Applicability of Standards/Guidance Notes/Legislative Amendments etc. for November, 2014 – Final Examination

June 10, 2014

Paper 1: Financial Reporting
I. Statements and Standards
Framework for the Preparation and Presentation of Financial Statements.

Accounting Standards
1 Disclosure of Accounting Policies
2 Valuation of Inventories
3 Cash Flow Statements
4 Contingencies and Events Occurring after the Balance Sheet Date
5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
6 Depreciation Accounting
7 Construction Contracts (Revised 2002)
9 Revenue Recognition
10 Accounting for Fixed Assets
11 The Effects of Changes in Foreign Exchange Rates (Revised 2003)
12 Accounting for Government Grants
13 Accounting for Investments
14 Accounting for Amalgamations
15 Employee Benefits
16 Borrowing Costs
17 Segment Reporting
18 Related Party Disclosures
19 Leases
20 Earnings Per Share
21 Consolidated Financial Statements
22 Accounting for Taxes on Income
23 Accounting for Investment in Associates in Consolidated Financial Statements
24 Discontinuing Operations
25 Interim Financial Reporting
26 Intangible Assets
27 Financial Reporting of Interests in Joint Ventures
28 Impairment of Assets
29 Provisions, Contingent Liabilities and Contingent Assets
30 Financial Instruments: Recognition and Measurement
31 Financial Instruments: Presentation
32 Financial Instruments: Disclosure

Note: Non-Applicability of Ind ASs for Nov. 2014 Examination
The MCA has hosted on its website 35 Indian Accounting Standards (Ind AS) without announcing their applicability date. Students may note that Ind ASs are not applicable for November, 2014 Examination.

II. Guidance Notes on Accounting Aspects

1. Guidance Note on Treatment of Reserves created on Revaluation of Fixed Assets.
2. Guidance Note on Accrual Basis of Accounting.
3. Guidance Note on Accounting Treatment for Excise Duty.
4. Guidance Note on Terms Used in Financial Statements.
5. Guidance Note on Accounting for Depreciation in Companies.
6. Guidance Note on Availability of Revaluation Reserve for Issue of Bonus Shares.
7. Guidance Note on Accounting Treatment for MODVAT/CENVAT.
8. Guidance Note on Accounting for Corporate Dividend Tax.
9. Guidance Note on Accounting for Employee Share-based Payments.
10. Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under the Income Tax Act, 1961.
11. Guidance Note on Measurement of Income Tax for Interim Financial Reporting in the context of AS 25.
12. Guidance Note on Applicability of Accounting Standard (AS) 20, Earnings per Share.
13. Guidance Note on Remuneration paid to key management personnel – whether a related party transaction.
14. Guidance Note on Applicability of AS 25 to Interim Financial Results.
15. Guidance Note on Turnover in case of Contractors.
16. Guidance Note on the Revised Schedule VI to the Companies Act, 1956 (Schedule III to the Companies Act, 2013).

III Applicability of the Companies Act, 2013

• Accounting related sections of the Companies Act, 2013, notified in Sept, 2013, along with the clarifications issued by the Ministry of Corporate Affairs are applicable for Nov. 14 Examination.
• Notified Sections of Chapter IX of the Companies Act, 2013 along with relevant Rules will be applicable for November, 2014 Examination.

Paper 3: Advanced Auditing and Professional Ethics
I. Statements and Standards

1. Statement on Reporting under Section 227(1A) of the Companies Act, 1956
2. Statement on the Companies (Auditor’s Report) Order, 2003*
3. Framework for Assurance Engagements.

Note : Statement on CARO, 2003 is applicable on Financial Statements prepared on or before March 31, 2014.

II. Engagements and Quality Control Standards on Auditing

1. SQC 1 Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements
2. SA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing
3. SA 210 Agreeing the Terms of Audit Engagements
4. SA 220 Quality Control for Audit of Financial Statements
5. SA 230 Audit Documentation
6. SA 240 The Auditor’s responsibilities Relating to Fraud in an Audit of Financial Statements
7. SA 250 Consideration of Laws and Regulations in An Audit of Financial Statements
8. SA 260 Communication with Those Charged with Governance
9. SA 265 Communicating Deficiencies in Internal Control to Those Charged with Governance and Management
10. SA 299 Responsibility of Joint Auditors
11. SA 300 Planning an Audit of Financial Statements
12. SA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment
13. SA 320 Materiality in Planning and Performing an Audit
14. SA 330 The Auditor’s Responses to Assessed Risks
15. SA 402 Audit Considerations Relating to an Entity Using a Service Organization
16. SA 450 Evaluation of Misstatements Identified during the Audits
17. SA 500 Audit Evidence
18. SA 501 Audit Evidence - Specific Considerations for Selected Items
19. SA 505 External Confirmations
20. SA 510 Initial Audit Engagements-Opening Balances
21. SA 520 Analytical Procedures
22. SA 530 Audit Sampling
23. SA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
24. SA 550 Related Parties
25. SA 560 Subsequent Events
26. SA 570 Going Concern
27. SA 580 Written Representations
28. SA 600 Using the Work of Another Auditor
29. SA 610 Using the Work of Internal Auditors
30. SA 620 Using the Work of an Auditor’s Expert
31. SA 700 Forming an Opinion and Reporting on Financial Statements
32. SA 705 Modifications to the Opinion in the Independent Auditor’s Report
33. SA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report
34. SA 710 Comparative Information – Corresponding Figures and Comparative Financial Statements
35. SA 720 The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements
36. SA 800 Special Considerations-Audits of Financial Statements Prepared in Accordance with Special Purpose Framework
37. SA 805 Special Considerations-Audits of Single Purpose Financial Statements and Specific Elements, Accounts or Items of a Financial Statement
38. SA 810 Engagements to Report on Summary Financial Statements
39. SRE 2400 Engagements to Review Financial Statements
40. SRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity
41. SAE 3400 The Examination of Prospective Financial Information
42. SAE 3402 Assurance Reports on Controls At a Service Organisation
43. SRS 4400 Engagements to Perform Agreed Upon Procedures Regarding Financial Information
44. SRS 4410 Engagements to Compile Financial Information

III. Guidance Notes and other publications

1. Code of Ethics
2. Guidance Note on Independence of Auditors.
3. Guidance Note on Audit Reports and Certificates for Special Purposes.
4. Guidance Note on Audit under Section 44AB of the Income-tax Act.
5. Guidance Note on Audit of Abridged Financial Statements.
6. Guidance Note on Audit of Inventories.
7. Guidance Note on Audit of Debtors, Loans and Advances.
8. Guidance Note on Audit of Investments.
9. Guidance Note on Audit of Miscellaneous Expenditure.
10. Guidance Note on Audit of Cash and Bank Balances.
11. Guidance Note on Audit of Liabilities.
12. Guidance Note on Audit of Revenue.
13. Guidance Note on Audit of Expenses.
14. Guidance Note on Sections 227(3)(e) and (f) of the Companies Act, 1956.
15. Guidance Note on Certificate of Corporate Governance
16. Guidance Note on Computer Assisted Audit Techniques (CAATs).
17. Guidance Note on Audit of Payment of Dividend.
18. Guidance Note on Audit of Capital and Reserves.
19. Guidance Note on Auditing of Accounts of Liquidators.

IV Applicability of the Companies Act, 2013 :

1. Auditing related sections notified in Sept, 2013 of the Companies Act, 2013 along with the clarifications notified by the Ministry of Corporate Affairs.
2. Notified sections of Chapter IX: Accounts of Companies and Chapter X: Audit and Auditors of the Companies Act, 2013 along with its relevant Rules.

Paper 4 : Corporate and Allied Laws

1) The Companies Act, 2013

• 45 sections of the Companies Act, 2013 along with the clarifications notified by the Ministry of Corporate Affairs. 
• Notified sections of Chapter IX: Accounts of Companies and Chapter X: Audit and Auditors of the Companies Act, 2013 along with its relevant Rules.

2) SEBI (Issue of Capital and Disclosure Requirement) Regulations, 2009 SEBI vide Notification dated 4th February, 2014 has issued SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2014 which is available at the following link http://www.sebi.gov.in/cms/sebi_data/attachdocs/1391509221289.pdf

3) The Foreign Exchange Management Act, 1999

• The Reserve Bank of India has issued a circular dated 9th January, 2014 on Section 6 of the Foreign Exchange Management Act, 1999 which is available at the following link http://rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=8685
• The Reserve Bank of India has issued a circular dated 4th April, 2014 on Compounding of Contraventions under FEMA, 1999 and decided to delegate further powers to the Regional Offices of Reserve Bank of India. The circular is available at the following link http://rbidocs.rbi.org.in/rdocs/notification/PDFs/553APD04042014.pdf

Non-Applicability of the following Amendments/Circulars/Notifications 

• New 184 sections of the Companies Act, 2013 notified on 27th February, 2014 and 26th March, 2014.
• Rules notified under the Companies Act, 2013
• Provisions relating to Revival and Rehabilitation of Sick-Industrial Companies

As per the Council decision at its 333th meeting held on 14th May, 2014, notified sections of Chapter IX: Accounts of Companies and Chapter X: Audit and Auditors of the Companies Act, 2013 along with its relevant Rules will also be applicable for November 2014 examinations.

Paper 7 : Direct Tax Laws & Paper 8 : Indirect Tax Laws

Applicability of the Finance Act, Assessment Year etc. for November, 2014 Examination
The provisions of direct and indirect tax laws, as amended by the Finance Act, 2013, including notifications and circulars issued upto 30th April, 2014. The applicable assessment year for Direct Tax Laws is A.Y. 2014-15.