CA Final Financial Reporting Important Updates for Nov 2016, Important information for Ca Final students, explaining what to be read for the upcoming exam in Nov , 2016 for Financial Reporting paper. Check CA Final Accounts Latest Updates applicable for Nov 2016 Exams. The institute has given a defined syllabus that comprise of the undermentioned. Many students are inquiring if IFRS/Ind AS are applicable and if yes, how one should read them and from where can he get the complete information regarding the same. Hope this article serves helpful to the students. Now you can scroll down below n check more details for “CA Final Financial Reporting Important Updates for Nov 2016”
CA Final Financial Reporting Important Updates for Nov 2016
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Applicability on indian Accounting Standards
The topic “Introduction of Indian Accounting Standards (Ind AS); Comparative study of ASs vis-à-vis Ind ASs; Carve outs/ins in Ind ASs vis-à-vis International Financial Reporting Standards (IFRSs)” had been included in the syllabus and is applicable for November, 2016 Examination.
Considering the significance and relevance of Ind AS, the above topic has been included in the syllabus and the students are expected to have an overall knowledge of the contents covered therein. However, considering the extensive coverage of the contents covered in such topic, from the examination perspective, simple problems involving conceptual or application issues may be asked in the examination.
Applicability of Ind AS 32, 107 and 109 on the topic ‘Accounting and Reporting of Financial Instruments’
The entire IAS 39 “Financial Instruments: Recognition and Measurement”, on which AS 30 “Financial Instruments: Recognition and Measurement” was based, has been replaced by IFRS 9 “Financial Instruments”. Therefore, the Government of India opted to notify Ind AS 109 “Financial Instruments” in correspondence to IFRS 9 and not IAS 39. Also, AS 30, AS 31 and AS 32 on ‘Financial Instruments’ were earlier proposed to be made mandatory for Level I entities only. However, after notification of Ind AS in February, 2015, these entities will be applying the provisions stated in Ind AS 32, Ind AS 107 and Ind AS 109 and not AS 30, AS 31 and AS 32 for accounting of financial instruments. Therefore, it is felt appropriate to make applicable Ind AS 32, Ind AS 107 and Ind AS 109 in place of AS 30, AS 31 and AS 32 to the topic ‘Accounting for Financial Instruments’.
Accordingly, Ind AS 32 “Financial Instruments: Presentation”, Ind AS 107 “Financial Instruments: Disclosures” and Ind AS 109 “Financial Instruments” are made applicable to the topic ‘Accounting for Financial Instruments’ instead of AS 30 “Financial Instruments: Recognition and Measurement”, AS 31 “Financial Instruments: Presentation” and AS 32 “Financial Instruments: Disclosures” for November, 2016 examination.
In view of the complexities involved, simple practical problems involving conceptual issues or application issues may be asked in the examination
Applicability of certain new Guidance Notes
Following two New Guidance Notes are applicable for November, 2016 examination for the first time viz
- a. Guidance Note on Accounting for Expenditure on Corporate Social Responsibility Activities.
- b. Guidance Note on Guidance Note on Accounting for Derivative Contracts. Both the above mentioned Guidance Notes may be referred at the following links respectively
Dividend Distribution Tax
(a) With effect from 1st Oct, 2014 dividend and income distribution tax is leviable on gross dividend / income and not on the net dividend / income distributed to shareholders and unit holders as per Income- tax Act, 1961.
The rate of DDT is fifteen per cent (excluding surcharge of 12% plus secondary and higher education cess is (2+1) 3%).
Relevant Sections of the Companies Act, 2013
The relevant Sections of the Companies Act, 2013 notified up to 30th April, 2016 are applicable for November, 2016 Examination.
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It is advisable for one to read the undermentioned topics for his/her preparation:
Note – Expected Weightage Would be 10 to 15 Marks will more focus on carve outs…
Framework for preparation and presentation of Financial Statements
It would be of a great help for a student if he reads the following :
- Substance over form ( Pt no 35 )
- Assets ( Pt 52 to 58 )
- Liabilities (Pt 59 to 63 )
- Equity ( 64 to 67 )
- Probability of future economic benefit ( Pt 84 )
- Reliability of measurement ( Pt 85 to 87 )
- Recognition of Asset ( Pt 88 to 89 )
- Recognition of Liability ( Pt 90 )
- Recognition of Income / Expense ( Pt 91 to 97 )
- Measurement of Elements of Financial Statement ( Pt 98 to 100 )
This link for the above mentioned topics is https://resource.cdn.icai.org/32073sm_finalnew_accpro-part1.pdf again it is advisable for reading the above as this will help the students in understanding the further chapters including Accounting Standards. Just give a reading that’s it
Must read –
- CA Final Accounts Latest Notes, Amendments Nov 2016
- CA Final Applicable Amendments, Standards Nov 2016
- CA Final Study Material, Practice Manual For Nov 2016
- Non-application of AS 30, AS 31 and AS 32 in CA Final
Accounting standards issued by ICAI from 1 to 7 and 9 to 29 are applicable. Please practice the accounting standard from practice manual, study material of institute and after that last 5 terms RTP’s. It would also be of a great help if one reads the accounting standard notes from acknowledge.in. Friends this looks a bit lengthy process but believe me it the the best way to have the full coverage of all AS’s. Download All Notes from Below Links..
Guidance notes on Accounting aspects
There are 12 Guidance Notes in total. Again your teacher would cover almost all the guidance note. The important ones are – Accounting treatment for Excise Duty, Accounting treatment for MODVAT/CENVAT, Share-based Payment, Guidance note on revised schedule III. You can also find these in this link
Supplementary Study Material relevant from May 16 examination
For this one is advised to read the supplementary study material issued by icai relevant for Nov , 2016. Here’s the link for this:
- Indian Accounting Standards (Ind AS)
- Revised Chapter-6 on Accounting and Reporting of Financial Instruments
What is made applicable is- Introduction to IND As, Comparative study of AS vis-à-vis Ind As, Carve out’s / in’s in Ind As vis-à-vis IFRS.
Guys please note that only the difference between IND As and existing AS and carve out’s / carve in’s will be asked as theoretical questions. So the thorough study is not required for all Ind AS. On the other hand Ind AS 32/107/109 is required to be prepared thoroughly because these are notified now and practical questions will be asked on these standard which are replacing the old 30/31/32.