SPOM SET C Elective Papers

CA Final SPOM SET C: Sustainable Development and Sustainability Reporting (100 marks)

Objectives: Understand concepts and principles of Sustainable Development, analyse impact of business decisions on sustainability, recognise emerging trends.

Contents:
1. Fundamentals of Sustainable Development — Origin, Key Terms, Need for Sustainability, Benefits of integrating sustainability in business, State of sustainability in current business planning

2. Sustainability Reporting in India:
- National Guidelines on Responsible Business Conduct 2018 (NGRBC) — Background, Nine Principles, Linkage with SDGs
- Sustainability Reporting Standards Board of ICAI
- Social Stock Exchange and Institute of Social Auditors of India

3. Business Responsibility and Sustainability Reporting (BRSR) in India:
- BRSR issued by Committee on Business Responsibility Reporting of MCA
- SEBI Circular on BRSR
- BRSR Disclosures
- Sustainability Reporting Maturity Model (SRMM), ICAI
- BRSR Lite format overview

4. Global Trends in Sustainability Reporting:
- United Nations Sustainable Development Goals (UN SDGs) — The 17 SDGs
- Key Global Sustainability Reporting Standards and Frameworks
- International Sustainability Standards Board (ISSB) and its Reporting Standards

5. Sustainability Assurance — Assurance Standards overview, Limited vs Reasonable Assurance

CA Final SPOM SET C: Public Finance and Government Accounting (100 marks)

Objective: Understand economic policies, Budgets, Fiscal tools, Government Grants, Public Funds, Rules, Regulations and Accounting Systems for Government departments.

Contents:
1. Introduction to Government Functioning — Role of Central, State, Panchayati Raj, Urban Local Bodies; Union-State-Local Fiscal Relations; Fiscal Federalism
2. Constitutional Provisions and Related Authorities — Articles 112-281; Annual financial statement; Appropriation Bills; CAG; Finance Commission; CGA; Niti Aayog
3. Public Finance — Meaning, Scope, Categories, Fiscal/Budgetary functions, Private vs Public Finance, Fiscal and Monetary Policies
4. Public Revenue — Tax and Non-tax Revenue for Centre, States and Local Government; Tax Policy Design; Tax Administration in India
5. Budget — Budget Cycle: Planning, Preparation, Execution, Monitoring; Fiscal Deficit; Primary Deficit; Revenue Deficit
6. Public Debt/Bond — Meaning, Types, Burden, Principles of Public Debt Management; Role of multilateral agencies
7. Public Expenditure — Canons, Classification, Wagner's Law, Public Expenditure as Fiscal Policy instrument; PFM Structure
8. Union & State Accounts — Consolidated Fund, Contingency Fund, Public Accounts; Classification of Government expenditure; Chart of Accounts; Banking Arrangements
9. Urban Local Bodies — NMAM, National Municipal Asset Valuation Manual, State Municipal Accounts Manuals/ASLBs
10. Standard Internal Control and Risk Management — Internal Audit, Outcome Budgeting, Procurement Control, Asset Controls, CAG & PAC; IGAS, IGFRS, IPSAS

CA Final SPOM SET C: The Insolvency and Bankruptcy Code, 2016 (100 marks)

Objective: Understand the Code and acquire ability to apply knowledge in practical situations.

Contents:
1. Introduction — Journey of development of Insolvency and Bankruptcy Code and its importance
2. Preliminary — Relevant Definitions and application of the Code
3. Insolvency Resolutions and Liquidation for Corporate Persons — Corporate Insolvency Resolution Process (CIRP), Liquidation Process, Pre-Packaged Insolvency Resolution Process, Fast Track CIRP, Voluntary Liquidation, Adjudicating Authority for Corporate Persons
4. Insolvency Resolution and Bankruptcy for Individuals and Partnership Firms — Fresh Start Process, Insolvency Resolution Process, Bankruptcy Order, Administration and Distribution of Estate, Adjudicating Authority, Offences and Penalties
5. Regulation of Insolvency Professionals, Agencies and Information Utilities — Insolvency and Bankruptcy Board of India (IBBI), Powers and Functions, Insolvency Professional Agencies, Insolvency Professionals, Information Utilities, Inspection and Investigation, Finance, Accounts and Audit
6. Miscellaneous Provisions — Forms 1-6 filed for initiation of CIRP before NCLT
7. Significant Judicial Pronouncements under IBC 2016

Note: Syllabus updated when new legislation enacted in place of existing ones.

CA Final SPOM SET C: International Taxation (100 marks)

Objective: Develop understanding of basic concepts, principles and provisions of international taxation and acquire ability to apply in practical case scenarios.

Contents:
1. Background of International Taxation — Genesis, International tax conflicts and double taxation, Meaning of treaty, Source rule vs Residence rule
2. Overview of Income-tax Act, 1961 — Charge of income-tax, Residential Status and Control and Management, Scope of total income, Concept of deemed accrual (Section 9), Business connection (including significant economic presence)
3. Non-resident Taxation — Categories of income and taxability, Withholding tax, Return filing obligations
4. Taxation of E-Commerce Transactions (including Equalization Levy)
5. Double Taxation Relief — Concept of double taxation, Tax Neutrality, Types of Relief, Tax Residency Certificate, Treaty shopping
6. Model Tax Conventions — OECD and UN Model Tax Conventions, Comparative analysis of significant articles, DTAAs with USA, Singapore, UK, UAE and Netherlands; Protocol to DTAAs (MFN Clause)
7. Transfer Pricing — International transaction, Associated Enterprises, Specified domestic transaction, Arm's-length price and computation, Safe Harbour Rules (SHRs), Advance Pricing Agreement (APA), Secondary Adjustment, Thin Capitalisation, Documentation and Compliances
8. Overview of BEPS (Base Erosion and Profit Shifting)

CA Final SPOM SET C: The Arbitration and Conciliation Act, 1996 (100 marks)

Objective: Develop understanding of Arbitration and Conciliation Law and acquire ability to understand issues in practical situations.

Contents:
1. Introduction — Various modes of Alternate Dispute Redressal Mechanism (ADRs)
2. Fundamentals of Arbitration — General provisions, Arbitration Agreement, Conduct of Arbitral Proceedings, Making of Arbitral Award and Termination of Proceedings, Recourse against Arbitral Award, Finality and Enforcement of Arbitral Awards
3. Enforcement of Certain Foreign Awards — Types of Arbitration, Arbitral Awards (Adhoc, Domestic and International Commercial Awards), Enforcement of Foreign Awards (New York Convention Awards and Geneva Convention Awards)
4. Conciliation — Difference between Arbitration and Conciliation, Commencement of Conciliation Proceedings, Number of Conciliators, Appointment, Submission of Statements to Conciliator, Role of Conciliator, Administrative Assistance, Communication between Conciliator and Parties, Disclosure of Information

CA Final SPOM SET C: Forensic Accounting (100 marks)

Objectives: Develop understanding of basic concepts of Forensic Accounting and its application in Fraud Investigations; acquire ability to apply concepts in practical case scenarios.

Contents:
1. Background & Overview — Evolution of Forensic Accounting profession, Legal & Regulatory ramifications, Opportunities for Chartered Accountants
2. Introduction & Basic Concepts — Meaning of Fraud, Forensics, Forensic Accounting, Investigations; Differences between Audit, Forensics & Investigations; Roles & Responsibilities of Stakeholders; Introduction to FAIS (Forensic Accounting and Investigations Standards)
3. Nature & Types of Frauds — Different Categories and Types, Occupational Frauds — Fraud Tree, Cyber Fraud/Crime, Fraud Mechanisms
4. Financial Statement Frauds — Characteristics, Types, Legal & Regulatory provisions, Fraud Risk Factors
5. Process of Forensic Investigation — Initialization & defining mandate, Develop Plan, Gathering Relevant Evidence, Perform the analysis, Reporting, Court proceedings
6. Fraud Detection — Fraud Predication/Indicators, Data Mining & Analysis, Law and Evidence, Hypothesis
7. Digital Forensics — Digital Evidence, Technology Tools, Laboratory Analysis, Important IT Act sections
8. Interviewing Skills — Art & Science of Interviews, Non-verbal Cues, Recording Statements, Case Studies
9. Writing a Forensic Investigation Report — Summary of findings, Key Elements per FAIS, Assumptions and Limitations
10. Fraud Prevention — Anti-Fraud Policies, Internal Controls, Compliance Culture, Disciplinary Mechanism

CA Final SPOM SET C: Valuation (100 marks)

Objectives: Develop conceptual understanding of valuation approaches and methodologies; understand regulatory requirements; apply valuation methodologies on business organisations.

Contents:
1. Introduction to Valuation — Genesis, Valuation under present scenarios, Reference to important terminologies (Valuation, Valuer, Registered Valuer, Types of Value, Price vs Value, Valuation Bases and Premise, Valuation Date)
2. Need and Purpose of Valuation — Transaction based Valuation, Regulatory & Tax based Valuation, Other Requirements
3. Valuation Approaches and Methodologies:
- Asset Based Approach
- Income/Earning Based Approach (DCF and Non-DCF methods; P/E Ratio, P/Growth Ratio)
- Market Based Approach
- Fair Value Computation
- Guidelines for selecting appropriate approach
4. Valuation Documentation and Report — Purpose, Transaction based Valuation
5. Valuation Standards — Basic understanding of ICAI Valuation Standards 2018 and its application
6. Other Applications of Valuation — Valuation of Inventories, Investments, Fixed Income Instruments, Intangibles, Liabilities