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Applicability of Pronouncements/Legislative Amendments/Circulars etc. for November, 2013 – Final Examination
Paper 1: Financial Reporting
A. Pronouncements
I. Statements and Standards
1. Framework for the Preparation and Presentation of Financial Statements.
2. Accounting Standards - AS 1 to AS 32.
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.
B. Announcements
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.
Notes:
· Students are expected to have thorough knowledge of the Accounting Standards (AS 1 to AS 29) and Guidance Notes on various aspects issued by the ICAI.
· As far as AS 30, 31 and 32 are concerned, in view of the complexities involved, the questions involving conceptual issues (not involving application issues) may be asked. Since a separate topic of ‘Financial Instruments’ is included in the curriculum, simple practical problems based on AS 30, 31 and 32 may be asked.
(Text of all applicable Accounting Standards and Guidance Notes are available in the Appendices, Volume II of Financial Reporting Study Material.)
NON-APPLICABILITY OF IND ASS FOR NOVEMBER 2013 EXAMINATION
3. The Core Group was constituted by the Ministry of Corporate Affairs (MCA) for convergence of Indian Accounting Standards with International Financial Reporting Standards (IFRS). This Core Group decided that there will be two separate sets of Accounting Standards viz.
I. Indian Accounting Standards converged with the IFRS (Known as Ind AS)
II. The MCA has hosted on its website 35 converged Indian Accounting Standards (Ind AS) without announcing the applicability date. These are the standards which are being converged by eliminating the differences of the existing Indian Accounting Standards vis-à-vis IFRS.
III. Existing Accounting Standards
The companies not falling within the threshold limits prescribed for Ind AS converged with IFRS compliance in the respective phases shall continue to use these standards in the preparation and presentation of financial statements.
Students may note that Ind ASs are not applicable for the students appearing in November, 2013 Examination.
Paper 3: Advanced Auditing and Professional Ethics
I. Professional Topics/Subjects
1. Code of Ethics
II. A. Framework for Assurance Engagements
II. B. Engagements and Quality Control Standards on Auditing (SQC/SA/SRS/SRE/SAE)
S. No | SA | Title of Standard on Auditing | Effective Date |
1 | SQC 1 | Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements | April 1, 2009 |
2 | SA 200 | Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing | April 1, 2010 |
3 | SA 210 | Agreeing the Terms of Audit Engagements | April 1, 2010 |
4 | SA 220 | Quality Control for Audit of Financial Statements | April 1, 2010 |
5 | SA 230 | Audit Documentation | April 1, 2009 |
6 | SA 240 | The Auditor’s responsibilities Relating to Fraud in an Audit of Financial Statements | April 1, 2009 |
7 | SA 250 | Consideration of Laws and Regulations in An Audit of Financial Statements | April 1, 2009 |
8 | SA 260 | Communication with Those Charged with Governance | April 1, 2009 |
9 | SA 265 | Communicating Deficiencies in Internal Control to Those Charged with Governance and Management | April 1, 2010 |
10 | SA 299 | Responsibility of Joint Auditors | April 1, 1996 |
11 | SA 300 | Planning an Audit of Financial Statements | April 1, 2008 |
12 | SA 315 | Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment | April 1, 2008 |
13 | SA 320 | Materiality in Planning and Performing an Audit | April 1, 2010 |
14 | SA 330 | The Auditor’s Responses to Assessed Risks | April 1, 2008 |
15 | SA 402 | Audit Considerations Relating to an Entity Using a Service Organization | April 1, 2010 |
SOURCE: ICAI
All the best... Best Wishes, Yogesh Gupta you can find me at @ www.facebook.com/mr.yogeshgupta
thnks for sharing yogesh bro
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