The CAP II syllabus in Nepal has officially been updated and renamed. The Institute of Chartered Accountants of Nepal (ICAN) revised its syllabus structure, replacing the familiar CAP II level with the new “Application Level”. This 9-month intermediate course is divided into Group I and Group II. The very first exams for this new syllabus will be held in December 2026. To advance to your Articleship, you must clear these exams and complete mandatory communication training.
Table of Contents
CAP II syllabus in Nepal
Overview: The Shift from CAP II to Application Level
Exciting changes are on the horizon for aspiring Chartered Accountants in Nepal!. ICAN has updated its curriculum to ensure the profession remains globally recognized and relevant.
The previous levels (CAP I, CAP II, CAP III) are being phased out. The intermediate level, traditionally known and searched as the CAP II syllabus in Nepal, has officially been replaced by the Application Level. This level marks the transition from foundational bookkeeping to heavy corporate analysis.
(Need to understand how this fits into your total 4.5-year journey? Read more: CA Course in Nepal – The Complete Beginner’s Guide)
Eligibility & Transition Deadlines (2025–2026)
If you are currently studying for the CA foundation or planning to register soon, you must pay attention to ICAN’s strict transition timelines for the new syllabus.
- Course Duration: The new Application Level (formerly CAP II) is designed to take exactly 9 months to complete.
- Registration Cut-off: Students registering for the second level on or after November 1, 2025, will register strictly under the new syllabus.
- First Exam Batch: The December 2026 exams will be the first batch tested under the new Application Level syllabus.
- Last Old Syllabus Exam: The June 2027 exams will be the absolute last batch tested under the existing CAP II syllabus.
The New Application Level Syllabus (Subject Breakdown)
The new CAP II syllabus in Nepal (Application Level) has modernized the subjects, adding objective Multiple Choice Questions (MCQs) and focusing heavily on strategy and technology. The curriculum is divided into two distinct groups.
Group I Subjects
- Paper 1: Financial Accounting and Reporting. This paper is tested with 100% subjective questions.
- Paper 2: Audit and Assurance. This paper includes 30% objective questions and 70% subjective questions.
- Paper 3: Applied Law. This paper includes 30% objective questions and 70% subjective questions.
Group II Subjects
- Paper 4A: Management Accounting. This section features 100% subjective questions.
- Paper 4B: Financial Management. This section features 100% subjective questions.
- Paper 5: Business Strategy. This paper is tested with 30% objective questions and 70% subjective questions.
- Paper 6: Applied Taxation. This paper is tested with 30% objective questions and 70% subjective questions.
Exam Pattern & Time Limits
Because ICAN has introduced 30% objective MCQs to several papers, the exam timing rules have been strictly adjusted.
- Subjective Papers (Paper 1 & Paper 4): For the 100% subjective papers, students are provided 3 hours plus an extra 15 minutes to read the questions.
- Mixed Papers (All Others): For the papers containing 30% MCQs and 70% subjective questions, students are given exactly 3 hours with no additional time to read questions.
Mandatory GMCS Training Before Articleship
Passing your Application Level exams is only the first step. Before you can join an audit firm for your 3-year Articleship, you must complete specialized training.
ICAN will organize General Management and Communication Skills (GMCS) Training for all students who have qualified the Application Level.
- This program needs to be attended mandatorily before submitting the articleship deed to the Institute.
- The main objective of this program is to orient the students about professional attire, professional culture, behavior, and etiquettes.
- The training educates students about the basic level of management and communication skills.
- Students learn about their responsibility and authority within Audit Firms and Clients’ Offices.
- The program emphasizes the importance of confident public speaking and interpersonal communication.
3 Quick Tips for Intermediate Students
- Adapt to the Objective Format: Do not take the 30% MCQ sections lightly. Since there is no extra reading time for these papers, you must practice quick decision-making to finish your exam within the strict 3-hour limit.
- Understand Corporate Law & Tax: Rote memorization will no longer work. The new “Applied Law” and “Applied Taxation” papers will test your ability to solve real-world corporate scenarios.
- Prepare for the GMCS Early: Keep your schedule flexible after your board exams so you can immediately attend the mandatory GMCS training. Without it, your 3-year Articleship clock will not start!
Ready to look ahead at your 3-year practical training? Check out our next guide: CA Articleship Guide: What to Expect in Your 3-Year Training?
Frequently Asked Questions (FAQs)
What is the new name for the CAP II syllabus in Nepal?
The Institute of Chartered Accountants of Nepal (ICAN) has revised its syllabus structure and officially renamed the CAP II level to the Application Level.
How long is the new Application Level (CAP II) course?
The new Application Level course has a mandatory study duration of exactly 9 months.
When will the first exams for the new Application Level take place?
The first batch of examinations under the new Application Level syllabus will take place in December 2026. The final exam for the old syllabus will occur in June 2027.
What training is required after passing the Application Level?
Before submitting your articleship deed and joining an audit firm, all students who have qualified the Application Level must mandatorily attend the General Management and Communication Skills (GMCS) Training.
CAP II syllabus in Nepal
