CA Final Syllabus

In this blog, you will get a detailed explanation of the CA Final syllabus and subjects in accordance with the CA Final new syllabus of the ICAI CA Final Exam.

CA Final is the third and last level of Chartered Accountancy. Candidates who have cleared both Groups I and Group II of CA intermediate and have completed 2.0 years of practical training can appear for this examination.  The ICAI has recently changed the CA Final syllabus of the final exam.  

Updated ICAI New Scheme for CA Final New Syllabus and Subjects  2024 – Read now: https://ksacademy.co.in/blogs/ca-final-new-syllabus/

Read Also: What is CA final Course?

CA Final exam overview

Like CA intermediate syllabus, the CA Final syllabus also has 6 subjects. The total mark is 600; since each paper in CA Final exam carries 100 marks. The candidate can appear for the exam either in English or in Hindi.

To clear the Final exam you have to score a minimum of 40% in each subject with an overall aggregate of 50%. The exam will be conducted twice a year (May and November). There is no negative marking for the wrong answer.

CA Final Subjects

Paper-1: Financial Reporting

Paper-2: Advanced Financial Management

Paper-3: Advanced Auditing, Assurance And Professional Ethics

Paper-4: Direct Tax Laws & InternationalTaxation

Paper-5: Indirect Tax Laws

Paper-6: Integrated Business Solutions

CA Final Subject Details

PAPER 1: FINANCIAL REPORTING (100 MARKS)

Objective

• To acquire the ability to integrate and solve problems in practical scenarios on Indian Accounting Standards (Ind AS) for deciding the appropriate accounting treatment and formulating suitable accounting policies.
• To gain the prowess to recognize and apply disclosure requirements specified in Indian Accounting Standards (Ind AS) while preparing and presenting the financial statements.
• To develop the expertise to prepare financial statements of group entities which includes subsidiaries, associates and joint arrangements based on Indian Accounting Standards (Ind AS).
• To develop understanding of certain Accounting Standards and solve problems in practical scenarios where treatment is different in both the standards.

Contents

1. Introduction to General Purpose Financial Statements as per 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

PAPER 2: ADVANCED FINANCIAL MANAGEMENT (100 MARKS)

Objective

To acquire the ability to apply financial management theories and techniques in strategic decision making.

Contents

Chapter 1. Financial Policy and Corporate Strategy

• Advanced role of CFO in various matters including Value Creation
• Strategic decision making framework
• Interface of Financial Policy and strategic management
• Balancing financial goals vis-à-vis sustainable growth

Chapter 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

Chapter 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 Budgeting Dealing with Risk in Investment Decisions
• Internal and External Factors affecting capital budgeting decision Methods of incorporating risk in Capital Budgeting
• Adjusted Present Value Optimum Replacement Cycle

1. Financial Policy and Corporate Strategy

Chapter 4. Security Analysis

• Fundamental Analysis
• Technical Analysis
  • -Meaning
  • -Assumptions
  • -Theories and Principles
  • -Charting Techniques – Basics
  • -Efficient Market Hypothesis (EMH) Analysis
• Equity Research and tools available

Chapter 5. Security Valuation

• Theory of Valuation
• Return Concepts
• Equity Risk Premium
• Required Return on Equity
• Discount Rate Selection in Relation to Cash Flows
• Approaches to Valuation of Equity Shares
• Valuation of Preference Shares
• Valuation of Debentures/ Bonds
• Role and Responsibilities of Valuers
• Precautions need to be taken by a Valuer before accepting any valuation assignment

Chapter 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

Chapter 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

Chapter 8. Mutual Funds

• Meaning
• Types
• Advantages and Disadvantages of Mutual Funds
• Evaluation of Mutual Funds
• Role of Fund Manager in Mutual Funds
• Hedge Funds
• Role of FIIs in Mutual Funds

Chapter 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
• Credit Derivatives
• Real Options
• Derivative Mishaps and Lessons
• Swaps
• Commodity Derivatives
• Weather Derivatives
• Electricity Derivatives

Chapter 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

Chapter 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
• Raising funds from International Sources
• Sovereign Funds
• International Financial Centre (GIFT City)
• International Working Capital Management
  • Multinational Cash Management
    • Objectives of Effective Cash Management
    • Optimization of Cash Flows/ Needs
  • Multinational Receivable Management
  • Multinational Inventory Management

Chapter 12. Interest Rate Risk Management

• Benchmark Rates
• Interest Rate Risk
• 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

Chapter 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
• Going concern and Non Going concern valuation
• Valuation of Distressed Companies
• Valuation of Start ups
• Valuation of Digital Platforms
• Valuation of Professional/ Consultancy Firms viii
• Impact of ESG on valuation

Chapter 14. Mergers, Acquisitions and Corporate Restructuring

• Conceptual Framework Rationale
• Forms
• Mergers and Acquisitions
  • Financial Framework
  • Takeover Defensive Tactics
  • Reverse Merger
• Divestitures
  • Partial Sell off
  • Demerger
  • Equity Carve outs
• Ownership Restructuring
  • Going Private
  • Management/ Leveraged Buyouts
• Unlocking the value through Mergers & Acquisitions and Business Restructuring
• Cross Border Mergers
• Special Purpose Acquisition Companies (SPACs)

Chapter 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

1. To gain the ability to analyse current auditing practices and procedures and apply them in auditing engagements.
2. To develop the ability to solve cases relating to audit engagements.

Contents

Chapter 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 Quality Control for an Audit of Financial Statements

Chapter 2. General Auditing Principles and Auditors Responsibilities

SA 240 The Auditor’s Responsibilities Relating to Fraud in 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 Audit Considerations Relating to an Entity Using a Service Organisation

Chapter 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 Evaluation of Misstatements identified During 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 Communicating Deficiencies in Internal Control to Those Charged with Governance and Management

SA 330 The Auditor’s Responses to Assessed Risks

Chapter 5. Audit Evidence

Chapter 6. Completion and Review

Chapter 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 Modifications to the Opinion in the Independent Auditor’s 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

Chapter 8. Specialized Areas

Basic and Overview of 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

Basic and Overview of SA 810 Engagements to Report on Summary Financial Statements

Chapter 9. Audit-related Services

Basic and Overview of SRS 4400 Engagements to Perform Agreed-upon Procedures Regarding Financial Information

Basic and Overview of SRS 4410 Compilation Engagements

Chapter 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

Chapter 11. Prospective Financial Information and Other Assurance Services

Basic and Overview of SAE 3400 The Examination of Prospective Financial Information Basic and Overview of SAE 3402 Assurance Reports on Controls at a Service Organisation

Basic and Overview of SAE 3420 Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus

Chapter 12. Digital Auditing and Assurance

Auditing digitally and Digital auditing, Usage of Automated Tools such as CAAT, Data Analytics, Artificial Intelligence, etc., Remote Auditing

Chapter 13. Group Audits

Audit of Consolidated Financial Statements – Responsibility of 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)

Chapter 14. Special Features of Audit of Banks & Non-Banking Financial Companies

Chapter 15. Overview of Audit of Public Sector Undertakings:

Concept of Propriety Audit; Performance Audit; Comprehensive Audit

Chapter 16. Internal Audit :

Provisions of Internal Audit as per Companies Act, 2013; Scope of Internal Auditing; Relationship between Internal and External Auditor; Basics of Internal Audit Standards issued by the ICAI; Drafting of Internal Audit Report; Audit Trail, Internal Audit as a Management Function

Chapter 17. Due Diligence, Investigation and Forensic Accounting:

Due Diligence Review; Audit versus Investigation; Steps for Investigation; Types of Investigation; Procedure, Powers, 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

Chapter 18. Emerging Areas: Sustainable Development Goals (SDG) & Environment, Social and Governance (ESG) Assurance, etc.

Chapter 19. Professional Ethics and Liabilities of Auditors:

Introduction of Code of Ethics as per IESBA and Code of Ethics with special reference to the relevant provisions of the 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 of Chartered Accountants Act,1949 and Chartered Accountants Regulations 1988

PAPER 4: DIRECT TAX LAWS & INTERNATIONAL (100 MARKS) TAXATION

Objective

1. To acquire the ability to analyse and interpret the provisions of direct tax laws and recommend optimal solutions to practical problems in a tax efficient manner; and
2. To apply the provisions of direct tax laws and the concepts, principles and provisions of international taxation to recommend solutions to issues involved in cross border transactions.

Contents

1. Comprehensive computation of income-tax liability of companies and other entities under the alternative tax regimes under the Income-tax Act, 1961 to optimise tax liability

• General provisions under the Act for computation of total income and tax liability of companies and other entities
• Special tax regimes under the Act for companies and other entities
• Optimisation of tax liability of companies and other entities through tax planning

• Special Provisions relating to 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 Act
• 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

vii Tax Audit

3. International Taxation

• Taxation of cross border transactions and Non-resident taxation under the Income-tax Act, 1961, including
  1. Transfer PricingNon-resident TaxationDouble Taxation ReliefAdvance Ruling
• Other Aspects of International Taxation, namely,
  • Significant articles of OECD and UN Model Tax Conventions
    • Fundamentals of BEPS
    • Application and Interpretation of Tax Treaties
    • Latest developments in International Taxation

PAPER 5: INDIRECT TAX LAWS                   (100 MARKS)

PART I: GOODS AND SERVICES TAX (80 MARKS)

Objective

To acquire the ability to analyse and interpret the provisions of the goods and services tax law and recommend solutions to case scenarios.

Contents

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 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
• Procedures under GST including registration, tax invoice, credit and debit notes, electronic way-bill, accounts and records, returns, 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 *

PART II: CUSTOMS & FTP (20 MARKS)

Objective

To develop an understanding of the customs laws and foreign trade policy and acquire the ability to analyse and interpret the provisions of such laws/concepts.

Contents

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

• Introduction to customs law including Constitutional aspects
• Levy of customs duties including application of customs law, taxable event, charge of customs duty, exceptions to levy of customs duty, exemption from custom duty
• Types of customs duties
• Classification and valuation of imported and export goods
• Import and Export Procedures including special procedures relating to baggage, goods imported or exported by post, stores
• Warehousing
• Refund

2. Foreign Trade Policy

• Introduction to FTP – legislation governing FTP, salient features of an FTP, administration of FTP, contents of FTP and other related provisions
• Basic concepts relating to import and export
• Basic concepts relating to export promotion schemes provided under FTP

PAPER 6: INTEGRATED BUSINESS SOLUTIONS    (MULTI-DISCIPLINARY CASE STUDY WITH STRATEGIC MANAGEMENT) (100 MARKS)

Objective

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

Contents

This paper will be entirely case study based and would assess the integrated knowledge of following subjects:-

1. Financial Reporting
2. Advanced Financial Management
3. Advanced Auditing, Assurance and Professional Ethics
4. Direct Tax Laws & International Taxation
5. Indirect Tax Laws
6. Corporate and Economic Laws
7. Strategic Cost & Performance Management

CA Final Coaching

To clear CA Final exam, Students can choose to enroll in classes for CA Final syllabus, all subjects, or pick select subjects or even fast track classes to clear the upcoming CA Final exam.

Read Also: A Complete Guide for CA Final Registration process 2023

Next Read: ICAI CA Foundation Study Material 2023 »