CA Final FR Amendments Nov 2017 Question Paper

Updated: CA Final FR Question Paper Nov 2017. CA Final Financial Reporting (FR) Amendments for Nov 2017 are very few compared to the last attempt. Financial Reporting is the first paper in the exam. Unlike subjects like Taxation and Law, CA Final FR has very few amendments. The most significant amendments has come in Accounting Standards part. The common questions asked by CA Final students regarding the amendments are that, Whether Indian Accounting Standards are applicable for the Nov 2017 exams. Whether IFRS are applicable for Nov 2017 exams.

FR Amendments Syllabus for Nov 2017 Exam

ICAI has implemented many changes in CA Final Accounting Standards portions in the last 12 months, which has led to confusions among CA Final students regarding the applicability of these changes for upcoming Nov 2016 Exam.

Amendment in AS-2, AS-13 and AS-29 from Nov 2017:

From Nov 2017 and subsequent exams, there have been few changes in the Accounting Standards 2,13 and 29.

In As 2, a separate heading of ‘OTHERS’ has been added for Inventory Classification.

In AS 13 Investment properties has to be accounted as per cost model of AS 10.

In AS 29 provision of cost of dismelting has to be provided by discounting at present value as per as 10. Earlier no such discounting was allowed.

However, these are only small changes from disclosure perspective. Not very relevant from CA Final exam point of view.

Proposed Dividend Amendment applicable from Nov 2017:

Proposed Dividend or Dividend declared after balance sheet date are not to be shown as liability in current year balance sheet. Instead, It has to be shown as Notes to the Account.

This change will effect Final Accounts, Cash Flow, Amalgamation and Internal Reconstruction topics. In simple words, proposed dividend will now not be in balance sheet but in Notes.

Students are advised to take note of the same.

AS-6 has been removed and merged with AS-10. So, for Nov 2017 exam, students need to study the revised AS-10.


Clarification on IND AS and MCA Amendments:

1) Need not study difference between IND AS 32,107,109 vis-a-vis AS 31,32,30 Respectively

2) Amendments made by MCA on 30.3.2016 in the Companies (Accounting Standards) Rules, 2006 and Companies (Indian Accounting Standards) Rules, 2015 have not been made applicable for November, 2016 examination.

Conclusion: The Syllabus is the same as that of May 2016. Students can study from the same set of old books.

Non-applicability of AS 30, 31 and 32 on the topic ‘Accounting and Reporting of Financial Instruments’

Ind AS 32 “Financial Instruments: Presentation”, Ind AS 107 “Financial Instruments: Disclosures” and Ind AS 109 “Financial Instruments” have been made applicable to the topic ‘Accounting and Reporting of Financial Instruments’ instead of AS 30 “Financial Instruments: Recognition and Measurement”, AS 31 “Financial Instruments: Presentation” and AS 32 “Financial Instruments: Disclosures”.

In view of the complexities involved, simple practical problems involving conceptual issues or application issues may be asked in the examination.

FR Amendments as per ICAI RTP

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.

Rate of Dividend Distribution Tax Applicable for Nov 2017

The rate of DDT is fifteen per cent (excluding surcharge of 12% plus secondary and higher education cess is (2+1) 3%).

IFRS Applicability for Nov 2017

The topic “Overview of International Accounting Standards (IAS) / International Financial Reporting Standards (IFRS), Interpretations by International Financial Reporting Interpretation Committee (IFRIC), Significant differences vis-a-vis Indian Accounting Standards; Understanding of US GAAPs, Applications of IFRS and US” has been excluded from the syllabus and the same is not applicable for November, 2016 Examination.