PART ONE GUIDANCE NOTES APPLICABLE FOR MAY 2014 EXAMS

1)
2)
3)
4)
5)
6)
7)
8)
9)

Guidance Note on Accrual Basis of Accounting.

Guidance Note on Treatment of Reserves created on Revaluation of Fixed Assets.
Guidance Note on Availability of Revaluation Reserve for Issue of Bonus Shares
Guidance Note on Accounting for Depreciation in Companies.
Guidance Note on Accounting Treatment for Excise Duty and MODVAT/CENVAT.
Guidance Note on Accounting for Corporate Dividend Tax.
Guidance Note on Revised Schedule VI.
Guidance Note on Accounting for MAT Credit
Guidance Note of Employee Share Based Payments.

Note:
Apart from above, some of the guidance notes are covered along with Accounting Standards, which are
as follows:
a) Guidance Note on Measurement of Income Tax for Interim Financial Reporting in the context of AS
25.
b) Guidance Note on Applicability of AS 20, Earnings per Share.
c) Guidance Note on Remuneration paid to key management personnel whether a related party
transaction.
d) Guidance Note on Applicability of AS 25 to Interim Financial Results.
e) Guidance Note on turnover in case of contractors.

PART ONE KEY AREAS IN MISCELLANEOUS TOPICS

Topic
Consolidated
Financial
Statements

Valuation

Areas to be covered
Last time Multiple Stages of Acquisition has been tested and in May 2013 Cross
holding is tested. I think, this time there are more chances of getting a problem
with multiple subsidiaries, and associates, JVs.
Note:
Just my view Anna, this is a miscellaneous topic according to you thats why I have
mentioned a possible area.
In the previous exam, brand valuation and valuation of goodwill is tested, I think
you can concentrate on valuation of shares. And sometimes after introduction of
new course, a problem based on AS relating to Valuation of Inventory, fixed assets,
accounting for revaluation etc, have been asked from this topic. These are
included in Unit 2 and Unit 6 of Study Material.

Topic

Areas to be covered
Value
Added An extensive problem has been asked last time in Value Added Statement, so you
Statements
can expect either;
a) Economic Value Added or
b) Market Value Added
c) VAS with percentages of application
Human Resource Be conversant with all the models, this time it can be tested and most of the
Accounting
questions are past exam questions.
Financial
a) Computation of NAV of Mutual Funds (Sometimes questions from SFM study
Reporting
for
material and practice manual has been asked in this area)
Financial
b) NBFC Provisioning Norms
Institutions
c) Dividend Equalization Reserve.
d) Question No 9 and 10 in Practice Manual are important ones in NBFC apart
from provisioning Norms
e) Calculation of effective yield (Question No 5 in Practice Manual) might be
tested. (This is same as calculation of return of a portfolio as far as concept is
concerned)