IPCC Nov 2015 Advanced Accounting Amendments – Paper 1 & 5

August 5, 201540 Comments
Here I have given CA IPCC NOV 2015 Advanced Accounting Amendments. IPCC Accounts 1 & 2 both amendments are given here.
To crack CA exams at very first attempt, it is really important to get thorough to the subject 100% plus follow amendments and notifications applicable for the exam. So, as its our tag line – “To give you tonic for cracking CA exams with ease”, we are always giving latest and best information and requisites for upcoming CA exams. So, here is CA IPCC Nov 2015 Advanced Accounting Amendments. These amendments and notifications are for Accounting (Paper 1) and Advanced Accounting (Paper 5) both. Check it out and go for cracking the CA exams with CAcracker !!!

IPCC Nov 2015 Accounting Amendments

There are not much changes in IPCC Nov 2015 compare to May 2015.

 

Get this too:CA IPCC Tax Amendments for Nov 2015 (IMP)

Note: New updates and amendments for IPCC Nov 2015 will be updated here very soon after IPCC RTP Nov 2015 is issued.

 

 

CA IPCC Nov 2013 Advanced Accounting Amendments

Paper 1: Accounting amendments and notifications for IPCC Nov 2013:-

A. Pronouncements
Accounting Standards 1, 2, 3, 6, 7, 9, 10, 13 and 14 are covered in the syllabus.
(Text of all applicable Accounting Standards are available in the Appendix I of Volume I of ‘Accounting’ Study Material revised in November, 2012.)

B. Announcement relevant for November, 2013 examination
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.

 

Paper 5: Advanced Accounting amendments & notification for IPCC Nov 2013:-

A. Pronouncements
Accounting Standards 4, 5, 11, 12, 16, 19, 20, 26 and 29 are covered in the syllabus.
(Text of all applicable Accounting Standards are available in the Appendix II of Volume I of ‘Advanced Accounting’ Study Material revised in November, 2012.)
B. Notification/Announcement relevant for November, 2013 examination

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.

3. Clarification on Debenture Redemption Reserve (DRR)
Ministry of Corporate Affairs vide Circular no. 04/2013 dated 11 February, 2013 has clarified the adequacy of DRR for various institutions/companies as follows:

table will be updated soon
Every company required to create/maintain DRR shall before the 30th day of April of each year, deposit or invest, as the case may be, a sum which shall not be less than fifteen percent of the amount of its debentures maturing during the year ending on the 31st day of March next following year.

4. Maintenance of Cash Reserve Ratio at 4.00 per cent for all b@nks vide circular DBOD. No. Ret. BC. 76/12.01.001/2012-13 dated January 29, 2013.

5. Statutory Liquidity Ratio for Local Area B@nks be reduced from 25 per cent to 23 per cent of their Net Demand and Time Liabilities (NDTL) with effect from the fortnight beginning August 11, 2012.

6. Review of the Prudential Guidelines on Restructuring of Advances by B@nks/Financial Institutions
Reserve b@nk of India has reviewed the prudential guidelines on restructuring of advances by b@nk/ financial institutions vide circular no. DBOD.No.BP.BC.63/21.04.048/2012-13 applicable for all scheduled commercial b@nks excluding RRBs dated November 26, 2012 and has decided:

i) To enhance the provisioning requirement for restructured accounts classified as standard advances from the existing 2.00 per cent to 2.75 per cent in the first two years from the date of restructuring. In cases of moratorium on payment of interest/principal after restructuring, such advances will attract a provision of 2.75 per cent for the period covering moratorium and two years thereafter; and that

ii) Restructured accounts classified as non-performing advances, when upgraded to standard category will attract a provision of 2.75 per cent in the first year from the date of upgradation instead of the existing 2.00 per cent.
In accordance with the above, loans to projects under implementation, when restructured due to change in the date of commencement of commercial operations (DCCO) beyond
the original DCCO as envisaged at the time of financial closure and classified as standard advances would attract higher provisioning at 2.75 per cent as against the present requirement of 2.00 per cent as per the details given below:

Infrastructure projects

table will be updated soon

Rates of Provisioning for Non-Performing Assets for B@nking Companies

For B@nking companies, revised rate of NPA are given.

Category of AdvancesRate (%)
Sub- standard Advances
Secured Exposures15
Unsecured Exposures25
Unsecured Exposures in respect of Infrastructure loan accounts where certain safeguards such as escrow accounts are available.20
Doubtful Advances – Unsecured Portion100
Doubtful Advances – Secured Portion
For Doubtful upto 1 year25
For Doubtful > 1 year and upto 3 years40
For Doubtful > 3 years100
Loss Advances100

All other extant guidelines on Income Recognition, Asset Classification and Provisioning pertaining to advances will remain unchanged.

Note: (Common for Intermediate (IPC) Paper 1 and Paper 5)
Non-Applicability of Ind ASs for November, 2013 Examination
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 Indian Accounting Standards vis-à-vis IFRS.
(Students may note that Ind ASs are not applicable in November, 2013 Examination. However, Accounting Standards as specified in the syllabus are applicable for them in November, 2013 examination.)

 

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I am Noor Punasiya, owner & founder of CAcracker, aspiring Chartered Accountant and a passionate blogger. I write about educational updates for CA, CS, CMA at CAcracker. Stay in touch with me through Facebook, Twitter or Google+.

Comments (40)

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  1. Rasika Sawant says:

    Any New Update About ICWAI

  2. pradeep kumar says:

    sir,pls send me all of the ammendment of advance account for nov.2015 attempt from 2011 & onwards.

  3. Manish says:

    I have never been able to understand updates given by you. It says something but in reality its always old. Please make it a little lucid what you provide.

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