A new strategy recently put up by the Institute of Chartered Accountants of India (ICAI) has the potential to alter the way CAs are educated and trained significantly. It seems to make sense that experts in the area and aspiring chartered accountants alike are interested in learning more about this new scheme and how it will impact their careers. ICAI new scheme 2023.
There has been plenty of talk among CA aspirants about the ICAI new scheme 2023, which is an interesting change that the institute has recently recommended. It is a syllabus revision on the verge of being introduced, and the last one happened in 2017. So, after six years, the institute’s standing committee felt the need for a syllabus change to make the course more competitive.
The ICAI new scheme 2023 involves significant changes because some papers from all three levels are merged, while some have been removed completely. An interesting change is a revision of the CA articleship period. The institute has reduced it from 3 years to 2 years.
Plenty of these changes have been introduced, and aspiring CA students must know the details. Before going through the details, you must know that despite the name given as ICAI’s new scheme 2023, the changes will not be implemented this year. The briefing from the institute states that they are making every attempt to implement the changes for the May 2024 exam batch.
A shorter duration to becoming a CA:
The first change in the new scheme proposes a shorter duration to becoming a chartered accountant. Earlier, a CA course was 48 months, but now it is 42 months. Here are some of the key changes implemented in this regard.
- It has been proposed that the CA Articleship period is now 2 years, note 3.
- However, under the new scheme, a student will get 6 months as CA Final study period.
The rest of the rules for the duration remain status quo, and within 42 months, you can become a chartered accountant.
Amendments to the CA Foundation registration validity rules:
The ICAI new scheme 2023 brings about certain changes to the CA Foundation registration validity regulations, and you must note them. Currently, there is no restriction regarding the number of attempts a student may take to pass the CA Foundation course. The current regulations also state the CA Foundation registration validity can be revalidated multiple times.
However, the new proposed scheme brings drastic amendments to this regulation. It states a student is eligible to register after the 10th standard, and the registration is valid for 4 years. A student cannot revalidate the Foundation registration after four years. Moreover, under the new regulations, the institute has also lifted any cut-off dates for CA Foundation registration. Under the current regulations, they are January & July 1st, which will soon be history. The new regulations will allow the ICAI to conduct three yearly examinations.
The CA Foundation’s new syllabus:
The ICAI new scheme 2023 has also made some changes to the syllabus, and being a student, you must know the details. The Foundation course has four papers, and some adjustments have been made.
- Paper 1 is for 100 marks, and the topic is accounting.
- Paper 2 is again for 100 marks, and the subject is business laws.
- In paper 3, a student will have to answer questions about Quantitative Aptitude, which is a 100 marks paper. The questions will primarily be on business mathematics & logical reasoning, and statistics.
- In paper 4, a student will be tested on business economics, and once again, it is a 100 marks paper.
You will have to sit for these papers under the proposed CA Foundation syllabus. There have also been some changes to the pass criterion for the CA Foundation stage. A student must score 50% to crack the exam and have introduced negative markings. An examinee must face a 25-point negative marking for every wrong MCQ answer. The question type will be a blend of subjective and objective.
Understand the changes proposed in the CA Intermediate course:
The ICAI new scheme 2023 has not tweaked the eligibility criterion for the CA intermediate course. However, direct entry route students who intend to appear for the exam will have to undergo an 8-month study period. The registration validity for the CA intermediate course has been increased to five years from the current tenure of 4 years. However, a CA intermediate student can revalidate their registration only once. Here is the new syllabus for interested students.
- Paper 1 will test your knowledge of advanced accounting.
- Paper 2- Corporate laws
- Paper 3- Cost Management & Accounting
- Paper 4- Taxation
- Paper 5- Auditing and Code of Ethics
- Paper 6- Here, the Financial Management segment carries 50 marks, and the remaining 50 marks are for the Strategic Management segment
The negative marking concept also prevails here, and 25 marks will be deduced for every wrong answer. Students who get an exemption in any paper will be treated as passed, provided they secure over 50% marks on the remaining papers.
CA Articleship Training:
The ICAI new scheme 2023 has proposed some changes primarily for the benefit of students. The proposed scheme reduced the CA articleship duration from three to two years. However, it comes with a clause stating that students must have 1 year of work experience with a CA firm. A student must also display a certificate of practice from the concerned CA firm.
Under the new regulations, a student must clear both CA Intermediate and completion of ICITSS training to be eligible for articleship training. This move is beneficial because now a student can only focus on practical training and not be concerned about exams.
The good news for students is that the ICAI has increased the articleship stipend by 100%. However, since a student does not have to study, the new scheme proposes reducing leaves. A student can now only take 12 leaves a year.
CA Final Course:
The ICAI new scheme 2023 has also amended the CA Final Course pattern. The condition to register for the CA Final course has not been changed, but restrictions are imposed on the validity of the registration. Once you register, it is valid for 10 years, and the new regulations permit re-validation after paying a prescribed fee.
You can appear for the exam after cracking all 4 self-paced modules. A student should also complete a 6 months study period upon completion of practical training. Here is the proposed exam schedule under the new scheme.
- Paper 1- Financial Reporting
- Paper 2- Advanced Financial Management
- Paper 3- Advanced Auditing and Professional Ethics
- Paper 4- Direct tax laws and International Taxation
- Paper 5- Indirect tax laws
Like other modules, the CA Final paper will also have 30% MCQ-based questions. The concept of negative marking also prevails here.