction and Outline of SAE 3400 The Examination of the Prospective Financial Information
Introduction and description of SAE assurance reports 3402 controls over a service organization
General and Summary Version of SAE 3420 Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus
12. Digital Auditing and Assurance
Digitally-based auditing and digital auditing, usage of automated tools, i.e., CAAT, Data Analytics, Artificial Intelligence, etc., Remote Auditing
13. Group Audits
Audit of Consolidated Financial Statements – Responsibility of the Parent Company, auditor of the Consolidated Financial Statements; audit considerations – permanent consolidation, current period consolidation; reporting
Audit of Group Financial Statements including the work of Component Auditors
(SA 600 Using the Work of Another Auditor)
14. Special Features of Audit of Banks & Non-Banking Financial Companies
15. Overview of Audit of Public Sector Undertakings: Concept of Propriety Audit; Performance Audit; Comprehensive Audit
16. Internal Audit : Internal Audit provisions under the Companies Act, 2013; Scope of Internal Auditing; Relationship between External and Internal Auditor; Internal Audit Standard Basics issued under ICAI; How to prepare an Internal Audit Report; Audit Trial, and a Management Function of Internal Audit
17. Due Diligence, Investigation and Forensic Accounting: Due Diligence Review; Audit versus Investigation; Phases of Investigation; Forms of Investigation; Action and Advice etc. of Investigator; Types of Fraud, Indicators of Fraud, Follow-up thereof; Forensic Accounting- meaning, difference between Statutory Audit and Forensic Accounting, Forensic Accounting and Investigation Report, Introduction of Forensic Accounting and Investigation Standards
18. Emerging Areas: Sustainable Development Goals (SDG) & Environment, Social and Governance (ESG) Assurance, etc.
19. Professional Ethics and Liabilities of Auditors: Introduction of Code of Ethics according to IESBA and Code of Ethics with special reference to the relevant section of Chartered Accountants act 1949 and the regulations thereunder; Application of fundamental principles; Application of threats, Evaluation of threats; addressing threats and safeguards; conceptual framework; important provisions under Chartered Accountants act 1949 and Chartered Accountants regulations 1988
Note: Where, in the event of any new legislations / Engagement and Quality Control Standards / Guidance Notes / Statements in substitution of the existing legislations / Engagement and Quality Control Standards / Guidance Notes / Statements are enacted, then the syllabus will correspondingly incorporate provision of such legislation / Engagement and Quality Control Standards / Guidance Notes / Statements, effective with a date that will be notified by the Institute.
Likewise, were any of the existing legislations / Engagement and Quality Control Standards/ Guidance Notes / Statements to cease being in force, the syllabus will be revised to exclude such legislations / Engagement and Quality Control Standards/ Guidance Notes / Statements with effect as of the notification date of the Institute.
The particular additions/deletions in any subject which is included in the syllabus, will be done through the device of Study Guidelines on an annual basis, should the need arise.
🔹 Group 2
📝 Paper 4: DIRECT TAX LAWS AND INTERNATIONAL TAXATION (100 Marks)
Objective 🎯
a. To gain the skills of analysis and interpretation of the provisions of the direct tax laws and propose the best solution to practical problem, tax efficiently;
b. To use the direct tax laws and their provisions together with the concepts, principle and provisions of international taxation to make suggestions in how to solve problems entailed in cross border transactions.
Contents 📑
- This is to carry out a complete computation of liability of income-tax of companies and other liable entities to the alternative tax regimes under the Income-tax Act, 1961 with the purpose of minimising its liability
– General provisions under the Act of computation of total income and tax liability of the companies and other entities
– Under the Act, special tax regimes of companies and other entities
– Tax planning to optimise tax liability of companies and other entities
- Special Provisions which concern charitable and religious trust and institutions, political parties and electoral trusts, business trusts, securitisation trusts, investment funds and other funds/trusts
- Anti-avoidance provisions under the Ac
- Provisions to address tax challenges on digitalisation
2. Tax Administration and Appellate Mechanism
- Deduction, Collection and Recovery of Tax
- Income-tax Authorities
- Assessment Procedures
- Appeals and Revision; and Dispute Resolution
- Provisions to counteract unethical tax practices
– Taxation of undisclosed Income under the income-tax Act, 1961
– Taxation of undisclosed foreign income and assets
– Penalties and offences and prosecution - Miscellaneous Provisions
- Tax Audit
3. International Taxation
- Cross border taxations and Non resident taxations under the Income-tax Act, 1961, and this includes:
- Transfer Pricing
- Non-resident Taxation
- Double Taxation Relief
- Advance Ruling
2. Other Aspects of International Taxation, namely
- Relevant provision of OECD and UN Model Tax Conventions
- Fundamentals of BEPS
- Application and Interpretation of Tax Treaties
- Latest developments in International Taxation
Note: In the event of any new legislation(s) replacing the current legislation(s), the syllabus will consequently capture those provisions under the new legislation(s) in lieu of the existing legislation(s) with effect to a specified date which shall be notified by the Institute. Similarly, if any existing legislation(s) on direct tax laws ceases to be in force, the syllabus will accordingly exclude such legislation(s) with effect from the date to be notified by the Institute.
Moreover, the particular inclusions/exclusions in any subject taught at the syllabus level will be done through the Study Guidelines each year according to the need. Certain items/exclusion within a subject also occur as a dilution/removal of such items by any of the yearly Annual Finance Act.
📝 Paper 5: INDIRECT TAX LAWS (100 marks)
Part I: GOODS AND SERVICES TAX (80 Marks)
Objective 🎯
To gain the skills of analysing and interpreting the provisions of the goods and services tax law and proposing solutions to the case scenarios.
Contents 📑
The Goods and Services Tax (GST) Law as provided in the Central Goods and Services Tax (CGST) Act, 2017 and Integrated Goods and Services Tax (IGST) Act, 2017 including
- Case studies based on following:
Levy and collection of CGST and IGST – Application of CGST/IGST law; Concept of supply, inter-State supply, intra-State supply, supplies in territorial waters; Charge of tax including reverse charge; Classification; Exemption from tax; Place of supply; Time of Supply; Value of supply; Input tax credit; Computation of GST liability
- Under GST: procedures registration, tax invoice, credit and debit notes, electronic way-bill, accounts and records, returns and payment of tax
- Refunds and case studies based on refund provisions
- Job work
- Liability to pay in certain cases
- Administration of GST; Assessment and Audit
- Inspection, Search, Seizure and Arrest
- Demand and Recovery; Offences and Penalties
- Appeals and Revision
- Advance Ruling
- Ethics under GST
- Other provisions *
*The statute at the Final level covers the whole CGST and IGST laws. There can be any residuary provision in the CGST Act, 2017 and the IGST Act, 2017 which is not covered under the above specific provisions and would be treated under the provisions of Other provisions. Moreover, in case some other Chapter is incorporated in the CGST Act, 2017 and IGST Act, 2017; the syllabus will be updated accordingly.
Part II: CUSTOMS & FTP (20 Marks)
Objective 🎯
To build the knowledge of customs laws and foreign trade policy and gain the skills to analyse and interpret the provisions of such laws/concepts.
Contents 📑
- Customs Law in form of the Customs Act, 1962 and the Customs Tariff Act, 1975
- Introduction to the customary law with Constitutional considerations
- Levy of custom duties such as the application of custom law, the event of taxation, custom duty charge, exceptions to custom duty and exemption of custom duty
- iii. Types of customs duties
- Categorization and valuation of imported and export products
- Procedures of Import and Export such as the special procedures but with regards to baggage, goods imported or exported by post, stores
- Warehousing
- vii. Refund
2. Foreign Trade Policy
- What is FTP?- legislation applicable to an FTP, any significant characteristics of an FTP, management of an FTP, contents of an FTP and other related provisions
- Simple definitions that apply to import and export
- General principles of the export promoting schemes extended under FTP
Note: In covering the above law, the students will be advised to become conversant with the ethics and information technology issues that surround the compliance of these laws.
In the event of any existing legislation(s) being replaced by a new legislation(s) the syllabus will then incorporate the provisions of the new legislation(s) in substitution of the existing legislation(s) with effect from the date notified by the Institute. Likewise, in case any current legislation becomes ineffective, then the syllabus will follow in making those excluded with effect as of the date of notification by the Institute. The students will not be tested based on specific State GST Law.
Also, any particular inclusion/exclusion to any subject to be taught within the syllabus will be carried out on an annual basis in form of the Study Guidelines, where necessary.
📝 Paper 6: INTEGRATED BUSINESS SOLUTIONS (100 marks)
(MULTI-DISCIPLINARY CASE STUDY INVOLVING PAPERS 1 TO 5 AT THE FINAL LEVEL ALONG WITH SELF-PACED ONLINE MODULES SETS A AND B AND STRATEGIC MANAGEMENT)
Objective 🎯
To be able to combine such ideas, principles and provisions of accounting, auditing, taxation, corporate laws, finance and business strategy and management address issues in practical case scenarios.
Contents 📑
This paper would be a pure case study paper and would evaluate the cumulative knowledge of the following subjects:-
- Financial Reporting
- Advanced Financial Management
- Advanced Auditing, Assurance and Professional Ethics
- Direct Tax Laws & International Taxation
- Indirect Tax Laws
- Corporate and Economic Laws
- Strategic Cost & Performance Management
Is the CA final really tough?
Yes, most people agree that the most difficult part of the Chartered Accountancy course is the CA Final. It is renowned for having a large syllabus, a difficult exam format, and low pass rates. However, with proper planning & execution, this difficult part can also become easy and the most welcome news is that the passing percentage at CA-Finals is increasing, attempt by attempt.
What are the minimum passing marks for CA Final?
To pass the CA Final exam, candidates need to score a:
- Minimum per subject: 40%.
- Minimum aggregate: 50% for each group (or both groups).
How to approach CA final?
To approach the CA Final exams effectively, focus on creating a structured study plan, prioritizing understanding over rote learning, and practicing extensively with mock tests and past papers. Prioritize subjects based on weightage and your strengths, and maintain a healthy lifestyle to manage stress and stay motivated.