Most Useful Tips for PREPARING MAY/NOVEMBER 2011 FINALS (Spe

INTRODUCTION

I know, many of us are always confused regarding our exam preparations. Either our doubt is how to start or what to start or if we start studying then at later stage we find short of time to deal with remaining part or any other such confusion. But after exams, it’s just a relief, no one likes to remember how much hard work one has put on or what strategy one has followed. It’s the time all of us want peace and freedom from studies. 

           Generally, it does happen with almost all of us, after our PCC exams, we tend to relax and deal with our routine. Hardly anyone thinks about what to prepare or what not to prepare (at that time) for FINALS. And “dekhte hi dekhte” one and a half years elapse, and our finals exam becomes due. Then we realize the real value of time, and we regret for not preparing from the begging only (i.e immediately after clearing PCC). So, I think, lets share this with you all, because, I too went through the same phase. Here, I just want to share the strategy that should be followed for preparations for FINALS with the available time.

  GENERAL INSTRUCTIONS  

Many members of CCI do ask me what is the perfect time to start with preparations or what is the minimum time required for finals preparations. Or something like, how much months’ leave they should get and they can prepare to clear the finals.  

But friends, the fact is that there is NO RIGID METHOD of preparing for the exams, and it can never be. Because the moment you consider any rigid method for studies, that very moment you assure blockage of your mind. There are many circumstances, which can affect your preparations, not just one. So never try to prepare any hard & fast study plans. Rather prepare, flexible plans, so that you should not face any problem at last moment. 

The most important factor at FINALS level is conceptual clarity. At CPT/PCC/IPCC levels, we used to solve more and more sums to get practice in practical subjects. While in theory subjects, we used to learn or remember the answers and solve more of case studies in AUDIT and LAW. But at FINALS, this is not the criteria to deal with the subject. You may solve 100 sums of CONSOLIDATION in accounts at final stage, you’ll find 101st type of sum in your accounts exam. So here what matters is your own intellectual and interest in subject. Because at the end, vital is your thorough knowledge regarding subject, which you need to obtain after proper understanding every topic in detail. After all it’s not the la-la land but kind of battle ground. So if any of you consider that practicing more sums in any practical subject assures good attempt in exam, forget it. Its ICAI, nothing is impossible here.

  TIME ALLOCATION

           Generally, I believe, 5-6 months time is sufficient for any average student as well to prepare for FINALS exams, without any previous coaching. Mind it, I’m suggesting 5-6 months of complete hardcore studies, no laziness is allowed. [I’ll suggest how to utilize these 5-6 months completely after a while in this article only].

 

Now, many students also find it tedious job to study for 5-6 months at a stretch. So for them, I suggest, they should start preparing theory subjects after their PCC/IPCC results. That means, they should contribute 2 hours daily towards theory subjects alongwith their articleship. In this case, I believe students will be able to do with AUDIT & LAW atleast, before they go on leave for FINALS exams. So that means, in their leave period, they need to prepare for only 6 remaining subjects.

 

 I would still prefer that 5-6 months preparations, as I can concentrate in that method only. In that case, one should study for just 6 hours daily for first month, then 7-8 hours in the second and third month. Finally should sit for even 10 hours a day in last two months. “<span>Sixth month should be the revision month, and trust me, proper revision is a must required or else you’ll end up messing your preparations”</span>.

 

 

Anyways, lets switch over to individual subjects and see how they are to be dealt. Hereby, I’ll be considering as 5 months of studies and 1 month for revision. So that means in all 6 months of study plans. And I personally feel, 5 months are more than enough, and especially all the time allocations mentioned below are really sufficient for every subject.

 

 First Group (2.5 months, i.e approx. 75 Days)

 

1. Financial Reporting – 25 Days
2. Strategic Financial Management – 20 Days
3. Advanced Auditing – 10 Days
4. Laws – 20 Days

 

 

Second Group (2.5 months, i.e approx. 75 Days)

 

1. Costing – 25 Days
2. ISCA/MICS – 10 Days
3. DT – 25 Days
4. IDT – 15 Days

 

 

And if at all, anyone feels that he/she should take two subjects a day and don’t want to go with above strategy of finishing off one subject first and considering other later. Then in that case, go by HOUR-SYSTEM. For e.g., in group I, audit and law takes in all 30 days. So u can finish off these both subjects in just one month on hourly basis, i.e. divide your every day in 3 parts on hourly basis and allot one part to audit and 2 parts to law. Like if you studying 6 hours a day, then study audit for two hours and law for remaining four hours, and accordingly finish both the subjects within one month.

 

 Anyways, let us concentrate on group wise preparations.

 

  

 

FIRST GROUP

 

  

As such, result of this group is always better than the second group (similar to PCC). And reason is very obvious, ACCOUNTS-FM are meant to be scoring subjects, and AUDIT-LAW, though are theoretical, case studies in each subject becomes scoring.

 

 These subjects are not so difficult, as we have basics of each subject from PCC/IPCC. So it becomes comparatively easy to prepare for this group.

  

So, I suggest all of you to concentrate more on this group as :

 

• This group has greater chances of higher results, and
• It is comparatively easier than the other group.

 

 

≍ <span>FINANCIAL REPORTING (ACCOUNTS)</span> ≍

 

• Read the latest edition of Taxman (D.S. Rawat) for Accounting standards (June 2011 Edition for Nov 2011 attempt). It will be useful for Advanced Auditing Paper also.
• Read Suggested answers from ICAI Compilation for Advanced Accounting (May, 1996 – November, 2006)
• Do all problems given in ICAI Material ( Some problems will be covered in Padhuka)
• Reference book for the practice sums, you can ask your seniors. My seniors suggested Padhuka for this.

 

CFS and Valuation

 

Compulsory questions in the Examination:

  

One question each from 2 chapters, namely -

• Consolidated Financial Statements and
• Accounting for Amalgamations and Reconstructions

Almost 36-40 marks are covered by these two chapters

 

Other Important topics:

 

• Value added Statement (generally given in Nov. Attempt)
• Economic Value added statement
• Human Resource Accounting and Environmental Accounting (Theory)
• Important Accounting Standards – 9, 10, 11, 12, 16, 17, 18, 19, 20, 22, 26, 30, 31, 32 (These ASs are also important for Auditing Paper. Generally problems from ASs in thick letters will be given in Accountancy paper) Also go through IFRS notes in the same book, i.e D S RAWAT [AS 30-32 are most important].

 

Important Guidance Notes:

 

• Guidance note on Accounting for Equity Index and Equity Stock Futures and Options
• Guidance Note on Treatment of Expenditure during Construction Period
• Guidance Note on Accounting for Investments in the Financial Statements of Mutual Funds
• Guidance Note on Accounting Treatment for Excise Duty
• Guidance Note on Accounting Treatment for MODVAT/CENVAT
• Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under the Income Tax Act, 1961

 

 

 

 

STRATEGIC FINANCIAL MANAGEMENT (SFM)

 

 

• Read the latest edition of Snow white (V. Pattabhi Ram)
• Do Problems given at the end of Chapters 1 and 2 in ICAI Material
• Read Suggested answers from ICAI Compilation for Advanced Accounting (May, 1996 – November, 2006)
• Read compulsorily Theory questions given in the past examinations (Min. 15-20 marks)

 

 

Important Chapters:

 

• Mergers & Acquisitions
• Dividend
• Portfolio Management
• FOREX (Foreign Exchange Management)
• Capital Budgeting along with Leasing
• Valuation of Bonds
• Mutual Funds

 

 16 odd marks and there is question on leasing as well for 10 marks. leasing is very easy and a must score 10 marks.

International finance would account for 15 marks and would take 3 days of complete preparation.

Derivatives would come for 15 marks and is quite complex to solve considering the vast portion.

 

 

 

ADVANCED AUDITING & PROFESSIONAL ETHICS

 

 

 

• Read the latest edition of Padhuka. Read compulsorily past examinations questions given in that book. Reading other questions is your choice.
• Read Suggested answers from ICAI Compilation for Advanced Accounting (May, 1996 – November, 2006)

 

 

One can safely ignore the following chapters -

Liabilities of Auditors, Internal Control, Audit Planning

 

 

Important Chapters:

 

 

• Professional Ethics (16 Marks)
• Audit Report
• CARO, 2003 including Statement on the Companies (Auditor’s Report) Order, 2003 given in ICAI Material
• Special Audits (including Peer review and Listing Agreement i.e. Clauses 32, 41, 51 and 49 including Clause 49 vs.Sec.292A)
• Important Standards on Auditing: SA 230, 260, 315, 330, 450, 500, 505, 530, 550-580, 600-620, 705, 706, 710, 800, 805 & 810. One can refer D S Rawat for audit standards as well, it’s a detailed book, but very helpful (Audit standards in bold letters have effective date of 01.04.2011, so they are the most important for 2011 exams).

 

 

 

CORPORATE & ALLIED LAWS

 

 

 

• This is Scoring Subject in Group 1
• Read the latest edition of Bestword (Munish Bhandari). This book is ultimate book.  Read compulsorily all the CA examination case studies given in it.
• No need to read even suggested answers, if your sincerely follow the above mentioned book

 

Important Chapters:

 

• Directors (on an average 20 marks)
• Inter Corporate Loans and Investments (Very Imp chapter)
• Compromises, Arrangement and Amalgamation
• Prevention of Oppression and Mismanagement
• Producer Companies (One of the most important chapters)

 

 Recent Changes:

 

• Competition (Amendment) Act, 2007
• Securities Contracts (Regulation) (Amendment) Act, 2007

 

 

 

 

SECOND GROUP

 

 

This group is little odd (as per my view), as I hate ISCA and IDT too I find boring. So this group really needs more attention of students and cannot be neglected or taken for granted like group 1. I can’t suggest much in over here, as I’m myself preparing it for MAY

 

 

 

ADVANCED MANAGEMENT ACCOUNTING

 

 

 

• Read V.K. Saxena
• Do all problems given in ICAI Material
• Read Suggested answers from ICAI Compilation for Advanced Accounting (May, 1996 – November, 2006)
• Read compulsorily theory questions given in the past examinations (on an average 20 marks)
• Do not over-concentrate on Quantitative techniques at the cost of other chapters.

 

Important Chapters:

 

• Marginal costing
• Standard Costing
• Budgetary Control
• PERT-CPM
• LLP

 

 

 

Information Systems Control & Audit (ISCA/MICS)

 

 

 

• This is Scoring Subject in Group 2.
• Read ICAI material along with ICAI Compilation for MICS (May 1996 to November 2006)
• This is the best combination. No need to read anything else
• Atleast read compulsorily all questions given in the Compilation so that you will pass in this paper.

 

 

 

DIRECT TAX LAWS (DT)

 

 

 

• Read the latest edition (only relevant for the attempt) of Taxmann (Vinod k. Singhania) or T.N.Manoharan .
• No need to read suggested answers. Instead do past examination questions given at the end of book referred above.
• Compulsory question each from Wealth Tax (10 marks) and Taxation of Companies (16 marks)

 

 

INDIRECT TAX LAWS (IDT)

 

 

 

• Read the latest edition (only relevant for the attempt) of Taxmann (V.S. Datey) or Snow White (Vaitheeswaran) or Aadhya (Yogendra Bangar)
• Central excise - 50 marks; Customs – 35 marks and Service tax – 15 marks

 

 

Note:

 

 For May 2011 exam, all amendments made up to 31.10.2010 are relevant. Amendments made between 1.05.2010 and 31.10.2010 would be published in RTPs for May 2011 exams.

• For Nov 2011 exam, all amendments made up to 30.04.2011 are relevant. Amendments made between 1.05.2010 and 30.4.2011 would be published in RTPs for Nov 2011 exams.