CA Final Financial Reporing May 2024 Strategy Weigtage and ABC Analysis

CA Final Financial Reporting is not all about consolidation and business combination. Ind AS is provided to be quite scoring in recent attempts. You should try to attempt FR paper very well because being a first paper; it will affect performance in next papers also. Do not get stressed after seeing new questions in Exam. As per last 2-3 attempts, you will definitely get some new questions.

For passing the exam, Ind AS and other small chapters are sufficient. Consolidation, business combination and financial instruments are there to decide your exemption or Rank (if you are targeting).

Step 1 should be cover Ind AS and other small chapters very well and target 85 to 90% score in this part.

Step 2 should be to target business combination (various adjustments done in past also) and try to enter in financial instrument also. (It is expected that 2 or 3 questions will come from financial instruments in that 1 will be simple, we do not have to leave that one at any cost).

Step 3 Consolidation and other part of financial instrument. There are around 14 to 16 adjustments in consolidation. 80% adjustments are simple and common which is used in almost 75% questions. Other adjustment you need to spend some time and practice. If you know prepared for 80 to 85% of the chapter well, it is expected that in hard situation also you can score good marks in this portion.

Weightage and No. of Revision - Financial Reporting

FR (New)
Chapter No.	Chapter Name	Marks weightage	Days
1.	Framework for Preparation and Presentation of Financial Statements	10	2 days
2.	Ind AS on Presentation of Items in the Financial Statements	20	2 days
	· Unit 1: Ind AS 1: Presentation of Financial Statements
	· Unit 2: Ind AS 34: Interim Financial Reporting
	· Unit 3: Ind AS 7: Statement of Cash Flows
3.	Ind AS 115: Revenue from Contracts with Customers	8	2nd revision
4.	Ind AS on Measurement based on Accounting Policies	15	3 days
	· Unit 1: Ind AS 8: Accounting Policies, Changes in Accounting Estimates and Errors
	· Unit 2: Ind AS 10: Events after the Reporting Period
	· Unit 3: Ind AS 113: Fair Value Measurement
5.	Other Indian Accounting Standards	10	2nd revision
	· Unit 1: Ind AS 20: Accounting for Government Grants and Disclosure of Government Assistance
	· Unit 2: Ind AS 102: Share Based Payment
6.	Ind AS 101: First-time Adoption of Ind AS	7	1 day
7.	Ind AS on Assets of the Financial Statements	12	2nd revision
	· Unit 1: Ind AS 2: Inventories
	· Unit 2: Ind AS 16: Property, Plant and Equipment
	· Unit 3: Ind AS 116: Leases
	· Unit 4: Ind AS 23: Borrowing Costs
	· Unit 5: Ind AS 36: Impairment of Assets
	· Unit 6: Ind AS 38: Intangible Assets
	· Unit 7: Ind AS 40: Investment Property
	· Unit 8: Ind AS 105: Non-Current Assets held for Sale and Discontinued Operations
8.	Ind AS 41: Agriculture	8	1 day
9.	Ind AS on Liabilities of the Financial Statements	10	2 days
	· Unit 1: Ind AS 19: Employee Benefits
	· Unit 2: Ind AS 37: Provisions, Contingent Liabilities and Contingent Assets
10	Ind AS on Items impacting the Financial Statements	12	2 days
	· Unit 1: Ind AS 12: Income Taxes
	· Unit 2: Ind AS 21: The Effects of changes in Foreign Exchange Rates
11	Ind AS on Disclosures in the Financial Statements	14	2nd revision
	· Unit 1: Ind AS 24: Related Party Disclosures
	· Unit 2: Ind AS 33: Earnings Per Share
	· Unit 3: Ind AS 108: Operating Segments
12	Accounting and Reporting of Financial Instruments	15	4 days
	· Unit 1: Financial Instruments: Scope and Definitions
	· Unit 2: Financial Instruments: Equity and Financial Liabilities
	· Unit 3: Classification and Measurement of Financial Assets and Financial Liabilities
	· Unit 4: Recognition and Derecognition of Financial Instruments
	· Unit 5: Derivatives and Embedded Derivatives
	· Unit 6: Disclosure
	· Unit 7: Hedge Accounting
13	Business Combination and Corporate Restructuring	10	4 days
14	Consolidated Financial Statements	20	5 days
	· Unit 1: Introduction to Consolidated Financial Statements
	· Unit 2: Important Definitions
	· Unit 3: Separate Financial Statements
	· Unit 4: Consolidated Financial Statements
	· Unit 5: Consolidated Financial Statements: Accounting of Subsidiaries
	· Unit 6: Joint Arrangements
	· Unit 7: Investment in Associates & Joint Ventures
	· Unit 8: Disclosures
15	Analysis of Financial Statements	8	1 day
116	Integrated Reporting	5	1 day
117	Corporate Social Responsibility	10	2 days

Study Plan / ABC Analysis of Financial Reporting May 2024

Small and Easy	Fair	Medium	Difficult and Need more practice
Ind AS 113,2,23,38,105,41,37, 24	Ind AS 20,16, 36 (imp),40,19, 12,21,33,108	Ind AS 115, 102 (we noticed various mistakes in this Ind AS) , 116	Financial Instrument
			Consolidation
Framework for Financial statements, integrated reporting and CSR		Business combination
Revise at last Ind AS 1, 34,7,8,10,101
2 times Revision only	3 times Revision	3 times Revision	2 Times Revision
Take 4 to 5 days to Revise	Take 5 days and practice, focus more on questions	8 days, solve maximum questions, 80% focus on solving questions only	Study 4 to 6 adjustments per day, Cover all in 6 to 8 days

From which chapter to start preparing

Start your preparation from category B then category C.

After then pick the Holding Chapter and spread it over 5 days, say if you have 20-25 questions in the chapter solve only 5 questions in a day and at last complete the rest of the remaining syllabus.

Donot spend much time on Ind As theory, quickly revise from your class notes and then start attempting problems. Problems will help to shape the concepts and improve understanding. Prepare a mistake notebook and note each mistake even it is small.

Prefer to study all unique adjustments in the problems in study material, RTP, MTP and note down how to solve that, try to crack the conceptual point or treatment to adjustment within first minute for time management purpose. Write each adjustment on notebook and give sufficient attention to each. Write their treatment on notebook.

More scoring part of Financial Reporting

Framework of financial statement, Ind AS 20, 21, 38, 16, 10, Share based payment (Ind AS 102) are most scoring.

Business combination and consolidation have good weightage but more time consuming.

Past trend Chapters of Financial Reporting

Topics	Questions in Past exams
Ind AS 103	16 marks	16 marks
Ind AS 20	4 marks	4 marks
Ind AS 32/107/109	14 marks	12 marks
Ind AS 105	10 marks
Ind AS 102	8 marks	8 marks
Ind AS 23	8 marks	8 marks
Ind AS 21	4 marks	4 marks
Ind AS 115	12 marks	5 marks
Ind AS 38	8 marks
Analysis of FS	12 marks	16 marks
Ind AS 16	8 marks
Ind AS 10	8 marks	4 marks
Ind AS 113	8 marks	8 marks

Around 64 marks paper was basic concept based, 28 marks fundamental and 16 marks are typical.

Which questions to attempt first or Correct order to attempt Financial Reporting paper

Although it depends on the paper but you should try to answer short questions first (carrying 6 to 8 marks). FR paper will be lengthy, first attempt mechanical questions where you do not have to confuse with the concepts and Invest more time. If you start attempting big questions first, it need lot of time and it will build pressure to attempt other questions.

So in starting 1 hour your target should be to cover maximum questions of 4 to 6 marks.

Attempt business combination and consolidation in last 1 hour.

Your understanding to the question should be very accurate so that you should answer only those parts which are required in the question. Do not waste even single minute on un-required part, examiner is not interested in related information about the topic. You need to be very enthusiastic on exam day.

Important Questions/Amendments of Financial Reporting

Revise Ind AS 116 lease very carefully and patiently. Most important in FR is to solve problems rather than only revising the concepts.

All ICAI study mat questions, last 3 attempt RTPs and 2 MTPs. In Last 1 month, keep yourself engage in problem solving. Because the way of studying concepts is different and way of solving problems will be different.

We are providing 100 important questions of FR which cover almost all the concepts. You should try those questions.

Common Mistakes / Tips for Financial Reporting

You have to practice solving a good number of questions on each topic. Try to solve each problem on your own (by yourself), in spite of just audit solutions from a notebook or study material. So, Do practice on a regular basis. Do not refer to a solution from your notebook or anywhere else.

Use of proper and prescribed format for presentation of accounts. Do not try to skip, preparation of Balance Sheet in a revised schedule format with notes. State currency in subjects such as costing and accounts and draw columns with double lines when time permits.

Adequate Working Notes in supporting to your answers and State the assumption clearly

Answer the questions with due emphasis on the provisions of Accounting Standards

Go through each and every topic thoroughly and understand conceptual points supporting each topic

Try to solve as many questions as you can and also go through Practice Manual, Revision test papers, Suggested answers, Mock Test papers. (to the extent possible and available).

You should test your preparation by attempting some previous exam paper, revisions test papers, mock test papers under the ultimate exam condition or environment. Later on, check the result of your effort and make the necessary corrections/modifications to your study preparations.

Provide Total columns where applicable in accounts and costing, Similarly state narrations to journal entries in the case of accountancy.

If the balance sheet is not tallying in the case of accounts, apply the principle of double-entry by ticking off the entries. Any figure taken from a tallied statement should appear only once, and the rest, twice on opposite sides. Finally, check the totals. If still, they do not tally, write totals as they come and do try to deceive the evaluator.

Never forgot to Attempt Test Papers before your exams