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ICAI Announcement: Exclusion of Some Topics for CA IPCC May 2014

ICAI has made an Announcement regarding Exclusion of Some Topics for CA IPCC Nov 2013 exam in subject of Accounting for Hire Purchase chapter. And also same will not be applicable for May 2014. ICAI announced on 23/08/2013 that Hire Purchase Trading Account (Debtors) Method and Stock and Debtors Method are excluded from syllabus. Hence, it will not be asked in May 2014 IPCC exam. ICAI has also said in announcement about which pages are effected with this inclusion which are also given below.icai-notification

ICAI had removed some pages from Information Technology also, last time: check it at >Important Chapters,Topics & Tips for CA IPCC  Nov 2013 Exam/ Info. Tech. exclusions.

The exact ICAI announcement is given below.

Announcement: Exclusion of Hire Purchase Trading Account (Debtors) Method and Stock and Debtors Method from Chapter 11 of Intermediate (IPC) Course Paper 1: Accounting Study Material. – (23-08-2013)

It has been observed that Hire Purchase Trading Account (Debtors) method and Stock and Debtors method of ascertaining profit or loss on sale of goods of small value under hire purchase system based on the simplified approach followed in the Study Material are not fully compliant with AS 19 “Leases” since loading amount contains both profit as well as interest element.

However, students may note that both these methods would be fully compliant with AS 19, provided the usage of interest rate, IRR, etc. are followed to bifurcate the element of interest and profit. Such an approach to apply both these methods involves more complication and hence may not be relevant in practice for Intermediate (IPC) Students. Therefore, Board of Studies has decided to exclude the Hire Purchase Trading Account (Debtors) Method and Stock and Debtors Method in the Paper 1: Accounting Study Material at Intermediate (IPC) level.

Accordingly, students of Intermediate (IPC) Course Paper 1: Accounting are advised not to read the said methods given in Chapter 11 of the Study Material. The details of the relevant page nos. and questions in the Study Material and Practice Manual of July, 2013(Revised edition) respectively, are given hereunder:

Volume IStudy MaterialPara 9 to 13 and Illustrations 13 to 19 in Page nos. 11.32 to 11.50
Volume IIPractice ManualQuestions 1, 2, 4, 5, 6, 7, 8 and 10 in Page nos. 11.1 to 11.20

PS: Students may note that the aforesaid exclusion of methods comes into force with immediate effect.

Recommended Article: >CA IPCC Syllabus for May 2014 & IPCC IT, Tax Changes for Nov 2014

Check this too: >ICAI Clarifies: Passing Criteria is Same for CA CPT, IPCC, Final (Avoid Rumors)

So, that’s good to see as a CA student that something is removed this time also. Haaashh.. lol. 🙂

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