CA Syllabus ICAI

CA Final Syllabus

The ICAI publishes the CA course syllabus so that students are aware of the exam’s courses and issues. The CA final exam is the final stage toward becoming a Chartered Accountant. If a candidate wants to become a professional CA, he or she must pass all three levels of the exam. CA’s final exam comprises eight subjects. This exam is divided into two groups by the ICAI.

The first group is made up of:

Paper 1: Financial Reporting

This paper carries 100 marks. And it takes 3 hours to complete the exam.

Topics covered in this subject at the Final level are-

1. Application of Existing Accounting Standards (AS 15,21,23,25,27,28)

(You will also be required to apply other accounting standards if applicable in other questions).

1. Application of Guidance Notes issued by the ICAI on Specified Accounting Aspects.

2. Framework for the preparation and presentation of Financial Statements.

3. Application of Indian Accounting Standards (IND AS).

4. Consolidated and Separate Financial Statements (as per IND AS)

5. Application of Industry-specific and Transaction-specific Indian Accounting Standards.

6. Business Combinations and Accounting for Corporate Restructuring/ Demerger (As per IND AS).

7. Accounting and Reporting of Financial Instruments (As per IND AS).

8. Accounting for Share-Based Payments. (As per IND AS)

9. Analysis of Financial Statements.

10. Accounting for Carbon Credits

11. Accounting for E-Commerce

12. Emerging trends in Reporting.

Paper 2: Strategic Financial Management

This paper also carries 100 marks.

Topics covered under this subject are as follows –

1. Financial Policy and Corporate Strategy.

2. Indian Financial System.

3. Risk Management.

4. Security Analysis.

5. Security Valuation

6. Portfolio Management.

7. Securitization

8. Mutual Funds

9. Derivatives Analysis and Valuation.

10. Foreign Exchange Exposure and Risk Management.

11. International Financial Management.

12. Interest Rate Risk Management

13. Corporate Valuation

14. Mergers, Acquisition, and Corporate Restructuring.

15. International Financial Center (IFC).

16. Startup Finance

17. Small and Medium Enterprises

Paper 3: Advanced Auditing and Professional Ethics

This paper also carries 100 marks.

Topics Covered in this Subject are as follows-

1. Auditing Standards, Statements, and Guidance Notes

2. Audit Planning, Strategy, and Execution.

3. Risk Assessment and Internal Control.

4. Special Aspects of Auditing in an Automated Environment.

5. Audit of Limited Companies.

6. Audit Reports.

7. Audit Reports and Certificates for Special Purpose Engagements.

8. Audit Committee and Corporate Governance.

9. Audit of Consolidated Financial Statements.

10. Special Features of audit of Banks, Insurance, and Non-Banking Financial Companies.

11. Audit under Fiscal Laws.

12. Special Audit Assignments.

13. Audit of Public Sector Undertakings.

14. Liabilities of Auditors.

15. Internal Audit, Management, and Operational Audit.

16. Due Diligence, Investigation, and Forensic Audit.

17. Peer Review and Quality Review.

18. Professional Ethics.

Paper 4: Corporate and Economic Laws

This paper has two parts. One is corporate law and another is economic law. These two parts carry 100 marks.

PART – 1    CORPORATE LAW

This is further divided into two sections one is Company Law and the other one is Securities Law.

SECTION – A     Company Law

The objective behind this subject is to acquire the ability to analyze, interpret and apply the provisions of Company Law in practical situations.

Topics Covered under Company Law are as follows –

Companies Act, 2013

1. Appointment and Qualification of Directors.

2. Appointment and Remuneration of Managerial Personnel.

3. Meetings of Board and its Powers.

4. Inspection, Inquiry, and Investigation.

5. Compromises, Amalgamations, and Arrangements.

6. Prevention of Oppression and Mismanagement.

7. Winding Up.

8. Producer Companies.

9. Companies incorporated outside India.

10. Miscellaneous Provisions.

11. Compounding of Offences, Adjudication, and Special Courts.

12. National Company Law Tribunal and Appellate Tribunal.

Corporate Secretarial Practice

Drafting notices, Resolutions, Minutes.

Note – The students should also note that the provisions of the Companies Act, 1956 which are still in force would form part of your syllabus till their corresponding sections are not enforced in the Companies Act, 2013.

SECTION – B    Securities Law

The objective behind this section is to acquire the ability to analyze the significant provisions of select securities laws.

Topics covered under this head are as follows-

1. The Securities Contract (Regulation) Act, 1956 and Securities Contract (Regulation) Rules, 1957. Introduction and Important Provisions.

2. The Securities Exchange Board of India Act, 1992, SEBI (Issue of Capital and Disclosure Requirements) regulations, 2009, and SEBI(Listing Obligation and Disclosure Requirements) Regulations, 2015.

PART – 2     ECONOMIC LAWS

Topics covered in this part are –

1. The Foreign Exchange Management Act, 1999.

2. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

3. The Prevention of Money Laundering Act, 2002.

4. Foreign Contribution Regulation Act, 2010.

5. The Arbitration and Conciliation Act, 1996.

6. The Insolvency and Bankruptcy Code, 2016.

Group 2 papers 

Paper 5: Strategic Cost Management and Performance Evaluation

This is the paper on auditing. In this paper, students face 100 marks for exams in 3 hours.

The subject is divided into three categories-

• Strategic Cost  Management and Decision Making.

  • Strategic Cost Management

  • Strategic Decision Making

• Performance Evaluation and Control.

  • Performance Evaluation and Reporting.

  • Managerial Control.

• Case Studies (Covering course Concepts)

PART – 1     STRATEGIC COST MANAGEMENT AND DECISION MAKING

SECTION – A         Strategic Cost Management

Topics covered by the above section are –

1. Introduction to Strategic Cost Management.

2. Modern Business Environment.

3. Learn System and Innovation.

4. Cost Management Techniques.

5. Cost Management for Specific Sectors.

SECTION – B        Strategic Decision Making

1. Decision Making

2. Pricing Strategies / Decisions

PART – 2    PERFORMANCE EVALUATION AND CONTROL

SECTION – A     Performance Evaluation and Reporting   

1. Performance Measurement and Evaluation

2. Divisional Transfer Pricing

3. Strategic Analysis of Operating Income.

SECTION – B    Managerial Control

1. Budgetary Control

2. Standard Costing

SECTION – C  Case Studies

It covers the Course Concepts

Note- Apart from the above topics application of the following Quantitative Techniques are required to be studied to link to course concepts –

1. Linear Programming

2. Learning Curve / Experience Curve.

Paper 6: Elective Paper

This is an elective paper. So candidates can select one of the under elective papers

6A Risk Management, 6B Financial Services, and Capital Markets, 6C International Taxation, 6D Economic Laws, 6E Global Financial Reporting Standards, 6F Multi-disciplinary Case Study

PAPER – 6A         RISK MANAGEMENT

The objective behind introducing this subject to CA Curriculum is to gain an understanding of the risk faced by the businesses and to learn techniques for managing such risks.

To build capacity for applying such learning to address risk-related issues in real business scenarios.

Topics Covered –

1. Introduction to Risk

2. Source and Evaluation of Risks.

3. Risk Management.

4. Quantitative Analysis

5. Risk Model

6. Credit Risk Measurement and Management.

7. Risk Associated with Corporate Governance.

8. Enterprise Risk Management.

9. Operational Risk Management.

The following topics covered in SFM and LAW will also form part of this syllabus –

1. Risk Management in Investment Decisions.

2. Foreign Exchange Risk.

3. Interest Rate Risk.

PAPER – 6B     FINANCIAL SERVICES AND CAPITAL MARKETS

OBJECTIVE

To gain knowledge of Financial Services rendered by Intermediaries and Banks and their role and activities in the Financial Market in general and the Capital Market in particular and also to apply such knowledge in practical scenarios.

Topics covered by this subject are as follows –

1. Global Financial Markets

2. Impact of Various policies on Financial Markets

3. Capital Market – Primary

4. Capital Market – Secondary

5. Money Market

6. Institutions and Intermediaries

7. Commodity Market

8. A. Banking Management

9. Banking as a source of capital including NBFCs

10. Mutual Funds

11. Private Equity

12. Investment Banking

13. Credit Rating

14. Treasury Operations

15. Risk Management

16. Credit Derivatives

17. SEBI Guidelines

The following topics which are covered in SFM and LAW will also form part of the syllabus-

1. Securitization

2. Fixed Income Securities (Valuation of Bonds/ Debentures)

3. Derivatives

4. Interest Rate Risk

5. The Securities and Exchange Board of India Act, 1992

6. Legislative framework on listing agreements

7. The Securities Contract (Regulation) Act, 1956

8. Chapter III-D of the RBI Act, 1934

PAPER – 6C    INTERNATIONAL TAXATION

OBJECTIVE

The objective behind introducing this subject in CA Course is to develop an understanding of the concepts, principles, and provisions of International Taxation and to apply such concepts and knowledge in preparing Computation and addressing in practical scenarios.

Further, it is divided into two sections-

1. Taxation of International Transactions and Non-Resident Taxation in India

2. Other aspects of International Taxation

SECTION – A  Taxation of International Transactions and Non-Resident Taxation in India

Topics covered in this subject are as follows –

1. Transfer Pricing Provisions under the INCOME TAX Act, 1961.

2. Arm’s Length Price

3. International Transactions

iii. Most Appropriate Method

1. Functions, Assets, and Risk Analysis

2. Documentation & Compliances

3. Specific Reporting Regime in respect of Country by Country reporting and master file

vii. Advance Pricing Agreements

1. Other Provisions relating to the taxation of international transactions and non-resident taxation under the Income-tax Act, 1961

1. Non-resident Taxation (including Source Rule of Taxation)

2. Double Taxation Relief

iii. Advance Rulings

1. Law and Procedures under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 – An Overview.

SECTION – B    Other Aspects of International Transaction

The topics covered by this topics are as follows –

1. Overview of Model Tax Conventions.

2. OECD Model Tax Convention

3. UN Model Tax Convention

iii. US Model Tax Convention

1. Tax treaties, Applications, and Interpretation

2. Features of Tax treaties

3. Overview of Tax Information Exchange Agreements

iii. Commentaries and their importance

1. Role of Vienna Convention in application and interpretation of tax treaties

2. Anti Avoidance Measures

3. Controlled Foreign Corporations

4. Base Erosion and Profit Shifting

iii. Other Anti Avoidance Measures

1. Taxation of E-Commerce Transactions

2. Introduction

3. Emerging issues

iii. Equalisation levy

Note – The students may note that the transfer pricing part in PART – 1 will carry 30 marks.

PAPER – 6D        ECONOMICS LAWS   

OBJECTIVE

To develop an understanding of the provisions of different economic laws and acquire the ability to apply such knowledge to address issues in practical case scenarios.

Topics covered under this subject are as follows –

1. World Trade Organization (WTO) covering its Role, Principles, Functions, and Dispute Settlement Mechanism

2. Competition Act, 2002 and Rules/ Regulations

3. Real Estate (Regulation and Development) Act, 2016 [Central Act and Rules/ Regulations]

4. Insolvency and Bankruptcy Code, 2016 and Rules/ Regulations

5. Prevention of Money Laundering Act, 2002 and Rules/ Regulations

6. Foreign Exchange Management Act, 1999 and Rules/ Regulations

7. Prohibition of Benami Property Transactions Act, 1988 and Rules/ Regulations

PAPER – 6E    GLOBAL FINANCIAL REPORTING STANDARDS

OBJECTIVE

1. To develop an understanding of the key concepts and principles of International Financial Reporting Standards and to acquire the ability to apply such knowledge to make computations and address issues in practical case scenarios.

2. To develop an understanding of the significant differences between IFRS and US GAAPs and apply the same in practical case scenarios.

Topics Covered –

1. Conceptual Framework for Financial Reporting as per IFRS – 10 Marks

2. Application of International Financial Reporting Standards – 70 Marks

3. Significant differences between IFRS and US GAAPs – 20 Marks

PAPER – 6F     MULTI-DISCIPLINARY  CASE STUDY

OBJECTIVE

To analyze and integrate the concepts, principles, and provisions of accounting, auditing, taxation, corporate laws, finance, business strategy, and management to address issues in practical case scenarios

Topics covered –

This paper will include Case Studies covering the following areas.

1. Financial Accounting and Reporting

2. Audit and Assurance

3. Taxation

4. Finance and Financial Management

5. Management Accounting

6. Corporate Laws

7. Business Strategy and Management

Paper 7: Direct Tax Laws & International Taxation

This paper is divided into two parts. One is Direct tax laws and another is International taxation.

SECTION – A        Direct Taxation

OBJECTIVE

To acquire the ability to analyze and interpret the provisions of direct tax laws and recommend solutions to practical problems.

Topics Covered –

Law and Procedures under the Income-tax Act, 1961

1. Basis of charge, residential status, income which does not form part of total income, heads of income, the income of other persons included in assessee’s total income, aggregation of income,  set-off and carry forward of losses, deductions from gross total income, rebates, and reliefs

2. Special provisions relating to companies and certain persons other than a company

3. Provisions relating to charitable and religious trusts and institutions, political parties, and electoral trusts

4. Tax Planning, Tax Avoidance & Tax Evasion

5. Collection & Recovery of Tax, Refunds

6. Income-tax Authorities, Procedure for assessment, Appeals, and Revision

7. Settlement of Tax Cases, Penalties, Offences & Prosecution

8. Liability in Special Cases

9. Miscellaneous Provisions and Other Provisions

SECTION – B         International Taxation

OBJECTIVE

To develop an understanding of the concepts, principles, and provisions of International Taxation and acquire the ability to apply such knowledge to make computations and address application oriented issues.

Topics Covered –

1. Taxation of international transactions and Non-resident taxation

2. The provisions under the Income-tax Act, 1961, including

3. Specific provisions relating to Non-residents

4. Double Taxation Relief

5. Transfer Pricing & Other Anti-Avoidance Measures

6. Advance Rulings

7. Equalization levy

8. Overview of Model Tax Conventions – OECD & UN

9. Application and interpretation of Tax Treaties

10. Fundamentals of Base Erosion and Profit Shifting

Paper 8: Indirect Tax Laws

This paper is also divided into two parts one is goods and services taxes and another is customs and FTP.

 SECTION – A     Goods and Service Tax

OBJECTIVE

To acquire the ability to analyze and interpret the provisions of goods and services tax law and recommend solutions to practical problems.

Topics Covered –

1. Goods and Services Tax (GST) Law as contained in the Central Goods and Services Tax (CGST) Act, 2017 and Integrated Goods and Services Tax (IGST) Act, 2017

2. Constitutional aspects

3. Levy and collection of CGST and IGST – Application of CGST/IGST law; Concept of supply including composite and mixed supplies, inter-State supply, intra-State supply, supplies in territorial waters; Charge of tax; Exemption from tax; Composition levy

iii. Place of supply

1. Time and Value of supply

2. Input tax credit

3. Computation of GST liability

vii. Procedures under GST – All procedures including registration, tax invoice, credit, and debit notes, electronic waybill, accounts and records, returns, payment of tax including reverse charge, refund, job work

viii. Provisions relating to electronic commerce

1. Liability to pay in certain cases

2. Administration of GST; Assessment and Audit

3. Inspection, Search, Seizure, and Arrest

xii. Demand and Recovery

xiii. Offences and Penalties

xiv. Advance Ruling

1. Appeals and Revision

xvi. Other provisions

SECTION – B         Customs & FTP

OBJECTIVE

1. To develop an understanding of the customs laws and acquire the ability to analyze and interpret the provisions of such laws.

2. To develop an understanding of the basic concepts of foreign trade policy to the extent relevant to indirect tax laws and acquire the ability to analyze such concepts.

Topics Covered –

1. Customs Law as contained in the Customs Act, 1962 and the Customs Tariff Act, 1975

2. Introduction to customs law including Constitutional aspects

3. Levy of and exemptions from customs duties – All provisions including the application of customs law, taxable

the event, a charge of customs duty, exceptions to levy of customs duty, exemption from custom duty

iii. Types of customs duties

1. Classification and valuation of imported and export goods

2. Officers of Customs; Appointment of customs ports, airports, etc.

3. Import and Export Procedures – All import and export procedures including special procedures relating to

baggage, goods imported or exported by post, stores

vii. Provisions relating to coastal goods and vessels carrying coastal goods

viii. Warehousing

1. Drawback

2. Demand and Recovery; Refund

3. Provisions relating to prohibited goods, notified goods, specified goods, illegal importation/exportation of goods

xii. Searches, seizure and arrest; Offences; Penalties; Confiscation and Prosecution

xiii. Appeals and Revision; Advance Rulings; Settlement Commission

xiv. Other provisions

1. Foreign Trade Policy to the extent relevant to the indirect tax laws

2. Introduction to FTP – legislation governing FTP, salient features of an FTP, administration of FTP, contents of

FTP and other related provisions

1. Basic concepts relating to the import and export of goods

iii. Basic concepts relating to export promotion schemes provided under FTP

This is the whole syllabus of the Chartered Accountancy Course

All of the final test papers are worth 800 marks. To pass all of the final test papers, a student must receive a 40 percent grade. CA syllabus 2021 PDF is available on the ICAI’s official website, where you may learn more about each subject in depth.