CA Final FR: How to Answer Ind AS Questions

To answer an Ind AS question in CA Final FR, name the standard, state the principle that applies, apply it to the facts in the question, show the numbers, and finish with a conclusion or journal entry. That order earns marks even when your final figure is off. FR is Paper 1 of Group I and the November 2026 paper is on Monday 2 November, so this is the week to fix how your answers look.

An Ind AS answer that is only a number has nothing left to mark when the number is wrong. The reasoning on the page is what carries you.

TL;DR

• FR is 100 marks in 3 hours. In May 2026, Part I had 15 case-scenario MCQs of 2 marks each.
• Use five steps: standard, principle, facts, working, conclusion.
• Quote the standard by number and name, for example Ind AS 115, Revenue from Contracts with Customers.
• Show working notes for every figure you use.
• Check ICAI's applicability list for your attempt before revising amendments.

What does the CA Final FR paper look like?

Financial Reporting is 100 marks in three hours. In the May 2026 paper, Part I had 15 case-scenario MCQs of 2 marks each, so 30 marks. Part II carried 70 marks: Question 1 was compulsory and you answered four of the other five. Most of Part II is Ind AS application, with consolidation questions under Ind AS 103 and Ind AS 110 taking the longest.

ICAI lists the standards and amendments examinable in each attempt in its study material applicability note. Read the one for your attempt, not an older one.

Part I is 30 marks of MCQs and Part II is 70 marks of written Ind AS answers.

How should you structure an Ind AS answer?

1. Name the standard and the issue in one line: "The issue is allocation of transaction price under Ind AS 115."
2. State the principle in your own words, in two or three lines. Paragraph numbers are not needed.
3. Apply it to the facts. Pick out the facts in the question that trigger the rule.
4. Show the working, with each figure traced to the question.
5. Conclude. Give the amount, the period, and the journal entry or disclosure the question asks for.

I write the conclusion as a separate short paragraph starting with "Conclusion:". When the examiner looks for your answer, it is in one place.

Standard, principle, facts, working, conclusion: five steps, in that order, in every written Ind AS answer.

How does this work on a revenue question?

Here is a simple case. A company sells a machine with two years of maintenance for a single price of Rs 1,00,000. The standalone selling price of the machine is Rs 90,000 and of the two-year maintenance is Rs 30,000.

• Issue: two performance obligations in one contract, under Ind AS 115.
• Principle: allocate the transaction price on the basis of relative standalone selling prices.
• Machine: Rs 1,00,000 x 90,000 / 1,20,000 = Rs 75,000, recognised on delivery.
• Maintenance: Rs 1,00,000 x 30,000 / 1,20,000 = Rs 25,000, recognised over time, Rs 12,500 a year.
• Conclusion: revenue of Rs 75,000 at delivery and Rs 12,500 in each of the two years, with Rs 25,000 shown as a contract liability at the start.

The wrong answers I see are Rs 1,00,000 recognised on day one, or the whole discount of Rs 20,000 pushed onto the maintenance. Both ignore the allocation principle, and both lose most of the marks.

In revenue questions, the allocation working is where the marks sit.

What about an impairment question?

Under Ind AS 36, Impairment of Assets, a plant has a carrying amount of Rs 50 lakh. Fair value less costs of disposal is Rs 42 lakh and value in use is Rs 45 lakh.

• Recoverable amount is the higher of the two: Rs 45 lakh.
• Impairment loss: Rs 50 lakh less Rs 45 lakh = Rs 5 lakh, charged to profit or loss.

Students who take the lower figure, Rs 42 lakh, report a loss of Rs 8 lakh. Write the word "higher" in your answer. It shows the examiner you know the rule, and it stops the slip.

Recoverable amount is the higher of the two measures, and the loss is the excess of carrying amount over it.

Which mistakes do I see most in FR copies?

• Quoting the wrong standard, such as Ind AS 37 for an event after the reporting period, which is Ind AS 10.
• Long theory with no figures when the question asks for the amount.
• Working notes with no labels, so the examiner cannot tell which figure is which.
• No journal entry when the question says "pass the entries".
• Consolidation answers that skip the non-controlling interest working.

Each of these is about presentation. The student usually knew the concept.

How do you handle MCQs and the time?

Do Part I in about 45 minutes. The MCQs are built on case scenarios, so read the case once and answer all its questions together. That leaves 135 minutes for 70 marks of written answers, about 27 minutes per 14-mark question.

Use ICAI's RTP and MTP for the attempt to practise this split. Our exam-week tips post has a plan for the gap days in November.

About 45 minutes for MCQs and 27 minutes per written question keeps you on time.

If you are writing FR in May 2027, the Gradehunt CA Final test series lets you practise these answers on paper. Ex-examiners check your uploaded copy within 48 hours and mark the structure of each Ind AS answer step by step. The first paper is checked free.