CA Final PAPER 6: INTEGRATED BUSINESS SOLUTIONS Syllabus

PAPER 6: INTEGRATED BUSINESS SOLUTIONS syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for PAPER 6: INTEGRATED BUSINESS SOLUTIONS in CA Final, not a summary of it.

1. 1

   Case study based on:

   7 topics

   • Financial Reporting
   • Advanced Financial Management
   • Advanced Auditing, Assurance and Professional Ethics
   • Direct Tax Laws & International Taxation
   • Indirect Tax Laws
   • Corporate and Economic Laws
   • Strategic Cost & Performance Management

PAPER 6: INTEGRATED BUSINESS SOLUTIONS flashcards for CA Final

18 of 50 cards from the PAPER 6: INTEGRATED BUSINESS SOLUTIONS deck — real questions with worked answers.

1. In Ind AS 113, what is the order of the fair value hierarchy from most to least reliable?

   Level 1 (quoted prices in active markets for identical assets), Level 2 (observable inputs other than Level 1), Level 3 (unobservable inputs).

2. Under Ind AS 116, how does a lessee initially measure the right-of-use asset?

   At cost = initial lease liability + lease payments made at/before commencement (less incentives) + initial direct costs + estimated dismantling/restoration costs.

3. What are the three elements that must coexist for an arrangement to be a business combination under Ind AS 103?

   An acquirer obtaining control, of a business (inputs + processes producing outputs), accounted for by the acquisition method.

4. State the five-step revenue recognition model under Ind AS 115.

   1) Identify the contract; 2) Identify performance obligations; 3) Determine transaction price; 4) Allocate price to obligations; 5) Recognise revenue as/when obligations are satisfied.

5. Under Ind AS 36, how is an asset's recoverable amount determined?

   The higher of (a) fair value less costs of disposal and (b) value in use (present value of expected future cash flows).

6. How does Ind AS 109 classify financial assets, and what drives the classification?

   Into Amortised Cost, FVOCI, or FVTPL — based on the business model for managing the asset and the contractual cash flow (SPPI) characteristics.

7. What is the formula for Basic Earnings Per Share under Ind AS 33?

   Basic EPS = (Net profit attributable to equity holders − preference dividends) ÷ Weighted average number of equity shares outstanding.

8. Define a 'contingent liability' under Ind AS 37.

   A possible obligation from past events confirmed by uncertain future events not wholly in the entity's control, OR a present obligation not recognised because outflow is not probable or amount cannot be reliably measured; it is disclosed, not provided.

9. In a business combination, how is goodwill computed under Ind AS 103?

   Goodwill = (Consideration transferred + non-controlling interest + fair value of previously held interest) − fair value of identifiable net assets acquired.

10. What is the Weighted Average Cost of Capital (WACC) formula?

    WACC = (E/V × Ke) + (D/V × Kd × (1−t)), where E=equity, D=debt, V=E+D, Ke=cost of equity, Kd=cost of debt, t=tax rate.

11. State the Capital Asset Pricing Model (CAPM) equation for cost of equity.

    Ke = Rf + β × (Rm − Rf), where Rf=risk-free rate, β=beta, (Rm−Rf)=market risk premium.

12. What does the Dividend Discount Model (Gordon Growth) value a share at?

    P0 = D1 ÷ (Ke − g), where D1=next year's dividend, Ke=cost of equity, g=constant growth rate.

13. In options, define 'intrinsic value' versus 'time value'.

    Intrinsic value = the in-the-money amount (max of zero and exercisable gain). Time value = option premium − intrinsic value, reflecting time to expiry and volatility.

14. What is the put-call parity relationship for European options?

    C + PV(K) = P + S, i.e., Call price + present value of strike = Put price + spot price (same strike & expiry).

15. Define the Sharpe Ratio and what it measures.

    Sharpe Ratio = (Portfolio return − Risk-free rate) ÷ Standard deviation of portfolio. It measures excess return per unit of total risk.

16. What is the Treynor Ratio and how does it differ from Sharpe?

    Treynor = (Portfolio return − Risk-free rate) ÷ Beta. It measures excess return per unit of systematic (market) risk, whereas Sharpe uses total risk (SD).

17. Define duration of a bond and what it indicates.

    Duration is the weighted average time to receive a bond's cash flows; it measures the bond's price sensitivity to interest rate changes (interest-rate risk).

18. What is the formula for the Money Market Hedge to cover a foreign currency payable?

    Invest the present value of the payable (at the foreign rate) today by borrowing domestic currency at spot, so the matured foreign investment settles the payable — locking in the cost.

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