Chartered Accountancy Scheme Syllabus

STUDENTS MANUAL
STUDENTS MANUAL
Chartered Accountancy Professional Scheme & Syllabus

Effective From 1st December 2007
Education Department The Institute of Chartered Accountants of Nepal

Babar Mahal, Kathmandu
Chartered Accountancy Professional Scheme & Syllabus

Publisher : The Institute of Chartered Accountants of Nepal Babar Mahal, P.O.Box: 5289, Kathmandu Tel: +977-1-4269130, 4258569, Fax: +977-1-4258568 Email: ican@ntc.net.np, Website: www.ican.org.np
The Institute of Chartered Accountants of Nepal
Price
Rs. 350/-
First Edition
July, 2007
Second Edition
January, 2010
Designed & Printing
Print and Art Service Putalisadak, Kathmandu Tel: 01-4244419
No part of this publication may be translated, reprinted, reproduced or utilized in any form either in whole or in part or by any electronic or other means, including photocopying, recording or in any information storages and retrieval system, without prior permission in writing from the publisher. No responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication can be accepted by the publisher.
The Institute of Chartered Accountants of Nepal (ICAN) aims to be recognized as a respected and highly professional accounting body, providing leadership on standards, education and self-regulation in Nepal.
Foreword to Second Edition

Institute of Chartered Accountants of Nepal, a statutory organization set up by an Act of Parliament has a great responsibility to regulate the accountance profession and produce qualified and deserving accountants to provide accountng, auditing, consulting services to corporate arena and contributes a lot for the economic development of the country. This manual is useful as guidelines to those who are interested about Chartered Accountancy education and want to make their career in accounting field. More importantly, this manual covers the areas such as chartered accountancy educatiion and scheme, procedural requirement, registration, examinations, practical training including industrial training, detailed syllabus, various forms and reporting requirement of articleship training etc. In fact, chartered accountancy education scheme and syllabus are structured to prepare candidates to face those challenges in the emerging business environment. The issue of uniform curricula of Chartered Accountancy education in South Asian Region has already been developed and our syllabus is fully compatible with the common minimum curriculum as set by the SAFA Board. The present syllabus which is based on the IEG-9 Guidelines of the International Federation of Accountants (IFAC) has already been operative from 1 December 2007. Students of CAP-I & CAP-II have already written their examinations from June 2009. To make compatible with the common minimum syllabus as set by the SAFA, we have added certain chapters and contents in certain subjects of the existing syllabus. The Council is committed to review the syllabus from time to time to keep abreast with changing reuqirements to face the challenges posed by the changing global and national economic scenarios. This manual gives some reviewed modular structure of the CAP-I, CAP-II and CAP-III level of CA education. I sincerely believe, this manual would provide requisite guidance to the students and others who are keen interest in accountancy profession in easier understanding and compliance with the requirements thereon. Finally I wish to put on record my sincere appreciation to the members of the Education Committee and contributions made by Mr. Paramananda Adhikari, FCA Technical Director of the Institute for their untiring effort to review the contents of the syllabus and other relevant information.
Suvod K. Karn, FCA January, 2010 President
Foreword to First Edition

The Institute of Chartered Accountants of Nepal (ICAN) has the responsibility to produce qualified, deserving human resources with high potential to provide technical as well as management expertise to the development of nation. Thus, the Institute is devoted to be a part of professional academic Institute of the country. Students often make several queries seeking detailed information, career prospectus, duration, cost and other matters relating to the Chartered Accountancy course. Moreover, these issues were raised even during the 64th SAFA Assembly held in Colombo in January 2007. The issue of uniform curricula of Chartered Accountancy education in the South Asian Region was also raised in the Assembly. The Council has decided to bring out the Students Manual as guideline to those who are interested for Chartered Accountancy education and want to pursue a career in this field. The Manual broadly covers various provisions and procedures relating to the education, cost, practical training scheme, syllabus etc. Chartered Accountancy education scheme is structured to prepare candidates to face the challenges posed by the changing global scenarios and the Chartered Accountants must be equipped to face these challenges. The Council, therefore, had introduced education and training scheme of Chartered Accountancy Course from circa 2000. The education scheme was reviewed and revised from time to time to keep abreast with changing requirements. This manual contains the new syllabus of CA education, in detailed. I hope that the manual would provide requisite guidance to the students in easier understanding and compliance with the requirements for Chartered Accountancy Education. I must express my gratitude to the members of the Education Committee and its Chairman, Mr. Tirtha Raj Upadhyay, FCA for their valuable inputs to bring out this Manual. The contributions made by Mr. Paramananda Adhikari, Joint Director of the Institute also deserve acknowledgement. Binod B. Rajbhandary, FCA Kathmandu 16 July 2007. President
Preface
The Nepal Chartered Accountants Regulations, 2004 contain interalia, various provisions relating to Chartered Accountancy education such as registration, examination, practical training scheme etc. In the absence of a comprehensive guideline on the requirement of various rules and regulations for pursuing Chartered Accountancy course, the students often face difficulty in understanding facts about CA education, admission procedure and other details. This Manual provides detailed procedural guidelines and requirement of pursuing the Chartered Accountancy course. I sincerely believe that this Manual will be helpful to present and prospective students pursuing Chartered Accountancy course and other persons interested as well in the accounting profession thereby promoting the Chartered Accountancy education I wish to thank the members of the Education Committee and staffs of the Institute, specially Mr. Paramananda Adhikari, Joint Director, for their effort in developing and bringing out this Manual.
Kathmandu 16 July 2007
Tirtha Raj Upadhyaya, FCA Chairman Education Committee
CONTENT
1. 2. 3. 4. About The Institute Chartered Accountancy as a Profession Levels in Chartered Accountancy Course Chartered Accountancy Professional (CAP)-I/Foundation Level 4.1 Eligibility for Registration to Foundation Level 4.2 Provisional Registration 4.3 Course Contents 4.4 Eligibility for Appearing in Foundation Examination 4.5 Examinations 5. Chartered Accountancy Professional (CAP)-II/Intermediate Level 5.1 Eligibility for Registration in Intermediate Level 5.2 Registration Procedures 5.3 Course Contents 5.4 Eligibility Test Scheme 5.5 Examinations 6. Chartered Accountancy Professional (CAP)-III/Final Level 6.1 Eligibility for Registration to Final Level 6.2 Registration Procedures 6.3 Course Contents 6.4 Eligibility Test Scheme 6.5 Examinations 7. Practical Training 7.1 Members Entitled to Train Articled Trainees 7.2 Stipend to Articled Trainees 7.3 Additional Articled Trainee 7.4 Industrial Training 7.5 Exchange of Articled Trainee 7.6 Termination of Deed of Articleship 7.7 Notifying the Principals Position 7.8 Record of Trainees 7.9 Leave to an Articled Trainee 7.10 Working Hours of Articled Trainees 7.11 Action Against Misconduct by The Principal and Articled Trainees 7.12 Action Against Principal 7.13 Issue of Certificate of Completion of Articleship 7.14 Prohibition to Receive Financial Benefit from Articled Trainees 1 2 3 4 4 4 5 5 6 8 8 8 9 9 10 12 12 12 13 13 14 16 16 17 17 17 18 18 18 19 19 19 19 19 20 20
8.
Annexures Annexure-1 Detailed Syllabus of Chartered Accountancy Professional (CAP)-I Paper 1: Fundamentals of Accounting Paper 2: Fundamentals of Economics Paper 3: Business Communication Paper 4: Mathematics & Statistics Paper 5: Management and Organizational Relations Paper 6: Fundamentals of Information Technology Annexure-2 Detailed Syllabus of Chartered Accountancy Professional (CAP)-II Paper 1: Advanced Accounting Paper 2: Audit and Assurance Paper 3: Corporate & Other Laws Paper 4: Financial Management Paper 5: Cost and Management Accounting Paper 6: Business Communication & Marketing Paper 7: Income Tax & Vat Annexure-3 Detailed Syllabus of Chartered Accountancy Professional (CAP)-III Paper 1: Advanced Financial Reporting Paper 2: Advanced Financial Management Paper 3: Advanced Audit and Assurance Paper 4: Corporate Laws Paper 5: Management Information and Control System Paper 6: Advanced Taxation Paper 7: Advanced Cost and Management Accounting Paper 8 : Strategic Management and Decision Making Analysis Annexure- 4 Application for Registration in CAP-I/Foundation Level Annexure- 5 Application for Registration in CAP-II/Intermediate Level Annexure- 6 Application for Registration in CAP-III/Final Level Annexure- 7 Deed of Articleship Annexure- 8 Certificate of Service on Discontinuance or Termination of Articleship Annexure- 9 Report of Non Compliance of Articled Training Annexure- 10 Record of Assignment Annexure- 11 Report of Practical Training Annexure- 12 Certificate of Service Under Articles Annexure- 13 Letter of Completion of Articleship Training Annexure- 14 Eligibility Certificate 23 23 25 28 29 33 36 38 38 40 43 46 47 50 54 59 59 61 63 66 70 73 77 81 83 84 85 86 89 90 91 92 93 94 95
Students Manual 2010
1.
ABOUT THE INSTITUTE
The Institute of Chartered Accountants of Nepal (ICAN) was established under a special Act, The Nepal Chartered Accountants Act, 1997 to enhance social recognition and faith of people at large in the accounting profession by raising public awareness towards the importance of accounting profession as well as towards economic and social responsibility of the accountants, and to contribute towards economic development of the country. The Institute is an autonomous body and the Council is fully authorized by the Act to undertake accountancy profession in Nepal.
Objectives
The Institute has full responsibility to regulate, develop and promote the accounting profession in Nepal. The Institute as part of its quality education, enrolls students for the Chartered Accountancy (CA) course, imparts theoretical education to them, requires the students of CA course to undergo practical training and monitors effectiveness of their training programs. It also holds qualifying examination for them and grants membership to successful candidates and certificate of practice to the members intending to practice the accounting profession. The Institute also supports the government with constructive suggestions towards formulation and revision of legislations relating to trade, commerce, accounting, revenue, etc. and helps support the economic development process of the country by increasing the confidence among investors and general public at large towards the capital market by pronouncing the standards of disclosures in financial reporting practices.
Governing Body
The Institute is governed by a council in accordance with the provisions of the Chartered Accountants Act, 1997. It consists of 17 members of whom 10 are elected from among the Chartered Accountant members, 4 elected from among the Registered Auditor members, and the remaining 3 nominated by the Government of Nepal on the recommendation of the Auditor General. The Council is fully autonomous and has right to regulate accountancy profession in the country. The Council is also empowered to constitute Standing and Non-Standing Committees for the attainment of the objectives of the Institute.
The Regulations and Bye-Laws

The activities of the Institute are administered under the Nepal Chartered Accountants Regulation, 2004 and Nepal Chartered Accountants (Finance and Administration) Bye-Laws, 2001. In addition, the Council also lays down procedures for regulating activities not covered by the regulation.
About the Institute
2. CHARTERED ACCOUNTANCY AS A PROFESSION

Chartered Accountancy is a prestigious and rewarding profession in the society. It is a challenging career that imparts the best of technical skills in financial and management areas. Chartered Accountants today hold top management positions in public as well as private sector enterprises. They also render professional services as accountants and management consultants to various private and public sector organizations. Rapid changes in economy and globalization have further opened opportunities to the Chartered Accountants for many challenging and rewarding career development options. In the changing global context, roles and responsibilities of chartered accountants are not confined to performing mere traditional duties in the fields of Auditing, Accounting, Taxation, etc. They are now expected to have a greater understanding of and experience in the fields of business finance, information technology, corporate management, etc. Therefore, the business managers of today must have adequate managerial skills in decision making, problem solving and in ensuring effective communication in organizations. Professional expertise and skills in these subjects, therefore, constitute the indispensable parts of the CA Education. To this end, our CA education system is designed with appropriate syllabi framed to cater to the learning needs of the students facing development challenges in all national as well as global fronts.
Chartered Accountancy as a Profession
3. LEVELS IN CHARTERED ACCOUNTANCY COURSE

There are two ways of admission procedures for access into the Chartered Accountancy course. The first one is an entry into the Chartered Accountancy Professional (CAP) I/Foundation Level course, which is designed in the pattern of entry level test of the students. Students who have not fulfilled all the criteria necessary for direct entry access into the Chartered Accountancy Professional (CAP) II course. The second one is direct admission into the Chartered Accountancy Professional (CAP) II course, i.e. Intermediate Level course. This is meant for those, who have met all the necessary requirements for admission in the Intermediate Level course. Chartered Accountancy course classified into three levels. They are: (i) (ii) Chartered Accountancy Professional (CAP) I /Foundation Level Chartered Accountancy Professional (CAP) II/Intermediate Level
(iii) Chartered Accountancy Professional (CAP) III/ Final Level
THE PATH OF CA EDUCATION
10+2/PCL or Graduates/ Post Graduates scoring less than 50% marks
Graduates/Post Graduates with Minimum Required Marks
1 Year CAP I/Foundation
Entry for CA Professional Course
CAP II/Intermediate Level
3 Years Articleship under Practising Chartered Accountant / or Industrial Training
CAP III/Final Level
Apply for Membership
Levels in Chartered Accountancy Course
4.
CHARTERED ACCOUNTANCY PROFESSIONAL (CAP)-I/FOUNDATION LEVEL
This is an entry level test for Chartered Accountancy Course. The duration of CAP-I/Foundation Course is one year. The course has been designed to provide students basic knowledge and skills as part of the entry standard for the professional level. 4.1 Eligibility for Registration to CAP-I/Foundation Level The following students are eligible to register for the Foundation course: i. Students completing the higher secondary (10+2) or certificate level examination from recognized academic institutions, ii. Graduates or Post Graduates who have scored less than 50% in Commerce and/ or less than 60% in any faculty other than Commerce, but remaining ineligible to register directly for the Intermediate Course. Note: Higher secondary or certificate level course means higher secondary or certificate level course/s recognized by the Government except subjects like song, music, fine arts, dance, language, literature, culture, etc. Graduate /Post Graduate stands for Graduation/Post Graduation courses recognized by the Government except subjects like song, music, fine arts, dance, language, literature, culture etc. Where a candidate has passed the examination under grading system, he should have scored grades equivalent to the percentage marks as mentioned above. 4.2 Provisional Registration Candidates who have appeared in 10+2 or equivalent examinations may also register provisionally for the CAP-I/Foundation Course. However, such provisional registration shall be confirmed only after satisfactory proof of having passed the said examination within a period of six months from the date of provisional registration. Failure to comply with this shall result in the cancellation of provisional registration. Fees paid for provisional registration shall not be refunded. Procedure for Registration Registration for the CAP-I/Foundation Course is open throughout the year. Prescribed application form for registration is given in Annexure 4. Examination is held twice a year - one in June and the other in December. For appearing in the June examination registration should be done on or before the end of May and on or before end of November for the December examination. The candidate must fill up the application form along with the following documents, duly attested by any gazetted officer or ICANs Officers, and submit it to the Institute:
Copy of Marksheet / Transcript etc. starting from SLC Copy of Citizenship Certificate / Passport Copy of Character Certificate Receipt of Fee Paid.
CAP-I/Foundation Level
Fee Structure Registration fee for CAP-I/Foundation course is Rs. 25,000/- to be paid at the time of registration along with other applicable fees. However, the registration fee can also be paid on installments. Accordingly, Rs. 12,500/- shall be paid at the time of registration and balance amount shall be paid within 30th November for the students registered till 31st May and within 31st May of the next year for the students to be registered till 30th November. The registration fee shall not be refundable and includes cost of Institutes Study Material, Pre-test exam, Institutes Newsletter and Institutes Journal. 4.3 Course Contents The CAP-I/Foundation Course consists of six papers, each carrying 100 marks and divided into two groups:
Group I
PAPER 1 PAPER 2 PAPER 3

Group II
: : :
Fundamentals of Accounting Fundamentals of Economics Business Communication
PAPER 4 PAPER 5 PAPER 6
: : :
Mathematics and Statistics Management & Organizational Relations Fundamentals of Information Technology
Detailed courses of study are given in Annexure-1. Study Materials On receipt of application for registration along with the prescribed fee, study materials shall be issued to the students. Library Facility Students can enjoy all library facilities including professional books and other reference materials. Students are required to use their Identity Cards issued by the Institute for access into the library. 4.4 Eligibility for Appearing in CAP-I/Foundation Examination For appearing in the CAP-I/Foundation examination students should complete the pre-test exams i.e. both in Postal and Hall. The students should pass in at least two papers of each subject i.e. minimum one from postal test and one from hall test or at least two from hall test papers in each subject and must secure a minimum of 40% marks in each paper. (a) Postal Tests Scheme Under this scheme students are provided with a set of test papers at the time of registration. Students are required to solve the test papers at home under the examination conditions and submit them to the Institute. These test papers can be submitted personally or by post. A student is allowed to submit two papers of each subject free of cost. However, if any student wishes to attempt more than two test papers, he/she will be charged Rs. 150 per paper .If any student has submitted more than one answer paper, the paper with the highest score shall be recorded at the Institutes documentation section. Postal tests, if found copied from others works/writings shall be considered invalid and no marks shall be awarded to such answers.
(b) Hall Tests Scheme Under this scheme, tests are taken in an examination hall. The Institute shall fix center for such tests, necessary number of invigilators with timing of examination. Normally, tests are held each Saturday. A student can sit for Hall Tests as many times as he wishes but only two sittings per subject shall be allowed free of cost. Extra sittings shall be charged at Rs. 150/per paper. A student who registers his name but fails to appear on the scheduled date shall be considered as having appeared for the test but marked as absent. A student should register his/her name for Hall Test at least a week before the test. Each sitting of the examination shall be of 3 hours. Eligibility Certificate After successful completion of Pre-test exam scheme, eligibility certificate shall be issued to the student. A student shall get eligibility certificate at least two months ahead of examination date. The tests are conducted till the end of July for the students appearing in the December Examination and till the end of January for the students appearing in the June Examination. A prescribed eligibility certificate is given in Annexure 14. A student must get eligibility certificate within three years from the date of registration, subject to cancellation in case of failure to obtain eligibility certificate. However such student can re-register as de-novo. A student who registered provisionally and has not submitted the required documents as well as not paid second installment within the prescribed period, he may not be eligible to appear in CAP-I/Foundation examination. 4.5 Examinations The CAP-I/Foundation Examinations are held twice a year, one in June and the other in December. A candidate can appear in the Examination, provided he/she has: i) Completed one year of study from the date of registration, and The candidate should pass the Eligibility Test within 3 years from the date of registration. If a candidate fails to complete the test examinations within the stipulated duration, his/her registration shall be cancelled on expiry of three years from the date of registration. The medium of writing the examinations shall be Nepali or English as decided by the Council. It must be noted that a student must clear the Foundation Examination within five years from the date of registration, irrespective of the date of getting the eligibility certificate. If a student fails to complete examinations within the stipulated duration, his/her registration shall be cancelled on expiry of five years from the date of his registration. However, such a student can re-register as de-novo. Examination Notices and Fees Students eligible to appear in the examination shall have to submit examination form within the timetable announced by the Institute. Generally, for appearing in the June examination, the form should be submitted on or before the end of April and by the end of October for the December examination. Notice regarding the examination will be published in newspapers, Institutes Journal, Notice Board of the Institute and Institutes Web-Site. ii) Obtained eligibility certificate.
Examination Fees : Form fee Exam fee / Paper Late fee Duplicate admit card fee Retotaling of marks/Paper Duplicate mark-sheet fee Results Rs 100/Rs 500/Rs 500/Rs 100/Rs 200/Rs 200/-

i)
A candidate shall be declared passed in the CAP-I/Foundation Examination only if he passes in both the groups. A candidate shall be declared passed in both groups simultaneously if he secures at one sitting : a minimum of 40 % marks in each paper of each of the groups with an aggregate of 50 % of all the papers of each of the groups OR
ii) a minimum of 40 % in each paper of both the groups and 50 % in aggregate of all the papers of both groups taken together.
A candidate shall be declared passed in one group if he/she secures, at one attempt, a minimum of 40 % marks in each paper of the group and 50 % in aggregate of all the papers of that group.
Exemption There is no exemption facility in CAP-I/Foundation Level. Distinction A student scoring 75 % or above in aggregate shall be considered to have secured distinction. Verification of Marks A candidate may apply, with requisite fees to the Institute, for verification of marks in any paper (s) within a period of 30 days from the date of publication of examination results. However, re-evaluation of the answers not permissible.
5.
CHARTERED ACCOUNTANCY PROFESSIONAL (CAP)-II/INTERMEDIATE LEVEL
CAP-II/Intermediate Level course is basically designed with an aim of providing students with requisite knowledge and skills in the subject. 5.1 Eligibility for Registration in CAP-II/Intermediate Level A person in order to join the CAP-II/Intermediate Level should, i) ii) iii) pass the CAP-I/Foundation Course Examination, or be a Graduate or Post Graduate in Commerce, Business Administration or Management having secured a minimum of 50 % aggregate marks, or be a Graduate or Post Graduate other than (ii) above with a minimum of 60% aggregate marks.
Note: Graduate/Post Graduate stands for Graduate/Post Graduate recognized by the government except subjects like Music, Fine Arts, Dance, Language, Literature, Culture etc. Students who have passed examination under grading system, should provide evidence that his/her grades are equivalent to the percentage marks as mentioned in (ii) and (iii) above. 5.2 Registration Procedures Registration in CAP-II/Intermediate Course is open throughout the year. Sample application form for registration is given in Annexure 5. The duration of Intermediate course is one year. Examinations are held twice a year: one in June and the other in December. For appearing in the June examination, registration should be done on or before the end of May of the previous year, and on or before the end of November of the previous year for the December examination. Candidates must fill up the application form along with the following documents, duly attested by any gazetted officer or ICANs Officer and submits them to the Institute:
Copy of Marksheet / Transcript starting from SLC Copy of Citizenship Certificate / Passport Copy of Character Certificate Receipt of fee paid.
Provisional Registration Candidates who have appeared in the final year of graduation or post graduation examination can register provisionally for Intermediate Level. However, such provisional registration shall be confirmed only upon proof of having passed the aforesaid examination with minimum marks furnished within a period of 6 months from the date of provisional registration. Failure to comply with this condition is subject to cancellation of provisional registration. The fees paid on provisional registration shall not be refunded.
CAP-II/Intermediate Level
Fee Structure Registration fee for the CAP-II/Intermediate Level is Rs. 30,000/-. It can be paid in full at the time of registration along with other applicable fees. However, the registration fee can also be paid on installment basis. Accordingly, Rs. 15,000/- shall be paid at the time of registration and the balance amount to be paid within 30th November for the students registered till 31st May and up to 31st May of the next year for the students registered till 30th November. The registration fee is not refundable and this includes the cost of Institutes study materials, pre-test exam , Institutes Newsletter and Institutes Journal. 5.3 Course Contents The CAP-II/Intermediate Course consists of Seven papers. Each paper carries,100 Marks and is divided into two groups: GROUP I PAPER 1 : Advance Accounting PAPER 2 : Audit & Assurance PAPER 3 : Corporate & Other Laws GROUP II PAPER 4 : Financial Management PAPER 5 : Cost & Management Accounting PAPER 6 : Business Communication & Marketing PAPER 7 : Income Tax & VAT Detailed courses of study are given in Annexure-2. Study Materials On receipt of application for registration along with the prescribed fee, study materials will be issued to the student. Library Facility Students can have access to the library including professional books and other reference materials. Students should produce the Institute-issued ID Card for use of library facilities. 5.4 Eligibility Test Scheme For appearing in the examination students should complete the Pre- test exams -both Postal and Hall. Students should pass in at least two papers of each subject with a minimum of one from each postal and hall test or at least two from hall test papers in each subject and must secure minimum of 40% marks in each paper. (a) Postal Tests Scheme Under this scheme, students are provided a set of test papers at the time of registration. Students are required to solve the test papers at home under examination conditions and submit them to the Institute. These test papers can be submitted personally or by post. A student is allowed to submit two papers of each subject free of cost. However, students wishing to attempt more than two test papers shall be charged an additional Rs.150/- per paper. If any student has submitted more than one answer paper, the paper with the highest score shall be recorded. Postal test contents found copied from others work shall be considered invalid and shall not be awarded.
(b) Hall Tests Scheme Under this scheme, tests are taken in an examination hall. The Institute shall fix center/s for such tests, requisite number of invigilators and timing of tests. Normally, tests are held each Saturday. A student can sit for Hall Tests as many times as he wishes, but only two sittings per subject shall be allowed free of cost. Extra sittings shall be charged at Rs 150/- per paper. A student registered for a test, if fails to appear on the scheduled date, shall be considered absent. A student should register his name for Hall Test at least a week ahead of the test. Each sitting of the examination shall be of 3 hours. Eligibility Certificate After successful completion of Pre-test scheme, an eligibility certificate shall be issued to the student. A student shall get eligibility certificate at least two months ahead of examination date. The tests are conducted till the end of July for the students appearing in the December Examination and till the end of January for the students appearing in the June Examination. A prescribed eligibility certificate is given in Annexure - 14. A student must get eligibility certificate within 3 years from the date of registration. Failure to do this is subject to cancellation of registration. However, such a student can re-register with the Institute as de-novo. A student who registered provisionally and has not submitted the required documents as well as not paid second installment within the prescribed period, he may not be eligible to appear in CAP-II/Intermediate examination. 5.5 Examinations Examinations are held twice a year, one in June and the other in December. A candidate can appear for the CAP-II/Intermediate Examination after one year from the date of registration and after obtaining eligibility certificate (EC) of pre-test exam. The candidate should pass the Eligibility Test within 3 years from the date of registration. If a candidate fails to complete the test examinations within the stipulated duration, his/her registration shall be cancelled on expiry of three years from the date of registration. The medium of examination will be Nepali or English as decided by the Council. It must be noted that a student must pass CAP-II/Intermediate examination within five years from the date of registration. If a student fails to pass the qualifying examinations within the stipulated duration, his/her registration shall be cancelled at the expiry of five years from the date of registration. However, such a student can re-register as de-novo. A candidate can appear either in both groups or in any of the group at a time. Examination Notices and Fees Students eligible to appear in the examinations shall have to submit an examination form within the dates announced by the Institute. For appearing in the June examination, the form should be submitted on or before the end of April and end of October for the December examination. All examination notices shall be published in newspapers, Institutes Journal, Notice Board of the Institute and Institutes Web-Site.
10
The fees for the Examination are as follows: Form fee Exam fee / Paper Late fee Duplicate admit card fee Retotaling of marks/Paper Duplicate mark-sheet fee Results A candidate will be declared to have passed CAP-II/Intermediate Examination only if he passes in both the groups. A candidate will be declared to have passed in both groups simultaneously if he secures at one sitting: i) a minimum of 40% in each paper of each of the group and an aggregate of 50% of all the papers of each of the groups OR ii) a minimum of 40% in each paper of both the groups and 50% in the aggregate of all the papers of both groups taken together. A candidate shall be declared to have passed in one group if he secures at one attempt a minimum of 40 % in each paper of the group and 50% in the aggregate of all the papers of that group. Exemption A student who has scored 60% or more in any paper(s) but has failed in that group, shall be entitled for exemption in that particular paper(s), provided, he has scored a minimum of 30% in any one of the subjects of that group, and should have attempted all the papers in that group. The exemption shall remain valid for the next three consecutive examinations but those students who are entitled for exemption are not considered for rank. Distinction A student scoring 75% or above, in the aggregate of both groups, at one sitting, shall be considered to have secured distinction. Verification of Marks A candidate may apply to the Institute within a period of thirty days from the date of declaration of results of the examination accompanied with the requisite fees for verification of marks in any paper(s). However, re-evaluation of the answers is not permissible. Rs 100/Rs 700/Rs 500/Rs 100/Rs 200/Rs 200/-
11
6.
6.1
CHARTERED ACCOUNTANCY PROFESSIONAL (CAP)-III/FINAL LEVEL
This CAP-III/Final Level course along with the practical training is basically designed to give the students a deeper insight into advanced level of professional expertise and skills . During the CAP-III/Final Level course, students should undergo paid articleship training for the period of three years under a practicing Chartered Accountant. Eligibility for Registration to CAP-III/Final Level Eligibility Criteria To enroll in the CAP-III/Final Level, a candidate must have: i. passed both groups of CAP-II/Intermediate Level Examinations ii. registered as an articled trainee under a practicing Chartered Accountant by signing an Articleship Deed. It must however be noted that the Articleship Deed must be registered with the Institute within one month from the date of signing the Deed. 6.2 Registration Procedures 1. An application form shall be duly filled up. (The form is given in Annexure 6).
2. Entered into a contract of articleship with a Chartered Accountant Member in practice to serve as an articled trainee for practical training. The Form of the Articleship Deed is given in Annexure 7. 3. The Articleship Deed shall be duly filled and signed both by the Principal and the Articled Trainee along with the following attested documents and submits to the Institute for registration as an articled trainee.
Copy of Mark Sheet of CAP-II/Intermediate Examinations Copy of Certificate of CAP-II/Intermediate Examinations Receipt of Fee paid.
Duration of practical training An articled trainee should undergo and complete a practical training for a period of three years. In order to gain practical experience, the articled trainee, at his discretion, may serve as a industrial trainee in any of the financial, commercial or industrial undertakings for a period not exceeding one year. Special Consideration for Registered Auditor (RA) Members of the Institute A Registered Auditor Member, who fulfills the conditions prescribed by the Council, may be exempted from undergoing articleship training for a maximum period upto two years. Fee Structure Registration fee for the CAP-III/Final Course is Rs. 30,000. It can be paid in full at the time of registration along with other payable fees. However, the registration fee can also be paid on installment basis. Accordingly, Rs. 15,000 shall be paid at the time of registration and balance amount within one year from the date of registration in CAP-III/Final Level. The registration fee is not refundable and this includes cost of Institutes study materials, pre-test exam paper, Institutes newsletters and journals.
CAP-III/Final Level
12
6.3
Course Contents The CAP-III/Final Course consists of eight papers. Each paper shall carry 100 marks and is divided into two groups: GROUP I PAPER 1 PAPER 2 PAPER 3 PAPER 4 GROUP II PAPER 5 PAPER 6 PAPER 7 PAPER 8 : : : : Management Information & Control System Advanced Taxation Advanced Cost & Management Accounting Strategic Management & Decision Making Analysis : : : : Advanced Financial Reporting Advanced Financial Management Advanced Audit & Assurance Corporate Laws
Detailed courses of study are given in Annexure-3. Study Material With the completion of application, registration and payment of registration fee, students shall be entitled to receive study materials. Library Facility A modern library equipped with standard professional books and adequate reading and reference materials is an added attraction of the Institute. A student must produce his/her Identity Card for access into the library. 6.4 Eligibility Test Scheme For appearing in the examination students should complete the Pre-test exam i.e. Hall Test only. The students should pass at least one paper of each subject and must secure a minimum of 40% mark in each paper. Hall Test Scheme Students registered in Chartered Accountancy CAP-III/Final Level, only hall tests are taken in an examination hall. The Institute shall waive the hall test scheme and provides Postal Test Scheme to the student who produce letter from his/her principal that he/she is outstation for practical training. The Institute shall fix center/s for such tests, necessary number of invisilators with timing of tests. Normally, tests are held each Saturday. A student can sit for Hall tests as many times as he wishes but only two sitting per subject shall be allowed free of cost. Extra sittings shall be charged at Rs 150 per paper. A student who registers his name but fails to appear on the scheduled date shall be counted as having appeared for the test and shall be marked as absent. A student should register his name for Hall Test one week prior to the test date. Each sitting of the examination shall be of 3 hours.
13
CAP-III/Final Level
Eligibility Certificate After successful completion of Pre-tests exam, an eligibility certificate shall be issued to the student. A student shall get eligibility certificate at least two months ahead of examination date.Tests are conducted till the end of July for the students appearing in the December Examination and till the end of January for the students appearing in the June Examination. A prescribed eligibility certificate is given in Annexure- 4. 6.5 Examinations Examinations are held twice a year: one in June and the other in December. A candidate appearing in the CAP-III/Final Examination must have: i) Completed two years from the date of registration in CAP-III/Final Course, ii) Obtained the eligibility certificate of pre-test exam, and iii) Completed the prescribed period of practical training, i.e. 3 years or has yet to serve not more than 12 months of articleship prior to the first day of the month in which Examination is held. A candidate can appear either in both groups of tests simultaneously or in one group in one examination and in the other group at any subsequent examination. Examination Notices and Fees Students eligible to appear in the examinations shall have to submit an examination form within the dates announced by the Institute. For appearing in the June examination, the form should be submitted on or before the end of April and examination by end of October for the December examination. Notice regarding the examination will be published in newspapers, Institutes Journal, Notice Board of the Institute and Institutes Web-Site. The examination fees shall be as follows: Form fee Exam fee/Paper Late fee Duplicate admit card fee Re-totaling fee Duplicate mark sheet fee Results A candidate shall be declared to have passed the CAP-III/Final Examination only if he passes in both the groups. A candidate shall be declared to have passed in both groups simultaneously if he secures at one sitting: i. A minimum of 40 % marks in each paper of each of the group and an aggregate of 50 % marks of all the papers of each of the groups OR ii. A minimum of 40 % marks in each paper of both the groups and 50 % in the aggregate of all the papers of both groups taken together. Rs 100/Rs 1,000/Rs 500/Rs 100/Rs 200/ Rs 200/-
CAP-III/Final Level
14
Exemption A student who has scored 60 % or more in any paper (s) but has failed in that group, shall be entitled for exemption in that particular paper (s), provided, he has scored a minimum of 30 % in any one of the subject of that group, and should have attempted all the papers in that group. The exemption shall remain valid for the next three consecutive examinations but those students who are entitled for exemption shall not be considered for rank. Distinction A student scoring 75 % or above, in the aggregate of both groups, at one sitting, shall be considered to have secured distinction. Verification of Marks A candidate may apply to the Institute within a period of 30 days from the date of publication of examination results accompanied with the requisite fees for verification of marks in any paper(s). However, re-evaluation of the answers is not permissible.
15
CAP-III/Final Level
7.
PRACTICAL TRAINING
In Chartered Accountancy Education, practical training is instrumental in shaping accountancy as a well founded and highly dignified profession exposing the students to adequate knowledge of accounting, auditing, taxation, information technology, system design etc. It also ensures job opportunities for striving and thriving students devoted to accountancy as a prestigeous profession for the overall development of the country. Here, the students can make the best use of the practical training period working with a practicing chartered accountant member. They can also work as an industrial trainees in financial, commercial or industrial undertakings. The period of such Industrial training may not be more than a year. 7.1 Members Entitled to train Articled Trainees i. Only those Chartered Accountants members, who have obtained the Certificate of Practice as per Rule 49 of the Nepal Chartered Accountants Regulation 2004, are entitled to train articled trainees. ii. A Chartered Accountant member, herein after referred to as Principal also shall be entitled to train articled trainee provided he: Under the above provisions, the date of commencement of the practice shall be calculated from the date of issue of Certificate of Practice as per the Rule 49 of the Nepal Chartered Accountants Regulation 2004. Training requirements (a) has been in continuous practice for a period of at least 3 years (b) has been in continuous practice for a period of at least 5 years (c) has been in continuous practice for a period of at least 7 years (d) has been in continuous practice for a period of at least 10 years (e) has been in continuous practice for a period of at least 15 years or more 7 Articled Trainees 6 Articled Trainees 5 Articled Trainees 4 Articled Trainees Number of trainees 2 Articled Trainees
iii.
A Chartered Accountant member, who has not completed three years practice, shall be entitled to train one articled trainee, if he is a partner in a firm of chartered accountants which has at least one partner entitled to train one or more articled trainees. A Chartered Accountant member, who has taken up practice as his main occupation after having been engaged in other occupation, shall be considered to have been in practice as follows:
iv.
Practical Training
16
Number of Years Engaged in Occupation Three Years Five years Eight or more years 7.2 Stipend to Articled Trainees
Number of Years of Deemed Equivalent Practice One Year Three Years Five Years
Every principal who engaged the Articled Trainee for practical training, shall pay to the Trainee a minimum monthly stipend at the rates specified below: 1st Year 2nd Year 3rd Year 7.3 Additional Articled Trainee A Chartered Accountant member can engage an additional articled trainee in training activity/ programm, subject to the following conditions: (a) an additional training period needed by a Chartered Accountant member holding Certificate of Practice from a foreign accounting firm whose training period is not equivalent to the required period or standards in accordance with Nepal Chartered Accountants Regulation, 2004. (b) (c) remaining training period needed to be attended by an articled trainee from the date of death of the principal or his termination by the Institute or his giving up accountancy profession for the remaining period needed to attain because of abruption due to the situations as stated in sub-rule (2) of rule 12, sub-rule (3) of rule 36 or sub-rule (3) of rule 37 of the Nepal Chartered Accountants Regulation 2004. 7.4 Industrial Training (i) (ii) In order to gain practical experience, an article trainee may serve in a particular industry as part of the practical training activity for a period not exceeding one year. The industrial training shall be received under the guidance of a Chartered Accountant member of the Institute engaged in such an organization. This is subject to prior approval from the industrial organization to be served or such principal. The following are some of the list of organizations which an articled trainee may serve during the period of practical training a. b. c. d. e. f. g. The Office of Auditor General, Nepal Rastra Bank, Commercial bank/s or Financial Institutions incorporated under the prevailing laws Fully or partially owned Governments undertaking, Insurance companies, Any Public Company whose paid up capital is not less than Rupees fifty million Any other Institution or Organization approved by the ICAN Council. NRs. 3,000 NRs. 4,000 NRs. 5,000
17
Practical Training
(iii)
Industry shall be responsible for paying stipend to the trainee as per Rule 27 of Nepal Chartered Accountants Regulation 2004. However, a higher stipend than prescribed can be paid to the articled trainee.
(iv) The period of industrial training shall be as calculated by the Institute under Rule 24 of Nepal Chartered Accountants Regulation 2004. (v) A Chartered Accountant is eligible to take up two Industrial trainee at a time. (vi) Leave taken by the trainee during the period of industrial training shall be adjusted within the total leave granted to him during three years period of training. (vii) An articled trainee desirous to join industrial training shall have to fulfill the following conditions. The articled trainee : a. b. c. must have enrolled in Chartered Accountancy CAP-III/Final Course. must have served at least two years as an articled trainee prior to commencement of the industrial training. shall convey to his principal his intention of taking the training at least one month before the date of commencement of the training program. Approval of the Council must be obtained where a student wishes to undergo industrial training under a foreign principal.
7.5
Exchange of Articled Trainee With a view to provide special skill and practical experience in a particular area, a principal can depute an articled trainee to another principal with mutual consent of both. The period of the exchange should not exceed one year. Such exchange of articled trainee must be reported to the Institute.
7.6
Termination of Deed of Articleship i. ii. iii. iv. The deed of articleship can be terminated at any time through mutual consent of both articled trainee and his Principal. Information regarding termination of the deed of articleship must be reported to the Institute within seven days from the date of termination. After the termination of the deed of articleship, the articled shall be served to another Principal for the remaining period of practical training. If an articled trainee remains absent continuously for more than 15 days without any prior information, the Principal may request to the Institute for permission to terminate the trainees deed of articleship. The Institute may grant permission to terminate the deed of articleship after proper investigation on the request forwarded. v. The Principal with one months prior permission from the Institute and similar information from the articled trainee can terminate the deed at any time. The prescribed Form of Termination of Articleship Deed is given in Annexure 8.
7.7
Notifying the Principals Position In case a Principal dies or gives up his accountancy profession or is unable to continue his training job for some unforeseen reasons, his partner, or any or his legal representative or an employee working in his accounting firm shall have to inform the Institute of submit a report about the Principals situation within 30 days from the date of the above occurrence with detailed information about the articled training. The prescribed Form is given in Annexure 9.
Practical Training
18
7.8
Record of Trainees The Principal shall keep an updated individual record of every articled trainees performances in the format as specified in Annexure 10. The Principal shall report detailed particulars of training of individual articled trainee in the format specified in Annexure 11. This should be reported to the Institute in every six months or as and when demanded by the Institute.
7.9
Leave to an Articled Trainee (i) An articled trainee shall be granted forty days leave in one year, not exceeding more than 120 days in three years, excluding public holidays. Leave exceeding the prescribed days under the regulations shall be adjusted in the leave earned during working extra days during the extended period of articleship training. (ii) Public holidays during leave period shall be included in the duration of leave taken.
7.10 Working Hours of Articled Trainees The working hours of an articled trainee shall be 40 hours a week and working hours must be between 9 AM to 5 PM. 7.11 Action against Misconduct by the Principal and Articled Trainees Misconduct or breach of the existing rules and regulations by the Principal or by the articled trainees is subject to thorough investigation and penalization to the guilty, (i) Complaint by the Principal against misconduct or breach of regulations as described in Sub Rule 2 of Rule 24 by any articled trainee shall be subject to investigation by the Council.
(ii) An articled trainee if found guilty, during the course of investigation, of breach of deed or of any misconduct as specified in (i) above, the Council may either cancel the trainees registration or may order him to serve for an additional training period ranging from six months to one year. However, an opportunity to be heard shall be provided to the articled trainee prior to issuing such an order. (iii) If the Council finds, after necessary investigation, the complaint filed by the Principal baseless or done with some evil intention, it may dismiss the principals complaint and also take necessary action for the false complaint. However, the principal shall be provided a reasonable opportunity to be heard before issuing such an order. 7.12 Action Against Principal (i) In case of any complaint by the articled trainee, against misconduct or the breach of training regulations by the Principal as specified in Sub Rule 2 of Rule 24, of Nepal Chartered Accountants Regulations 2004, the Council may initiate an investigation on such matter to resolve the issue of complaint.
(ii) Complaint or information received from articled trainee/s regarding breach of conduct or acts of misconduct by the Principal, and if the Principal is found guilty of breach of deed, or malafide intention, misconduct from an investigation as in (i) above, the Council may issue warning to the Principal or may pass an order to withdraw the entitlement of the Principal to engage the remaining number of articled trainees for the period of six months to one year and it shall be the duty of the Principal to comply such order. A reasonable opportunity to be heard shall be provided to the Principal before issuing such order.
19
Practical Training
(iii) If the Council finds that the complaint filed by the articled trainee is baseless or motivated with an evil intention, it may order cancellation of the registration of such articled trainee or to order him to serve the Institute for an additional articleship period ranging from six months to one year. A reasonable opportunity of hearing shall, however, be provided to the articled trainee before issuing such an order. (iv) Notwithstanding anything contained in this Rule, if the articled trainee who has filed the complaint as in (i) above, does not wish to continue work under the current Principal, may join articled training under another Principal as an additional trainee in accordance with Rule 26 of the Nepal Chartered Accountants Regulation, 2004. (v) Prohibition against involving articled trainees in unrelated activities. a. No Chartered Accountant member shall engage articled trainees of any other institutions in any unrelated activities or issue training related certificate without prior permission of the Council. b. No Chartered Accountant member shall be allowed to provide training to the Articled trainees of foreign accounting body as a member of such accounting body without prior permission from the Council. Articled Trainee registered according to this Rule shall not be engaged to any foreign accounting firm in excess of 180 days. 7.13 Issue of Certificate of Completion of Articleship The Principal shall inform the Institute successful completion of the articleship training in the form prescribed in Annexure 12 & 13. The Institute, after receiving such information from the Principal, shall issue Certificate of Completion of Articleship to the students successfully completing the articled training. 7.14 Prohibition to Receive Financial Benefit from Articled Trainees The Principal shall not receive/accept any kind of fee, donation, charge, loan, deposit or any other kind of financial benefit or facility from articled trainee.
c.
Practical Training
20
8. Annexures
Annexure-1 Detailed Syllabus of Chartered Accountancy Professional (CAP)-I Group-I Paper 1: Fundamentals of Accounting Paper 2: Fundamentals of Economics Paper 3: Business Communication Group-II Paper 4: Mathematics & Statistics Paper 5: Management and Organizational Relations Paper 6: Fundamentals of Information Technology Annexure-2 Detailed Syllabus of Chartered Accountancy Professional (CAP)-II Group-I Paper 1: Advanced Accounting Paper 2: Audit and Assurance Paper 3: Corporate & Other Laws Group-II Paper 4: Financial Management Paper 5: Cost and Management Accounting Paper 6: Business Communication & Marketing Paper 7: Income Tax & Vat Annexure-3 Detailed Syllabus of Chartered Accountancy Professional (CAP)-III Group-I Paper 1: Advanced Financial Reporting Paper 2: Advanced Financial Management Paper 3: Advanced Audit and Assurance Paper 4: Corporate Laws Group-II Paper 5: Management Information and Control System Paper 6: Advanced Taxation Paper 7: Advanced Cost and Management Accounting Paper 8 : Strategic Management and Decision Making Analysis Annexure- 4 Application for Registration in CAP-I/Foundation Level Annexure- 5 Application for Registration in CAP-II/Intermediate Level Annexure- 6 Application for Registration in CAP-III/Final Level Annexure- 7 Deed of Articleship Annexure- 8 Certificate of Service on Discontinuance or Termination of Articleship Annexure- 9 Report of Non Compliance of Articled Training Annexure- 10 Record of Assignment Annexure- 11 Report of Practical Training Annexure- 12 Certificate of Service Under Articles Annexure- 13 Letter of Completion of Articleship Training Annexure- 14 Eligibility Certificate 73 76 81 85 87 88 89 90 93 94 95 96 97 98 99 62 64 66 69 49 50 53 57 62 40 42 45 29 33 36 40 23 25 28 23
21
Annexures
Annexure-1 Detailed Syllabus of Chartered Accountancy Professional (CAP)-I
Paper 1: Fundamentals of Accounting (One Paper-Three Hours-100 Marks)

Level of Knowledge Objectives
: :
Basic i. ii. To enable the candidates to understand the basic fundaments of financial accounting system. To enable the candidates to apply theory to basic financial accounting issues and process financial transactions.
iii. To enable the candidates to prepare accounting statements of sole proprietorship and partnership and not-for-profit entities.
Detailed Course Contents

1. Introduction a. Business and its common types organized/incorporated bodies, partnerships, sole proprietorship/traders, Cooperatives, Trusts, Clubs, Not-for-profit organizations. Forms of their capital and capital structure. Accounting as a profession Meaning of accounting as a language of business and measurement discipline, interrelationship between accounting and other professions economics and statistics. Role of accounting profession in business and society as a whole. Basic accounting concepts related to revenue, assets and liabilities recognition and generally accepted accounting practices, brief introduction to Nepal Accounting Standards and Framework for the preparation and presentation of financial statements as promulgated by Nepal Accounting Standard Board. Types of financial statements Balance Sheet, Income Statement, Cash Flow Statement, Statement of Changes in Equity and Notes to Accounts, Users of financial statements and significance of accounting in meeting their needs for making economic decisions.
b.
c.
d.
2.
Accounting Systems and Processes a. Introduction to double entry book keeping systems, rules of debit and credit, meaning of assets, liabilities, income, revenue, gain, expenses, expenditure, accounting equation. Basis of accounting Cash, Accrual (mercantile) and hybrid. Form and content of accounting records manual and computerized Books of original entry and ledgers, journal, sales and purchase ledgers, columnar/analytical cash book, cash and bank book, subsidiary ledger, main/general ledger, extracting of trial balance, and consumable and non-consumable inventory including fixed assets ledgers. Bank reconciliation statement and its preparation. Use of control and suspense accounts. Adjustment or correction before preparation of final financial statements accrual and prepayments adjustment, depreciation, refundable tax (e.g. VAT) treatment, provisions for uncollectible receivables and advances, slow-moving, non-moving and obsolete inventory, suspense treatment and locating errors in trial balance hit and trial method and preparation of final adjusted trial balance. Brief introduction of computerized accounting systems, controls and data safekeeping.
b. c.
d.
e.
23
CAP-I/Paper 1: Fundamentals of Accounting
3.
Accounting treatment of fixed assets and depreciation recognition and measurement of cost, reasons and methods of depreciation calculation (straight line, written down value, double declining, sum of the years digits) and assets valuation. Treatment of disposal and write off of fixed assets. Treatment of fixed assets and depreciation for income tax purposes. Physical verification of fixed assets and record updating.
4.
Accounting treatment of inventory definition and types of inventory, determination of cost of inventory, methods of inventory costing (FIFO, LIFO and average methods), types of inventory management systems (periodic and perpetual), valuation of inventory (Net Realizable Value method), provisions for obsolescence and movement.
5.
Accounting for Special Transactions (simple practical problems for each of them) consignments, joint ventures, branch (excluding foreign branch), bills of exchange, department and royalty.
6.
Financial statements preparation sole proprietor/trader and not-for-profit organizations. Trading and profit and loss account, manufacturing account and balance sheet of sole traders. Receipts and payments account, income and expenditure account and balance sheet (Fund Accountability Statement) of not-for-profit organizations.
7.
Partnership Accounts Concept and treatment of goodwill and profit sharing, admission, retirement, death of partner and dissolution of partnership.
Text Books: 1. Study Material-ICAN
Reference Books:
1. 2. 3. Advanced Accounts, M.C. Shukla, T.S. Grewal & S.C. Gupta, S. Chand & Co. Ltd., New Delhi Advanced Accountancy, S.P. Jain & K.L. Narang, Kalyani Publishers Nepal Accounting Standards (NAS)
CAP-I/Paper 1: Fundamentals of Accounting
24
Paper 2: Fundamentals of Economics (One Paper-Three Hours-100 Marks)
: :
Basic To provide basic and conceptual understanding of micro & macro economics and development of Nepalese economy and problems thereof.
Part A: Microeconomics (50 Marks)
1.
Introduction to Microeconomics Meaning of economics Basic issues in economics: scarcity, efficiency and alternatives Introduction to microeconomics Scope and uses of microeconomics in business decision making Microeconomics and macroeconomics - basic differences
Demand and Supply Analysis Concepts of demand: factors affecting demand, demand schedule, individual and market demand, law of demand, movement along and shift in demand. Concepts of supply: factors affecting supply, supply schedule, individual firms and market supply law of supply, movement along and shift in supply. Elasticity of demand: concepts and measurements of price, income and cross elasticity of demand. 3 Consumer Behavior (6) Concepts of utility: cardinal and ordinal Basic concepts of total, average and marginal utility and understanding of the law of diminishing marginal utility. Indifference curves: concept, properties, Marginal Rate of Substitution (MRS)
4.
Theory of Production Concepts of production, factors of production and production functions Production with one variable input: concepts of total, average and marginal products The Law of Variable Proportions. Production with two variable inputs: production isoquants, isocost lines. Concepts of Returns to Scale.
5.
Costs and Revenues Concepts of costs: economic costs, accounting costs, sunk costs Short-run and long-run costs: total, average and marginal costs; Concepts of revenues: total, average and marginal revenues under conditions of perfect and imperfect competition Concept of and conditions for profit maximisation by firms
25
CAP-I/Paper 2: Fundamentals of Economics
6.
Market Forms and Product Pricing Perfect competition: features, pricing and production decisions in the short and long-run time periods Monopoly: features, pricing and production decisions in the short and long-run time periods. Monopolistic competition: features, pricing and production decisions in the short and long-run time periods Oligopolistic competition: features and basic distinction with monopolistic competition
7.
Markets for Factor Inputs Pricing of factors of production: Land, Labour, Capital and Entrepreneurs. Part B: Macroeconomics and Nepalese Economy (50 Marks)
1.
Basic Concepts Meaning of macroeconomics Macroeconomic objectives: growth, employment and price stability Stocks and flows Economic organizations: Market, Command, Mixed Economies Black economy Concepts of Growth and Development
2.
National Income Circular flow of income Concepts of GDP, GNP, NNP and their measurement Nominal and Real GDP, and GDP Deflator Personal income and disposable income and saving.
3.
Consumption, Saving, Investment & Determination of Equilibrium Output 3.1 Consumption and Saving The Consumption Function The Saving Function The Marginal Propensity to Consume and Save
3.2 Investment Constituents of Investment Determinants of Investment The Investment Demand Curve
3.3 Determination of equilibrium level of income and output (Two Sector Economy Only). 3.4 Theory of employment 4. Nepalese Banking and Monetary Policy Banking system and the economy Financial intermediaries and their role in the economy Role of central bank
26
5.
The concept of money supply: narrow and broad money supplies Objectives and instruments of monetary policy
Fiscal Policy Government budgeting Fiscal policy: objectives and instruments Taxation policy Deficit financing
6.
Foreign Trade Meaning of Foreign Trade Free Trade and Protectionism The concept of balance of payments (BOP) and balance of trade (BOT) Composition and direction of foreign trade in Nepal Problems of Foreign Tade Gains from international trade An Introduction to International & Regional Organizations. The International Monetary Fund (IMF) The World Bank Asian Development Bank World Trade Organization South Asia Free Trade Area (SAFTA) BIMSTEC
7.
Nepalese Economy Characteristics of the Nepalese economy: dual economy Characteristics, issues and constraints in agriculture Macroeconomic issues: poverty, inflation, employment Industry: Investment, production and employment Industrial Policy Public Enterprises: types, performance and constraints Contemporary Issues in Nepalese economic development
Text Book: 1. Study Material-ICAN
Reference Books:
1. 2. 3. 4. 5. 6. Samuelson, Paul A. and Nordhaus, William D., Economics, Tata McGraw-Hill., India. Lipsey, Richard G. and K. Alec Chrystal, an Introduction to Positive Economics, Oxford University Press, Great Britain. Devkota, S. C. Economic Theory, 2002, Ratna Pustak Bhandar, Kathmandu, Nepal. Latest Human Development Report, Kathmandu Latest Five Year Plan, National Planning Commission, Kathmandu Latest Economic Survey of Ministry of Finance/GoN, Kathmandu.
27
Paper 3: Business Communication Paper-Three Hours-100 Marks) Level of Knowledge Objectives : : Basic To develop ability to communicate clearly and correctly in written English, in matters having relevance to day-to-day business operations and emphasis on quality of presentation.
Detailed Course Contents:

1. 2. Communication in organizations Reading and Writing: Paragraphs and Essays i. ii. iii. iv. v. vi. Beyond Television: The Future of Communication Eric Barnouw A Technological Ombudsman Alvin Toffler Moonmens Gadgets for Earthlings Pravin Kumar Protection form Advertisements Gerald Barry et al Mass Media and Society Gerald Barry et al Our World and Industrial Revolution J. Bronowsky
vii. Humanistic and Scientific Approaches to Human Activity Moody E. Prior 3. Business Correspondence: 4. 5. Email messages Memos Direct and indirect letters Banking, insurance & other corporate sector correspondence Resume and job application
Reports, proposals and press releases. Interview, Meeting and presentation skills.
Reference Books:
1. 2. Lesikar and Flatly Business Communication for the Internet Generation. New Delhi: Tata McGraw-Hill. Arora, V.N. and Lakshmi Chandra, Improve Your Writing. New Delhi : Oxford, 1981.
CAP-I/Paper 3: Business Communication
28
Paper 4: Mathematics & Statistics Paper-Three Hours-100 Marks)
Section A: Mathematics (50 Marks)

Level of Knowledge Objectives : : Basic To acquaint students with quantitative techniques those are relevant to economics, business and accounting. The students should be able to assimilate the knowledge within a business context so that they understand how techniques can be used by accountants.
Detailed Course Contents:

1. Mathematics of Finance: 1.1 1.2 2. Simple Interest and Compound Interest Annuity, Sinking Fund, Present Value of Annuity, Perpetuities
Number System: 2.1 2.2 Bases Conversion amongst Number Systems
3.
Permutations and Combinations: 3.1 3.2 3.3 3.4 Permutations Permutations with restrictions Circular permutations Combinations
4.
Progressions: 4.1 4.2 Arithmetic Progression Geometric Progression
5.
Matrices and Determinants: 5.1 5.2 5.3 Matrix Operations Matrix Inversion Solution of System of Linear Equations
6.
Functions: 6.1 6.2 6.3 Coordinate System, Slope Straight line, Quadratic Equation, Break-even Point Exponential and Logarithmic Function
7.
Graph of Linear Inequalities: 7.1 Graph of Linear Inequalities in Two Variables
29
CAP-I/Paper 4: Mathematics & Statistics
8.
Elements of Trigonometry: 8.1 8.2 8.3 8.4 8.5 8.6 8.7 Systems of Measurement Trigonometrical Ratios Trigonometrical Identities Compound Angles and Standard Angles Multiple and Sub multiple angles Product -Sum Relations Inverse Circular Functions
9.
Differential Calculus: 9.1 9.2 9.3 9.4 9.5 Derivative and the Slope of a Graph First Principle Method Techniques of Differentiation Maximum and Minimum of a Function Applications of Differentiation
10. Integral Calculus: 10.1 Anti-derivative, Indefinite Integrals 10.2 Substitution method, Integration by Part, Partial Fraction 10.3 Definite Integration, Geometrical Interpretation 10.4 Properties of Definite Integrals 10.5 Simple Applications of Definite Integration
30
Section B: Statistics (50 marks)

Course Objective : The objective of the course is to acquaint the students with statistical tools and techniques and develop the skill of the students to use them in situations relevant to the business, economics and accounting that are used by accountants. 1. Introduction and Data Collection 1.1 1.2 1.3 Concept, Functions, Scope and Limitations of Statistics Types of Data: Primary Data and Secondary Data Sampling Techniques: Probability Sampling 1.4 1.5 2. Simple Random Sampling Systematic Sampling Simple Stratified Sampling Cluster Sampling Non-Probability Sampling Judgemental Sampling Convenience Sampling Purposive Sampling Quota Sampling
Collection of Data: Questionnaire method, Interview Method. Probability: Simple Probability, Addition Theorem and Multiplication Theorem of Probability, Conditional Probability (Simple cases)
Classification, Tabular and Diagrammatic Presentation of Data 2.1 2.1.1 2.1.2 Types of Classification Tabular Presentation: Discrete Frequency Distribution, Continuous Frequency Distribution, Bi-variate Frequency Distribution, Cumulative Frequency Distribution Diagrammatic/ Graphic Presentation: Bar Diagram, Pie Diagram, Histogram, Frequency Curve and Ogive.
3.
Measures of Central Tendency 3.1 3.2 Types of Averages: Arithmatic Mean and Geometric Mean, Median and Mode Positional Values: Quartiles, Deciles and Percentiles
4.
Measures of Dispersion 4.1 4.2 Measures of Dispersion: Range, Mean Deviation and Standard Deviation Measures of Skewness and Kurtosis
5.
Correlation and Regression Analysis 5.1 5.2 Correlation: Cause and Effect Relationship, Karl Pearsons Correlation Coefficient and Rank Correlation Coefficient Regression: Regression Equation and Regression Coefficient.
31
6.
Time Series Analysis 6.1 6.2 Component of Time Series, Mathematical Models of Time Series, Measurement of Trend, Measurement of Seasonal Variation
(8)
7.
Index Number 7.1 7.3 7.4 Definition, Uses of Index Number
(8)
Types of Index Number: Laspeyer, Paasches and Fishers Index Number, Ideal Index Number Construction of Index Number: Methods and Problems Cost of Living Index Number: Construction and Uses
Reference Books: 1) 2) 3) 4) 5) 6) 7) Brief Calculus, An Applied Approach, Fifth Edition, Larson Edwards Houghton Mifflin Company, Boston New York. Business Mathematics, D.C. Sancheti, V.K. Kapoor, Sultan Chand and Sons Calculus with Finite Mathematics, Geoffrey C. Berresford, Andrew M. Rockett, Houghton Mifflin Company, Boston New York. Business Mathematics, Hari Adhikari, Bhupal Baral, Asmita Books Publishers and Distributors. Levin, I. Richard and Rubin S. David; Statistics for Management, Prentice Hall of India, Levine M. David, Krehbiel, C. Timothy and Berenson. L. Mark, Business Statistics: A First Course Pearson Education, Shrestha, Sunity and Amatya, Sunil; Business Statistics, Budha Academic Publishers & Distributors Pvt. Ltd.
32
Paper 5: Management and Organizational Relations (Paper-Three Hours-100 Marks)

Level of Knowledge : Objective : Basic To develop knowledge and understanding of principles, functions and concepts of management and organizational relations relevant to a professional accountant and to provide with an understanding of management practices in modern organizations.

1. Concepts of Organization and Management 1.1 1.2 1.3 1.4 2. Organizations: Meaning, Nature and types Organizational goals: Types, formation, succession, displacement Management: Meaning, nature, functions, principles Managerial skills and roles
Evolution of Management 2.1 2.2 2.3 2.4 2.5 Classical Theories: Scientific management, Administrative management Human relations and behavioral theories Management science theory Systems theory Contingency theory
3.
Environmental Context of Management 3.1 3.2 3.3 3.4 Organization environment relationships Internal environment forces External environment forces SWOT analysis of business environment in Nepal
4.
Social Responsibility of Business 4.1 4.2 4.3 Social responsibility: Concept and approaches Areas of social responsibility Management ethics
5.
Planning 5.1 5.2 5.3 5.4 5.5 Planning: Definition, types, importance and methods Steps in planning process Quantitative tools for planning Strategic planning Implementation of plans
33 CAP-I/Paper 5: Management and Organizational Relations
6.
Decision Making 6.1 Decision making : meaning, types, styles 6.2 Decision making-environment 6.3 Decision making process 6.4 Creativity and decision making 6.5 Information and decision making
7.
Organizing 7.1 Organizing : concept, approaches and principles 7.2 Forms of organizational structures: Traditional and modern 7.3 Delegation and decentralization of authority 7.4 Coordination 7.5 Emerging concepts is organizing
8.
Managing People 8.1 Human Resource Management: concept and importance 8.2 Components of human resource management 8.3 Human resource management in Nepal
9.
Leadership 9.1 Leadership : Concept, functions and styles 9.2 Leaderships and Management 9.3 Theories of leadership: Trait, behavioral, situational 9.4 Groups and teams
10.
Motivation 10.1 Motivation: concept and importance 10.2 Theories of motivation: Hierarchy of needs, motivation hygiene, achievement motivation theory, theory X and theory Y. 10.3 Techniques of improving motivation
11.
Communication 11.1 Communication: concept, importance and process 11.2 Type of communication 11.3 Communication channels 11.4 Barriers to communication 11.5 Techniques for improving communication
12.
Controlling 12.1 Control: meaning, purposes and process 12.2 Types of control system 12.3 Requirements for effective control system 12.4 Techniques of control 12.5 Management information system for control
CAP-I/Paper 5: Management and Organizational Relations
34
13.
Emerging Concepts in Management 13.1 Change Management 13.2 Conflict Management 13.3 Time Management 13.4 Stress Management 13.5 Quality Management 13.6 Business process reengineering 13.7 Globalization
14. Management Practices in Nepal 14.1 Existing management scenario 14.2 Planning, decision making, organizing, human resource management, leadership, controlling practices. Text Book: 1. Study Material-ICAN
Reference Books: 1. 2. 3. Stephen P. Robbins and Mary Coulter. Management - Prentice - Hall Ricky W. Griffin. Management - AITBS Publishers Dr. Govind Ram Agrawal. Principles of Management in Nepal - M.K. Publishers and Distributors
35 CAP-I/Paper 5: Management and Organizational Relations
Paper 6: Fundamentals of Information Technology (Paper-Three Hours-100 Marks)

Level of Knowledge : Basic Objectives : To develop and understanding of Information technology by the students and will be able to follow the technology trends and technologies use by the business community.
1.
Computer System Concepts 1.1 1.2 Introduction to digital computer system, block diagram of computer Numbering system
2.
Hardware Technologies 2.1 2.2 2.3 2.4 2.5 Types of input device: key boards, mouse, joysticks Types of output device: monitor, plotter, printer Primary and secondary memory Microprocessor: arithmetic logical unit, registers, control unit and bus organization. Switching mode power supply
3.
Information Concepts 3.1 3.2 Digital representation of data: bit and bytes and conversion system, fundamentals of source coding Fundamental difference of data and information, file organization
4.
Data Processing Concepts 4.1 4.2 Introduction and types of data processing Batch processing, online processing, time sharing centralized and decentralized
5.
Development tools 5.1 5.2 Introduction to flowcharts: system flow charts, runs flow charts, program flow charts Decision tables: types, illustrations, benefits and limitations
6.
System and Software 6.1 6.2 6.3 Introduction and types of software: system software, application software and utility software General case study on Windows 2000 and its successors General programming concepts in C 6.3.1 Introduction to C C Basics; variables and constants, simple data types in C, operators, header files, input and output statement: Unformatted I/O, Formatted I/O, type conversion, loops and decisions (For loop, while loop, Do while loop, Nested loop Case-break and continue statements, If Else, Else-If and Switch statements), functions (variables, returning a value from a function, sending a value to a function, arguments, preprocessor directives, C libraries, macros, header files and proto typing), recursion.
CAP-I/Paper 6: Fundamentals of Information Technology
36
6.3.2 6.3.3 6.3.4
Arrays and Strings Initializing arrays, Multidimensional arrays, String; functions related to the strings Structures and Unions Initializing structures, Nested type structure, Arrays and structures and Unions Pointers Pointer data type, Pointers and Arrays, Pointers and Functions, Pointers and Structures Files and File Handling Opening and creating a file in different modes (Read, Write and Append)
6.3.5 6.4 7.
Office application tools Words processor, spread sheets, presentation package, and project management package Introduction and application of database for modern organizations, database hierarchy, file organization terms and concepts Modern approach to data base, merits and demerits of data base Types of data models: hierarchical model, network model, relational model, E-R diagram Normalization Advancements in database technology: object oriented database, distributed database, client server systems Definition and application of computer networking for modern organizations, types of computer networking (client server and peer-to-peer) Local area networking, metropolitan area networking and wide area networking, network topology (bus, ring, star, mesh) Network components (work station, server, network interface card, hub switch, modem, gateway, and router) Application layer overview of open system interconnection (OSI): mail system, domain name system, HTTP, internet security: concept of firewall and intrusion protection Types of data storage devices and retrieval from them (hard disk, floppy disk, compact disk, magnetic disk, optical laser disk, flash memory) Redundant array of independent disk system of data storage and retrieval Importance of data security, fundamental of encryption and decryption
Data Base Management 7.1 7.2 7.3 7.4 7.5
8.
Data Communication and Networking 8.1 8.2 8.3 8.4
9.
Data Storage, Retrieval and Security 9.1 9.2 9.3
Reference Books:
1. 2. 3. PK Sinha, Computer Fundmentals Concept, Systems and Applications, bpb, 2001 V. Rajaraman, Computer Programming in C, Prentice Hall India Pvt, 1998 Alexian Leon, Matheos Leon, Fundamentals of Information Technology, Leon TECH world 1999
37
CAP-I/Paper 6: Fundamentals of Information Technology
Annexure-2 Detailed Syllabus of Chartered Accountancy Professional (CAP)-II
Paper 1: Advanced Accounting (One Paper-Three Hours-100 Marks)
Level of Knowledge : Objectives :
Working i. To enable the candidates to understand the principles, methods and procedures of accounting as followed by different entities.
ii. To enable the candidates to understand the relevant laws, principles and practices for the preparation and presentation of financial statements of companies. iii. To provide understanding of the tools and techniques followed in the analysis and interpretation and presentation of financial statements of companies.

1. Accounting Standards Framework for the preparation and presentation of financial statements as promulgated by Nepal Accounting Standard Board. Nepal Accounting Standards issued by Nepal Accounting Standards Board (made mandatory as well voluntary compliance but not the exposure drafts). Historical cost concept vs. realization concept for preparation and presentation of financial statements. Effect of changes in price levels. Accounting for Special Transactions (higher level practical problems for each of them) lease, hire purchase and installment transactions; goods on sale or return; contract accounts, investment accounts, branch (including foreign branch) and departmental accounts. Computation of insurance claims for loss of stock and profit. Preparation & presentation of financial statements for company a. Accounting for share capital and reserve funds types of shares, issue of fresh shares, bonus shares, right issue, redemption of redeemable preference shares, issue, redemption and conversion of debentures, and underwriting of shares and debentures. Preparation of financial statements as per provisions in Company Act, format and contents as per the Act/Rules, interpretation of items in balance sheet and income statement. Winding up of companies and accounting treatment arisen therefrom Statement of Affairs and Liquidators Account. Additional disclosures and comment on going concern concept in relation to winding up. Concept of acquisition, absorptions, amalgamation, merger and reconstruction Simple practical problems. e. f.
4.
2.
3.
b. c.
d.
Cash flow statements objectives, preparation methods (direct and indirect) and interpretations. Application of Nepal Accounting Standards in the preparation of financial statements for general purpose.
Partnership Accounts - Treatment of goodwill and profit sharing, admission, retirement and death
of partner (including annuity and policies methods). Conversion of partnerships to a limited company and merger of firms.
CAP-II/Paper 1: Advanced Accounting
38
5.
Preparation and presentation of financial statements of special organizations a. Financial Institutions, including banks, finance companies and cooperatives types of financial institutions as per Banking and Financial Institutions Act, Formats and contents as prescribed by Central Bank, accounting policies and disclosures requirement, interest income recognition and loan loss provisioning, capital adequacy and cash reserve requirement. Simple practical problems. Electricity companies nature of operation (generation, transmission and distribution), transfer pricing and requirements as per Nepal Electricity Act. Simple practical problems. Insurance companies nature of operation (life and general), formats and contents of financial statements prescribed by Insurance Board, accounting and disclosure requirements, premium income recognition, liability recognition and treatment of re-insurance. Simple practical problems. Agricultural farm accounting concept and peculiarity of inventory costing and valuation systems.
b. c.
d. 6.
Incomplete Accounts concept of incomplete records and generation of need for financial information from other records, preparation of final financial statements from incomplete records. Government Accounting concept and salient features of government accounting system. Basis of accounting and accounts classification. Differences between government and business accounting. Simple practical problems. Framework of NPSAS. Analysis and interpretation of financial statements a. b. c. d. evaluation of financial statements under Nepal Accounting Standards and other applicable International Financial Reporting Standards. Segmental information analysis Analysis of performance and position through cash flow, ratios and trend Related party transactions disclosure and treatment
7.
8.
Reference Books:
1. 2. 3. 4. Nepal Accounting Standards (NAS)/Nepal Public Sector Accounting Standards (NPSAS) International Financial Reporting Standards (IFRS) Advanced Accounting, R.L. Gupta & M. Radhaswamy, S. Chand & Son, New Delhi Advanced Accounting, H. Chakraborty, Oxford University Press, Calcutta
39
CAP-II/Paper 1: Advanced Accounting
Paper 2: Audit and Assurance (One Paper-Three Hours-100 Marks)
Level of Knowledge : Working Objectives : 1. To develop candidates capability in understanding the relevant auditing procedure. 2. To develop candidates capability to display the ability to document the accounting and internal control system of an enterprise. 3. To develop candidates capability in identifying significant risks and apply risk assessment tools to the engagement.

1. Nature and Concepts of Assurance a. Principles of assurance Concept of assurance i. Benefits of assurance ii. Purposes and characteristics of different forms of assurance iii. Objectives of assurance; expression of opinion, detection and prevention of fraud and error iv. Basic principals governing an assurance v. Relationship of assurance with other subjects; internal audit and External audit; Auditing and Investigation. b. Regulatory and ethical issues i. Scope and terms of an assurance engagement Chartered Accountants of Nepal, Code of ethics issued by IFAC and Nepal Standards on Auditing develop and issued by Auditing Standards Board. iii. Ethical and professional issues: integrity, objectivity, independence, confidentiality, professional competence and due care and professional behavior. iv. Quality control v. Regulatory framework: Companies Act, Bank and Finance Companies Related Act and International Financial Reporting Standards and interpretations. 2. Planning an assurance engagement i. Importance of knowledge and understanding of a business ii. Application of analytical procedures iii. Risk assessments iv. Materiality, tolerable error, and sample sizes v. Design and documentation of plan and program vi. Co-ordinance and monitoring of the work ii. Scope and authority of professional pronouncements; code of ethics issued by Institute of
CAP-II/Paper 2: Audit and Assurance
40
vii. viii. ix. x.
Evaluation of internal control system Transaction cycles (revenue, purchases, payroll, inventory, capital expenditure) Communication with management and those charged with corporate governance. Evaluation of financial statement assertions: assets, liabilities, income and expenditure, including accounting estimates.
3.
Gathering evidence during an assurance engagement i. ii. iii. iv. v. vi. vii. viii. Different methods of obtaining evidence Identification and use of the methods for different business situations Reliability of different types of assurance evidence Identification of situations where analytical procedures, test of control and substantive procedures are to be implied. Evidence from analytical procedures, test of control and substantive procedures Quantity and quality of evidence needed for reports Written confirmation of representations from management. Audit of payments: General considerations, wages, capital expenditure, other payments and expenses, petty cash payments, audit of payments into and out of the bank, reconciliation of bank statements with cash book ix. x. xi. Audit of receipts: General considerations, cash sales, receipts from debtors, other receipts Audit of purchases, vouching cash and credit purchases, forward purchases, purchases returns Audit of sales, cash and credit sales, goods on consignment, sale on approval basis, sales under hire-purchase agreement, returnable containers, various types of allowances given to customers, sales returns, sales ledger xii. Audit of suppliers ledger and debtors ledger: Self-balancing and the sectional-balancing system, total or control accounts, loose leaf and card ledgers, confirmatory statements from credit customers and suppliers, provision for bad and doubtful debts, writing off of bad debts xiii. Audit of impersonal ledgers: Capital expenditure, deferred revenue expenditure and revenue expenditure, outstanding expenses and income, repairs and renewals, distinction between reserves and provisions, implications of change in the basis of accounting xiv. xv. xvi. xvii. Audit of assets and liabilities Audit of share capital and transfer of shares Audit of incomplete records Audit of limited companies: Appointment of auditors, powers and duties of auditors. hotels, clubs, hospitals, hire-purchase and leasing companies (excluding banks, electricity companies, cooperative societies, and insurance companies) xix. Features and basic principles of government audit, local bodies and non- governmental organizations.
xviii. Special points in audit of different types of undertakings: i.e., educational institutions,
41
Completing and reporting on an assurance engagement i. ii. iii. iv. v. vi. Subsequent events leading to adjustment or disclosure Evaluation of results of assurance tests and procedures Reports on assurance engagements consistent with results of assurance procedures Elements of assurance reports Elements of auditors reports and recommendations on the nature of an audit opinion Extracts for assurance reports
Reference Books:
1. 2. 3. 4. Nepal Accounting Standards (NAS) Nepal Standards on Auditing (NSA) International Financial Reporting Standards (IFRS) Contemporary Auditing, Kamal Gupta - Tata McGraw Hill Publishing Co.
42
Paper 3: Corporate & Other Laws (One Paper-Two Sections-Three Hours-100 Marks)
Level of Knowledge Objective : : Working Knowledge To gain the general knowledge of Nepalese and Indian Corporate and other laws and their practical application.
Part A: Indian Corporate Laws

1. Companies Act, 1956 Meaning, concept and types of companies Incorporation of Companies Lifting of Corporate Veil Conversion of public company into private company and vice-versa
(25 Marks)
Memorandum of Association (MOA) & Articles of Association (AOA) and amendments thereof. Promoters, Board of Directors and their duties and functions Preliminary and Pre-operating Contracts and Expenses Shares and Debentures, Prospectus-meaning, contents, abridged form of prospectus, additional disclosures and statement by experts, mis-statement and its consequences, allotment, underwriting, use of application money, purchase of own-shares and financial assistance to buy its own shares, buy-back, issue of bonus shares and dividends its restrictions and procedures
2.
conversion of share into stock, alteration of stock, reduction vs. diminution, issue at discount, premium, share warrant, calls on shares, transfer of shares General Meeting of Shareholders Meeting of Board of Directors Winding up & Liquidation of Company
Negotiable Instrument Act Comparative analysis of relevant provisions of Nepalese Negotiable instruments Act with Indian Negotiable Instrument Act, 1881.
Part B: Nepalese Corporate Laws

1. Companies Act, 2063 and Securities Act, 2063 1.1 1.2 Meaning, Concept and types of Company
(75 Marks)
Incorporation of Company, Prospectus , Memorandum & Articles, Shares and Debenture, General meeting and Board Meeting, Accounts and Audit, Liquidation of Company and Offence, Punishment and Legal Proceedings, Relevant provisions of Nepalese CompanyAct. Meaning and Concept of Securities and Security Exchange. General Concept on Securities Exchange Board, Security Exchange Market and Transactions of Securities, Securities Exchange Professionals, Offences, Penalties and Legal Proceedings and other Relevant Provisions of Nepalese Securities Exchange Act, 2063.
1.3 1.4
43
CAP-II/Paper 3: Corporate & Other Laws
2.
Banking Laws 2.1 2.2 2.3 2.4 2.5 2.6 2.7 Concept of Bank and Types of Bank Role of Central Bank and directives issued by Central bank other to banks and financial institutions Objectives and Functions of the Central Bank Establishment and Management of Commercial and Development Bank Supervision, Direction and Monitoring of the Banks Banking Offences and Penalties Relevant Provisions of Banking Acts (NRB Act 2058 and BAFIA 2063)
3.
Industrial Laws 3.1 3.2 3.3 3.4 3.5 Meaning, Concept and Types of Industries General Concept of Industry Promotion Board, Licensing, Registration of the Industry, Offences and Penalties Meaning and Concept of Foreign Investment and Technology Transfer General Concept of Incentives for Foreign Investor and Dispute Settlement Relevant Provisions of Nepalese Industrial Enterprises Act, 2049 and Foreign Investment and Technology Transfer Act, 2049
4.
Labor and Bonus Laws 4.1 4.2 4.3 4.4 4.5 4.6 Concept of Labor / Capital Relations Types Labor Various Aspects of the labor, Code of Conduct and the punishment, Dispute Settlement Meaning and Concept of Bonus Bonus Distribution and Dispute Settlement Relevant Provisions of Nepalese Bonus Act, 2030 and Labor Act, 2048
5.
Law of Contract 5.1 5.2 5.3 5.4 Meaning, Concept, Types and Elements of valid contract Breach of Contract and its Remedies Performance of Contractual Liability Relevant Provisions of Nepalese Contract Act, 2056
6.
Insurance Law 6.1 6.2 6.3 6.4 6.5 Meaning, Concept and Types of Insurance Fundamental Principles of Insurance Premium and Policy Insurance Offence and Penalties Relevant Provisions of Nepalese Insurance Act, 2049
44
7.
Audit Law 7.1 7.2 7.3 7.4 7.5 Meaning and Concept of Audit Basis of the Audit Government Audit and Office of the Auditor General Qualification of the Auditor Relevant Provisions of Nepalese Audit Act, 2048
8.
Laws Relating to the Negotiable Instruments 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 Meaning and Concept of Negotiable Instruments Classification of instruments Differences between Promissory Note, Bill of Exchange and Cheque Negotiation, negotiability, assignability Rights and obligations of parties to an instrument obtained illegally Notice of Dishonor Noting and Protesting Presentation of Instrument Payment and Interest Other Relevant Provisions of Nepalese Negotiable Instrument Act.
9.
Nepal Chartered Accountants Act & Regulations 9.1 9.2 9.3 About the Institute of Chartered Accountants of Nepal Examination and Academic Qualification of Chartered Accountants, General Concept of Code of Conduct and Penalties Relevant Provisions of Nepal Chartered Accountants Act, 2053 and Regulations 2061
Reference Books:
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Paul L. Davies, Principles of Modern Company Law Avtar Singh, Company Law (11th Edition, 1996), Eastern Book Company, Lucknow Bharat Raj Uprety, Company Kanoon Ellinger and Lommicka, Modern Banking Law, 2nd Edition J. Beatson, Law of Contract, 28th Edition M N Mishra, Insurance Principles and Practice, 6th Edition M.C. Shukla, A manual of Mercantile Law Kashi Raj Dahal, Industrial Jurisprudence Gyaindra Bahadur Shrestha, Byawasayako Kanooni Batabaran Madhav Aryal, Banking Kanoon Ram Prasad Shrestha, Legal Environment of Business Rishikesh Wagle and Kirti Bilash Pant, Legal Environment of Business in Nepal
45
Paper 4: Financial Management (One Paper-Three Hours-100 Marks)

Level of Knowledge : Working Objectives : To develop knowledge and understanding of financial management methods for analyzing the various sources of finance and capital investment opportunities and application of various tools and techniques for business planning and control.
Detailed Course Contents 1. Introduction and Fundamental Concepts of Financial Management An overview of financial management; objectives of financial management; the financial environment: markets, institutions, and interest rates; risk and return: the basics, portfolio theory and asset pricing models, time value of money. 2. Analysis of Financial Statements Overview, analysis of financial statements, precautions in statements analysis, horizental analysis, vertical analysis, ratio analysis, cash flow analysis, reporting fundamentals. 3. Valuation of Securities Fixed income securities- characteristics and valuation, common stock, characteristics, valuation and issuance. 4. Capital Investment Decision Concepts of cost of capital, capital budgeting, evaluating cash flows, cash flow estimation, investment evaluation and capital rationing. 5. Strategic Financial Decision Basics of Capital structure, Capital structure management, Dividend policies. 6. Working Capital Management and Financial Forecasting Financial forecasting and working capital policy, management of cash and marketable securities, management of accounts receivables, short-term and long-term funding alternatives. 7. Strategic Finance and Policy Short-term finance: how companies raise finance, shareholders funds, methods of raising equity finance, long-term debt finance, dividend decision: the strategic and legal dimensions of dividend, theory of dividend policy, capital structure: introduction, operating and financial gearing, gearing and the required return, cost of debt capital, overall cost of capital, financial distress, signaling and agency costs. Reference Books: 1. 2. 3. Brigham, Eugene F; Ehrhardt Michael C; Financial Management Theory and Practice, Thomson South-Western. Moyer, Charles R; Mcguigan James R; Kretlow, William J; Contemporary Financial Management, Thomson South-Western. Shapiro, Alan C; Balbirer Sheldon D; Modern Corporate Finance, Pearson Education.
CAP-II/Paper 4: Financial Management
46
Paper 5: Cost and Management Accounting (One Paper-Three Hours-100 Marks)
Level of Knowledge : Working Objectives : To acquaint students with a comprehensive knowledge of costing concepts and detail procedures and documentation involved in cost ascertainment systems. To provide with an understanding of the application of above knowledge to basic planning, control and decision-making.

1. Cost concepts and costing methods 1.1. Evolution of cost accounting 1.2. Definitions 1.3. Objectives of cost accounting 1.4. Importance of cost accounting 1.5. Cost Accounting System 1.6. Cost Concepts 1.7. Elements of Costs 1.8. Types and methods of Costing 2. Material Control 2.1. Purchasing of materials 2.2. Receiving of materials 2.3. Inspection of materials 2.4. Storage of materials 2.5. Issuing of materials 2.6. Maintenance of Inventory records 2.7. Techniques of Material control 2.8. Pricing Methods 2.9. Stock valuation 2.10 Material Losses 3. Labour Control 3.1. Direct and Indirect Labour 3.2. Control over Labour costs 3.3. Attendance and Payroll system 3.4. Treatment of Holiday pay, idle time, overtime etc. 3.5. Labour Turnover 3.6. Methods of wage payment 3.7. Incentive System 3.8. Accounting for labours
47
CAP-II/Paper 5: Cost and Management Accounting
4.
Overhead Control 4.1. 4.2. 4.3. 4.4. 4.5. 4.6. 4.7. 4.8. Classification of Overheads Manufacturing Overheads Office and Administrative Overheads Selling & distribution Overheads Distribution of Overheads Absorption of Overheads Treatment of under-absorbed and Over-absorbed overheads Treatment of certain items in costing
5.
Cost Accounts System, Cost Control Accounts (Integrated and Non-integrated Accounting System) 5.1. 5.2. 5.3. Non-Integrated Accounting System Integrated Accounting System Reconciliation of Cost and Financial Accounts
6.
Methods of Costing 6.1. 6.2. 6.3. Job Costing System Batch Costing System Contract Costing System 6.3.1. Meaning 6.3.2. Recording of contract costs 6.3.3. Specific aspects of Contract Costing 6.3.4. Profit on Incomplete Contracts 6.4. Process Costing System 6.4.1. General Principles 6.4.2. Treatment of Process loss and gains 6.4.3. Working Progress 6.4.4. By-products and Joint products 6.4.5. Inter-process profits 6.5. Operating Costing System 6.5.1. Introduction, Scope 6.5.2. Collection, classification and ascertainment of cost
7.
Cost concepts for Decision Making 7.1. 7.2. 7.3. Cost Behaviour Methods of separating fixed and variable costs Cost Volume Profit Analysis 7.3.1. Profit volume ratio 7.3.2. Break-even Point 7.3.3. Margin of Safety 7.3.4. Target profit
48
7.4. 7.5. 7.6. 7.7. 8.
Limiting Factor Marginal Costing and Differential Costing Marginal Costing and Absorption Costing Others
Costing for planning and Control Budgets 8.1. 8.2. 8.3. 8.4. 8.5. 8.6. Budgets and Budgetary Control System Steps in Budgetary Control Types of Budgets Fixed and Flexible Budgeting Implementation of Budgets Control Ratios
9.
Uniform Costing and Inter firm comparison 9.1. 9.2. 9.3. 9.4. 9.5. 9.6. Meaning Application of Uniform Costing Objectives of Uniform Costing Advantages of Uniform Costing Limitations of Uniform Costing Inter-firm Comparison
10. Cost Control And Cost Reduction 10.1. Introduction 10.2. Distinction between Cost Control and Cost Reduction 10.3. Advantages of Cost Reduction 10.4. Cost Reduction Plan & Program 10.5. Scope of Cost Reduction 11. Cost Audit 11.1. Important aspects of Cost Audit 11.2. Purpose of Cost Audit 11.3. Types of Cost Audit 11.4. Advantages of Cost Audit 11.5. Functions of Cost Auditor
Reference Book:
1. 2. Cost Accounting S.K. Saxena & C.D. Vashist Management & Cost Accounting - Colin Dury
49
Paper 6: Business Communication & Marketing (One Paper- Two Sections-Three Hours-100Marks)
Section A: Business Communication (50 Marks)
: Working : To develop an understanding the role of communication plays in business, communication process with basic qualities of business documents, letters, reports through writing assignments simulating situations occurring in business organizations. Become familiar with sources of business information and the techniques for collecting data necessary for the preparation of documents in business and produce employment communication, including resume, cover letter, and other employment documents. Develop an understanding of nonwritten business communications; e.g., listening, nonverbal communication, intercultural communications, oral and visual communications and demonstrate human relations skills through the use of effective listening techniques and interpersonal skills withina group setting (team building).
1.
Detailed Course Contents A. Introduction: Communicating at Work 1. 2. 3. 4. 5. 6. B. Succeeding in the new workplace Examining the process of communication Overcoming interpersonal barriers Communicating in organizations Ethics in business communications Strengthening your communication skills
Working in Groups 1. 2. 3. 4. 5. 6. 7. 8. Listening skills Group interactions Determining group goals Individual roles in groups Conflict resolution Effective meetings Writing notifications, agenda and minutes Giving and receiving feedback in groups
C.
Communicating Across Cultures 1. 2. Importance of international business Diversity in todays workplace
CAP-II/Paper 6: Business Communication & Marketing
50
3. 4. 5. 6. 7. D.
Ways to look at culture Values, beliefs, and practices Nonverbal communication Writing to an international audience Learning more about international business communication
Employment Communication 1. 2. 3. 4. 5. 6. 7. Preparing for employment The persuasive resume Preparing for computer scanning Faxing or emailing your resume The persuasive letter of application Follow-up letters Interviewing for employment
E.
Analyzing Information and Writing Reports and Proposals 1. 2. 3. 4. 5. 6. 7. 8. An Inside Perspective: Analyzing Data and Writing Reports A timetable for writing reports Choosing information for reports Analyzing data and information for reports Organizing information in reports Presenting information effectively Report types: informational and analytical Formal and informal reports proposals
Reference Books:
1. 2. 3. Guffey, Mary Ellen. Business Communication: Process and Product. 3rd Ed. Singapore: Thomson Asia Pte Ltd, 2004. Bovee, Courtland L., John V. Thill, and Barbara E. Schatzman. Business Communication Today. 7th Ed. New Delhi: Pearson, 2003. Lesikar, Reymond V., John D. Pettit, Jr. and Marie E. Flatley. Lesikars Basic Business Communication. 8th Ed. New Delhi, Tata McGraw-Hill, 2001.
51
Section B: Marketing (50 Marks) Objectives

: To develop knowledge and understanding of fundamentals of marketing relevant to a
professional accountant and understanding of marketing forces and practices in organizations.

1. Meaning of Marketing and Marketing Mix 1.1 1.2 2. Marketing: meaning and importance Marketing mix: meaning and components
Evaluation of Marketing Concepts 2.1 Production, product, selling, marketing, customer and societal concepts.
3.
Environmental Context of Marketing 3.1 3.2 3.3 3.4 Marketing environment: meaning & importance Micro environment forces in marketing Macro environment forces in marketing Marketing environment in Nepal
4.
Market Segmentation and Targeting 4.1 4.2 4.3 4.4 4.5 Market segmentation: meaning, benefits and requirements Process of market segmentation Segmentation variables for consumer and industrial markets. Market targeting Market segmentation in Nepal
5.
Market Information System 5.1 5.2 5.3 Meaning and importance of market information system Components of marketing information system Marketing research process
6.
Buyer Behavior Analysis 6.1 6.2 6.3 6.4 6.5 Meaning and importance of buyer behavior Stages of consumer buying process Factors affecting consumer buying process Features of organizational buying behavior Factors affecting organizational buying behavior.
7.
Product Decisions 7.1 7.2 7.3 Product: Meaning, levels, types Product life cycle Process of new product development
52
7.4 7.5 7.6 7.7 8.
Product line and mix Service product Branding, packaging, labeling Product scenario in Nepal.
Price Decisions 8.1 8.2 8.3 8.4 Price: meaning, importance and objectives Methods of price determination Pricing policies and strategies Pricing scenario in Nepal
9.
Place Decisions (Distribution) 9.1 9.2 9.3 Place: meaning, importance and objectives Channels structures for consumer and industrial products Physical distribution: meaning and components.
10.
Promotion Decisions 10.1 Promotion: meaning, objectives 10.2 Promotion mix: meaning and factors affecting it 10.3 Advertising: meaning, importance, objectives, media 10.4 Public Relations: meaning, objectives, methods 10.5 Sales Promotion: meaning, objectives, methods 10.6 Personal selling: meaning, objectives, methods 10.7 Promotion scenario in Nepal
11.
Emerging Concepts in Marketing 11.1 Relationship marketing 11.2 E-commerce 11.3 Strategic alliances
Reference Books:
1. 2. 3. Philip Kotler and Gary Armstrong - Principles of Marketing. Pearson. Dr. Govind Ram Agrawal. Fundamentals of Marketing. A Nepalese Perspective - M.K. Publishers and Distributors. Williams Stantion, M.S. Etzel and Bruce S. Walker. Fundamentals of Marketing - TaTa McGraw-Hill Book Co.
53
Paper 7: Income Tax & VAT (One Paper- Three Hours-100 Marks)
Level of Knowledge : Objectives : Working
The objective of this syllabus is to give candidates an understanding of the basis concepts of Nepal Income Tax Regulations as an important part of direct taxes and of Nepal Value Added Tax regulation as an important part of indirect tax in Nepal. The syllabus also covers some basic concepts of Indian Income Tax Act so as to provide the candidate with a comparative study on direct taxes prevailing in Nepal and India. As a result of the learning related to this syllabus students will be able to: Recognize the principles governing taxation of income, gain from disposal of assets and liabilities and conditions of disposals and deemed disposals. Recognize the basic concepts of charging income tax on various incomes. Recognize the basic concepts of tax planning. Detail Course Contents a. Part A: Income Tax (60 Marks) Income Tax Regulations of Nepal 1. Basic concepts a. Definitions of: i. Terms defined in Section 2 of the Act. ii. Terms defined in Rule 2 of the Rules iii. Terms defined in various other Sections and Rules of the Act and Rules. iv. Meaning and use of various terms used in Act and Rules. b. Basis of taxation: i. Imposition of tax on persons ii. Calculation of tax and rate of tax including schedule 1 of the Act. c. Taxable income: i. Assessable income ii. Taxable income iii. Various heads of income. d. Tax exemptions and tax concessions i. Incomes which are exempted from tax ii. Incomes for which tax concessions are allowed. e. Quantification, allocation and characterization of amounts: i. Quantification ii. Characterization of payments under annuities, installments and leases. iii. Transfer pricing and other arrangements between associates iv. income splitting v. General anti-avoidance rules 2. Computation of taxable income a. Calculation of income from business: i. Components of income from business ii. Incomes which do not form part of income from business. iii. Deductions allowed from income from business iv. Limitations and conditions for a particular deduction vi. Schedule 2 of the Act. (50)
CAP-II/Paper 7: Income Tax & VAT
54
b.
Calculation of income from employment i. ii. Components of income from employment Incomes which are excluded from income from employment Components of income from investment Incomes which do not form part of income from investment Deductions allowed from income from business Limitations and conditions for a particular deduction Deduction for donation and gifts Deductions for contributions to retirement funds Deduction for life insurance premium paid Deduction for losses from income from business or investment Carry forward and carry back of losses for setoff. Deductions not allowed Medical tax credits International taxations
C.
Calculation of income from investment i. ii. ii. iii.
d.
Deductions allowed from taxable income: i. ii. iii. iv. v. vi.
e.
Tax credits: i. ii.
3.
Other relevant matters regarding taxable income a. Tax accounting and timings i. ii. iii. iv. v. b. i. ii. iii. iv. Method of tax accounting Cash basis of accounting Accrued basis of accounting Reverse of amounts including bad debts Averaging inclusions and deductions under long-term contracts. Classification of assets Net gains from assets and liabilities Outgoings and incomings from assets and liabilities Disposals and deemed disposals of assets and liabilities.
Calculation of net gains from disposal of assets and liabilities
4.
Payment of tax and tax returns a. b. Form, place and time for payment of tax Withholding tax i. ii. iii. iv. c. d. Withholding by employers Withholding from investment returns and service fees Withholding from insurance premiums and contract payments. Final withholding payments
Advance payment of tax Tax returns i. ii. Return for advance tax Annual tax return
5.
Assessments, appeals and penalties a. Tax Assessment i. Self assessment
55
ii. iii. b. i. ii. c. b.
Jeopardy assessments Amended assessments Departmental review Appeal to Revenue Tribunal
Appeals
Interest and fines Interest and fines as per Section 117 to 122. (10)
Income Tax Regulations of India Basic concepts 1. Gaining knowledge about: i. ii. iii. iv. v. vi. Assessment year Previous year Person and Assessee Definition of income under the Income Tax Act Gross total income Total income and its computation
vii. Agricultural income viii. Casual income ix. x. xi. 2. i. ii. ii. iii. iv. v. vi. Capital and revenue receipts Capital and revenue expenditures Method of accounting relevant to computation of income Classification of persons as per residential status Factors to decide residential status of an individual Factors to decide residential status of a Hindu undivided family Factors to decide residential status of a firm and association of persons Factors to decide residential status of a company Relationship between residential status and incidence of tax Connotation of receipt of income
Residential status and its effect on tax incidents:
vii. Connotation of accrual income viii. Connotation of income deemed to accrue or arise in India. 3. Income that is exempted from tax i. ii. iii. iv. v. vi. Income exempted from tax under section Special provision in respect of newly established undertakings in free trade zone, electronic/ software/hardware technology park and software technology park. Special provisions in respect of newly established hundred percent export oriented undertakings Deductions available to export of handmade wooden articles Exemption in respect of income from property held for charity Exemptions on income of a political party
56
Part B: Value Added Tax of Nepal (40 Marks) 1. Basic concepts a. Definitions of: i. ii. iii. iv. b. c. Terms defined in Section 2 of the Act. Terms defined in Rule 2 of the Rules Terms defined in various other Sections and Rules of the Act and Rules. Meaning and use of various terms used in Act and Rules.
Appointment of tax officer and his/her jurisdiction Imposition of VAT i. ii. iii. iv. v. vi. Transactions covered by VAT Goods and services exempted from tax Place and time of supply Rate of tax Conditions for zero rate of tax Assessment and collection of tax
2.
Registration and cancellation a. Registration i. ii. iii. iv. v. b. Conditions for compulsory registration Threshold for small vendors Proxy conditions for compulsory registration Voluntary registration Registration not available
Cancellation of registration Conditions and procedures for cancellation of registration
3.
Taxable value, tax collections and offsets, refund of tax a. Factors determining taxable value i. ii. iii. iv. b. c. General conditions Extra-ordinary conditions Taxable value for used goods Taxable value for dealers in used goods
Market value concept and its applicability Tax collection i. ii. iii. iv. Registered person has to collect tax Tax collection by custom authorities Bank guarantees facility available for payment of tax. Restriction on unregistered person to collect tax.
57
d.
Offset of tax i. ii. iii. iv. Partial tax offset Proportionate tax offset Tax offset not available Conditions of tax offset Under regular conditions Under export conditions Refund by some specific institutions as per Section 25. Limitations on refund
e.
Refund of tax: i. ii. iii. iv.
4.
Accounts and records a. Invoices i. ii. iii. b. i. ii. iii. iv. Conditions for unregistered person to issue invoices and its contents. Conditions for issue of different kinds of tax invoices and their contents. Conditions for issue of tax invoices for dealers in used goods. Taxpayer duty to keep up-to-date accounts of its transactions Types of accounts and records to be kept by a taxpayer and their contents. Certification of the accounts and records Preservation of the accounts and records.
Accounts and records
Reference Books & Acts:

1. 2. 3. 4. 5. Income Tax; Theory and Practice, Jagdish Agrawal Students Guide to Income Tax - Dr. Vinod K. Singhania and Monica Singhania. Income Tax Act, 2058 & Rules, 2059 Value Added Tax, 2052 & Rules, 2053 Relevant Finance Act
58
Annexure-3
Detailed Syllabus of Chartered Accountancy Professional (CAP-III)

Paper 1: Advanced Financial Reporting (One Paper-Three Hours-100 Marks) Level of Knowledge : Expert Objectives : i. To build on the basic knowledge gained during CAPII, and ii. To enable the candidates to understand the purpose and context of financial reporting, to interpret financial statements and other data for the benefits of users (internal as well as external), to prepare financial statements for limited liabilities companies and other specialized entities applying national and international standards and to explain their preparations.

1. Accounting principles, concepts and theory a. Fundamental Accounting Concepts and their relevance in preparation of financial statements b. Moving towards realizable (fair) value concept from conventional historical cost concept of preparation of financial statements 2. National and International Accounting and/or International Financial Reporting Standards. a. Accounting and reporting standards and interpretations (including mandatory, voluntary and exposure drafts) issued by Nepal Accounting Standards Board and International Accounting Standards Committee. b. National and International Accounting Framework and recognition and measurement of elements of financial statements and significant departure of current corporate practices therefrom. c. The legitimacy of current accounting practices and its relevance to the users of general purpose financial statements. d. Issues and problems associated in general purpose financial reporting with the adoption of accounting and/or reporting standards. e. The effect of current business decisions and proposed changes or adoption of accounting and/ or reporting standards. f. 3. Comparative study of national and international financial/accounting standards or GAAPs.
Preparation and presentation of financial statements a. Advanced problems in preparation and presentation of financial statements of limited liabilities companies, bank and other financial institutions (finance companies, mutual funds, merchant banker), insurance companies, stock broker and electricity company in accordance withapplicable national and international standards and relevant acts and rules. b. Valuation of goodwill and shares c. Disclosure of Accounting policies Segment information Related parties transactions Significant ratios (including Earning per Share)
59
CAP-III/Paper 1: Advanced Financial Reporting
4.
Current and deferred taxation Human Resource Accounting Corporate Social Reporting Environmental Accounting Other as per the relevant acts or rules or directives from regulating authorities. Interim and group reporting Value added statement Economic value added statement
d. Understanding of recent development in accounting:
Preparation of consolidated financial statements Definitions of subsidiary and controlled companies Financial issues related to subsidiary and controlled companies for their inclusion and exclusion like intra-group transactions, fair value adjustments, minority interest Preparation of consolidated accounts of holding and group companies Accounting for amalgamation using purchase and pooling of interest methods of accounting. Preparation of group cash flow statements. Accounting for foreign currency transactions and entities. Accounting issues related to corporate restructuring including de-mergers take over and group chemes.
5.
Analysis and interpretation of financial statements and related information Appraisal of financial and related information by vertical and horizontal analysis, ratio analysis, common size statement, cash flow statement. Appraisal of the impact of changes in accounting policies and the regulatory framework on shareholders fund. The assessment of the impact of price level changes and available methods of valuation on business decisions and performance.
6.
Accounting treatments for specialized transactions Accounting treatment of transactions under lease, contract, intangible assets, financial instruments, taxes, business combinations in line with applicable national and international accounting standards.
Reference Books:
1. 2. 3. 4. 5. Nepal Accounting Standards (NAS)/Nepal Public Sector Accounting Standards (NPSAS) International Financial Reporting Standards (IFRS) Advanced Accounting, R.L. Gupta & M. Radhaswamy, S. Chand & Sons, New Delhi Advanced Financial Accounting, R.E. Baker, V.C. Lembke & T.E. King, McGraw Hill Book Co. First Lessons in Financial Reporting - M.P. Vijay Kumar-Snow White Publications Pvt. Ltd.
CAP-III/Paper 1: Advanced Financial Reporting
60
Paper 2: Advanced Financial Management (One Paper-Three Hours-100 Marks)
Level of Knowledge : Expert Objectives : To gain expert knowledge of the advanced issues `involved in financial management and the features of financial management in the global context.

1. The Financial System Introduction, structure of a financial system, functions of financial sector, equilibrium in financial markets, financial system and economic development, criteria to evaluate financial sector, financial development: concepts, the technology of the financial system: delegation, credit substitution, pooling, netting. 2. Financial Intermediaries Depository institutions: commercial banks, near banks (including thrifts, finance companies and others), insurance, pension funds and mutual funds; their functions, issues and risks associated with their management; the economics of regulation of financial services, structure of Nepalese financial markets and their regulation. 3. Capital Markets Understanding securities markets; market for government securities; money market: evolution, growth, money market and the economy; capital market: evolution, long-term finance and related issues, market for new issues, secondary market; derivatives market: futures, options and swaps 4. Valuation of Assets, Shares and Companies Introduction, the valuation problem, valuing a company using published accounts, valuing shares: the dividend valuation model, valuing the earnings stream, using the DCF approach, shareholder value analysis, valuation of unquoted companies. 5. Investment Decisions and Strategies Cost of capital, advanced concepts of capital budgeting, cash flow analysis using various methods, ranking mutually exclusive projects, investment evaluation and capital rationing, applications in project appraisal: incremental cash flow analysis, replacement decisions, unequal lives, risk and uncertainty, effects of inflation. 6. International Financial Management Financial management in a global context: the finance function and emerging challenges, the global financial markets; nature and management of exposure and risk: exchange rate and interest rate volatility, classification of foreign exchange exposure and risk, interest rate exposure and risk; balance of payments: basics, valuation, components; global financial markets and interest rates: domestic and offshore markets, overview of money market instruments; short-term borrowing in global markets; long-term borrowing in the global markets; international project appraisal.
61 CAP-III/Paper 2: Advanced Financial Management
7.
Foreign Exchange Management Determination of exchange rates; international monetary system; the foreign exchange market: organization, the spot market, the forward market, interest rate parity; currencies, futures and options markets; foreign exchange risk management: measuring and managing accounting exposure, measuring and managing economic exposure.
8.
Special Topics Lease financing; hybrid financing: preferred stock, warrants, and convertibles derivatives and risk management; bankruptcy, reorganization, and liquidation; mergers; leveraged buy-outs; multinational financial management
Reference Books:
1. 2. 3. 4. 5. Kohn, Meir: Financial Institutions and Markets, Tata McGraw Hill Publishing Company Ltd. Brigham, Eugene F; Ehrhardt Michael C: Financial Management Theory and Practice, Thomson South-Western Moyer, Charles R; Mcguigan James R; Kretlow, William J: Contemporary Financial Management, Thomson South-Western Shapiro, Alan C: Multinational Financial Management, John Wiley & Sons Inc. Apte, PG: International Financial Management, Tata McGraw Hill Publishing Company Ltd.
CAP-III/Paper 2: Advanced Financial Management
62
Paper 3: Advanced Audit and Assurance (One paper-Three Hours-100 Marks)

Level of Knowledge Objectives : : Expert To develop candidates capability in performing and reporting on audit and assurance to increase reliability of financial and non-financial information. To develop candidates capability in identifying significant risks and apply risk assessment tools to the engagement To develop candidates capability to identify, gather and document evidence and assess its sufficiency and appropriateness for an audit engagement. To ensure that candidates have acquired the competence to provide comprehensive audit and business assurance services, by testing their ability to integrate and apply their knowledge of auditing to realistic problems.

1. Legal Compliance Provisions regarding considerations governing an audit, appointment, reappointment, resignation and removal of the auditors, duties and rights of the auditor and professional responsibilities and misconduct, conflict of interest, fraud and error, integrity, objectivity, independence and confidentiality of information obtained, expectation gap, professional indemnity insurance, insider dealing and professional liabilities, contained in the following legal documents and other pronouncements: Nepal Chartered Accountants Act/Rules Code of Conduct issued by Institute and IFAC Companies Act 2063 and other Relevant Acts & Regulations
Case studies on practical aspects of implementation of these documents. 2. Practice Management a. Thorough understanding of all Nepal Standards on Auditing and Nepal Accounting Standards (mandatory, voluntary and exposure drafts) and guidance notes issued, including preface to auditing standards and framework of accounting. Case studies on practical aspects of implementation of the standards. b. Sufficient knowledge of International Standards on Auditing and International Financial Reporting Standards c. General awareness of opinions issued by Expert Advisory Committee and interpretations 3. 4. Audit Process a. Audit strategy and planning Obtaining of knowledge of business and significant business risk, using it to develop overall audit approach and plan Considerations in using the work of internal auditor, experts, another auditor and evaluation of corporate governance issues especially the roles of audit committee. Evaluation of accounting and internal control systems to determine audit risks and its components Inherent, Control and Detection risks. Use the result of risk assessment in
63
CAP-III/Paper 3: Advanced Audit and Assurance
order to keep audit risk to an acceptably low level. Review of appropriateness of accounting policies and their consistent application. Disclosures in financial statements with respect to recognition and measurement of assets, liabilities and revenue, contingent liabilities and commitments, related parties transactions. Develop overall audit plan considering the materiality and risk assessments, going concern and subsequent events. Develop detailed audit programme for each elements of financial statement. Determine audit time schedule and allocation of jobs to audit team members Collection of evidence keeping in view reliability, relevance and appropriateness, documentation, management representation and confidentiality. Institute quality control of audit work by delegation of duties, supervision and review of work and working papers prepared by audit staff. Security issues in computerized systems as stated in IFAC guidelines on Managing Security of Information and Information Security Governance Guidance Organizing and managing complex audit situations, including group audits, joint audits, multilocational engagements, special purpose audits including due diligence, related service engagements, reviews, agreed upon procedures and compilation. Maintenance and updating of permanent audit files. b. Audit techniques and procedures Selective verification, statistical sampling, comparison, averaging, ratio analysis, time-series analysis. Special audit procedures including observation of physical verification of assets, direct balance circularization of receivables and payables. Selecting one or more tests of controls and substantive procedures from inspection, observation, enquiry and computations to obtain reliable and appropriate audit evidence. Drawing of conclusions regarding financial statements at assertions level and financial statement as a whole on the basis of evidence collected. c. Audit Reporting Types of audit reports - clean, qualified, adverse and disclaimer of opinion, qualifications quantification and appropriate wording, notes to account, distinction between notes to account and qualificatory notes Evaluating the effects on reporting responsibilities of an auditor resulting from pending legal action, fraud and error, non-compliance with laws and regulations, taxation and tax related contingencies and post balance sheet events. Review of financial statements including comparative information, adequacy of disclosures, management representation regarding significant matters. Distinction between reports and certification Preparation of management letters, internal control memorandum stating clear and concise statement of facts, their potential effects and recommendations for action relevant to the needs and nature of the entity.
64
5.
Special Audits
a. b. c. Knowledge of non-statutory audits management audit, cost audit, tax audit, energy audit, environment audit, public audit, performance audit - concept and drawing an audit programme. Audit of specialized enterprises Banks, Finance Companies, Insurance Companies Special issues and consideration and requirements of regulatory authorities. Audit of public sector, government, local bodies, directives issued by the office of the auditor general to the auditors of public sector enterprises, consideration of propriety and transparency of public spending and reporting responsibilities.
6.
Corporate Governance and Audit Committee Meaning and relevance of corporate governance Responsibility of management in preparation of financial statements and implementation of sound accounting and internal control systems Role of audit committee in fair presentation of financial statements and good governance.
7.
Audit under computerized environment Computer auditing, concept and specific issues and problems related to EDP audit Need for review of internal control especially procedures controls and facility controls, Techniques of audit of EDP output Use of computers for internal and management audit purposes, Computer assisted audit Role of auditor at the time of setting up the computer system.
Reference Books & Materials:

1. 2. 3. 4. 5. 6. 7. Preface, Glossary of Terms and NSA issued by Auditing Standards Board of Nepal. Code of Ethics issued by the Institute of Chartered Accountants of Nepal and IFAC Compendium of Guidance Notes issued by Auditing Standards Board of Nepal International Financial Reporting Standards and Nepal Accounting Standards A Handbook of Practical Auditing by B.N. Tandon, S. Sudharsanam and S. Sundharabahu. Advanced Auditing & Investigation, Emile Woolf et al. McDonalds & Evans, U.K. Contemporary Auditing, Kamal Gupta, Tata McGraw Hill Book Co. Ltd.
65
Paper 4: Corporate Laws (One Paper- Three Hours-100 marks)

Level of Knowledge : Expert Knowledge Objectives 1. : To gain the Expert Knowledge of Nepalese Corporate and Other Laws.
Companies Act, 2063 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 Incorporation of Company, Lifting the Corporate Veil Prospectus and Memorandum, Shares and Debenture, General meeting and Board of Directors. Accounts and Records of the Company Accounts and Audit Liability of Company and Shareholders Winding up and Liquidation of Company Offence, Punishment and Legal Proceedings Some Judicial Decisions Relating to Company
2.
Securities Exchange Act, 2063 2.1 2.2 2.3 2.4 2.5 Transaction of Securities and Securities Exchange market Security Exchange Board Securities Exchange Professionals Offences, Penalties and Legal Proceedings Security Exchange Act, 2063 and Regulation.
3.
Banking Laws 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 Relationship of Government with Central Bank Relationship of Central bank with other Banks (Commercial and Development) Functions and Powers of the Central Bank. Monetary Management of Nepal Offences, Penalties and Judicial Proceedings Foreign Exchange Management Foreign Exchange Regulation Act, 2019 Foreign Exchange Offences and Penalties Nepalese Acts Relating to the Central and other Banks (NRB Act & BAFIA)
4.
Industrial Laws 4.1 4.2 4.3 4.4 4.5 4.6 4.7 Industrialization and Concept of Industrial Environment Industrial Promotion Board Licensing, Registration and Penalties Concept of Foreign Investment and Technology Transfer Incentives for Foreign Investor Dispute Settlement Mechanism and Procedure Foreign Investment and Technology Transfer Act, 2049 and Industrial Enterprises Act, 2049
CAP-III/Paper 4: Corporate Laws
66
5.
Labor and Bonus Laws 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 Industrial Relations Workers Participation in Management Trade Unions Collective Bargaining Wages and Wages Fixing Mechanism Ethical Code and Industrial Relations Industrial Conflicts and Settlement (Conciliation, Arbitration and Adjudication) Labor Act, 2048 and Rules 2049 Bonus Distribution: Condition and Procedure Labor Dispute Settlement Mechanism and Procedure Bonus Act, 2030 and Rules 2038
6.
Law of Contract 6.1 6.2 6.3 6.4 Performance of Contractual Liability Privity of Contract Breach of Contract and its Remedies Relevant provisions of Nepalese Contract Act, 2056
7.
Insurance Laws 7.1 7.2 7.3 7.4 7.5 Principles of Insurance and Insurable Interest Insurer (Registration, Profession and Duties) Insurance Board Insurance Offence, Penalties and Legal Proceedings Insurance Act, 2049 Constitutional Provisions of Auditing Governmental Audit and Office of the Auditor General Audit of the Government, wholly & partly Government Owned Undertakings. Modes of Auditing and Reporting Related Constitutional Provisions and Audit Act, 2048
8.
Audit Laws 8.1 8.2 8.3 8.4 8.5
9.
Privatization Laws 9.1 9.2 9.3 9.4 Concept of Free Economy and Privatization Mode and Process of Privatization and Nepalese Practice Dispute Settlement Mechanism Privatization Act, 2050
10.
Laws Relating to International Financial Transactions 10.1 10.2 10.3 10.4 Concept of International Financial Transactions Process of taking the Permission for International Financial Transactions Types of International Financial Transactions in Nepal International Financial Transactions Act, 2054
67
11.
Laws Relating to Co-operative Societies 11.1 11.2 11.3 11.4 11.5 Concept of Co-operatives Co-operatives and Financial Transactions Wind-up and Liquidation of Co-operatives Co-operative Offences and Penalties Co-operative Act, 2048 and Regulation.
12.
Financial Mediation Laws 12.1 12.2 12.3 12.4 Concept of Financial Mediation Ethical Code of Mediator Financial Mediation Offences and Penalties Financial Mediator Act, 2058
13.
WTO and Nepalese Laws 13.1 13.2 13.3 13.4 13.5 WTO and its Membership Function and Role of WTO Concept of Financial Bill Legislative Process of Nepal WTO Parameters and Nepalese Laws.
14.
Nepal Chartered Accountants Act, 2053 & Regulation 2061 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 About the Institute, laws enactment and establishment Composition, function and duties of the Council Accounting Standards Board and Auditing Standards Board and their functions Examination, Qualifications and Licensing of Chartered Accountants Membership, types and renewal Disciplinary Committee and its functions Code of Ethics Relevent Provisions of Nepal Chartered Accountants Act, 2053 and Regulation 2061
15.
Insolvency Act 2063 and Secured Transaction Act 2063.
Reference Books:
1. 2. 3. 4. 5. 6. 7. 8. 9. Amit Bajaj, Puneet Bajaj, Law of Contract Ashok K Bagrial, Company Law, 11th Edition Avtar Singh, Company Law (11th Edition, 1996), Eastern Book Company, Lucknow Bharat Raj Uprety, Company Kanoon Ellinger and Lommicka, Modern Banking Law, 2nd Edition Gyaindra Bahadur Shrestha, Byawasayako Kanooni Batabaran J. Beatson, Law of Contract, 28th Edition John Birds, Modern Insurance Law, 4th Edition Kashi Raj Dahal, Industrial Jurisprudence
68
10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
M N Mishra, Insurance Principles and Practice, 6th Edition M.C Kuchhal, Mercantile Law, Sixth Edition M.C. Shukla, A manual of Mercantile Law Madhav Aryal, Banking Kanoon Paul L. Davies, Principles of Modern Company Law Ram Prasad Shrestha, Legal Environment of Business Rishikesh Wagle and Kirti Bilash Pant, Legal Environment of Business in Nepal Simon Honeyball and John Bowers, Labour Law, 7th Edition Sir John Smith, The Law of Contract Nepal Law Review, Nepal Law Campus Related Acts & Regulations
69
Paper 5: Management Information and Control System (One Paper-Three Hours-100 Marks)
Level of Knowledge : Expert Objective : To high light the role of professional accountant as manager and evaluator of information system. To identify information requirement of an organization, distinguish among the different types of information systems to recommend specific systems for organizational requirements. To assist in the analysis, design and implementation of information systems. To learn about the management, control and evaluation of IT infrastructure as well as information systems assets.

1. Organizational Management and Information System 1.1 1.2 1.3 2. 2.1 2.2 Revision of organization and management level Computer based Management Information System: definition and functional model Business perspective of information system Types of Information System according to organizational hierarchy: OperationalLevel System, Knowledge Level System, Management Level System, and Strategic Level System. Types of Information System to support of organization: 2.2.1 Transaction Processing System: Introduction, Data Entry and Validation, Storage and MasterFile Update, Error Prevention and Detection, Report Generation 2.2.2 Knowledge work and office system: Functions and Tools 2.2.3 Management Information System 2.2.4 Decision Support System: Goals and Applications, Components and Tools 2.2.5 Executive Support System or Executive Information System: Introduction, Sources of ESS, Roles and Characteristics 2.2.6 Expert Support System: Artificial Intelligence, Neural Network, Fuzzy logic, Genetic Algorithm 2.3 2.4 2.5 2.6 3. Sales and Marketing Information System: Model, Inputs and Out puts Manufacturing and Production Information System: Model, Inputs and Out puts Finance and Accounting Information System: Model, Inputs and Out puts Human Resource Information System: Model, Inputs and Out puts, Challenge and Benefits
Different Types of Information System Case Study
Information Technology Strategy and Trends 3.1 Enterprise Strategy and Vision 3.1.1 Internal and External Business Issues: Position and Business Focus of the Entity, Relationship of IT Strategy and Business Strateg
CAP-III/Paper 5: Management Information and Control System
70
3.1.2 Factors Influencing IT: Flexibility of Changes in Technology and Business, Budget, Speed to the Market, Legal and Regulatory Body, Business Units 3.2 Assess Current and Future IT Environments: 3.2.1 Current Status of IT: Hardware, Software, Peoples, Procedures and data 3.2.2 IT Risk and Opportunity: Trends and Issues of Current Environments Business and IT alignment, Compliance with Service Level Agreements, Stake Holders Attitude 3.3 IT Strategy Planning: Envision of Future Status, Aligning Future IT Strategy with Business Strategy 4. System Development Life Cycle 4.1 Definition, Stages of System Development: Requirement, Feasibility Study, Analysis, Design, Testing, Implementation, Support, Documentation 4.2 Underlying Principles of System Development 4.3 Phases of System Development: Survey Phase, Study Phase, Definition Phase, Configuration Phase, Procurement Phase, Design Phase, Construction Phase and Delivery Phase 4.4 Computer Aided System Engineering (CASE) 4.5 Models of System Development: Water Fall Model, Spiral Model 5. System Analysis and Design, Case Study 5.1 Strategies for System Analysis and Problem Solving: Modern Structured Analysis, Information Engineering, Prototyping: Joint Application Development, and Rapid Application Development, Object Oriented Analysis 5.2 Concept of Data and Process modeling: Data Flow Diagram, Entity Relationship Diagram 5.3 Strategies for System Design: Modern Structured Design, Information Engineering, Prototyping, Object Oriented Design 5.4 Input Design: Batch and Online Input methods, System User issues, Graphical User Interface Issues for Input Design 5.5 Out Put Design: Types of Output, Systems User Interface for out put Design, 6. Roles and Functions of IT Professionals 6.1 User Level Role 6.2 Manager Level Roles: Manage IT Organization, Formulate IT Strategy, IT Operation Management, Maintain Financial Control, Manage Existing System and Changes 6.3 Designer Level Roles: Analysis and Evaluation of System, Project Planning, 6.4 Evaluator and Auditor Level: Plan System Evaluation, Evaluate System, Reporting 6.5 Advisor and Consultant Level: IT Strategic Planning, IS Management, Determining System Architecture, System Reliability Test 6.6 Understanding Ethical and Social Issues Related with Systems: A model for Thinking about ethical, social and political issues, Ethics in an Information Society, Moral Dimensions of Information Systems 7. E-Commerce and Inter organizational Systems Case Study 7.1 Introduction to E-commerce: Scope, technology and process 7.2 Features of E-Commerce: Ubiquity, Global Reach, Universal Standards, Richness, Interactivity, Information Density, Personalization
71
7.3 7.4 8.
Categories of E-commerce: B2B, B2C, C2C Electronic payment Process: Web Payment Process, Electronic Fund Transfer, Micro payment Systems, Secure Electronics Payments
E-Business Enabling Software Packages Case Study 8.1 8.2 8.3 8.4 Enterprises Resource Planning (ERP): Introduction, Model, Functional Areas or Modules, Implementations, Benefits and Challenge Supply Chain Management: Introduction (SCM), Model, Reverse Logistic, Supply Chain Planning and Execution System Sales Force Automation (SFA): Introduction and Model Customer Relationship Management (CRM): Introduction to Computer based CRM, Models, Operations, Challenged and Benefits
9.
Information System Security, Protection and Control 9.1 9.2 9.3 System Vulnerability and Abuse: Why system are Vulnerable, Hackers and Computer Viruses, Disaster, Security and Errors System Quality Problems: Software and Data, Bugs and Defects, Maintenance Nightmare, Data Quality Problems Creating a Control Environment: Creating Control frame Work, Layers of Control: Operating System Control, Data Management Control, Organization and Personnel Control, Network Control, System Development and Maintenance Control Protection of Digital Network: High Availability of Computing, Internet Security, Security and Electronic Commerce Evaluation of IS: Criterion for Evaluation and Risk, Computer Assisted Audit Techniques (CAAT) Development of Control Structure: Cost and Benefits, Role of Auditing in Control Process.
9.4 9.5 9.6 10.
Disaster Recovery and Business Continuity Planning 10.1 Disasters Recovery Planning 10.2 Data Back Up and Recovery: RAID, Mirroring, Clustering 10.3 High Availability Planning of Servers
Reference Books: 1. 2. 3. James A. OBrien, Management Information System, Managing Information Technology in the E-Business Enterprises, Tata Mc Graw Hill Jeffrey L. Whitten, Lonnie D. Bentley, System Analysis and Design Methods, Tata Mc Graw Hill Kenneth C Loudon, Jane P Loudon, Management Information Systems-Managing the Digital Firm, Prentice Hall, 2003
72
Paper 6: Advanced Taxation (One Paper- Two sections-Three hours-100 Marks)

Level of Knowledge Objectives : : Expert The main objective of this course is to provide the expert knowledge of direct and indirect taxes as well as to make the students to acquire the ability to apply the expert knowledge in actual practice. Part A: Direct Tax- Nepalese Income Tax 1. Terms, basis of tax, calculation of incomes, tax accounting and timing (i) Definitions: retirement contribution, payment, retirement fund, final withholding payment, payment to individual/natural person, entity, company, resident and non-resident person, relatives, tax assessment, turnover, business assets, non business taxable assets, depreciable assets, exempt institution, long term contract, disposal, lease, rent, vested ownership, market value, profit distribution, employment, royalty, investment, investment insurance, trading stock, foreign income tax, permanent establishment (PE), foreign PE, relevant person, adjustable taxable income, approved retirement fund, service fee, beneficiary. (ii) Basis of tax: Imposition, calculation of tax, tax rates, taxable income, assessable income and income head classification, tax exemptions and concessions; exempt amounts, business exemptions and privileges, application for exemptions, entity exempt by advance ruling, submission of financial statement by exempted organisation. (iii) Sources of incomes and total incomes: Income from business, employment and investment, total assessable income. (iv) Deductions, loss adjustments and reductions: Averaging inclusions and deductions under long-term contracts, deductions not allowed, reductions (v) Methods of tax accounting: cash basis, accrual basis and hybrid accounting, reverse of amounts including bad debts, (vi) Computation of incomes, tax, interest and fines. 2. Quantification and characterization, Computation of net gains and losses from assets and liabilities (i) Quantification of amounts and in rupees, indirect payments, (ii) Jointly owned investments, (iii) Characterisations: Compensation payments; payments under annuities, Installments sales, and finance leases (iv) Transfer pricing, other arrangements and income splitting (v) General anti-avoidance rule (vi) Net gains and losses, outgoings and net outgoings, incomings and net incomings, disposal of an asset or liability, disposal with retention of asset or liability, disposal under installment sale or finance lease, voluntary disposal. (vii) Transfer of assets to spouse or former spouse, transfer of assets on death, transfer between associates and non market transfers, disposal by merger and by splitting. (viii)Apportionment of outgoings and incomings. (50 Marks)
73
CAP-III/Paper 6: Advanced Taxation
3.
Special Provisions, Depreciation provisions (i) For Individuals: Couple, tax credit exemptions, standard deductions, allowances (remote area allowance, pension), tax rates, medical cost and tax credit, (ii) For Entities: Tax principles, distributions, dividend taxation, entity and beneficiary, change in control, allowances, tax rates (including schedule dividend) not to be included under entity income. (iii) For Banking & Insurance business: Treatment as separate business, general insurance business, investment insurance business, gain from investment insurance, carry back of losses, tax rates. (iv) For Retirement Savings: Approval for fund, taxation of funds, treatment of retirement payments, and limit of retirement contribution. (v) Depreciation: Allowances, classification and pooling, computation rates, disposal of depreciable assets, additional depreciation.
4.
Administration and Documentation Administration, Withholding and Payments of Tax (i) Administration Tax Authorities: tax payers right, Advance rating, public circulars, public circulars, International agreements, permanent account number. (ii) Documentation: Form of documentation, service of documents, defective documents. (iii) Tax withholding: By Employers, from investment and service fee payments, contract payments, final withholding, and tax credit or tax adjustment. (iv) Payment of Tax: Time and mode of payment, Installments, Proof tax payment
5.
Returns and Assessments, Collection, Remission and refund (i) Returns: Time of return of incomes, extension of time of return, return not required estimated return. (ii) Assessments: Self assessment, jeopardy assessment and amended assessment, assessments order & notices. (iii) Collection: Preference for tax payable by withholding, claim over assets, auction of assets, prohibition order, liquidities of officers, recovery from recover and agent, suit filing. (iv) Remission and Refund: Remission by Government, refund & set off and its procedure.
6.
Legal Remedies, Interest, Fees, Penalties Offences (i) Administrative Review: Decisions, procedures, application to object the review. (ii) Appeal: Appeal to the Revenue Tribunal. (iii) Interest: Under payment of installments, failure to pay tax, failure to pay with deposit withholding tax. (iv) Fees: For failure to maintain documents, for failure to file return, for failure to making false document and aiding and obtains, assessments of interest and fees. (v) Penalties: For failure to pay tax, to authorized and unauthorized person, to accomplice, payment of penalties. (vi) Offence: For misleading statements, for obstructing or using inappropriate influence.
7.
International Taxation, Tax Settlement Commission, Circulars (i) Sources: Incomes, gains, losses and payments. (ii) Entities and Establishments: Foreign permanent establishment, controlled foreign entities. (iii) Taxation: Non-residents (service providers) related to shipping, air transport or telecommunication, foreign tax credit. (iv) The Tax Settlement Commission: Formation, jurisdiction and role in revenue collection. (v) Circulars and Advance Rulings: Issued by IRD in different times.
74
Part B: Indirect Taxes

1. Excise Act, 2058 and Excise Rules 2059 (i) (ii) (iii) (iv) Concept of Excise and excise Duty, History of Excise Duty in Nepal in brief. Scope and Objectives of excise Act, 2058
(50 Marks)
Terms; goods, service, institution (Pratisthan), License, license holder, production, producer, person, Factory price, price, import, invoice. Excisable products, exemption of excise, collection of excise, pricing of excisable products, obtaining and termination of license, renew of license, excise duties and fees, special provisions for cigarettes, Bidi, alcoholic (madira) and molasses, conditions related to seize, possession and arrest. Provisions of self issue and physical control system, recovery ratios. Penalties, administrative review and appeal.
(v) (vi) 2.
Value Added Tax Act, 2052 and Rules 2053 (a) Introduction, coverage and administration (i) (ii) Introduction of VAT in Nepal, Spirit of preamble VAT Act, Terms used; Service, Supply, Return, Import, Export, Market price, person, registrant, TPIN, Supplier, value addition.
(iii) Coverage: Taxable activities, time of place of supply, tax rate, Zero rated areas, exempted goods and services, Treatment of negative value addition, Capital goods, threshold, determination of market price, and treatment of reconditioned goods, discount and gifts, importation under bank guarantee. (iv) Tax Administration: Registration, tax invoicing, Accounting, Return filing, Tax Assessments, conditions for assessing by tax officer, Collection/payments, Tax credit; full credit, partial credit, proportionate credit, Refunds, Tax audit and investigation, suspension of business transaction. (b) Tax Authorities, revision, appeal, fees and interest (i) Tax Authorities and Rights and duties of Taxpayers, (ii) Administrative Revision and Appeal to Revenue Tribunal. (iii) Additional Fees and Interests, Offences and Penalties. 3. Customs Act 2064 and Rules 2064 (i) Scope and objectives of Customs Act, Terms: Export, import, customs duty, chief of customs, customs officer, customs area, pragyapan patra, demurrage, unauthorized and illegal import and export, customs facility, facility in duty, under invoicing, classification of goods for customs purpose. Import and export procedures, Documents required for export and import, determination of duty, valuation: procedure and methods in practice, post clearance audit. Charging of different duties and charges in customs point, Provisions regarding Jhitigunta, accompanied and unaccompanied goods. Import under Duty Refundable Procedure (DRP) and inbond system, Bonded warehouse system, Bank guarantee and the provision of re-export.
(ii) (iii) (iv) (v)
75
(vi) Finance act and related schedule. (vii) Circulars relating to specific acts issued by Department of Customs.
Reference Materials & Books:

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Agrawal Jagadish, Income Tax, Theory and Practice, Buddha Academic Publishers and Distributors Pvt, Ltd. Kathmandu, Nepal Adhikari, Chandra Mani Ph-D, Taxation in Nepal, Pairavi Publication, Kathmandu. Income Tax Act, 2058 & Rule, 2059 Tax Settlement Commission Act, 2031 Publications of Inland Revenue Department. Adhikari, Chandra Mani, VAT in Nepal, Theory and Practice, Pairavi Publication, Kathmandu. Adhikari, Chandra Mani, Karko Sathi, Makalu Books and Stationers, Kathmandu. Shrestha, Shambhu Man, An Introduction to VAT, Himalayan Book Stall, Kathmandu. Khadka, Rup, VAT in Nepal, 2001, UBSPD, Publisherss and Distributors Ltd, India. Excise Act, 2058 & Rules, 2059 Circulars Issued by IRD in different times. Value Added Tax Act, 2052 & Rules 2053 Circulars and publications of Inland Revenue Department. Customs Act 2064 & Rules 2064 Customs Manuals, 2060 Department of Customs Circulars Issued by Department of Customs.
76
Paper 7: Advanced Cost and Management Accounting (One Paper-Three Hours-100 Marks)
Level of Knowledge : Expert Objectives : i. To understand cost accounting in relation to management functions. ii. To provide knowledge of using costing data for decision making and control and understanding of emerging Modern Cost Management Concepts and techniques of performance appraisal and operational research.

1. Cost concepts and objectives of Costing systems 1.1. Introduction 1.2. Cost Classification 1.3. Cost Analysis 1.4. Costing System 1.5. Inventory Valuation 1.6. Data Base for Operational Control and Decision Making 1.7. Cost Concept in Decision Making 1.8. Application of Incremental/Differential Cost Techniques in managerial decision 2. Marginal Costing and Decision making problems 2.1. Theory of Marginal Costing 2.2. Ascertainment of Marginal Cost 2.3. Advantages and limitations of Marginal Costing 2.4. Marginal Cost Equation 2.5. Important factors in Marginal Costing decisions 2.6. Pricing Decisions under special circumstances 2.7. Decision making 3. Standard Costing and Variance analysis 3.1. Definition 3.2. Types of Standards 3.3. Setting up of standards 3.4. Standard product cost sheet 3.5. Advantages and Criticism of Standard Costing 3.6. Application of Standard Costing 3.7. Control through Variance Analysis 3.8. Computation of Variances 3.9. Reporting of Variances 3.10. Disposal of variances 3.11. Accounting procedure for Standard Cost 3.12. Disposition of Variances
77
CAP-III/Paper 7: Advanced Cost and Management Accounting
4.
Budget & Budgetary Control 4.1. Budgetary Control System 4.2. Types of Budgets 4.3. Preparation of Budgets 4.4. Budget Ratios 4.5. Causes of difference with actual performance 4.6. Zero Based Budgeting 4.7. Performance Budgeting 4.8. Balanced Score Card 4.9. Benchmarking
5.
Management Control System and Responsibility Accounting 5.1. Responsibility Accounting 5.2. Decentralized Divisional Control 5.3. Tools of Control 5.4. Evaluation of performance 5.5. Performance budgeting 5.6. Reporting on performance
6.
Activity Based Cost (ABC) Management 6.1. Meaning and Definition 6.2. Stages in Activity Based Costing 6.3. Purposes and Benefits of Activity Based Costing 6.4. Installation and Operation of Activity Based Costing System 6.5. Activity Based Cost Management 6.6. Difference between ABC and ABM
7.
Costing of Service Sector 7.1. Main characteristics of service sector 7.2. Collection of costing data 7.3. Costing Methods used 7.4. Pricing by Service Sector
8.
Pricing Strategies 8.1. Pricing of finished products 8.2. Theory of price 8.3. Pricing Policy 8.4. Principles of Product Pricing 8.5. New Product Pricing 8.6. Pricing Strategies 8.7. Pareto Analysis 8.8. Transfer Pricing
78
9.
Just-in-time approach, Material requirement planning, Enterprise Resource planning, Total Quality Management and Theory of Constraints 9.1. Just in time approach 9.1.1. Meaning 9.1.2. Impact of Just-in-time systems 9.1.3. Performance measurement 9.1.4. Back flushing in a just-in-time system 9.2. Material Requirement Planning (MRP) 9.2.1. Meaning and Purpose 9.2.2. Data requirements to operate MRP System 9.2.3. Methods of Operation 9.2.4. Pre-requisite for successful operation of MRP System 9.3. Enterprise Resource Planning (ERP) 9.3.1. Meaning and Features of ERP 9.3.2. Benefits of ERP 9.3.3. Reasons for implementation of ERP by companies 9.4. Total Quality Management (TQM) 9.4.1. Introduction 9.4.2. Operationalizing TQM 9.4.3. Six Cs of TQM 9.4.4. Overcoming TQM paralysis 9.4.5. Control: The missing link of TQM 9.5. Theory of Constraints
10.
Working Capital management 10.1. Theory of Working Capital Management 10.2. Planning of Working Capital 10.3. Working Capital Financing
11.
Quantitative Techniques 11.1. Linear Programming 11.1.1. Introduction 11.1.2. Graphical Method 11.1.3. Trial and Error Method of solving Linear Programming Problem 11.1.4. The Simplex Method 11.1.5. Marginal Value of a Resource 11.1.6. Practical Application of Linear Programming 11.1.7. Limitation of Linear Programming
79
11.2. Transportation Problems 11.2.1. Introduction 11.2.2. Methods of finding initial solution to transportation problem 11.2.3. Optimality Test 11.2.4. Special Cases 11.2.5. Maximization Transportation Problem 11.2.6. Prohibited Routes 11.3. Assignment Problems 11.3.1. Introduction 11.3.2. The Assignment Algorithm 11.3.3. Unbalanced Assignment Problems 11.4. Network Planning PERT/CPM 11.4.1. General Framework of PERT/CPM 11.4.2. Advantages of Critical Path Analysis 11.4.3. Fundamentals of CPA Network 11.4.4. Critical Path Analysis 11.4.5. Probability of achieving completion date 11.4.6. Comments on assumptions of PERT/CPM 11.4.7. Distinction between CPM and PERT 11.4.8. Updating the Network 11.4.9. Project Crashing 11.4.10. Resource Smoothing 11.4.11. Resource Levelling 11.5. Simulation 11.5.1. Introduction 11.5.2. Monte Carlo Simulation 11.5.3. Simulation and Inventory Control 11.6. Learning Curve theory 11.6.1. Introduction 11.6.2. Distinctive features of Learning Curve Theory in manufacturing environment 11.6.3. The Learning Curve Ratio 11.6.4. Learning Curve Equation 11.6.5. Learning Curve Application 11.6.6. Limitation of Learning Curve Theory
Reference Books:
1. 2. 3. 4. 5. Advance Cost Accounting V.K. Saxena & C.D. Vashist Financial Management M. Y. Khan & P. K. Jain Management & Cost Accounting-Colin Dury - International Thomson Business Press Quantitative Techniques in Management - ND Vohra - Tata Mc Graw Hill Cost Management, B. Saravana Prasath, C. Sitharaman & Co., Chennai
80
Paper 8 : Strategic Management and Decision Making Analysis (One Paper-Three Hours-100 Marks)
Level of Knowledge : Objectives : Expert To develop knowledge and understanding of process, concepts and techniques of strategic management and decision making analysis relevant to a professional accountant. To develop skills to formulate and implement strategies and analysis decisions in the Nepalese context.

1. Concept of Strategy 1.1 Concept and characteristics of strategy 1.2 Levels of strategy 1.3 Strategic planning 1.4 Relevance of strategic thinking for professional accountant. 2. Strategic Management 2.1 Concept, characteristics and importance of strategic management 2.2 Process of strategic management 2.3 Elements of strategic management 3. Environment Analysis 3.1 Meaning and nature of environment 3.2 Elements of environment 3.3 Objective setting 3.4 SWOT analysis 3.5 Environment analysis process 4. Internal Analysis 4.1 Concept and process of internal analysis 4.2 Areas of internal analysis 4.3 Methods of internal analysis 4.4 Assessment of internal resources and core competencies 4.5 Strategic advantage 5. Strategic options 5.1 Concept of strategic options 5.2 Strategic alternative at corporate and business levels 5.3 Directions and methods for strategy development
81
CAP-III/Paper 8: Strategic Management and Decision Making Analysis
6.
Strategy Formulation and Strategic Choice 6.1 Process of strategy formulation 6.2 Evaluation of strategic alternatives 6.3 Portfolio analysis 6.4 Risk analysis 6.5 Strategic choice
7.
Strategy Implementation and Evaluation 7.1 Concept and process of strategy implementation 7.2 Designing structure 7.3 Resource planning 7.4 Management system 7.5 Strategy evaluation 7.6 Strategic change management
8.
Role of Chief Executive in Strategic Management 8.1 Role in formulation of strategies 8.2 Role in implementation and evaluation of strategies
9.
Decision Making Process and Techniques 9.1 Rational decision making process 9.2 Strategic decision making: concept, characteristics, importance and process. 9.3 Techniques of strategic decision making
10.
Strategic Management and Decision Making Practices in Nepal 10.1 Strategic management practices in Nepal 10.2 Decision making practices in Nepal
Reference Books:
1. 2. 3. Thompson and Strickland. Strategic Management: concepts and cases. Tata-Maccraw Hill. Dr. Govind Ram Agrawal. Business Policy and Strategic Management in Nepal. M. K. Publishers and Distributors. Thomos L. Wheelen and J. David Hunger. Strategic Management and Business Policy. Pearson.
CAP-III/Paper 8: Strategic Management and Decision Making Analysis
82
Annexure-4
(As per Regulation6)
APPLICATION FOR REGISTRATION FOR THE CHARTERED ACCOUNTANCY EDUCATION FOUNDATION LEVEL
Registration No. :
Photo
Date of Registration. : To, The Executive Director ICAN I hereby apply for registration for the Chartered Accountancy Education Foundation Level. My academic and other details are as follows. 1. Full Name : (in capital letters) .........................................................................................................
Name in Nepali : ................................................................................................................................... 2. 3. 4. Date of Birth Nationality Address : ................................................................................................................................... : ................................................................................................................................... : (a) Permanent: .......................................................................................................... (b) For Correspondence: .......................................................................................... 5. 6. Fathers/Guardians Name & Address: ................................................................................................... Academic Qualification: Examination Year Board/University Marks Scored Total % Scored Division/Grade
7.
Details of fees paid: Rs. ........................... cash or in ................................................................... Bank, Account No. ............................................... Voucher No. .............................. date ................................
_____________________ Signature of the Applicant Date: Note: Attested copies of the following documents should be enclosed: 1. 2. 3. 4. Citizenship Certificate/Passport Character Certificate Transcript/Mark Sheet Original Bank Voucher / Cash Receipt
83
Application for Registration for the CA Education Foundation Level
Annexure-5
APPLICATION FOR REGISTRATION FOR THE INTERMEDIATE COURSE

Registration No. : Date of Registration. : To, The Executive Director ICAN
Photo
I hereby apply for registration for the Chartered Accountancy Education Foundation Level. My academic and other details are as follows. 1. 2. 3. 4. 5. Full Name Date of Birth Address : (in capital letters) ......................................................................................................... : ................................................................................................................................... : (a) Permanent: .......................................................................................................... (b) For Correspondence: .......................................................................................... Fathers/Guardians Name & Address: ................................................................................................... Academic Qualification: Examination Year Board/University Marks Scored Total % Scored Division/Grade Name in Nepali : ...................................................................................................................................
6. 7.
If passed Foundation Course, quote the year and Roll No. ................................................................... Details of fees paid: Rs. .................... cash or in .............................. Account No. ................................ Voucher No. ...................................... date .......................................
I declare that the particulars given above are true. I shall undertake to abide by the Nepal Chartered Accountants Act, 1997, and the Nepal Chartered Accountants Regulations, 2004, as may be in force from time to time. I further agree not to pass on, sell or gift away any study paper or any other material provided to me by the Institute. _____________________ Signature of the Applicant Date: Note: Attested copies of the following documents should be enclosed: 1. 2. 3. 4. Citizenship Certificate/Passport Character Certificate Transcript/Mark Sheet Original Bank Voucher / Cash Receipt
Application for Registration for the Intermediate Course
84
Annexure-6
Photo
APPLICATION FOR REGISTRATION FOR CHARTERED ACCOUNTANCY EDUCATION FINAL LEVEL

Registration No. : Date of Registration. : To, The Executive Director ICAN
I hereby apply for registration for the Chartered Accountancy Education Foundation Level. My academic and other details are as follows. 1. 2. 3. 4. 5. Full Name : (in capital letters) : ............................................................................................................... Name in Nepali : ..................................................................................................................................... Registration Number of Intermediate: .................................................................................................... Address : (a) Permanent: .................................................................................................................... (b) Correspondence: .......................................................................................................... Name of Principal: .................................................................................................................................. Name of the firm: .................................................................................................................................... Address: .................................................................................................................................................. Phone No.: ....................................... Fax : .................................... Email: ............................................. 6. 7. Date of Commencement of Articleship: .................................................................................................. Year of Passing Chartered Accountancy Education Intermediate Level Year and month _____________ _____________ 8. Roll No. ____________ ____________ Group Passed _____________ _____________
Details of fees paid: Rs. .............................. cash or in ................................................................ Bank, Account No. ......................................... Voucher No. ...................................... date ..............................
I declare that the particulars given above are true. I shall undertake to abide by the Nepal Chartered Accountants Act, 1997 and the Nepal Chartered Accountants Regulation 2004 as may be inforce from time to time. I further agree and not to pass on, sell or gift away any study paper or any other material provided to me by the Institute.
_____________________ Signature of the Applicant Date :
85
Application for Registration for the CA Education Final Level
Annexure-7
(As per Regulation 24(2))
DEED OF ARTICLESHIP
(To be filled in triplets)
Part 'A'
This Deed of Articleship is made on ..................................... (date) between ................................................ (name of Principal) of .............................................................. (Firm) or partner of ........................................ .................................. (hereafter called the Principal) and .............................................................................. (Name) .................................................... of ....................................................... (Address) (hereafter called the Articled Trainee). The particulars of this deed are as follows: 1. In consideration of the covenants by the Articled Trainee hereafter contained, the Principal agrees to take the Articled Trainee for a term of 3 years. 2. The Articled Trainee of his own free will binds himself as an Articled Trainee to the Principal to serve him for and during and unto the full end of term of 3 years effective from ............................................. 3. The Articled Trainee covenants with the Principal as follows: (a) That he/she will at all times during the said term diligently and faithfully serve the Principal as his Articled Trainee in the practice of profession of Accountancy. (b) That he/she will not at any time during the said term destroy, cancel, obliterate, spoil, embezzle, spend, make away with or take copies of books, papers, plans, documents, monies, stamps or chattels of the Principal, his personal representatives or of his partner or partners or of any of his clients or employers which shall be deposited in his hands or which shall come to his care, custody or possession or allow any of the said good to be so treated by others if he can, by the exercise of reasonable care, prevent it. (c) That he/she will at all times keep the secrets of the Principal and his partner/s and of his client/s and employers and will not divulge the names and affairs of such client and employer. (d) That he/she will readily and cheerfully obey and execute the lawful and reasonable commands of the Principal and will not depart or absent himself from the service of the Principal at any time during the said term without his consent or that of his partners but will at all times during the said term conduct himself with all due diligence honesty and propriety. (e) That he/she will at all times well and faithfully serve the Principal, as an Articled Trainee ought to do in all things whatsoever. (f) That he/she will make good and fully indemnify the Principal for any loss or damage suffered or sustained by his misbehavior or improper conduct.
Deed of Articleship
86
4.
The Principal covenants with the Articled Trainee as follows: (a) That he/she will by the best ways and means in his power and to the utmost of his skill and knowledge instruct or cause to be instructed the Articled Trainee and afford him such reasonable opportunities and work as may be required to enable him to acquire the art, science and knowledge of Accountancy. (b) That his/her professional practice or that of his employer(s)s occupation is suitable for the purpose of enabling him to carry out the obligations referred to in (a) above. (c) That he will pay a minimum monthly stipend at the rates specified in the Regulation 27 of Nepal Chartered Accountants Regulation, 2004. (d) (i) That if the Principal shall die during the said term, his legal representative, partners/employee shall grant to the Articled Trainee a certificate of service, in the prescribed Form for the completed period of articles. (ii) That if the Principal shall cease to practice as an accountant or shall in any way become incapable of continuing the intended employment of the Articled Trainee during the said term, he shall make the necessary arrangement as far as practicable for the completion of the residue of the terms as Articled Trainee with some other member entitled to train Articled Trainee and grant the Articled Trainee, the certificate of service in the prescribed form for the completed period of articles.
5.
These articles are subject to the Nepal Chartered Accountants Regulation, 2004 as may be in force from time to time.
Signed by: Name : Membership No.: Certificate of Practice No.:
Signed by: Name of Articled trainee : Regd. No.: Address:
87
Deed of Articleship
Part 'B'
(To be filled by Principal)
1. 2. 3. 4. 5.
Name: ..................................................................................................................................................... Membership No. ............................................ Certificate of Practice (COP) No.: .................................. Professional Address: ............................................................................................................................. Date of receiving COP form the Institute ...................................... (no.) ................................................. (a) Name of Address of the firm: .......................................................................................................... (b) Members status (i.e proprietor/partner/employee)
I declare that the particulars given above are true and correct and I undertake to intimate the Council within sixty days of any change that may occur in the information furnished during the period of training of the articled trainee.
I further declare that: 1. I have fully satisfied myself that the articled is eligible to receive training as such under the Nepal Chartered Accountants Regulation, 2004 and that: (a) He/She has completed the age of 18 years; (b) He/She has passed Chartered Accountancy Education Intermediate Level Examination or is exempted from passing it under the Regulations. 2. 3. 4. 5. 6. This Deed of Articleship has been executed in triplicate. I have fully satisfied myself that the Deed has been executed correctly in all respects. One copy of the Deed of Articles has been retained by me and the other has been given to the articled trainee. I shall be paying stipend to the articled trainee not below the rates prescribed under the Regulations. I have the necessary vacancy to train the aforementioned-articled trainee and that relevant papers for registration have been filed in accordance with the provisions of Regulation.
Signature of the Principal
Seal
Date: _______________
Deed of Articleship
88
Annexure-8
CERTIFICATE OF SERVICE ON DISCONTINUANCE OR TERMINATION OF ARTICLESHIP
I ............................................................... of ................................................................. do hereby certify that Mr/Ms. ................................................................. with Registration No. ................................... served as an articled trainee under me in accordance with the Chartered Accountants Regulation from ........................... to ......................... and that his progress was ............................... and that to the best of my knowledge he bears a ......................................... Moral Character. I certify that during the above mentioned period the articled trainee was given a leave of ............................ days. The Deed of Articles made on ............................................................... is terminated by mutual consent with effect from .......................................
Date :
Signature: Name of Principal: COP No. .................
I ...................................................................... have agreed for termination of my training under articles with Mr./Ms. ......................................................................................... with effect from .................................... at my own free will and endorse the contents of this certificate.
Date :
Signature : Name of Articled Trainee: Regn. No. .......................
Note : This Certificate should be produced in triplicate.
89
Certificate of Service on Discontinuance or Termination of Articleship
Annexure-9
(As per regulation 31, sub-regulation 1)
REPORT OF NON COMPLIANCE OF ARTICLED TRAINING
I ...................................................................................................................... legal representative of the late ............................................. of ......................................... do hereby certify that to the best my information that Mr./Ms ....................................................................................... served as an articled trainee under the late Mr/Ms .................................................................................................................................................. of ................................................................................... in accordance with the Nepal Chartered Accountants Regulations, 2004 for a period of ............................... years ......................... months and .................... days from .................................... to ................................... and that according to the information supplied to me his/her progress was satisfactory and he/she be bears a good moral character. I further certify that according to the information supplied to me, during the above mentioned period, the articled trainee was given leave for ......................... days.
The article trainee was duly registered with the Institute vide Registration No. .....................................
____________________ Signature Name: Status: Date:
Report of Non Compliance of Articled Training
90
Annexure-10
As per regulation 32, Sub Regulation 1
RECORD OF ASSIGNMENT
Name of Articled Trainee : .............................................................................................................................. Registration No. : ............................................................................................................................................ Date of Commencement of Articleship Training : ........................................................................................... Period: From ....................................................................... To ...................................................................... RECORD OF ASSIGNMENTS REMARKS
Signature of Principal / Supervising Chartered Accountant: ........................................................................... Name of the Principal /1 Supervising Chartered Accountant: ......................................................................... Membership No.: ............................................................................................................................................. Name of the Firm: ...........................................................................................................................................
91
Record of Assignment
Annexure-11
REPORT OF PRACTICAL TRAINING
Name of the Articled Trainee: ......................................................................................................................... Registration No.: ............................................................................................................................................. Period: From ....................................................................... to ........................................................................ S.No. 1 2 3 4 5 6 7 8 Sector Financial Management and Accounting Auditing (including Internal Audit) Taxation Management Information Technology Other areas, if any, specify Secondment exchange, if any Industrial Training, if any Time Spent in days
General Comments/ Remarks (Information on levels of Progression): I/We hereby certify that the aforesaid information is based on Training Records maintained in the office.
Signature: ............................................................ Name of Principal: .......................................................................................................................................... Membership No.: .................................................. Name of the Firm: ........................................................................................................................................... Date: .................................................
Report of Practical Training
92
Annexure-12
(As per regulation 30, Sub Regulation 1)
CERTIFICATE OF SERVICE UNDER ARTICLES
I .................................................................. of ............................................................. do hereby certify that Mr/Ms .......................................................................... Registration number ........................................... has served as an articled trainee under me in accordance with the Nepal Chartered Accountants Regulations, 2004 for a period of ............................... from ............................... to .................................. and that his/her progress was satisfactory and that to the best of my knowledge he/she bears a good moral character. I further certify that, during the above-mentioned period, the articled trainee was given leave for .................. days.
Signature: ........................................................ Name of Principal: ........................................................................................................................................... Membership No.: ............................................. Name of the Firm: ................................................................................. Seal : ............................................... Date: ......................................
93
Certificate of Service Under Articles
Annexure-13
LETTER OF COMPLETION OF ARTICLESHIP TRAINING
Mr./Ms. Registraion No.:
This is to certify that your Articleship Training for the period of ........................ years and ............... months under the Principal .......................... of the firm ......................... is completed on .......................................... This letter of completion of Articleship Training is being issued to you in pursuant to Regulaiton 30 of the Nepal Chartered Accountants Regulation 2004.
Executive Director Date:
cc: Principal
Letter of Completion of Articleship Training
94
Annexure-14
(As per regulation 12, Sub Regulation 3)
ELIGIBILITY CERTIFICATE
Chartered Accountancy Education

Foundation/Intermediate/Final
Certificate No.:
Issued Date: .................................
Mr./Ms. .................................................................................... enrolled with the Institution on ...................... for the Chartered Accountancy Education Foundation (Group I/Group II/Both Groups)/ Intermediate (Group I/Group II/Both Groups)/ Final (Group I/Group II/Both Groups) course has successfully completed the Eligibility Test, subject to the Nepal Chartered Accountants Regulation, 2004. His/Her registration number is ........................ This certificate shall remain valid till ........................ Examination subject to other applicable provisions.
_______________ Executive Director
95
Eligibility Certificate

Chartered Accountancy Scheme Syllabus

Uploaded by

Copyright:

Available Formats

You might also like

Chartered Accountancy Scheme Syllabus

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chartered Accountancy Scheme Syllabus

Uploaded by

Copyright:

Available Formats

STUDENTS MANUAL

Chartered Accountancy Professional Scheme & Syllabus

Education Department The Institute of Chartered Accountants of Nepal

Chartered Accountancy Professional Scheme & Syllabus

The Institute of Chartered Accountants of Nepal

Designed & Printing

Print and Art Service Putalisadak, Kathmandu Tel: 01-4244419

Foreword to Second Edition

Suvod K. Karn, FCA January, 2010 President

Foreword to First Edition

Kathmandu 16 July 2007

Tirtha Raj Upadhyaya, FCA Chairman Education Committee

Students Manual 2010

ABOUT THE INSTITUTE

The Regulations and Bye-Laws

About the Institute

Students Manual 2010

2. CHARTERED ACCOUNTANCY AS A PROFESSION

Chartered Accountancy as a Profession

Students Manual 2010

3. LEVELS IN CHARTERED ACCOUNTANCY COURSE

(iii) Chartered Accountancy Professional (CAP) III/ Final Level

THE PATH OF CA EDUCATION

10+2/PCL or Graduates/ Post Graduates scoring less than 50% marks

Graduates/Post Graduates with Minimum Required Marks

1 Year CAP I/Foundation

Entry for CA Professional Course

CAP II/Intermediate Level

3 Years Articleship under Practising Chartered Accountant / or Industrial Training

CAP III/Final Level

Apply for Membership

Levels in Chartered Accountancy Course

Students Manual 2010

CHARTERED ACCOUNTANCY PROFESSIONAL (CAP)-I/FOUNDATION LEVEL

Students Manual 2010

PAPER 1 PAPER 2 PAPER 3

Fundamentals of Accounting Fundamentals of Economics Business Communication

PAPER 4 PAPER 5 PAPER 6

Students Manual 2010

Students Manual 2010

Students Manual 2010

CHARTERED ACCOUNTANCY PROFESSIONAL (CAP)-II/INTERMEDIATE LEVEL

Students Manual 2010

Students Manual 2010

Students Manual 2010

Students Manual 2010

CHARTERED ACCOUNTANCY PROFESSIONAL (CAP)-III/FINAL LEVEL

Students Manual 2010

Students Manual 2010

Students Manual 2010

Students Manual 2010

Students Manual 2010

Students Manual 2010

Students Manual 2010

Students Manual 2010

Students Manual 2010

Students Manual 2010

Annexure-1 Detailed Syllabus of Chartered Accountancy Professional (CAP)-I

Paper 1: Fundamentals of Accounting (One Paper-Three Hours-100 Marks)