IPCC Amendments in Paper 1 – Accounting:
In Accounting paper, ICAI has made it clear that, these topics are no longer relevant and
they are in wrong motion. By this, it is quite clear that ICAI has decided to exclude these topics with immediate effect and so will not be applicable for the upcoming November 2013 exams.
IPCC Amendments in Accounting for May 2014 Exams:
B. Announcement relevant for May 2014 examination
Law Ethics and Communication Amendments, Syllabus:
There are no topics excluded or New amendments applicable for IPCC May 2014, Law Ethics and Communication paper.
Costing and FM Amendments, Syllabus:
There are no topics excluded or New amendments applicable for IPCC May 2014, Cost Accounting and Financial Management paper.
Taxation Amendments, Syllabus:
For November 2013 exams, no new topics have been excluded from the Taxation syllabus. However, icai has released applicable amendments for Tax May 2014 Exam, see them below.
IPCC Paper 5 – Advanced Accounting Amendments, Syllabus:
Accounting Standards 4, 5, 11, 12, 16, 19, 20, 26 and 29 are covered in the syllabus.
(Text of all applicable Accounting Standards are available in the Appendix II of Volume I of ‘Advanced Accounting’ Study Material revised in November, 2012.)
B. Notification/Announcement relevant for May 2014 examination
1. Presentation of Foreign Currency Monetary Item Translation Difference Account (FCMITDA)
In the Revised Schedule VI format, no line item has been specified for the presentation of “Foreign Currency Monetary Item Translation Difference Account (FCMITDA)”. Therefore, the Council of the Institute at its 324th meeting held on March 24-26, 2013 at New Delhi, decided that debit or credit balance in FCMITDA should be shown on the “Equity and Liabilities” side of the balance sheet under the head ‘Reserves and Surplus’ as a separate line item.
2. Criteria for Classification of Entities and Applicability of Accounting Standards
Due to recent changes in the enhancement of tax audit limit, the Council of the ICAI has recently decided to change the 1st criteria i.e. determination of SME on turnover basis for Level II entities from Rs. 40 lakhs to Rs. 1 Crore with effect from the accounting year commencing on or after April 01, 2012.
3. Clarification on Debenture Redemption Reserve (DRR)
Ministry of Corporate Affairs vide Circular no. 04/2013 dated 11 February, 2013 has clarified the adequacy of DRR for various institutions/companies as follows:
table will be updated soon
Every company required to create/maintain DRR shall before the 30th day of April of each year, deposit or invest, as the case may be, a sum which shall not be less than fifteen percent of the amount of its debentures maturing during the year ending on the 31st day of March next following year.
4. Maintenance of Cash Reserve Ratio: RBI has decided to reduce the Cash Reserve Ratio (CRR) of Scheduled Commercial Banks by 25 basis points from 4.25 to 4.00 percent with effect from Feb 9, 2013. This rate will be applicable for May 2014 exams.
5. Statutory Liquidity Ratio for Local Area Banks be reduced from 25 per cent to 23 per cent of their Net Demand and Time Liabilities (NDTL) with effect from the fortnight beginning August 11, 2012. Therefore, a rate of 23 percent will be applicable for May 2014 Exams
6. Review of the Prudential Guidelines on Restructuring of Advances by Banks/Financial Institutions
Reserve Bank of India has reviewed the prudential guidelines on restructuring of advances by banks/ financial institutions vide circular no. DBOD.No.BP.BC.63/21.04.048/2012-13 applicable for all scheduled commercial banks excluding RRBs dated November 26, 2012 and has decided:
In accordance with the above, loans to projects under implementation, when restructured due to change in the date of commencement of commercial operations (DCCO) beyond
the original DCCO as envisaged at the time of financial closure and classified as standard advances would attract higher provisioning at 2.75 per cent as against the present requirement of 2.00 per cent as per the details given below:
Rates of Provisioning for Non-Performing Assets for Banking Companies
For Banking companies, revised rate of NPA are given.
|Category of Advances||Rate (%)|
|Sub- standard Advances|
|Unsecured Exposures in respect of Infrastructure loan accounts where certain safeguards such as escrow accounts are available.||20|
|Doubtful Advances – Unsecured Portion||100|
|Doubtful Advances – Secured Portion|
|For Doubtful upto 1 year||25|
|For Doubtful > 1 year and upto 3 years||40|
|For Doubtful > 3 years||100|
All other extant guidelines on Income Recognition, Asset Classification and Provisioning pertaining to advances will remain unchanged.
Auditing and Assurance Amendments, Syllabus:
Number and Name
|Syllabus|| Page Numbers in
| Chapter – 1 Unit-I Introduction to
Computers Unit-II Input and
Hardware Classification of
and Super computers Computer
Components – CPU,
devices (b) Bus, I/O CO
(Serial, parallel, USB
slots, Add on cards,
On board chips, LAN
cards, Multi media
| Chapter-IV: Internet
|EDI||4.48 – 4.53|