FR 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. Don’t 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 don’t 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
|1.||Framework for Preparation and Presentation of Financial Statements|
|2.||Ind AS on Presentation of Items in the Financial Statements|
|· 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|
|4.||Ind AS on Measurement based on Accounting Policies|
|· 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|
|· 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.||Ind AS on Assets of the Financial Statements|
|· 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|
|9.||Ind AS on Liabilities of the Financial Statements|
|· 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|
|· 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|
|· 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|
|· 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|
|14||Consolidated Financial Statements|
|· 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|
|117||Corporate Social Responsibility|
Study Plan / ABC Analysis
|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
Framework for Financial statements, integrated reporting and CSR
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
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
Questions in Past exams
Ind AS 103
Ind AS 20
Ind AS 32/107/109
Ind AS 105
Ind AS 102
Ind AS 23
Ind AS 21
Ind AS 115
Ind AS 38
Analysis of FS
Ind AS 16
Ind AS 10
Ind AS 113
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 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 don’t 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. Don’t 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.
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
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. Don’t refer to a solution from your notebook or anywhere else.
Use of proper and prescribed format for presentation of accounts. Don’t 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
Motivation – I think there is no need to teach the importance of 1attempt to CA Final Students. Start giving 100% from today, do it for your parents. You have covered a long road, now the end is very close.
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Ok Thanks, Best of luck