SUMMERY OF EXAMINERS & HEAD EXAMINERS COMMENTS DECEMBER 2010 EXAMINATION SYLLABUS 2008 INTERMEDIATE GROUP-I

IP/05: FINANCIAL ACCOUNTING:Question wise comment:

1) This compulsory question was attempted by all students and the performance was satisfactory. Study of Institutes study notes is very much essential. 2a) Conceptual clarity is seen. But calculation of Interest was not correct in most cases. Proper practice from text books and study material is very much needed. b) Good attempt except few. 3a) Performance is very poor. Knowledge of Journal Entries for Unclaimed Dividend and Corporate Dividend Tax is very much lacking. Since, this is a practical problem; candidates must fully acquire sound knowledge for perfection. b) Poor performance and very much disappointing. In order to improve knowledge on the topic there is no substitute but to do rigorous practice and follow study material and good text books. 4a) Most of the candidates attempted this question but could not arrive at the correct result. Lack if sound knowledge is seen. It is suggested students must practice old questions followed by reference to study notes and good text books. b) Performance was not satisfactory. 5a) Performance was average. Regular practice of Partnership problems only will help the examinees to overcome the hurdle. b) Good attempt in general. 6a) Answer quality was less than average. Text book knowledge is a must for improvement of the answer. b) Poor performance. Lack of conception was observed. 7a) Performance was average. Sound knowledge of Branch Stock a/c and Branch Adjustment a/c is lacking. b) Answer was moderate.

8) Answer was average. GENERAL GUIDENCE: From the performance it is observed that students are not at all serious about the paper and a casual approach was noticed. There are two parts in this paper- Theory and Practical. For theory portion study materials and text books must be read. And for practical portion problems should be solved from study material, old question papers and problems from good text books. If all of the above is followed sincerely, students will perform better. IP/06: COMMERCIAL AND INDUSTRIAL LAWS AND AUDITING: Question wise comments: Q.No 1(a,b,c,d,e,f,g) Comments It is observed that performance of the candidates was not up to the mark. They failed to write the relevant provisions. The answers were generally in order. However in subparts (f) and (h) the quality of the answers reflected poor knowledge about E.P.F. and Consumer Protection Act. For part (a) performance in general was poor. Candidates could not refer to statutory provisions. And for part (b) very few could give correct answer. Both subparts (a) and (b) was answered satisfactorily and subpart (c) was not answered properly. Some of the candidates gave wrong answers showing inadequate knowledge of Company Law. As many of the questions on Auditing involve Company Law, such knowledge is essential. In general the candidates wrote fairly good answer. But the level of knowledge of the candidates in answering related to Company Law reflected that they were not conversant with the provisions. Majority of the candidates did not write proper answer and were not clear about the applicability of I.F.R.S. to Companies and I.T. audit in respect of systems. In general the question was attempted well but most of the candidates were not clear

about distinction between Indian GAAP and US GAAP, a requirement of CARO and concept of Information System Audit. GENERAL COMMENTS: The quality of most of the answers reflected candidates lack of analytical ability and in depth knowledge in the subject. They also reflected lack of proper awareness of the provisions of the acts. Time management was not proper. Answering of questions in proper order is also advised. IP/07: APPLIED DIRECT TAXATION Comments on performance : The performance of the students discernable from the review of the sample is that the students have not fared satisfactorily. In the case of most of the examinees, the theory questions were answered in a poor fashion, exhibiting poor communication skills and lack of knowledge of the subject matter. For many a theory question and problem based question, answers of poor quality were seen in several samples. Most of the students were not aware of the recent amendments.

INTERMEDIATE: GROUP II IP/08: COST AND AMNAGEMENT ACCOUNTING: Question wise comments:1) Majority of the candidates did well and scored good marks. 2a) Performance was poor as most of them failed to take into account the credit to be given for sales realization from the by-product. b) Mixed performance as candidates, even when aware of the topic, could not express properly. 3a) Problem was on Cash Budget and most of the answers were wrong. Common mistake was failure to calculate the collection from Debtors after considering cash discount of 2% on only 20% of the sales of the month. Presentation (format) of Cash budget was also not up to the mark. b) Only a few candidates came up with correct description evidencing lack of knowledge of the subject. 4a) Theory question on labour turnover was generally well answered.

b) Answers were mostly incorrect as the candidates failed to take into account all the parameters like level of efficiency, idle time etc.and thus failed to work out correctly the net profit before and after agreement. 5a) Majority of the answers was not up to the mark and showed lack of theoretical knowledge. b) Many failed to work out correctly the Machine Hour Rate after considering normal loss as indicated. 6a) Candidates failed to draw proper conclusions from the evaluation of the different options. b) Most of the answers were not very clear on the differences showing lack of knowledge of standard costing. 7a) Theoretical question on Batch Costing produced answers mostly of average quality. b) Many failed to work out the correct solution and merged Plant I with Plant II without increasing capacity capacity of Plant II to 100%. 8) Most of the answers were not in brief and to the point resulting in very elaborate descriptive answers, which was unnecessary. Quality of answers was average. Suggestions for improvement: a) It is observed that at least 50% of the candidates sat in the examination without proper preparation. To be successful intensive study of the subject is necessary. Students should study ICWA study notes supplemented with recommended text books and should also solve problems from past papers. b) Students must take care to improve their hold over written English and also practice for neat and proper presentation of their answers.

IP/09: OPERATIONS MANAGEMENT AND INFORMATION SYSTEMS Question wise comments: 1a) Very few scored all 5 questions correctly. It seems candidates have little knowledge about PERT. 1b) Satisfactory. Most answered correctly. 1c) Not satisfactory. Most examinees gave wrong answers. 2) Satisfactory but many lack knowledge about CRP.

3) Many did not attempted part C and others gave wrong answer for the same. 4) Unsatisfactory. Many had no idea about network diagram. No one answered the question on grading method. 5, 6&7) Satisfactory. Performance was reasonably good. 8) Unsatisfactory. Computer as Audit Tool and Audit charter were very poor. GENERAL GUIDELINES: Most of the candidates were very poor in English and presentation. Answering objectives and practical problems correctly can fetch more marks. IP/10: APPLIED DIRECT TAXATION. Comments on performance of the examinees The overall performance has not been up to the level which may be expected from the students desirous of entering into this profession of high expertise and knowledge. Their answers exhibited lack of systematic and logical approach, clear presentation, proper and adequate conceptual and analytical explanation. They had poor knowledge of concepts and also lacked inadequate practice to solve diverse range of practical problems. Certain candidates did not start answer to each question on a fresh page as instructed by the Institute. More questions having different parts were answered by some of the examinees at different places of their answer books.

GENERAL GUIDELINES: a) Examinees are advised to read and understand the questions. b) Consultation of standard reference books and study notes is a must. c) Due attention must be given to orderly presentation, suitable format and sufficient working notes in order to fetch good marks. d) Consultation of past question papers are a must. e) Comprehensive preparation and acquiring in depth knowledge of the subject matter is extremely required. f) Avoid unnecessary and irrelevant details in the answers to the questions.

g) Adequate practice of theoretical and practical problems is essential to acquire command over the fundamentals of the subject matter.

FINAL GROUP-III
FP/11: CAPITAL MARKET ANALYSIS AND CORPORATE LAWS. Question wise comments: 1) No adequate preparation for objectives is observed. Answers were vague for part (b) and for part (c) no one could give correct answer. 2) For part (a) answers were mostly in general terms. Very few could give correct answer. Calculation for systematic and unsystematic risk was wrong for part (b). 3) a) It seems students did not have adequate knowledge about market impact cost; most of the answers were vague. b) Unsatisfactory performance shows inadequate knowledge. c) Poor performance. Wrong calculation of RRR. d) Unsatisfactory performance. e) Poor performance, showing lack of concept of NAV. 4) Students did not have adequate knowledge about Banking Ombudsman Scheme 2006, CIS management, Black Scholes method, calculation of Option pricing. 5) For both the parts students performance was very poor, shows inadequate knowledge and preparation. 6) Majority of the students gave wrong answers. Answers were mostly in general depicting lack of knowledge. 7) Answers were mostly in general. Lack of knowledge of Competition Act and other provisions are seen. 8) Very few students mentioned the objectives of RTI Act for part (a). For part (b) majority answered correctly. Answers for part (c) shows lack of knowledge of CII Code.

FP/12: Financial Management and International Finance Question wise comments:

1a) Most of the students answered it but it should be remembered that answers should commensurate with marks. Many used one full page for an each question. b) Satisfactory. Need not write the question but just have to mention TRUE or False. 2a) Most of the students gave examples but not precise definition. Round about answers must be avoided. b) Majority talked about cost of capital but application of knowledge should be improved. 3a) No one answered this question correctly. Half answers should be avoided. 4a) Some could not differentiate between fund flow and balance sheet. Questions should be understood properly. b) No one answered completely. 5a) Very few answered completely. Majority ignored merger and goodwill. b) No one answered correctly. 6a) Very few correct answers. Interest calculation was wrong. b) Very few correct answers. 7a) Answers were not in relevance to the question. b) Majority correct answer. Good attempt. 8) No one answered properly. GENERAL GUIDELINES: a) Examinees are advised to read and understand the questions. b) Consultation of standard reference books and study notes is a must. c) Due attention must be given to orderly presentation, suitable format and sufficient working notes in order to fetch good marks. d) Consultation of past question papers are a must.

FP/ 13: MANAGEMENT ACCOUNTING STRATEGIC MANAGEMENT Question wise comments:

The overall performance of the examinees is good. As much as 66.6% of examinees have obtained 40% and above marks and 10.3% have scored 60% marks. Objective questions were attempted well. 2a, 2b& 3a are typical questions and require specific answers. Instead the students gave vague answers covering the general aspects of the subject. Students are advised to develop their conceptual skills on the subject to answer such questions. 3b & 4b were easily answerable but many students could not score good marks because of poor presentation. 6a was a basic question on Risk Management. The average performance was not up to the mark. Rest of the questions viz 2b, 4a, 6a, 7a, 7b and 8 were easy and straight forward and majority could do well.

General guidelines: Students are advised to go through the study materials thoroughly and suggested answers of previous years and build up their conceptual skills and fundamentals.

FP/14: Indirect & Direct Tax Management Question wise comments: 1) Performance of students was generally satisfactory. 2) For (a) and (b) answers were good. For (c) wrong calculation of depreciation in most cases. 3) In case (a) students did not explain concept of Sec 89(1) but (b) (c) & (d) were answered well. 4) Satisfactory performance. However, students need to be updated on rates of tax applicable. 5) Satisfactory. Good attempt. However justifications for part (b) & (c) were missing. 6) Few students answered this question. 7) Some answered it well. Mistake in determining amount of deduction u/s 80CCC, 80D and 80DD was observed. 8) Good performance.

GENERAL GUIDELINES: Answers should be in relevance with the marks allotted in terms of length and coverage. Knowledge of the provisions of the bare acts is required and students need to practice solving questions from study materials, past papers and text books to improve result. FINAL GROUP IV

FP/15: MANAGEMENT ACCOOUNTING- ENTERPRISE PERFORMANCE MANAGEMENT The overall performance in the objective type question was good. For those who could not do well in this question are advised to go through the Institutes study material and past suggested answers thoroughly. Examinees by and large could answer 3b & 6. Question 5 and 7a were correctly attempted by the majority examinees. Other questions were straight forward and average performance was good.

GENERAL GUIDELINES: Overall 53% of the examinees have been able to score 40% marks out of which 17% scored marks more than 50%.For those who have failed it is suggested that they go through the study materials and text books and thereby built up their fundamentals and concepts.

FP/16: Advanced Financial Accounting and Reporting Question wise comments: 1) In general, candidates wrote fairly good answers except part (a) where they could not explain the concept of Firm Commitments and factoring. 2a) Not well attempted by majority of candidates. b) It seems some candidates were confused between security and guarantee. c) Candidates failed to calculate the amount of Purchase consideration. 3a) The accounting treatment for Cenvat credit and corresponding Journal Entries were not correctly prepared by majority of the candidates. (b) & (c) Average performance.

4a) The performance was satisfactory. Although majority failed in stating the relevant financial information. b) Poor performance. c) Disclosure requirements of deferred tax assets were not correctly shown by majority of the candidates. 5a) Lack of knowledge on EVA and its calculation is seen. b) Average performance. Wrong calculation as per prov. 7. c) Important aspects like terms of appointment were not mentioned by many candidates. 6a) Candidates answers exhibited confused and inadequate knowledge of concept of capital and revenue profits in terms of holding company. Performance was below average level. (b) & (c) It seems most of the candidates were not aware of Schedule VI of Companies Act. 7) Proper knowledge on A.S. is lacking. 8 a) Key differences between I.F.R.S., US GAAP & IGAAP related to extra ordinary events and dividend on ordinary shares were not correctly pointed out by many of the candidates. b) Satisfactory performance. c) Most of the candidates failed to determine the amount of provision to be made for all options in the books of accounts and consequently performances of the candidates were not up to the mark.

FP/17: COST AUDIT AND OPERATIONAL AUDIT Comments and guidelines: 1) Candidates performance will depend upon the full and thorough coverage of all the chapters of the study notes. Overall performance is not at all satisfactory. 2) It is advised to answer all the questions within 2 hrs keeping 15 mins for reading the question paper. 3) Choice or proper selection of questions to be answered is also an important point as it would help in securing more marks.

4) Practical oriented questions are to be practiced from different text books and foreign Institutes model questions. 5) Candidates should go through the latest amendments and circulars regarding audit.

FP/18: BUSINESS VALUATIONS MANAGEMENT Question wise comments: 1) Most students have scored good marks. 2) Question on Intellectual Capital and Balanced scorecard was attempted satisfactorily. 3) Attempted by few but performance is not good. 4) Performance was not satisfactory. 5) Good attempt. Solved well by most students. 6) It is understood that due to lack of practice students could not answer question on value of business based on free cash flows very well. 7) Solved satisfactorily by majority students. 8) Majority did not attempt this question. General Guidelines: Students are advised to go through the study notes and text books for better understanding of the topics. They should also practice solving theory and practical problems from past question papers as it would help improve speed and gain good marks.

Disclaimer: The summary of comments of the Head Examiner/ Examiners has been given as guidance to assist the students in preparing themselves for the Institutes examinations. The opinion has been given by the Head Examiners/ Examiners and should not be taken to reflect the views of The Institute of Cost and Works Accountants of India.