IPCC Amendments, Syllabus May 2014

IPCC Amendments in Paper 1 – Accounting:

IPCC Amendments, Syllabus May 2014
Exclusion of Hire Purchase Trading A/c, Stock and Debtors Method from IPCC Syllabus:

 

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:

A. Pronouncements

Accounting Standards 1, 2, 3, 6, 7, 9, 10, 13 and 14 are covered in the syllabus.  (Text of all applicable Accounting Standards are available in the Appendix I of Volume I of  ‘Accounting’ Study Material revised in November, 2012.).
 

B. Announcement relevant for May 2014 examination

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.Indian ASs Issued by The Ministry of Corporate Affairs: These ASs are not applicable for students appearing in May 2014 Exams.Download Accounts Notes for Revision

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Law Ethics and Communication Amendments, Syllabus: 

There are no topics excluded or New amendments applicable for IPCC May 2014, Law Ethics and Communication paper.

Download Law, Ethics Notes for Revision

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Costing and FM Amendments, Syllabus: 

There are no topics excluded or New amendments applicable for IPCC May 2014, Cost Accounting and Financial Management paper.

Costing and FM Important Theory Questions

Download Costing FM Notes for Revision

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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 May 2014 Tax Amendments

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IPCC Paper 5 – Advanced Accounting Amendments, Syllabus:

A. Pronouncements

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:

 
i) To enhance the provisioning requirement for restructured accounts classified as standard advances from the existing 2.00 per cent to 2.75 per cent in the first two years from the date of restructuring. In cases of moratorium on payment of interest/principal after restructuring, such advances will attract a provision of 2.75 per cent for the period covering moratorium and two years thereafter; and that
 
ii) Restructured accounts classified as non-performing advances, when upgraded to standard category will attract a provision of 2.75 per cent in the first year from the date of upgradation instead of the existing 2.00 per cent.
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:
Infrastructure projects
table will be updated soon

 

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  
   
Secured Exposures 15
Unsecured Exposures 25
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
   
Loss Advances 100

All other extant guidelines on Income Recognition, Asset Classification and Provisioning pertaining to advances will remain unchanged.

 
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Auditing and Assurance Amendments, Syllabus:

There are no topics excluded or New amendments applicable for IPCC May 2014, Auditing and Assurance paper.
 

IT and SM Amendments, Syllabus:

Especially for Nov 2013 no topics were exlcluded, but, students may note that since November 2012, the following topics have been completely removed from Information Technology Syllabus.
 
This is to inform all students that while reviewing topics included inthe Paper-7A/6B of IPCC/PCC – Information Technology, it isobserved that some of the topics are not at all relevant in thepresent day context and thus it has been decided that no questionbe asked from such topics from November 2012 examination andonwards till the syllabus is thoroughly revised. Hence, no questionswill be asked from the following topics in November, 2012examination and onwards:-
 
              Chapter/Unit
               Number and Name
               Syllabus     Page Numbers in
      Study Material
   Chapter – 1  Unit-I Introduction to
  Computers  Unit-II Input and
  Output Devices
  (a)Computer
     Hardware   Classification of
   Computers –
   Personal Computer,
   Workstation, Servers
   and Super computers   Computer
   Components – CPU,
   Inputs output
   devices, Storage
   devices, Storage
   devices   (b) Bus, I/O CO
   Processors, Ports
   (Serial, parallel, USB
   ports), Expansion
   slots, Add on cards,
   On board chips, LAN
   cards, Multi media
   cards, Cache
   Memory, Buffers,
   Controllers and
   drivers
    1.1- 1.105
   Chapter-IV: Internet
   and other
   Technologies
                      EDI      4.48 – 4.53
 
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