Welcome to ICWAI Exam 2012 Section. Here you will find about ICWAI 2012 Exam, ICWAI Coaching, Colleges, ICWAI Syllabus, Preparation, Paper Pattern, Sample Test Papers, Questions, ICWAI Notification, Important Dates, ICWAI Exam Date, Online ICWAI Test and ICWAI Results.
This is a Accountacy exam for admission to Cost & Work Account Course in Institute of Cost & Works Accountants of India (ICWAI)
ICWAI Important Dates / Notification:-
Exams are held two times in a year i.e. on 11th to 18th June and on 10th to 17th December. For June Term Examination apply before 05th December of previous year and for December Term Examination apply before 05th June.
Eligibility for Admission in ICWAI 2012 Foundation Course:-
a) 17 years of age; and
(b) Passed Senior Secondary Examination under 10+2 scheme of a recognized Board
Incumbents waiting for the result can apply for provisional admission
Incumbents waiting for the result can apply for provisional admission
Cost of Prospectus - Rs. 200/-
Postal Tuition Fee (including study material) - Rs. 3500/-
Oral Coaching Fee (including study material) - Rs. 3500/-
Eligibility for Admission in ICWAI 2012 Intermediate Course:
(a) is not less than 18 years of age; and
(b) has passed degree Examination of any recognised University or equivalent
Cost of Prospectus - Rs. 200/-
Postal Tuition Fee (including study material) - Rs. 7000/-
Oral Coaching Fee (including study material) - Rs. 11000/-
ICWAI Syllsbus 2012:-
ICWAI Syllabus Foundation:-
Paper 1 : Organization & Management Fundamentals
To gain basic knowledge in Organizational Management
To understand the concept of business management at the macro level
Section I : Organization 30%
1. Nature and Functional Areas of Organization 10%
Functional areas of business and their operations
Activities of different functions
Formal & informal organizations: principles of organizations
Criteria for grouping
2. Schools of Organizational theory 10%
Classical, behavioural and systems
Current trend and approaches
Behaviour in organizations
Role of behavioural science
3. Organizational Management 10%
Objectives ( missions, goals and targets)
Conflicts between objectives
Appropriate strategy formulation
Determinants of culture
Different models available for categorizing cultures
Different models of organizational model management available to achieve goal congruence.
Section II : Management 70%
4.. Human resource management 20%
Human resource plan
Human issues relating to recruitment, dismissal, retirement and redundancy
Models of Human Behaviour and Motivation and its applications (Taylor, McGregor, Maslow, Hertzberg etc).
Training & development.
Development and design of reward system
5. Management of Relationship 20%
Process of Management covering planning, organizing, staffing, directing, motivating, communicating and control
Concept of power, authority, responsibility and delegation
Characteristics of leaders and managers
Management Style theories
6. Management of Change 15%
Stages & Process of Management change
Structural change & Cultural change
Approaches to the management of organizational development
Importance of managing critical period of change
Ways of handling these periods of change
7. Pattern of Management 15%
Broad policies and functions
Structural pattern of Board of Directors.
Concept of public sector, social objectives, public sector management
Current management thoughts
Paper2: Accounting (One Paper: 3 hours:100 marks)
To understand fundamental accounting principles
To understand basic concept of cost accounting
1. Basics of Bookkeeping and accounting 10%
Definitions and its usefulness
Financial Accounting principles, concept and convention measurement of business income
Accounting Standards national and international ( basic knowledge)
2. Systems of Bookkeeping 10%
Double entry system, books of prime entry, subsidiary books
Recording of cash and Bank transactions
Preparation of ledger accounts
Preparation of trial balance interpretation and usefulness
3. Bank Reconciliation statements 5%
Need for reconciliation between cashbook and bank pass book and problems relating to the preparation of bank
4. Accounting System 25%
Concept of capital, revenue, deferred revenue expenditures, opening entries, closing entries, adjustment entries
and rectification entries.
Accounting treatment for bad debts, reserve for bad debts and other adjusting entries.
Depreciation- significance, accounting and various methods of calculation of depreciation.
Concept of single entry system, conversion of single entry system into double entry system of accounting.
Preparation of receipts and payments accounts, income and expenditure accounts.
Significance of reserves and provisions.
Bill of Exchange, consignment and joint venture
5. Elements of Cost Accounting 15%
Basics of cost and management accounting:
Evolution of cost accounting and management accounting, cost concepts and cost object,
Cost classification, cost organization and its relationship with other departments.
Elements of cost and cost determination.
Material cost-purchase procedure, store keeping and stock control, pricing issue of material and accounting thereof,
perpetual inventory and physical stock taking, identification of slow, non-moving and fast moving items, ABC
analysis, JIT system, level of inventories and economic order quantity, analysis, investigation and corrective steps
for treatment of stock discrepancies control through other means.
Labour costs remuneration methods, monetary and non-monetary incentive schemes, payroll procedures, labour
analysis and idle time, measurement of labour efficiency and productivity, analysis of non productive time and its
cost, labour turnover and remedial measures, treatment of idle time and overtime.
Direct expenses nature, collection, classification and treatment of direct expenses.
Overheads nature, collection and classification.
Production overheads collection, apportionment, absorption, use of predetermined recovery rates, treatment of
under and over absorption, fixed, variable and semi variable overhead, report for control of overhead cost.
Administration, selling and distribution overheads analysis, accounting and control, treatment of miscellaneous
items in cost accounting.
6. Cost Sheets 15%
Cost data collection
Cost Sheet formats
Preparation of cost sheets.
7. Behaviour of Costs 20%
Fixed & Variable costs
Direct & Indirect costs
Cost Behaviour for decision making
Marginal Costing and Break Even Analysis
Paper 3 : Economics and Business Fundamentals ( One paper : 3 hours : 100 Marks)
To gain basic knowledge of economics
To understand different structures of organization
To know how stock exchange functions
A. ECONOMICS (60 marks)
1. Basic Concepts of economics 10%
The Fundamentals of Economics & Economic Organizations
Basic Elements of Supply and Demand, elasticity
Theory of Production
Cost of production,
2. Forms of Market 5%
Perfect competition and Imperfect competition
Pricing in perfect and imperfect competition
3. National Income 5%
Gross National Product
Net National Product
Measurement of National Income
Economic growth and fluctuations
Consumptions, savings and investments
4. Theory of Employment 5%
Type of unemployment
Concepts of full employment
Labour and Population theories
Definition of capital and growth of capital
Steps in capital formation
5. Money 10%
Definition and functions of money
Quantity theory of money
Inflation and effect of inflation on production and distribution of wealth
Control of inflation
Liquidity preference and marginal efficiency
Rate of interest and investment
6. Banking 10%
Functions and utility of Banking
Principle of commercial banking
Essentials of sound banking system
Multiple credit creation
Functions of Central Bank
Weapons of credit control and money market
National & International Financial Institutions
7. International Trade 5%
Basic feature of export and import
Competitive advantage of trade
8. Public Finance 10%
Direct and indirect taxes
Principle of taxation
Effect of taxation on production and distribution
Deficit financing system
B. Business Fundamentals (40 marks)
9. Type of Business Unit 10%
Sole proprietorship, Partnership, Companies, Cooperatives
Hindu Undivided Family
Joint Stock Companies
Public Utilities services
Limited Liability Partnership
10. Company Organization and Management 10%
Types of companies and their formation
Incorporation and commencement of business
Memorandum of Association, Articles of Association and Prospectus
Shares and debentures
Board of Directors and General Meeting
11. Business Objectives 5%
Concept and rationale of social responsibility
Business and its environment, interface with legal, political, economic, social and cultural aspects
12. Stock Exchange and its workings 10%
Dealers and brokers transactions
Economic significance, condition of membership
Role of stock exchanges , Depository participant
13. Business Communication and Report Writing 5%
Paper 4: Business Mathematics and Statistics Fundamentals (One Paper: 3 hours:100 marks)
To understand basic concepts in mathematics and statistics which are applied in the management science.
1. Arithmetic 10%
Ratios and proportions
Computation of interest
Discounting of bills
2. Algebra 15%
Real and imaginary number, rational and irrational number
Set theory and simple application of Venn diagram
Truth table and its applications
Indices and surds
Permutations and Combinations
Linear simultaneous equations ( 3 variables only)
Solution of linear inequalities ( by geometric method only)
3. Mensuration 15%
Area and perimeter of triangles, circles, parallelogram, regular polygon
Volume and surface of cube, prism, cylinder, pyramid, cone, and spheres ( including zone and segments)
4. Co-ordinate Geometry 10%
Plain co-ordinate Geometry ( Rectangular Cartesian co-ordinates only)
Length of line segments, Section ratio
Gradient of a line, equation of straight line, Circles, parabola, ellipse and hyperbola ( standard forms only)
Constant &Variables, Functions, Limit & Continuity
Differentiability & Differentiation, Derivatives and their use, Successive & partial differentiation
Maxima & Minima, Maxima & Minima under constraint using Lagrange transform
Indefinite Integrals: as primitives, integration by substitution, integration by part
Definite Integrals: Evaluation of standard integrals, as area under curve
Applications of Calculus
6. Statistical Methods 35%
Data tabulation and presentation, frequency distribution
Measures of Central Tendency ( Mean, Median, mode)
Measurement of Dispersion ( range, mean deviation, standard deviation, variance)
Measures of Skewness & kurtosis
ICWAI 2012 Syllabus Intermediate:-
Paper 5 : Financial Accounting (One Paper: 3 hours:100 marks)
To have working knowledge of accounting concepts, detailed procedures and documentation involved in financial
To gain working knowledge of the principles and procedures of accounting and their application to different practical
1. Accounting Conventions and Practices 10%
Depreciation and various methods thereof
Distinction between Capital and Revenue
2. Royalty and Hire Purchase 10%
Need for hire purchase and installment systems and parties involved.
Accounting from the point of view various parties.
Possession and repossession in case of default in payments.
3. Receipts & Payments/ Income & Expenditure Accounts 10%
Receipts & Payments
Income & Expenditure Account
4. Partnership Accounting 10%
Past adjustments and guarantee
Admission & Retirement
Assignment of life policy
Amalgamation and Sale of Business
5. Branch and Departmental Accounts 10%
Branch accounts- Debtors system, Stock & Debtors system, Foreign Branch.
Treatment of shortages.
Calculation of net profit of various departments and allocation of expenses on the basis of suitable base.
Preparation of common balance sheet.
Treatment of Unrealized profit.
6. Accounting Standards 10%
Applicability of a particular accounting standard.
Interpretation of various accounting standards.
Scope of accounting standards.
Compliance with the Accounting Standards.
7. Joint Stock Companies 20%
Issues of shares at par, discount & premium, forfeiture, reissue of shares
Bonus issue and right issue
Buy back of shares
Redemption of Preference of shares
Profit prior to incorporation
Issue and redemption of debentures
8. Preparation of Company Accounts
Preparation of Final Accounts under Company Law
9. Accounting services in organizations 10%
Construction companies ,Project Accounting
Service sector such as Software, ITES, Telecommunication, Entertainment, Hospital, educational institutions
Banking , Electricity and Insurance companies
10. Accounting and Interpretation of Financial Statements. 10%
Paper 6: Commercial & Industrial Laws and Auditing (One Paper: 3 hours:100 marks)
To gain knowledge of some of important commercial and industrial laws related to business.
To gain working knowledge of the principles and practice of auditing and their various applications.
A. Commercial & Industrial Law ( 50 marks)
1. Laws of Contracts 15%
Essential elements of a valid simple contract.
Legal status of the various types of statements which may be made by negotiating parties. Enforceable offers and
acceptances, and the application of the rules to standard form contracts and modern forms of communication.
Meaning and importance of consideration.
Principles for establishing that the parties intend their agreement to have contractual force.
How a contract is affected by a misrepresentation.
Conditions and warranties
Manner in which law controls use of exclusion clauses and unfair terms in consumer and non-consumer transactions
Level of performance sufficient to discharge contractual obligations
Valid reasons for non-performance by way of agreement, breach by the other party and frustration
2. Laws relating to Sale of Goods 10%
Formation of Contract of sale
Conditions and warranties
Transfer of ownership and delivery of goods
Unpaid seller and his rights
3. Industrial Laws 20%
Industrial Dispute Act
Workman Compensation Act
Payment of Wages Act, Minimum Wages Act
Provident Funds Act
Payment of Bonus Act
Payment of Gratuity Act
Consumer Protection Act etc
4. Other Laws 5%
Limited Liability Partnership
Competition Commission Act
Negotiable Instruments Act.
B. Auditing ( 50 Marks)
1. Auditing Basics 10%
Major influences of auditing; nature and scope of auditing; basic concepts of auditing; role of evidence in auditing;
auditing techniques and practices generally accepted auditing standards; the concept of materiality in auditing.
Fixed assets, investments, inventories, debtors, loans and advances, cash and bank balances, debentures and
creditors, provisions for taxation, proposed dividend and gratuity other items in the balance sheet; verification of
items in the profit and loss account; contingent liabilities; disclosure of accounting policies, practice; expenditure
during the period of construction; adjustments for previous year provisions of the Companies Act, 1956 regarding
Statistical sampling in auditing. Use of ratios and percentages for comparison and analysis trends - inter-firm and
2. Companies Act Provisions relating to Audits 10%
Auditors' appointment, remuneration, removal, rights of statutory auditors, duties of statutory auditors, joint auditors,
report versus certificate, contents of the reports, qualifications in the report.
relevant provisions of the Companies Act, 1956 and the Income-tax Act, 1961.
Interface between statutory auditor and internal auditor.
3. Review and Audit of Internal Control Systems 15%
Nature and scope of internal auditing, financial versus operational audit; concepts of efficiency audit, propriety audit,
voucher audit, compliance audit, pre and post audits.
Internal auditing function
Planning and process of internal audit
Verification of evidence, detailed checking versus sampling plans, statistical sampling as used in internal auditing;
flow chart techniques.
Internal control, nature and scope, internal auditor and internal controls.
Field work, collecting evidences, interviews; memoranda.
Audit notes and working papers.
Audit reports - techniques of effective reporting; follow up of audit report.
Summary reports of top management.
Communications in internal auditing - improving auditor-auditee relationship.
Scope of Audit Committee
Internal audit and investigation of fraud
4. Information System Audit. 10%
5. Introduction to Management Audit. 5%
Paper 7: Applied Direct Taxation (One Paper: 3 hours:100 marks)
To understand the provisions of direct tax laws
To gain knowledge on procedural aspects for filing tax returns for various assesses and other statutory compliances
To get knowledge of various tax incentives and benefits under direct taxes
To know applications of tax provisions in various cases
1. Direct Taxes- Comprehensive Study. 50%
Overview of Direct Tax Laws
Direct versus indirect taxes, taxable person
A comprehensive study of the Income-tax Act, 1961; case laws governing capital and revenue expenditure, deemed
income, residence concept.
Special problems centering on the concept of assessees, registered firm, Hindu Undivided Family, Companies,
Association of persons and trust, minors, cooperatives, non-resident Indians and avoidance of double taxation.
Salaries, perquisites, gratuity and retirement benefits, income from house property, capital gains, income from other
sources, income from business and profession, problems arising from aggregation of income and set off and carry
forward of losses,
Computation of income and Return of Income Tax, Filing procedure, Principles of valuation of movable and
immovable property. Advance payment of Tax.
Deduction and collection of tax at source.
Tax incentives and export promotion schemes, other benefits and tax exemptions.
Assessment, appeals, revisions, review, rectification and application to Central Board of Direct Taxes.
Penalties ,Fines and prosecution.
Securities Transaction Tax.
Fringe Benefit Tax.
Banking Cash Transaction Tax.
2 Practical problems and case studies under Direct Taxes. 50%
Paper 8: Cost & Management Accounting (One Paper: 3 hours:100 marks)
To understand basic concept, processes used to determine product cost
To gain knowledge of preparation of budgets , standard costs and variance statements
To gain skill for controlling cost and decision making
1. Basic aspects of Cost Accounting 15 %
Cost Concepts and Classification of costs
Materials: accounting and control systems procedures and techniques
Labour: accounting, incentive schemes and control systems and procedures
Indirect expenses: allocation, apportionment, re-apportionment and absorption of overhead costs.
Cost Accounting Standards.
2. Cost Accounting Methods and systems 20%
Job, batch, contract and process costing.
Cost accounting for service sector
Accounting entries for an integrated accounting system cost ledgers
Reconciliation between cost and Financial profit and loss account.
3. Decision Making Tools 20%
Marginal costing, break even analysis and its applications in decision making
Absorption costing as a system of profit reporting and stock valuation.
Throughput accounting as a system of profit reporting and stock valuation.
Activity-based costing for profit reporting and stock valuation.
Integration of standard costing with marginal cost accounting, absorption cost accounting and throughput
Process costing including establishment of equivalent units in stock, work-in-progress and abnormal loss accounts
and use of various methods like first-in-first-out, average cost and standard cost methods of stock valuation.
4. Budgeting 15%
Budget Concepts and Preparation
Fixed and Flexible Budgets
Time series analysis including moving totals and averages, treatment of seasonality, trend analysis using
regression analysis and the application of these techniques in forecasting product and service volumes.
Fixed, variable, semi-variable and activity-based categorizations of cost and their application in projecting
Zero base budgeting
5. Standard Costing 15%
Manufacturing standards for material, labour, and overhead.
Price/rate and usage/efficiency variances for materials, labour and overhead. Further subdivision of total
usage/efficiency variances into mix and yield components.
Fixed overhead variances.
Planning and operational variances.
Sales price and sales revenue/margin volume variances (calculation of the latter on a unit basis related to revenue,
gross margin and contribution margin). Application of these variances to all sectors, including professional services
and retail analysis.
Interpretation of variances: interrelationship, significance.
Benchmarking for setting standards
6. Costing and performance management 10%
Business performance measurement for performance improvement
8. Recent trends in cost and Management Accounting 5%
Paper 9: Operation Management and Information Systems (One Paper: 3 hours:100 marks)
To gain knowledge of Operation Management, Production planning and resource management
To develop understanding of Information Technology and its use in business environment.
A. Operation Management ( 50 marks)
1. Overview of Production Process 15 %
Metal working process forming, heat treatment, welding, surface treatment etc.
Class of machine Lathes, drilling, grinding, milling, planing, shaping, slotting etc.
Special purpose machine special grinding, hobbing, honing, cutting tools, jigs and fixtures etc.
Pump, motor, transformer, electrical drives,
Classification of industries based on production process
Technological aspects of different production process like power, pollution control, recovery process,
Plant layout , material handling system etc
2. Production Planning & Productivity management 15%
Time study, work study, method study, Job Evaluation.
Production planning and control-Introduction.
Capacity planning and Utilization.
Progressing and follow-up.
Scheduling Technique & Line Balancing Problem
Economic batch production
Human Resource Planning
Material Requirement Planning
Productivity measurement techniques of factors of production
3. Maintenance Management 10%
Obsolescence, replacement of machinery
Breakdown maintenance, preventive maintenance & Routine Maintenance
Maintenance problems etc
4. Resource Management 10%
Replacement of machine
Change of Technology and its implication
B. Information Systems ( 50 marks)
1. Information System Analysis and Design. 10%
Information System-Systems development life cycle, Structured Systems Analysis and Design, Physical and Logical
Data Flow Diagrams, Requirements Analysis, Design of New Systems. Data Modeling, data dictionary, entity
relationship diagram, structure charts, Transform and Transaction Analysis, Applications in Financial & Cost
2. Database Management Systems 15%
File & Data Base Concept, Overview of DBMS, Data Models, Database Administrator, Database Users, Schema.
Data Independence, Relational Database Management System (RDBMS), some applications of RDBMS using
Oracle & SQL Server
3. Management Information Systems (MIS) 15%
Introduction, People & Organization, System & models, Decision process and evaluation thereof, transaction
processing & management reporting, MIS in functional areas: Finance & Cost Management, Inventory, Marketing,
4. Enterprise Resource Planning (ERP) 10%
Functional architecture of ERP, Material requirement planning & ERP, Business Process Reengineering & ERP,
Supply chain management, Some applications involving SAP & Oracle (Financial), Change Management and ERP
Implementations, Technology and International Considerations in implementation of ERP.
Paper 10: Applied Indirect Taxes (One Paper: 3 hours:100 marks)
To gain knowledge of various provisions of Central Excise, Service tax, VAT & Sales Tax.
To know the applications of provisions in different situations
To understand the statutory compliance under indirect taxes including audits
1. Canons of Taxation - Indirect Taxes 5%
Features of Indirect Tax. Constitutional validity. Indirect Tax Laws, administration and relevant procedures
2. Central Excise 25%
The Central Excise Law
Goods, Excisable goods, Manufacture and manufacturer, Classification, Valuation, Related Person, Captive
Consumption, CAS 4, CENVAT.
Basic procedures, Export, SSI, Job Work.
Assessment, Demands, Refund, Exemptions;
Powers of Officers.
Adjudication, Appeals, Settlement Commission, Penalties .
Central Excise Audit and Special Audit under 14A and 14AA of Central Excise Act
Impact of tax on GATT 94, WTO, Anti Dumping processing;
Tariff Commission and other Tariff authorities.
3. Customs laws 15%
Basic concepts of customs law;
Territorial waters, high seas;
Types of custom duties., Anti- Dumping Duty, Safeguard Duty;
Customs Procedures, Import and Export Procedures, Baggage.
Project Imports and Re- Imports;
Penalties and Offences.
Export Promotion Schemes. EOU
Special Economic Zones.
4. Service Tax 15%
Introduction, Nature of Service Tax.
Service Provider and Service Receiver.
Records to be maintained
Classification of taxable services
Valuation of taxable services.
Exemptions and Abatements.
Payment of service tax, Return
Cenvat Credit Rules
Export and import of services.
Other aspects of Service Tax.
Special Audit under 14A and 14AA of Central Excise Act
5. Central Sales Tax Act & VAT Act. 15%
Introduction, definition of sale under CST;
Stock transfer, branch transfer under CST;
Inter state sale,
Various forms for filing of sales tax returns under CST;
Sales outside territorial waters under CST;
Practical examples on CST.
VAT, Salient features of State VAT Acts
Treatment of stock & branch transfer under State VAT Acts
Filing & Return under State VAT Acts
Accounting & Auditing VAT
6. Practical problems and Case Studies under Indirect Tax Laws 25%
ICWAI 2012 Syllabus Final:-
Paper 11: Capital Market Analysis & Corporate Laws (One Paper: 3 hours:100 marks
To know application of the various regulations for financial and capital markets
To understand Companies Act and compliances under the same
To gain basic knowledge on Corporate Governance Principles and purpose of good corporate governance
A. Capital Market Analysis ( 50 Marks)
1. Introduction of Capital Market & Capital Market Instruments 10%
Capital Market / Security Market
Primary Market / New Issues / IPO Market
Secondary Market / Stock Market / Stock Exchange
Private placements of shares / Buy back of shares
CAPM vs Market Model
Forward Contract and future contracts
2. Capital & Financial Market Regulation 10%
Financial System and Capital Market Instruments,
SEBI Regulation of Market and Control,
Collective Investment Schemes, Depositories, Dematerialization of Securities,
Regulation of banking & finance companies role of Reserve Bank of India and Banking Ombudsmen; Regulation
of Insurance sector by Insurance Regulation and Development Authority (IRDA),
Cyber Law and regulation of e-commerce and electronic financial transactions,
Contemporary issues and Development
3. Capital Market Analysis 30%
Stock market efficiency;
Risk and Return;
Cost of Finance And Financing Structures;
Capital Asset Pricing Model;
Products on Stock Exchanges: Equity / Stock Markets, Basket Trading, Derivatives, Debt Markets- Retail and
Wholesale, Interest Rate Futures, Exchange Traded Funds, Mutual Funds (Close Ended).
Risk Management System: Capital Adequacy Requirements, Intra day Trading limits, Gross Exposure Limit,
Derivatives Markets: Introduction to Options and Futures, Explanation of Market Terminologies, Pay-off Structure,
Basic Trading Strategies, Weekly Options.
Debt Markets: Debt Products traded in Stock Exchanges, Wholesale Debt Markets, and Retail Debt Markets.
Commodity Market & Trading Corporate Actions: Bonus, Rights, Dividend, Buy Back etc., Regulations to be
followed by the Corporates, Impact on the Shareholders.
Basic Principle, Functions and Activities
Factors effecting investment decision in portfolio management
Use of matrix approach in investment decisions
Role of Mutual Fund in financial market
Advantage of investment in mutual fund
Regulations and operations
Investors right and obligation
B. Corporate Law & Corporate Governance ( 50 Marks)
4. Corporate functionalism in the context of Companies Act & Corporate Laws 30%
Introduction, Incorporation and its Consequences,
Financial Structure and Membership,
Management and Control of Companies,
Inter-corporate loans, Investments, Guarantees and Security,
Maintenance of Statutory Books/Registers and Filing of Returns,
Competition Act and Competition Commission,
Information Act and its corporate implication, Emerging Issues and Concepts
Merger and Acquisition
Reason for merger acquisition
Objective of acquisition
Gain from merger
Problem of merger and acquisition
Issues related to Companies Act 1956, Industrial(Development & Regulation) Act, Sick Industrial
(Special Provision) Act, Income Tax Act, SEBI Regulations
Function of Court
De-merger or division
5. Corporate Governance 20%
Genesis, Narasimhan Committee and other Committee Recommendations on Corporate Governance,
Effective Board of Directors and its role,
Independent Directors and Audit Committee, Remuneration Committee, Nomination Committee;
Evaluation of effectiveness of Internal Control-Management Accounting applications and Directors Responsibility
Going Concern status-financial and other indicators, role of management audit, evaluation of going concern
Related party transactions and disclosures;
Project management audit and corporate governance;
Relevance of Risk Evaluation and Risk management;
Evaluation of key financial decisions and disclosures;
Management Audit for investors protection in the context of Corporate Governance,
Corporate Governance Norms as prescribed by SEBI,
ICWAI Syllabus 2008 18
Paper 12: Financial Management & International Finance (One Paper: 3 hours:100 marks)
Understand the scope, goals and objectives of Financial Management
To provide expert knowledge on concepts, methods and procedures involved in using Financial Management for
To gain knowledge of international monetary and financial system
1. Overview of Financial Management 10 %
Finance and Related Disciplines
Scope of Financial Management,
Key decisions of Financial Management
Emerging role of finance managers in India
Earnings distributions policy
Compliance of regulatory requirements in formulation of financial strategies
Sources of finance long term, short term and international
Exchange rate risk agencies involved and procedures followed in international financial operations
2. Financial Management Decisions 15 %
Capital structure theories and planning
Cost of capital
Designing Capital Structure
Working capital management
Dividend and retention policies
Criteria for selecting sources of finance, including finance for international investments
Effect of financing decisions on Balance Sheet and Ratios
Financial management in public sector
Role of Treasury function in terms of setting corporate objectives, funds management national and international
Contemporary developments WTO, GATT, Corporate Governance, TRIPS, TRIMS, SEBI regulations as amended
from time to time
3. Financial analysis & planning 10%
Funds flow and cash flow analysis
Financial ratio analysis -Ratios in the areas of performance, profitability, financial adaptability, liquidity, activity,
shareholder investment and financing, and their interpretation.
Limitations of ratio analysis
Identification of information required to assess financial performance
Effect of short-term debt on the measurement of gearing.
4. Operating and financial leverages 5%
Analysis of operating and financial leverages
Concept and nature of leverages operating risk and financial risk and combined leverage
Operating leverage and Cost volume Profit analysis Earning Before Interest and Tax (EBIT) and Earning Per
Share (EPS), indifference point.
5. Financial Strategy 15 %
Financial and Non-Financial objective of different organizations
Impact on Investment, finance and dividend decisions
Sources and benefits of international financing
Alternative Financing strategy in the context of regulatory requirements
Modeling and forecasting cash flows and financial statements based on expected values for variables economic
Sensitivity analysis for changes in expected values in the models and forecasts
Emerging trends in financial reporting
6. Investment Decisions 15 %
Costs, Benefits and Risks analysis for projects
Linking investment with customers requirements
Designing Capital Structure
The impact of taxation, potential changes in economic factors and potential restrictions on remittance on these
Capital investment real options
Venture Capital financing
Hybrid financing / Instruments
7. Project Management 10%
Project Identification and Formulation
Identification of Project opportunities
Project Selection Consideration and Feasibility Studies
Project appraisal & Cost Benefit analysis
Source of Project Finance & Foreign Collaboration
8. International Finance 10%
Minimization of risk,
Diversification of risk
Forward and futures,
Forward rate agreements
Interest rate swaps
Caps, floors and collars
Money market hedge
9. Sources of International Finance 5%
Rising funds in foreign markets and investments in foreign projects
Forward rate agreements and interest rate guarantees
Transaction, translation and economic risk, Interest rate parity, purchasing power parity and the Fisher effects
Foreign Direct Investment
10. International Monetary and Financial System 5%
Understanding the International Monetary System
Export and Import Practices
International Financial Management: Important issues and features, International Capital Market
International Financial Services and Insurance: Important issues and features
Paper 13: Management Accounting- Strategic Management (One Paper: 3 hours:100 marks)
To understand the importance of strategic and risk management and apply tools for strategic analysis appropriately
To develop the ability to understand the risks both internal and external and build capabilities to mange risks
A. Strategic Management 60%
1. Introduction to Business Strategy 10%
Meaning and implications of corporate planning, long range planning, business policy planning and strategic
planning; strategic management processes; meaning and use of mission, goals, objectives and targets, profit gap,
sales gap, risk gap and other strategies;
SWOT analysis; target selling strategy formulation and implementation, monitoring mechanism, strategies for
stagnation versus growth, strategies for growth through expansion versus diversification & diversification vs core
Acquisition and merger strategy, strategy of joint venture both in India and abroad.
Marketing strategy as a part of corporate strategy, growth under inflation and protection of shareholder, real capital.
Financial objectives, non- financial objectives, resources analysis and evaluation.
2. Forecasting and planning for strategy 10%
Forecast trend and changes social, political, legal and technological impacts.
Distribution channels and competitive forces. Government policies, economic growth and government expenditure.
Public and private sector investments,
International trade practices and government policies for capacity expansion, new industries, subsidiaries and
3. Model Building and models 10%
Strategies in the development of models, Delphi Model, econometric, mathematical programming, budgetary and
Sensitivity analysis and the characteristics of models.
Limitations in model building vis- a-vis simulation techniques.
Life cycles, Porters generic strategic, Ausojs model, BCG matrix and other models
4. Marketing strategy 10%
Production orientation versus market orientation, marketing objectives, framework and management of marketing
Linkage between strategic planning and marketing strategy-both forward and backward.
Research and intelligence- source for the techniques for acquiring information necessary for marketing decisionmaking
5. Application of management accounting in strategic management 20%
Marketing strategy: analysis of marketing costs and profitability, product development policy & strategy, pricing
policies and strategies, budgetary control in marketing, evaluation and control of sales activities;
Operations Management Strategy: process, technology and logistic strategies, inventory policies and strategies,
Human Resource Management policies and strategies,
Financial Strategies and Strategic Total Cost Management
B. Risk Management 40%
6. Risk Measurement and Management 15%
Introduction, Risk and Risk Management,
Objectives of Risk Management,
Risk Measurement and Pooling, Total Loss Distribution,
Pooling and Diversification,
7. Risk insurance: 10%
Insurability of Risk and Insurance Contracts,
Insurance Pricing, Analysis Tools, Demand for Risk Management (Utility Theory),
Legal Liability, Corporate Liability, Liability Issues,
Insurance case study: Auto Insurance (or such other insurance industry segment as may be notified )
8. Corporate risk management: 15%
Risk Management and Shareholders,
Financial Risk Management,
Futures and Options,
Asset / Liability Management,
Project risk management, Enterprise Risk Management
Paper 14: Indirect & Direct - Tax Management (One Paper: 3 hours:100 marks)
To gain expert knowledge about the direct and indirect tax laws in force and the relevant rules and principles
emerging from leading cases.
To provide an insight into practical aspects and apply the provisions of laws to various situations.
To understand the various external Auditing Requirements under tax laws.
1. Central Excise 20%
2. Customs 10%
3. Service Tax 10%
4. Export Promotion Schemes, Foreign Trade Policy, EOU, SEZ. 10 %
5. Central Sales Tax/ VAT Act 5%
6 Income Tax including Fringe Benefit Tax. 20%
7. Wealth Tax 5%
8. Case Studies under Direct and Indirect Taxes. 20%
ICWAI Syllabus 2008 22
Paper 15: Management Accounting - Enterprise Performance Management (One Paper: 3 hours:100 marks)
To understand the importance of performance measurement - both financial and non financial
To develop the skill of decision making to have competitive advantage
To gain knowledge of different tools of quality management
1. Management Control Systems 10%
Control Systems within the framework of the organization
The application of control systems and related theory to the design of management accounting control systems
Structure and operation of management accounting control systems
Behavioural consequences of using management accounting controls);
Variation in control needs and systems dependent on organizational structure
Management accounting system - need for detailed costing, overhead allocation and budgeting, identification of
non-value adding activities in the accounting function
2. Operations Management 15%
An overview of operations strategy and its importance
Systems used in operations management: Manufacturing Resource Planning (MRP), Optimised Production
Technologies (OPT), Just-in-Time (JIT) and Enterprise Resource Planning (ERP).
Use of the Intranet in information management
Strategies for balancing capacity and demand including level capacity
Demand management strategies.
Benchmarking and Business Process Re-engineering (BPR).
3. Cost Planning and Analysis for Competitive Advantage 25%
Value analysis and quality function deployment.
The benefits of just-in-time production, total quality management and theory of constraints
Kaizen costing, continuous improvement and cost of quality reporting.
Learning curves and their use in predicting product/service costs, derivation of learning rate and learning index.
Activity-based management in the analysis of overhead and its use in improving the efficiency of repetitive
Multi-product break-even analysis, including break-even and profit/volume charts, contribution/sales ratio, margin of
Simple product mix analysis in situations where there are limitations on product/service demand and one other
Life cycle costing and implications for marketing strategies.
Value chain and supply chain management
Strategic Total Cost Management
4. Treatment of Uncertainty in Decision Making 20%
The nature of risk and uncertainty.
Sensitivity analysis in decision modeling and the use of computer software for 'what if' analysis.
Assignment of probabilities to key variables in decision models.
Analysis of probabilistic models and interpretation of distributions of project outcomes.
Expected value tables and the value of information.
Decision trees for multi-stage decision problems.
5. Enterprise performance measurement systems 15%
Balanced Score Card, EVA
6. Quality Management 15%
Approaches to quality management, including Total Quality Management (TQM), Statistical Quality Control (SQC) .
The use of benchmarking in quality measurement and improvement.
Practices of continuous improvement (e.g. Quality circles, Kaizen, 5S, 6 Sigma).
Different methods of quality measurement (i.e. operational, financial and customer measures)
Contemporary developments in quality management.
External quality standards (e.g. the various ISO standards appropriate to products and organizations).
Global awards for best practices and business performance
Paper 16: Advanced Financial Accounting & Reporting (One Paper: 3 hours:100 marks)
To gain expert knowledge of the professional standards, principles and procedures developed globally
by and their application to different practical situations
To understand the scope and quality of external reporting and its use in published accounts
1. Introduction to IAS, US GAAP, Indian Accounting Standards 15%
GAAP in India
US GAAP- Statements and Standards, hierarchy of US GAAP
International Accounting Standards
Relative view of AS (India), IAS and US GAAP on different issues
2. Preparation of Company Accounts under various circumstances 20%
Types of Mergers, methods of accounting
Treatment of Goodwill arising on Merger.
Purchase Consideration and Settlement.
Accounting in the books of vendor / transferor company.
Accounting for investment in subsidiary.
Accounting of holding companies
Consolidation of financial statements.
Corporate Financial restructuring
Accounting standards relevant to these concepts.
3. Group Financial Statements 25%
Holding company, Subsidiary Company and Associate company
Consolidated Income Statement, Balance Sheet and Cash Flow Statements for Group of companies
Concept of fair value at the time of acquisition
Impact on group financial statements at the point of acquisition
Compare and contrast acquisition and equity methods of accounting
Reconstruction schemes , De-merger
Preparation and interpretation of segmental analysis, inter-firm comparisons
4. Segment Reporting 10%
5. Developments in External Reporting 20%
Applicability of a particular accounting standard.
Interpretation of various accounting standards.
Scope of accounting standards.
Compliance with the Accounting Standards.
Annual Reports Statutory Requirements and External reports
Preparation of Financial information in the Annual Reports
External Reporting under capital market regulations
Disclosure of post Balance Sheet events .
Financial Reporting across the world
Exposure to reporting under US and UK laws
IFRS requirements for reporting
6. Government Accounting in India 10%
Comparison with commercial accounting.
Role of the Comptroller and Auditor General of India.
Role of the Public Accounts Committee.
Review of accounts.
Paper 17: Cost Audit & Operational Audit and Ethics (One Paper: 3 hours:100 marks)
To gain an in-depth knowledge of the techniques and methods of planning and conducting Cost Audit
To develop the skill in Internal Control, Internal Auditing and Operational Audit
1. Basics of cost audit, appointment of cost auditor 10%
Nature and scope of cost audit.
Provisions under Companies Act relating to maintenance of Cost Records and Cost Audit.
Cost auditor appointment, rights and responsibilities
Structuring the cost audit
2. Cost Audit Report Rules 10%
Provisions of Cost Audit Report Rules 2001
Form of cost audit report
Annexures to the cost audit report
Pro-forma to the cost audit report.
Usefulness of Cost Audit.
3. Cost Accounting Record Rules 20%
Procedure for prescription of cost accounting record rules
Cost accounting record rules and its applicability
Provisions of cost accounting record rules for various industries.
4 Cost Accounting Standards 10%
Section II - Internal Audit and Operational Audit
1. Basics of internal audit and operational audit 10%
Concept of internal and operational audit
Internal Audit - techniques and procedures
Internal Audit Report.
Operational audit techniques and procedures
Operational audit report
Special reports for banks, shareholders, employees etc
evaluation of internal control system, budgetary control system, inventory control system, management information
2. Management Audit in Different forms and functions 10%
Corporate Services Audit
Audit checks of different functions
Corporate Governance and Audit Committee
3. Various types of audit and their process; 10%
Due Diligence audit
Energy Audit meaning & methodology
Special audit under excise , service tax and customs records by cost accountant
Qualities of good certificate/report
Bank Audit and Concurrent Audit.
Audit under ERP environment.
ICWAI Syllabus 2008 25
4. Fields for practicing cost accountants 5%
Assessment and quantification of losses under marine, fire & accident policies
ANTI-DUMPING meaning, process, role of cost accountants
5. Professional Ethics 10%
Meaning of professional values and ethics,
ICWAI & IFAC guidelines for professional values and ethics,
Ethical codes applicable to professional Accountants in India, Ethical code for Cost Accountants under Cost and
Works Accountants Act, 1959 and The Cost and Works Accountants Regulations, 1959, as amended up to date.
6. Auditing and Assurance standards 5%
Paper 18: Business Valuation Management (One Paper: 3 hours:100 marks)
To gain knowledge in different techniques of valuation of assets and liabilities
To understand the legal implications of merger and acquisitions
1. Valuation Basis (10%)
Principles and techniques of valuation
Cash flow valuation.
Other valuation basis
Efficient market hypothesis
Impact of changing capital structure on the market value of the company
Priorities of different stakeholders in terms of business valuation.
2. Valuation of Mergers and Acquisitions (20%)
Assets and cash flows
The strengths and weaknesses of various valuation method
Recognition of the interest of various stakeholders
Selection of appropriate cost of capital for valuation
Forms of consideration and terms of acquisitions
Post merger integration process
Implications of regulations for business combinations
Types of exit strategies and their implications.
3. Valuation of Assets and Liabilities (40%)
Forms of intellectual property and methods of valuation
Valuation of fixed assets
Valuation of inventories
Valuation of investments
Valuation of shares
Dividend growth valuation models
Valuation of options
Valuation of intangibles
Human resource accounting
Valuation of goodwill, patents and copyrights
Valuation of brands
Valuation of real estate
Relevant accounting standards.
4. Case studies (30%)