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What is in the CA Intermediate May 2019 Exam?

28 December, 2018
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Brief Overview of The Post

The CA Intermediate Exam is the second set of exams in the Chartered Accountancy Course. The overall objective is to solidify and expand upon concepts that you’ve learned during CA Foundation. It’s a more intensive exam than CA Foundation. As such, this is the stage when many CA students start feeling the heat as it were.

In the following post, we will talk about what is in the exam. The number of papers. Weightage. Skill assessment. We will assume that you are familiar with the eligibility requirements. So, we won’t go into all that here.

For easy access, we’ve divided the post into several sections. Let’s begin.

All about the CA Intermediate May 2019 Exam

What’s on this page:

Introduction

The Papers of the CA Intermediate May 2019 Exam: Overview

The Papers of the CA Intermediate May 2019 Exam: Skill Assessment

Group I - Paper 1: Accounting

Group I - Paper 2: Corporate and Other Laws

Group I - Paper 3: Cost and Management Accounting

Group I - Paper 4: Taxation

Group II – Paper 5: Advanced Accounting

Group II – Paper 6: Auditing and Assurance

Group II – Paper 7: Enterprise Information Systems & Strategic Management

Group II – Paper 8: Financial Management & Economics for Finance

Passing Requirements and General Tips

 

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Introduction

The exam is officially known as the Chartered Accountants Intermediate exam. CA Intermediate between friends. ICAI is the conducting body. The exam is held twice yearly. Once in May and the other in November.

For the CA Intermediate May 2019 exam, there are two groups of papers. Group I and Group II. Each group contains four papers. Each paper is held in a single day. You can choose to attempt all papers in either or both groups.

The exam mode is offline. It contains both subjective and objective parts.

The medium of the exam is either in English or Hindi. You’ll have to indicate which when you register. Note that your choice of language is group based. That is, if you registered for a group with the choice of, say English, you must attempt all papers of that group in English. Likewise, for Hindi.

We will talk more about that later and what each paper contains.

But not everyone can register and appear for the exam. You’ll need to fulfil some minimum criteria. To get an idea of the criteria, take a look here. And here are details of the registration process.

The Papers of the CA Intermediate May 2019 Exam: Overview

As we said there are two groups of papers in the exam. Each group consists of four papers.

Here are the papers of Group I.

 

 Fig (1) Papers of CA Intermediate May 2019 Exam Group 1

 Fig (1): Papers of CA Intermediate May 2019 Exam Group I

 

Note that papers 1 and 3 are completely subjective whereas papers 2 and paper 4 are a combination of both subjective and objective parts. 70% weightage is subjective and 30% weightage is objective. The objective part will contain MCQs worth 1 mark each. There will be no negative marking. The objective section is compulsory.

 

The papers of Group II are as follows:

 

 Papers of CA Intermediate May 2019 Exam Group II Fig (2): Papers of CA Intermediate May 2019 Exam Group II

 

Note that papers 6 and 7 are a combination of both subjective and objective parts. The weightage is 70% subjective and 30% objective. The objective part will contain MCQs worth 1 mark each. There will be no negative marking. The objective section is compulsory.

The Papers of the CA Intermediate May 2019 Exam: Skill Assessment

ICAI assess different types of skills in each content area. For the whole Chartered Accountancy course, there are three levels of skills: Level I, Level II and Level III. The understanding is that the skills specified in Level I are inherent in Level II. And so on. That is, you cannot achieve Level II skills without having Level I skills first!

Here is the assessment specification grid (taken from the prospectus and adapted for the CA Intermediate Exam.)

 

Skill Assessment Grid for CA Intermediate May 2019 Exam

Fig (3): Skill Assessment Grid for CA Intermediate May 2019 Exam

 

For skill and level wise weightage for each subject in each paper of Group I, look at the table below:

 

Skill Weightages for CA Intermediate May 2019 Exam Group I Papers

Fig (4): Skill Weightages for CA Intermediate May 2019 Exam Group I Papers

 

For papers of Group II, these are the weightages:

Skill Weightages for CA Intermediate May 2019 Exam Group II Papers

Fig (5): Skill Weightages for CA Intermediate May 2019 Exam Group II Papers 

Now, let’s see what each paper contains.

Group I- Paper 1: Accounting (100 Marks Total; Duration 3 hours)

The first paper of Group I in the CA Intermediate May 2019 Exam is the Accounting paper. According to ICAI, the objective of this paper is to “acquire the ability to apply specific Accounting Standards and legislations to different transactions and events and in preparation and presentation of financial statements of various business entities.”

 

Here’s the syllabus:

Accounting - Syllabus for CA Intermediate May 2019 Exam Overview

Fig (6): Accounting - Syllabus for CA Intermediate May 2019 Exam Overview

 

Note that if new accounting standards, announcements and limited revisions to them are issued, then the syllabus will be updated to reflect them. The same goes for the case where earlier ones are withdrawn or new accounting standards, announcements and limited revisions are issued in place of them. This will take effect from the date to be notified by the Institute.

Group I - Paper 2: Corporate and Other Laws (100 Marks Total; Duration 3 hours)

This paper of the CA Intermediate May 2019 exam is divided into two parts. Part I and Part II.

Let’s look at what each part contains and the objectives.

Group I - Paper 2 – Part I: Company Law (60 Marks)

The objective is to “develop an understanding of the provisions of Company Law and acquire the capability to address application-oriented issues.”

The contents are as follows:

The Companies Act, 2013 - Sections 1 to 148:

Corporate Laws - Syllabus for CA Intermediate May 2019 Exam Overview

Fig (7): Corporate Laws - Syllabus for CA Intermediate May 2019 Exam Overview

 

 

Note that the provisions of the Companies Act, 1956 that are still in force will form part of the syllabus until such time their corresponding or new provisions of the Companies Act, 2013 are enforced.

Group I - Paper 2 – Part II: Other Laws (40 Marks)

According to the prospectus, there are two objectives:

  1. To develop and understanding of the provisions of select legislations and acquire the ability to address application-oriented issues
  2. To develop an understanding of the rules for interpretation of statutes

Here are the topics:

Other Laws - Syllabus for CA Intermediate May 2019 Exam Overview

Fig (8): Other Laws - Syllabus for CA Intermediate May 2019 Exam Overview

 

Note that if Parliament enacts new legislations in place of existing ones, the syllabus will be updated to include the corresponding provisions of these new legislations. It will be effective from the dates notified by the Institute. Similarly, if any existing legislation ceases to have effect, the syllabus will be updated to reflect the change.

The specific inclusions/exclusions in the various topics covered in the syllabus will be effected every year by way of Study Guidelines, if required.

 

Group I - Paper 3: Cost and Management Accounting (100 Marks Total; Duration 3 hours)

As per the CA Intermediate May 2019 syllabus outlined by ICAI, the objectives are:

 

  1. to develop an understanding of the basic concepts and applications to establish the cost associated with the production of products and provision of services and apply the same to determine prices; and
  2. to develop an understanding of cost accounting statements; and
  3. to acquire the ability to able to apply cost information for cost ascertainment, planning, control and decision making.

The syllabus is divided into four broad subject areas.

 

These are:

 

Cost and Management Accounting - Syllabus for CA Intermediate May 2019 Exam Overview

Fig (9): Cost and Management Accounting - Syllabus for CA Intermediate May 2019 Exam Overview

 

Under each subject area, there are further subtopics. Let’s see what they are.

 

Subject Area: Overview of Cost and Management Accounting

Subtopics covered:

  1. Introduction to Cost and Management Accounting
    1. Objectives and Scope of Cost and Management Accounting
    2. The users of Cost and Management accounting information, Functions of management accounting
    3. Role of cost accounting department in an organisation and its relationship with other departments
    4. Installation of Costing System
    5. Relationship of Cost Accounting, Financial Accounting, Management Accounting and Financial Management
    6. Cost terms and Concepts
    7. Cost Reduction and Cost Control
    8. Elements of Costs
    9. Cost behavior pattern, Separating the components of fixed, variable, semi-variable and step costs
    10. Methods of Costing, Techniques of Costing
    11. Cost Accounting with use of Information Technology
  2. Elements of Cost and preparation of Cost Sheets
    1. Functional classification and ascertainment of cost
    2. Preparation of Cost Sheets for Manufacturing sector and for Service sector

Subject Area: Ascertainment of Cost and Cost Accounting System

 

Subtopics covered:

 

  1. Material Cost
    1. Procurement procedures- Store procedures and documentation in respect of receipts and issue of stock, Stock verification
    2. Valuation of material receipts
    3. Inventory control
      • Techniques of fixing level of stocks- minimum, maximum, re-order point, safety stock, determination of optimum stock level
      • Determination of Optimum Order quantity- Economic Order Quantity (EOQ)
      • Techniques of Inventory control- ABC Analysis, Fast, Slow moving and Non moving (FSN), High, Medium, Low (HML), Vital, Essential, Desirable (VED), Just-in-Time (JIT)- Stock taking and perpetual inventory system, use of control ratios
    4. Inventory Accounting
    5. Consumption- Identification with products of cost centres, Basis for consumption entries in financial accounting, monitoring consumption
  2. Employee Cost
    1. Attendance and Payroll procedures
      • Elements of wages- Basic pay, Dearness Allowance, Overtime, Bonus, Holiday and leave wages, Allowances and perquisites
    2. Employee Cost Control
    3. Employee Turnover- Methods of calculating employee turnover, causes of employee turnover, effects of employee turnover
    4. Utilisation of Human Resource, Direct and indirect employee Cost, charging of employee cost, Identifying employee hours with work orders or batches or capital jobs
    5. Remuneration systems and incentive schemes

- Time Rate System, Piece Rate System, Differential piece rate system, Calculation of wages, Effective Wages

  • Direct Expenses
    1. Direct expenses
    2. Nature of Direct or Chargeable expenses
    3. Sub-contracting- Control on material movements, Identification with the main product or service
  1. Overheads
    1. Functional analysis- Factory, Administration, Selling, Distribution, Research and Development
    2. Behavioural analysis- Fixed, Variable and Semi- Variable
    3. Allocation and Apportionment of overheads using Absorption Costing Method
    4. Factory Overheads- Primary and secondary distribution
    5. Administration Overheads- Method of allocation to cost centres or products
    6. Selling& Distribution Overheads- Analysis and absorption of the expenses in products/ customers, impact of marketing strategies, cost effectiveness of various methods of sales promotion
    7. Treatment of Research and development cost in cost accounting
  2. Concepts of Activity Based Costing (ABC)
  3. Recording and Accounting of Costs
    1. Non-integrated Cost Accounting system- Ledger under non-integral system
    2. Integrated (Cost and Financial) Accounting system- Ledgers under integral system
    3. Difference between the Non- integrated and Integrated Accounting system
    4. Reconciliation of profit as per Cost and Financial Accounts (under Non-Integrated Accounting System)

Subject Area: Methods of Costing

 

  1. Single Output/ Unit Costing
  2. Job Costing: Job cost cards and databases, collecting direct costs of each job, attributing overheads to jobs, Application of job costing
  • Batch Costing: Determination of optimum batch quantity, Ascertainment of cost for a batch, Preparation of batch cost sheet, Treatment of spoiled and defective work
  1. Contract Costing
    1. Ascertainment of cost of a contract, Progress payment, Retention money, Escalation clause, Cost plus contract, Value of work certified, Cost of Work not certified
    2. Determination Value of work certified, Cost of work not certified, Notional or Estimated profit from a contact
  2. Process / Operation Costing
    1. Process cost recording, Process loss, Abnormal gains and losses, Equivalent units of production, Interprocess profit, Valuation of work in process
    2. Joint Products- Apportionment of joint costs, Methods of apportioning joint cost over joint products
    3. By-products- Methods of apportioning joint costs over by-products, treatment of By-product cost
  3. Costing of Service Sectors
    1. Determination of Costs and Prices of services of following sectors/ Industries: Transport, Toll roads, Hospitals, Canteen/ Restaurants, Hotels/ Lodges, Educational Institutions, Financial Institutions/ Banks, Insurance, IT sector and other services

Subject Area: Cost Control and Analysis

  1. Standard Costing
    1. Setting up of Standards, Types of Standards, Standard Costing as method of performance measurement.
    2. Calculation and Reconciliation of Cost Variances
      • Material Cost Variance, employee Cost Variance, Variable Overheads Variance and Fixed Overhead Variance
    3. Marginal Costing
      1. Basic concepts of marginal costing, Contribution margin, Break-even analysis, Break –even and profit volume charts, Contribution to sales ratio, Margin of Safety, Angle of Incidence, Cost-Volume-Profit Analysis (CVP), Multi- product break- even analysis, Consideration of Limiting factor (key factor)
      2. Determination of Cost of a product/ service under marginal costing method, determination of cost of finished goods, work-in-progress
      3. Comparison of Marginal costing with absorption costing method- Reconciliation of profit under the both methods
      4. Short term decision making using the above concepts (basic / fundamental level)
  • Budget and Budgetary Control
    1. Meaning of Budget, Essentials of Budget, Budget Manual, Budget setting process, Preparation of Budget and monitoring procedures
    2. The use of budget in planning and control
    3. Flexible budget, Preparation of Functional budget for operating and non- operating functions, Cash budget, Master budget
    4. Introduction to Principal/ Key budget factor, Zero Based Budgeting (ZBB), Performance budget, Control ratios and Budget variances

Group I - Paper 4: Taxation (100 Marks Total; Duration 3 hours)

This is the final paper of Group I in the CA Intermediate May 2019 Exam. It is divided into two sections. Section A and Section B. Section A deals with income tax law while Section B is about indirect taxes.

 

As stated in the syllabus, the objective of this paper is to “develop an understanding of the provisions of income-tax law and goods and services tax law and to acquire the ability to apply such knowledge to make computations and address application oriented issues.”

 

Let’s now look at what Section A contains.

 

Group I – Paper 4: Section A – Income-tax Law (60 Marks)

 

Income-tax Laws - Syllabus for CA Intermediate May 2019 Exam Overview

Fig (10): Income-tax Laws - Syllabus for CA Intermediate May 2019 Exam Overview

 

Now, let’s see what’s in Section B.

 

Group I – Paper 4: Section B - Indirect Taxes (40 Marks)

 

Indirect Taxes - Syllabus for CA Intermediate May 2019 Exam Overview

Fig (11): Indirect Taxes - Syllabus for CA Intermediate May 2019 Exam Overview 

 

Note: As usual in any part of the syllabus covering laws and legislation, ICAI will update the syllabus as needed if any changes to any laws or provisions including insertions, deletions and updates are made. ICAI will inform you of the effective date of the change. Also, ICAI will not test you on any state’s GST law.

That about does it for papers in Group I.

Let’s look at the papers of Group II.

 

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Group II – Paper 5: Advanced Accounting (100 Marks; Duration 3 hours)

 As per ICAI, the objectives are two-fold. They are (as quoted):

  1. To acquire the ability to apply specific Accounting Standards, Guidance Notes and Legislations to different transactions and events and in preparation and presentation of financial statements of business entities
  2. To understand and apply financial reporting and regulatory requirements of Banking, Financial Services and Insurance Sector

The syllabus looks like this:

 

Advanced Accounting - Syllabus for CA Intermediate May 2019 Exam Overview

Fig (12): Advanced Accounting - Syllabus for CA Intermediate May 2019 Exam Overview 

 

Note that if new accounting standards, announcements and limited revisions to them are issued, then the syllabus will be updated to reflect them. The same goes for the case where earlier ones are withdrawn or new accounting standards, announcements and limited revisions are issued in place of them. This will take effect from the date to be notified by the Institute.

Also, if there are any inclusions/exclusions in any topic covered in the syllabus, these will be effective every year by means of Study Guides. You can find the list of applicable Guidance Notes in Accounting. This will also form part of the Study Guidelines.

We now come to paper 6.

 

Group II - Paper 6: Auditing and Assurance (100 Marks; Duration 3 hours)

As per the Institute, the objective is to “develop an understanding of the concept in auditing and of the generally accepted auditing procedures, techniques and skills and acquire the ability to apply the same in audit and attestation engagements.”

 The syllabus itself consists of 13 broad subject areas. These are:

 

Auditing and Assurance - Syllabus for CA Intermediate May 2019 Exam Overview

 Fig (13): Auditing and Assurance - Syllabus for CA Intermediate May 2019 Exam Overview

 

ICAI wants you to note the following points regarding the content in the paper above:

  1. The specific inclusions/exclusions in any topic covered in the syllabus, will be effected every year by way of Study Guidelines
  2. The provisions of the Companies Act, 1956 which are still in force would form part of the syllabus till the time their corresponding or new provisions of the Companies Act, 2013 are enforced
  3. If new legislations/Standards on Auditing/Guidance Notes/Statements are enacted in place of the existing legislations, the syllabus would include the corresponding provisions of such new legislations with effect from a date notified by the Institute. The changes in this regard would also form part of Study Guidelines

Group II – Paper 7: Enterprise Information Systems & Strategic Management (100 Marks; Duration 3 hours)

This paper is divided into two sections. Section A and Section B.

Let’s see what Section A is all about.

 

Group II – Paper 7 – Section A: Enterprise Information Systems (50 Marks)

 

As per ICAI’s syllabus, the objective is to “develop an understanding of technology enabled Information Systems and their impact on enterprise-wide processes, risks and controls.”.

The syllabus consists of the following.

 

Enterprise Information Systems - Syllabus for CA Intermediate May 2019 Exam Overview Fig (14): Enterprise Information Systems - Syllabus for CA Intermediate May 2019 Exam Overview 

 

Let's move to section B.

Group II – Paper 7 – Section B: Strategic Management (50 Marks)

As per the objectives outline, ICAI wants you to “develop an understanding of strategic management concepts and techniques and acquire the ability to apply the same to business situations.”.

 

The contents of the syllabus are:

 

Strategic Management - Syllabus for CA Intermediate May 2019 Exam Overview

Fig (15): Strategic Management - Syllabus for CA Intermediate May 2019 Exam Overview  

 

Group II – Paper 8: Financial Management & Economics for Finance (100 Marks; Duration 3 hours)

This is the final paper of Group II. It is split into two sections. Section A and Section B.

Let’s see in turn, what each paper contains.

Group II – Paper 8 – Section A: Financial Management (60 Marks)

 

As per ICAI, the objective is to “develop an understanding of various aspects of Financial Management and acquire the ability to apply such knowledge in decision-making.”.

Here's a bird's eye view of the syllabus:

 

P8A1Financial Management - Syllabus for CA Intermediate May 2019 Exam Overview Fig (16): Financial Management - Syllabus for CA Intermediate May 2019 Exam Overview 


Now, we come to Section B.

Group II – Paper 8 – Section B: Economics for Finance (40 Marks)

The syllabus covers these topics:

Economics for Finance - Syllabus for CA Intermediate May 2019 Exam Overview

 Fig (17): Economics for Finance - Syllabus for CA Intermediate May 2019 Exam Overview 

 

Now that we saw roughly what the syllabus contains, let's move on to the passing criteria.

Passing Requirements and General Tips

You can appear for either one or both groups of papers. Appearing for a group means that you’ll have to appear for all papers in that group. Note that you’ll have to pass both groups of papers to move on to the next step.

If you appear for only one group, the minimum requirement to pass the group is that:

  1. you obtain a minimum of 40% marks in each paper of the group and
  2. you obtain a minimum of 50% marks in the aggregate of all papers of the group taken together.

If you appear for both groups simultaneously, then you clear both groups if:

  1. you meet the minimum requirements to clear a group individually or
  2. you obtain a minimum of 40% marks in each paper of both the groups, and a minimum of 50% marks in the aggregate of all papers of both groups taken together.

Now, you can appear for the groups as many times as you want. And your next attempt can be made the next time ICAI holds the exam. That is, suppose you’ve failed a group in your May attempt. You can appear for the same group in November! Similarly, if you choose to appear for only one group and pass it, you can appear for the next group the next time ICAI conducts the exam.

You can also get certain exemptions depending on marks obtained from previous attempts.

In a later post to be updated soon, we will expand more on the exemptions. 

As for tips to pass?

Well, the problem is that as you can see, the CA Intermediate Exam covers a lot of ground. With adequate preparation, and concentration on your fundamentals, there’s no reason why you shouldn’t pass.

Focus your attention on papers in which you are relatively weak. And score as much as possible in your strong areas. Beware of the minimum requirements. 

As a tip specific to this exam, we think that, depending on your prep, you should try to clear both groups at the same time. This is contrary to popular belief. The reason is because of the way ICAI structures the passing requirements. It is, in fact, easier to meet the passing requirements for passing both groups together if you have studied thoroughly. An added benefit is that it's also easier to get exemptions if needed. Not only that, it does save you an attempt!

In the end though, if you really feel that your prep is lacking in a group, then you might want to consider a single group attempt. But we recommend this only as a last resort.

Also, if you are feeling nervous before the exam, don't be. Check out this post for tips on how to calm your nerves.

Well, that comes to the end of this admittedly long exposition. We wish you all the best for your CA Intermediate May 2019 exam attempt!

 

Need any clarifications on any part of this post? Tell us in the comment section below. And also, if you want to get the best materials for success, try out our video lecture series for free:

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Bharat

Part-time mathematics enthusiast. Loves esoteric and quirky things. Bibliophile. Has a wide range of interests including playing chess and pool, juggling, and creating puzzles of fiendish difficulty. Grammar Nazi.

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