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CA IPCC Costing & FM Syllabus May 2017 – New Changes by ICAI

CA IPCC Costing & FM Syllabus May 2017  and Applicable Amendments & New Changes are here. In this article, We’ve provided CA IPCC Cost Accounting and Financial Management Syllabus Changes and Amendments Notification applicable for May 2017 and Nov 2017. Also Download CA IPCC Study Material for May 2017. The Syllabus of CA IPCC changes every two attempts. The Syllabus for May 2017 and Nov 2017 will be different for the IPCC subjects when compared to the syllabus that was applicable for Nov 2016 Exam. The reason for the change in CA IPCC Syllabus for May 2017 is the applicability of new Union Budget and also applicability of new Notifications and Circulars for this attempt. The CA IPCC Costing & FM Syllabus new changes for May 2017 and Nov 2017 exam are available from the below provided links for free download. In this Article, we will list out Applicable CA IPCC Cost Accounting and Financial Management Syllabus and also Amendments thereto.

CA IPCC Costing & FM Syllabus For May 2017 Image result for blinking new gif

IPCC Costing Syllabus

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IPCC Subjects For May 2017

There are total 7 Papers in CA IPCC Syllabus. See below

Group I

Paper 1: Accounting (100 marks)

Paper 2: Business Laws, Ethics and Communication (100 marks)

  • Part I: Business Laws (60 marks) comprising
  1. Business Laws (30 marks)
  2. Company Law (30 marks)
  • Part II: Ethics (20 marks)
  • Part III: Communication (20 marks)

Paper 3: Cost Accounting and Financial Management (100 marks)

  • Part I: Cost Accounting (50 marks)
  • Part II: Financial Management (50 marks)

Paper 4: Taxation (100 marks)

  • Part I: Income-tax (50 marks)
  • Part II: Indirect Taxes (50 marks)

Group II

Paper 5: Advanced Accounting (100 marks)

Paper 6: Auditing and Assurance (100 marks)

Paper 7: Information Technology and Strategic Management (100 marks)

  • Section A: Information Technology (50 marks)
  • Section B: Strategic Management (50 marks)

Costing & FM IPCC Syllabus Changes May 2017

Cost Accounting and Financial Management Syllabus hasn’t changed for the past 5 years and will remain the same for CA IPCC May 2017 and November 2017 exams too. Here we are providing CA IPCC Cost Accounting and Financial Management Syllabus for May 2017 in PDF format. Click below links to download.

Subject Syllabus
Cost Accounting and Financial Management Download

 IPCC Syllabus Paper 3: Cost Accounting and Financial Management

(One paper – three hours – 100 marks)

Contents:

1. Introduction to Cost Accounting

(a) Objectives and scope of cost accounting

(b) Cost centres and cost units

(c) Cost classification for stock valuation, profit measurement, decision making and control

(d) Coding systems

(e) Elements of cost

(f) Cost behaviour pattern, separating the components of semi-variable costs

(g) Installation of a costing system

(h) Relationship of cost accounting, financial accounting, management accounting and financial management.

2. Cost Ascertainment

(a) Material Cost

(i) Procurement procedures – store procedures and documentation in respect of receipts and issue of stock, stock verification

(ii) Inventory control – techniques of fixing of minimum, maximum and reorder levels, economic order quantity, ABC classification; stocktaking and perpetual inventory

(iii) Inventory accounting

(iv) Consumption – identification with products of cost centres, basis for consumption entries in financial accounts, monitoring consumption.

(b) Employee Cost

(i) Attendance and payroll procedures, overview of statutory requirements, overtime, idle time and incentives

(ii) Labour turnover

(iii) Utilisation of labour, direct and indirect labour, charging of labour cost, identifying labour hours with work orders or batches or capital jobs

(iv) Efficiency rating procedures

(v) Remuneration systems and incentive schemes.

(c) Direct Expenses

Sub-contracting – control on material movements, identification with the main product or service.

(d) Overheads

(i) Functional analysis – factory, administration, selling, distribution, research and development

Behavioural analysis – fixed, variable, semi variable and step cost

(ii) Factory overheads – primary distribution and secondary distribution, criteria for choosing suitable basis for allotment, capacity cost adjustments, fixed absorption rates for absorbing overheads to products or services

(iii) Administration overheads – method of allocation to cost centres or products

(iv) Selling and distribution overheads – analysis and absorption of the expenses in products/customers, impact of marketing strategies, cost effectiveness of various methods of sales promotion.

3. Cost Book-keeping

Cost ledgers – non-integrated accounts, integrated accounts, reconciliation of cost and financial accounts.

4. Costing Systems

(a) Job Costing

Job cost cards and databases, collecting direct costs of each job, attributing overhead costs to jobs, applications of job costing.

(b) Batch Costing

(c) Contract Costing

Progress payments, retention money, escalation clause, contract accounts, accounting for material, accounting for plant used in a contract, contract profit and balance sheet entries.

(d) Process Costing

Double entry book keeping, process loss, abnormal gains and losses, equivalent units, inter-process profit, joint products and by products.

(e) Operating Costing System

5. Introduction to Marginal Costing

Marginal costing compared with absorption costing, contribution, breakeven analysis and profit volume graph.

6. Introduction to Standard Costing

Various types of standards, setting of standards, basic concepts of material and labour standards and variance analysis.

7. Budgets and Budgetary Control

The budget manual, preparation and monitoring procedures, budget variances, flexible budget, preparation of functional budget for operating and non-operating functions, cash budget, master budget, principal budget factors.

Part II: Financial Management (50 marks)

Contents:

1. Scope and Objectives of Financial Management

(a) Meaning, importance and objectives

(b) Conflicts in profit versus value maximisation principle

(c) Role of Chief Financial Officer.

2. Time Value of Money

Compounding and discounting techniques – concepts of annuity and perpetuity.

3. Financial Analysis and Planning

(a) Ratio analysis for performance evaluation and financial health

(b) Application of ratio analysis in decision making

(c) Analysis of cash flow statement.

4. Financing Decisions

(a) Cost of Capital – weighted average cost of capital and marginal cost of capital

(b) Capital Structure decisions – capital structure patterns, designing optimum capital structure, constraints, various capital structure theories

(c) Business risk and financial risk – operating and financial leverage, trading on equity.

5. Types of Financing

(a) Different sources of finance

(b) Project financing – intermediate and long term financing

(c) Negotiating term loans with banks and financial institutions and appraisal thereof

(d) Introduction to lease financing

(e) Venture capital finance.

6. Investment Decisions

(a) Purpose, objective, process

(b) Understanding different types of projects

(c) Techniques of decision making: non-discounted and discounted cash flow approaches – payback period method, accounting rate of return, net present value, internal rate of return, modified internal rate of return, discounted payback period and profitability index.

(d) Ranking of competing projects, ranking of projects with unequal lives.

7. Management of working capital

(a) Working capital policies

(b) Funds flow analysis

(c) Inventory management

(d) Receivables management

(e) Payables management

(f) Management of cash and marketable securities

(g) Financing of working capital.

New CA Syllabus Applicability Date
It is a known fact that, the syllabus of CA Course is being radically changed. We have been receiving numerous requests regarding the applicability of this new syllabus.

It is hereby clarified that, the new syllabus will likely come into effect only from Nov 2017 exams.

Students who registered under old syllabus will be given at least three attempts before making the new syllabus applicable to them.

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