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CAP II

CAP-II course is basically designed with an aim of providing students with requisite knowledge and skills in the subject. It consists of 7 Papers divided into 2 groups, Group 1 and Group 2.

Admission Eligibility of CAP II

Eligibility for Registration in CAP-II

A person in order to join the CAP-II should,

  1. pass the CAP-I Examination,

    2. OR

  2. be a Graduate or Post Graduate in Commerce, Business Administration or Management having Accounts, Audit and Tax as a major subject and secured a minimum of 50 % aggregate marks,

    3. OR

  3. be a Graduate or Post Graduate in Commerce, Business Administration or Management having major subject other than mentioned above and secured a minimum of 55 % aggregate marks,

    4. OR

  4. be a Graduate or Post Graduate other than above with a minimum of 60% aggregate marks.

Note:

  • Entry in CAP II without passing CAP I is allowed in the point (2), (3) and (4) above which is also called direct entry route. But even for Graduates and Post Graduates, if the aggregate marks as stated above in point (2), (3) and (4) are not secured, then the direct entry to CAP II is not allowed and candidate must pass CAP I.
  • “Graduate/Post Graduate” stands for Graduate/Post Graduate recognized by the government except subjects like Music, Fine Arts, Dance, Language, Literature, Culture etc.
  • Students who have passed examination under grading system, should provide evidence that his/her grades are equivalent to the percentage marks as mentioned in (2),(3) and (4) above.

FAQ

What to do before CAP I's results are published?

As the Gap between CAP I exams and CAP I results in 2.5 months, its a substantial time which can be utilized for starting your CAP II classes. At Gurukul, we start CAP II classes generally within 10 days of CAP I exams.

Can CAP II registration be done before CAP I results?

No, CAP II registration in ICAN is not allowed if CAP I results are pending. However student can start taking classes in that time.

What are the timings of CAP II classes?

In Gurukul, CAP II classes are held from 6:30 a.m. till 4:30 pm with 2 intervals of 30 minutes each. 

Registration Deadline

CAP II registration are open all over the year. However student shall register at least 9 months before the CAP II exams. CAP II exams are held similarly in June and December. So, 

To be eligible for CAP II exams in December,

  • The last date for registration is February End (So that from March 1 to November End is 9 months, which makes student eligible for December exams)
  • Generally, students who appear for CAP I in December exams, their results of CAP I are declared during the mid of February. These students generally have less than 15 days to register for CAP II. 

To be eligible for CAP II exams in June,

  • The last date for registration is August End (So that from September 1 to May End is 9 months, which makes student eligible for June exams)
  • Generally, students who appear for CAP I in June exams, their results of CAP I are declared during the mid of August. These students also generally have less than 15 days to register for CAP II. 

Course Structure

Grouping of subjects

There are seven subjects in CAP II which are divided in 2 Groups. Group 1 and Group 2.

Group 1 consists of three papers:
Paper 1: Advanced Accounting
Paper 2: Audit & Assurance
Paper 3: Corporate & Other Laws

 

Group 2 consists of four papers:
Paper 4: Financial Management
Paper 5: Cost & Management Accounting
Paper 6: Business Communication & Marketing
Paper 7: Income Tax & VAT

Paper 1 – Advance Accounting(One Paper-Three Hours-100 Marks)

Paper 1: Advanced Accounting requires working-level knowledge and is designed to 

  • Empower the applicants to learn about the accounting principles, practices, and policies used by various entities.
  • Assist the candidates in comprehending the applicable NFRS, legislation, principles, and procedures for creating and presenting accounting records.
  • Share knowledge about the methods and instruments used in the evaluation, interpretation, and presentation of the financial statements of businesses.
  • Educate candidates on the fundamentals of the computerized accounting system.

Exams of Paper 1 is of 100 marks where all the questions are subjective in nature.

The subject matter contains:

  1. Accounting
  2. Financial Reporting Standards
    • NFRS 3 Business combination
    • NAS 1 Presentation of financial statements 
    • NAS 2 Inventories
    • NAS 3 Statement of cash flows
    • NAS 8 Accounting policies, changes in accounting estimates, and errors
    • NAS 10 Events after the reporting period
    • NAS 16 Property, plant and equipment
    • NAS 17 Leases
    • NAS 18 Revenue
    • NAS 20 Accounting for government grants and disclosure of government assistance
    • NAS 21 The effect of changes in foreign exchange rates
    • NAS 37 Provisions, contingent liabilities, and contingent assets
  3. Accounting For Special Transactions
  4. Company Accounting
  5. Partnership Accounts
  6. Preparation & presentation of financial statements of special organizations
    • Banking and Financial Institutions
    • Insurance Companies
    • Agricultural Accounting
    • Accounting for co-operatives
  7. Preparation of financial statements from incomplete records.
  8. Government Accounting
  9. Analysis and interpretation of financial statements
  10. Accounting for NPOs
  11. Accounting in the computerized system

Paper 2 – Audit and Assurance(One Paper - Three Hours - 100 Marks)

Paper2: Audit and Assurance requires working-level knowledge and is designed to 

•  Improve candidates’ capacity to comprehend the appropriate auditing process.
• Improve the ability of candidates to demonstrate the capacity to record an organization’s internal control and accounting systems.
• Improve candidates’ abilities to recognize important risks and use instruments for risk assessment in the involvement.

Exams of Paper 2 is of 100 marks where all the questions are subjective in nature.

The subject matter contains:

  1. General concept
    • Auditing and assurance
    • Ethics
    • Regulatory compliance
  2. Planning an audit engagement
    • Understanding the entity and its environment and assessing the risk of material
      misstatement
    • Audit plan and audit strategy
    • Concepts of using approaches on audit planning
    • Internal control system and control environment, fraud and error
    • Application of analytical procedures
    • Materiality, tolerable error, and sample sizes
    • Design and documentation of plan and program
    • Evaluation of going concern assessment at the planning stage and use of standards related to going concerned in planning an audit engagement.
    • Co-ordinance and monitoring of the work. Evaluation of the internal control system
    • Transaction cycles (revenue, purchases, payroll, inventory, capital expenditure)
    • Communication with management and those charged with corporate governance
    • Evaluation of financial statement assertions assets, liabilities, income, and expenditure, including accounting estimates.
  3. Gathering Evidence during an audit engagement
  4. Using the work of others
  5. Internal audit and corporate governance
  6. Audit and conclusion and reporting
    • Concept of “Hot Review and Cold Review”
    • Audit finalization and final review
    • Concluding and reporting on engagements
    • Related services
  7. Government Audit
  8. Audit of specific organizations

Paper 3 – Corporate and Other Laws(One Paper-Two Sections- Three Hours-100 Marks)

Paper3: Corporate and Other Laws requires working level knowledge and is designed to

  • Recognize the fundamental concepts behind Nepalese commercial law and how they are applied in the workplace.

Exams of Paper 3 is of 100 marks where all the questions are subjective in nature.

The subject matter contains:

  1. Nepal Chartered Accountants Act, 2053 and Nepal Chartered Accountants Rules, 2061
  2. The Companies Act, 2063 [upto Section 119]
  3. Securities Act, 2063 [upto Section 70]
  4. Banks and Financial Institutions Act, 2073 [Upto Sec. 67]
  5. Nepal Rastra Bank Act, 2058 [upto Section 75]
  6. Industrial Enterprises Act, 2073
  7. Labor Act, 2074
  8. Bonus Act, 2030
  9. Muluki Dewani Samhita Ain, 2074 (Chapter V)
  10. Insurance Act, 2049
  11. Negotiable Instruments Act, 2034
  12. Social Welfare Act, 2049
  13. WTO and Nepalese Laws

Paper 4 – Financial Management(One Paper - Three Hours - 100 Marks)

Paper4: Financial Management requires working-level knowledge and is designed to

• Gain knowledge and awareness of financial management techniques to analyze the different sources of funding.
• Possibilities for capital investments and the use of various tools and approaches for company planning and control.

Exams of Paper 4 is of 100 marks where all the questions are subjective in nature.

The subject matter contains:

  1. Introduction and Fundamental Concepts of Financial Management
  2. Strategic Finance and Policy
  3. Analysis of Financial Statements
  4. Valuation of Securities
  5. Capital Investment Decision
  6. Working Capital Management and Financial Forecasting
  7. Distribution Policy
  8. Overview of Capital Market
  9. Investment opportunities in Nepalese Capital Market

Paper 5 – Cost and Management Accounting(One Paper - Three Hours - 100 Marks)

Paper 5: Cost and Management Accounting requires working-level knowledge and is designed for

• Comprehensive understanding of costing principles, as well as precise methods and paperwork associated with cost ascertainment systems, is essential.
• Present an explanation of how the foregoing knowledge can be applied to fundamental scheduling, management, and decision-making processes.

Exams of Paper 5 is of 100 marks where all the questions are subjective in nature.

The subject matter contains:

  1. Cost concepts and costing methods
    • Evolution of cost accounting
    • Definitions
    • Objectives of cost accounting
    • Importance of cost accounting
    • Cost accounting system
    • Cost concepts and elements of costs
    • Types and methods of costing
    • Cost, expenses, and loss
    • Relationship between cost accounting, financial accounting, management accounting and
      financial management
    • Classification of costs, Cost Centers, and cost unit
  2. Material Control
    • Purchasing, Receiving, Inspection, Storage, and Issuing of materials
    • Maintenance of inventory records
    • Techniques of material control
    • Pricing methods
    • Stock valuation material losses
    • Treatment of normal loss and abnormal loss of materials
    • Accounting of waste, scrap, spoilage, and defectives
    • Just In Time (JIT)
    • Material Requirement Planning (MRP)
  3. Labour Control
    • Direct and indirect labour
    • Control over labour costs
    • Attendance and payroll system
    • Treatment of holiday pay, idle time, overtime etc.
    • Labour turnover
    • Methods of wage payment
    • Incentive system
    • Accounting for labours
    • Job evaluation and merit rating
    • Efficiency rating procedures
  4. Overhead Control
    • Classification and Manufacturing of overheads
    • Office and administrative overheads
    • Selling and distribution overheads
    • Distribution of overheads
    • Absorption of overheads
    • Treatment of under-absorbed and over-absorbed overheads
    • Treatment of certain items in costing
    • Actual overhead rate vs. predetermined overhead rate
    • Blanket overhead rate vs. departmental overhead rate
    • Supplementary overhead rate
    • Concept related to capacity
    • Comprehensive machine hour rate
  5. Unit costing
    • Meaning
    • Cost sheet
    • Production statement
    • Production account
  6. Cost Accounts System, Cost Control (Integrated & Non-integrated Accounting System)
    • Non-integrated accounting system
    • Integrated accounting system
    • Reconciliation of cost and financial accounts
  7. Methods of Costing
    • Job Costing System
    • Batch Costing System
    • Contract Costing System
    • Process Costing System
    • Operating Costing System
  8. Cost Concepts for Decision Making
    • Cost Behavior
    • Methods of Separating Fixed and Variable Costs
    • Cost Volume Profit Analysis
    • Limiting Factor
    • Marginal Costing and Differential Costing
    • Marginal Costing and Absorption Costing
    • Budgets and Budgetary Control System
    • Standard Costing
    • Costing and Intern Firm Comparison
    • Control and Cost Reduction

Paper 6 – Business Communication and Marketing(One Paper- Two Sections-Three Hours-100 Marks)

Paper 6 is divided into two parts i.e.,

Section A: Business Communication

Section B: Marketing Level of Knowledge: Working

Paper 6: Business Communication and Marketing requires working level knowledge and is designed:

  • By undertaking writing assignments that provide circumstances that could arise in business organizations, students may acquire a knowledge of the importance of interaction in business and the communication process with basic qualities associated with company documents, letters, and reports.
  • Increase knowledge of informal corporate communications, and show interpersonal and effective capacity for listening in a collaborative context (team building) to display human relations skills.

Exams of Paper 6 is of 100 marks where all the questions are subjective in nature.

The subject matter contains:

Section A: Business Communication

  1. Introduction: Communicating at Work
    • Succeeding in the new workplace
    • Examining the process of communication
    • Overcoming interpersonal barriers
    • Communicating in organizations
    • Ethics in business communications
    • Strengthening your communication skills
  2. Working in Groups
    • Listening skills
    • Group interactions
    • Determining group goals
    • Individual roles in groups
    • Conflict resolution
    • Effective meetings
    • Writing notifications, agenda, and minutes
    • Giving and receiving feedback in groups
  3. Communicating Across Cultures
    • Importance of international business
    • Diversity in today’s workplace
    • Ways to look at culture
    • Values, beliefs, and practices
    • Nonverbal communication
    • Writing to an international audience
    • Learning more about international business communication Employment Communication
    • Preparing for employment
    • The persuasive resume
    • Emailing your resume
    • The persuasive letter of application
    • Follow-up letters
    • Interviewing for employment
  4. Writing Reports and Proposals
    • An inside perspective analyzing data and writing reports and proposals
    • A timetable for writing reports and proposals
    • Choosing information for reports and proposals
    • Analyzing data and information for reports and proposals
    • Organizing information in reports and proposals
    • Presenting information effectively
    • Report types informational and analytical
    • Proposal types technical and financial
    • Formal and informal reports and proposals

Section B: Marketing Level of Knowledge

  1. Meaning of Marketing and Marketing Mix
    • Marketing meaning and importance
    • Marketing mix meaning and components
    • Emerging marketing challenges
  2. Evolution of Marketing Concepts
    • Production, product, selling, marketing, customer & societal, Holistic concept
  3. Environmental Context of Marketing
    • Marketing environment meaning, importance
    • Micro environment forces in marketing
    • Macro environment forces in marketing
    • Impact of environment on marketing. Marketing environment in Nepal
    • Market Segmentation and Targeting
    • Market segmentation meaning, benefits and requirements
    • Process of market segmentation
    • Segmentation variables for consumer and industrial markets
    • Market targeting
    • Market segmentation in Nepal
  4. Market Information System
    • Meaning and importance of market information system
    • Components of market information system
    • Market research process
    • Problems of market information system in Nepal
  5. Buyer Behavior Analysis
    • Meaning and importance of buyer behavior
    • Stages of consumer buying behavior
    • Factors affecting consumer buying process
    • Features of organizational buying behavior
    • Factors affecting organizational buying behavior
    • Consumer buying behavior in Nepal
  6. Product Decisions
    • Product Meaning, levels, types
    • Product life cycle and marketing activities
    • Process of new product development and reasons for their failure
    • Product line and mix
    • Service product
    • Branding, packaging, and labeling
    • Product scenario in Nepal
  7. Price Decisions
    • Price meaning, importance, objectives, and factors affecting price determination
    • Methods of price determination
    • Pricing policies and strategies
    • Pricing scenario in Nepal
  8. Place Decisions (Distribution)
    • Place meaning, importance, and objectives
    • Marketing middlemen
    • Channels structures for consumer and industrial products
    • Physical distribution meaning and components
  9. Promotion Decisions
    • Promotion meaning, objectives
    • Promotion mix meaning and factors affecting it
    • Advertising meaning, importance, objectives, media
    • Public relations meaning, objectives, methods
    • Sales promotion meaning, objectives, methods
    • Personal selling meaning, objectives, methods
    • Promotion scenario in Nepal
  10. Emerging Concepts in Marketing
    • Relationship Marketing
    • E-commerce
    • Strategic Alliances
    • Green Marketing
    • Ethics in Professional Services Marketing

Paper 7 – Income Tax and VAT(One Paper - Three Hours - 100 Marks)

Paper 7 Income Tax and VAT is divided into two parts i.e.,

Part A: Income Tax

Part B: Value Added Tax of Nepal

Paper 7: Income Tax and VAT require working-level knowledge and are designed to

• Understand the rules controlling income taxation, profits from the disposal of assets and liabilities, criteria for sales, and presumed sales.
• Understand the fundamental ideas behind taxing income at various rates.
• Know the fundamental principles of tax planning.

Exams of Paper 7 is of 100 marks where all the questions are subjective in nature.

The subject matter contains:

Part A: Income Tax

The subjects matters contains:

  1. Basic Concept
    • Income Year
    • Assets
    • Persons
    • Income
    • Definition of Basic Concepts as Per Sec. 2
  2. Residential concept
    • Basis of Taxation
    • Tax Accounting
  3. Computation of taxable income
    • Calculation of Income From Business
    • Calculation of Income From Employment
    • Calculation of Income From Investment
    • Deductions Allowed From Taxable Income
    • Calculation of Net Gains From Disposal of Assets and Liabilities
    • Tax Credits
    • Quantification, Allocation and Characterization of Amounts
  4. Withholding Taxes
    • Concepts of Withholding Taxes
    • Payments Attracting Withholding Taxes
    • Final Withholding Taxes
    • Withholding Tax Returns
  5. Tax returns, Tax Assessments and Appeals
    • Estimated Tax Returns
    • Final Tax Returns
    • Revised Tax Assessment Process
    • Jeopardy Tax Assessment
    • Tax Collection, Waiver and Refund
    • Tax Administration – Duties and Power of DG, Tax Officer, Tax Office
  6. Other Fundamental Concepts of Income Tax Act
    • Provision of Income Tax Act

Part B: Value Added Tax of Nepal

The subject matter contains:

  1. Basic concepts
    • Definitions
    • Appointment of tax officer and his/her jurisdiction
    • Imposition of VAT
  2. Registration and cancellation
    • Registration
    • Cancellation of registration
  3. Taxable value, tax collections and offsets, refund of tax
    • Factors determining taxable value
    • Market value concept and its applicability
    • Tax collection
    • Offset of tax
    • Refund of tax
  4. Accounts and records
    • Invoices
    • Accounts and records

 

Exams and Passing Criteria

Hall Test or Postal Test (For Being Eligible To Write CAP II Exams)
For appearing in the CAP-II examination, students should complete the Pre-test exams (either Postal or Hall). Students should pass in at least one paper in each subject with a minimum of 40% marks in case of Postal Test Scheme or at least one paper in each subject with a minimum of 40% marks in Hall Test Scheme. Hall Test is compulsory for the student who registered their name in the Head Office and Postal Test is compulsory for the student who registered their name in other than Head Office.

CAP II Exams
Like CAP I, CAP II exams are also held generally in the first week of June and December. No gap is given during the exams except for Saturdays and public holidays. Routine and centre list are published in the ICAN’s official website at least 30 days before the exams.

Passing Criteria
A candidate will be declared to have passed CAP-II Examination only if he passes in BOTH the groups. However student can pass both the groups at once or one by one. For eg, student can pass Group 2 in one exams and sit and pass Group 1 in another exams. However the student would be declared having passed CAP II only after passing both the groups.

A candidate will be declared to have passed in both groups simultaneously if  at one sitting

i)  a minimum of 40% in each paper of each of the group and an aggregate of 50% of all the papers of each of the groups is secured OR

ii)  a minimum of 40% in each paper of both the groups and 50% in the aggregate of all the papers of both groups taken together is secured .

A candidate shall be declared to have passed in one group if

i) At one attempt a minimum of 40 % in each paper of the group AND 
ii) 50% in the aggregate of all the papers of that group.

 

Exemption

A student who has scored 60% or more in any paper(s) but has failed in that group, shall be entitled for exemption in that particular paper(s), provided,  a minimum of 30% in any one of the subjects of that group has been scored, and should have attempted all the papers in that group.
The exemption shall remain valid for the next three consecutive examinations but those students who are entitled for exemption are not considered for rank.

Distinction

A student securing 75% or above, in the aggregate of both groups, at one sitting, shall be considered to have secured distinction.

Fee Structure

ICAN Registration Fee: Rs 33,200
ICAN Exam Fee: Rs 7,200
Gurukul Tuition Fee: Rs 120,000
Total Fees: Rs 160,400

ICAN registration fee for CAP II can be paid at once or as following
On Registration: Rs 18,200
Within 3 months: Rs 15,000

Gurukul Tuition Fees can be paid as follows
On Admission: Rs 15,000
Within 2 months: 50% of remaining Fees
Within next 2 months: Remaining Fees

Scholarships Details

1. Scholarship on the basis of CAP I Board Exams taken by ICAN

  • All Nepal Rank One in CAP I: 100% Tuition fees of CAP II waived off
  • All Nepal Rank Two to Rank Five in CAP I: 60% Tuition fees of CAP II waived off
  • All Nepal Rank Six to Rank Ten in CAP I: 30% Tuition fees of CAP II waived off
  • Above 75% in CAP I: 10% Tuition fees of CAP II waived off

2. Scholarship on the basis of Gurukul's scholarship exams

Cash back !!!
  • 1st Position: Rs 10,000
  • 2nd Position: Rs 7,000
  • 3rd Position: Rs 5,000

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