PracticeVideosBlogFlashcardsEspañol
All Practice Exams

100+ Free ICAB AL Corporate Reporting Practice Questions

Prepare for the ICAB CA Advanced Level Corporate Reporting (Bangladesh) exam with instant access — no signup required.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately
100+ Questions
100% Free

Loading practice questions...

Same family resources

Explore More ICAB Chartered Accountancy (Bangladesh)

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

ICAB CA Certificate Level Assurance (Bangladesh)

Practice QuestionsStudy Guide

ICAB CA Professional Level Business Planning: Taxation & Compliance (Bangladesh)

Practice Questions

ICAB CA Advanced Level Case Study (Bangladesh)

Practice Questions

ICAB CA Advanced Level Strategic Business Management and Leadership (Bangladesh)

Practice Questions

ICAB CA Certificate Level Accounting (Bangladesh)

Practice Questions

ICAB CA Certificate Level Business and Finance (Bangladesh)

Practice Questions
2026 Statistics

Key Facts: ICAB AL Corporate Reporting Exam

3.5 hours

Exam duration

ICAB Syllabus-2025

3 questions

Integrated questions in the written paper

ICAB Syllabus-2023 method of assessment

40-50%

Weighting of corporate reporting compliance

ICAB Syllabus-2025 specification grid

Tk. 5,500

Advanced Level technical paper fee

ICAB CA education FAQ

ICAB AL Corporate Reporting is a comprehensive 3.5-hour, 100-mark Advanced Level capstone examination. This practice set provides 100 rigorous MCQs and scenario questions covering group consolidations, financial instruments, complex revenue, deferred tax, auditing, and ethics.

Sample ICAB AL Corporate Reporting Practice Questions

Try these sample questions to test your ICAB AL Corporate Reporting exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under IFRS 3 Business Combinations, which of the following best defines a 'business' for the purpose of determining whether an acquisition is a business combination rather than an asset acquisition?
A.Any collection of assets and liabilities that has generated gross revenues in the preceding twelve months
B.An integrated set of activities and assets capable of being conducted and managed to provide goods or services to customers, generate investment income, or generate other income from ordinary activities
C.A legal entity registered under the Companies Act with issued share capital and active board governance
D.A bundle of physical assets that includes at least one piece of freehold property and workforce contracts
Explanation: IFRS 3 Appendix A defines a business as an integrated set of activities and assets capable of being conducted and managed to provide goods or services to customers, generate investment income, or generate other income from ordinary activities. It requires at least an input and a substantive process applied to that input that together significantly contribute to the ability to create output.
2Padma Ltd acquired an 80% equity interest in Meghna Ltd for Tk. 500,000 in cash. At the acquisition date, the fair value of Meghna Ltd's identifiable net assets was Tk. 550,000, and the fair value of the 20% non-controlling interest (NCI) was Tk. 120,000. Under the full goodwill (fair value) method, what is the goodwill recognized on consolidation?
A.Tk. 60,000
B.Tk. 70,000
C.Tk. 50,000
D.Tk. 120,000
Explanation: Under the full goodwill method, Goodwill = Consideration transferred (Tk. 500,000) + Fair value of NCI (Tk. 120,000) − Fair value of identifiable net assets (Tk. 550,000) = Tk. 620,000 − Tk. 550,000 = Tk. 70,000. (Under the proportionate method, NCI would be 20% × 550,000 = Tk. 110,000, yielding goodwill of Tk. 60,000).
3In accounting for a business combination under IFRS 3, how must acquisition-related costs (such as finder's fees, legal fees, valuation advisory, and due diligence costs) be treated?
A.Capitalized as part of the purchase consideration and included in the goodwill calculation
B.Expensed in profit or loss in the periods in which the costs are incurred and the services received
C.Deducted directly from equity as a reduction of share premium
D.Capitalized as an intangible asset and amortized over a period not exceeding five years
Explanation: IFRS 3.53 explicitly requires that acquisition-related costs be recognized as expenses in profit or loss in the periods in which they are incurred, except costs to issue debt or equity securities, which are accounted for under IFRS 9 / IAS 32 (e.g. deducted from share premium).
4Jamuna PLC acquired 100% of Surma Ltd for cash consideration of Tk. 380,000. At the date of acquisition, the fair value of Surma Ltd's identifiable net assets was determined to be Tk. 420,000. Before recognizing a gain on bargain purchase, what does IFRS 3 require Jamuna PLC to do, and where is the resulting gain recognized?
A.Reassess whether all acquired assets and assumed liabilities have been correctly identified and measured; if a surplus remains, recognize Tk. 40,000 in profit or loss
B.Recognize Tk. 40,000 immediately in other comprehensive income as a non-distributable capital reserve
C.Amortize Tk. 40,000 to profit or loss over the remaining weighted-average useful life of the non-monetary assets acquired
D.Deduct Tk. 40,000 from the carrying amount of non-current assets on a pro-rata basis
Explanation: IFRS 3.34-36 requires the acquirer to conduct a reassessment to ensure all assets acquired and liabilities assumed have been correctly identified and measured at fair value. Once confirmed, any remaining excess (bargain purchase gain of Tk. 40,000) must be recognized immediately in profit or loss on the acquisition date.
5An acquirer obtains control of an entity on 1 October 2024. At the reporting date of 31 December 2024, the valuation of an acquired specialized plant is provisional at Tk. 180,000. On 15 April 2025, within the measurement period, new information about facts and circumstances existing at the acquisition date confirms the plant's acquisition-date fair value was Tk. 150,000. How should this adjustment be accounted for under IFRS 3?
A.Recognize an impairment loss of Tk. 30,000 in profit or loss for the year ended 31 December 2025
B.Retrospectively adjust the provisional plant value down by Tk. 30,000, increasing goodwill recognized at acquisition date by Tk. 30,000
C.Recognize an expense of Tk. 30,000 in other comprehensive income for the year ended 31 December 2025
D.Make no adjustment to goodwill or plant, but disclose the valuation update in the notes to the 2025 financial statements
Explanation: Under IFRS 3.45-49, if new information is obtained during the measurement period (maximum 12 months from acquisition) about facts and circumstances that existed at the acquisition date, the acquirer retrospectively adjusts the provisional amounts recognized, with a corresponding adjustment to goodwill.
6In a business combination, an acquirer agrees to issue a fixed number of 100,000 ordinary shares to the former owners of the acquiree after two years if cumulative sales exceed Tk. 10,000,000. Under IAS 32 and IFRS 3, how should this contingent consideration be classified at acquisition, and how are subsequent changes in value accounted for?
A.Classified as a financial liability; remeasured at fair value at each reporting date with changes in profit or loss
B.Classified as equity; not subsequently remeasured, and its subsequent settlement is accounted for within equity
C.Classified as a provision under IAS 37; adjusted through goodwill until the shares are issued
D.Classified as a contingent asset; not recognized until the target is met
Explanation: Because the obligation is to deliver a fixed number of the entity's own equity shares ('fixed-for-fixed' criterion under IAS 32), the contingent consideration is classified as equity. Under IFRS 3.58, contingent consideration classified as equity is not subsequently remeasured, and its eventual settlement is accounted for within equity.
7On 1 January 2024, Karnaphuli Ltd acquired 75% of Teesta Ltd. Part of the consideration was a contingent cash payment of Tk. 50,000 payable on 31 December 2025 if profit targets are met. The acquisition-date fair value of this liability was Tk. 40,000. At 31 December 2024, due to unexpected demand, the fair value of the contingent liability increased to Tk. 46,000. How is the Tk. 6,000 increase recognized under IFRS 3 and IFRS 9?
A.Increase Goodwill by Tk. 6,000 as a retrospective acquisition adjustment
B.Recognize an expense / loss of Tk. 6,000 in Profit or Loss for 2024
C.Debit Other Comprehensive Income (OCI) by Tk. 6,000 with no reclassification
D.Adjust directly against Consolidated Retained Earnings without passing through Profit or Loss
Explanation: Under IFRS 3.58(b), contingent consideration that is a financial liability (obligation to pay cash) is subsequently remeasured at fair value at each reporting date under IFRS 9, with changes recognized in Profit or Loss (unless part of a measurement period adjustment resulting from facts existing at acquisition date). Post-acquisition operating changes are recognized in P&L.
8When an acquirer settles a contingent consideration arrangement that was originally classified as an equity instrument upon the acquisition of a subsidiary, how should the final issuance of shares be recorded if the fair value of the shares on settlement differs from the acquisition-date value?
A.The difference between settlement fair value and initial equity carrying amount is recognized in Profit or Loss
B.Goodwill is adjusted for the difference between settlement fair value and initial equity carrying amount
C.No gain or loss is recognized in Profit or Loss; the transaction is settled within equity components
D.The full settlement value is charged to Other Comprehensive Income
Explanation: Under IFRS 3.58(a), contingent consideration classified as equity is not remeasured at fair value after the acquisition date. Its subsequent settlement is accounted for entirely within equity (e.g. transferring from contingent consideration reserve to share capital/share premium), with no impact on Profit or Loss or Goodwill.
9Dhaka Holdings acquired 100% of Chittagong Services Ltd. Chittagong Services has an unpatented internally developed customer list and an internally generated brand name that were expensed in its own individual financial statements under IAS 38. How should Dhaka Holdings treat these items in the consolidated financial statements under IFRS 3?
A.They cannot be recognized on consolidation because they were not recognized in the subsidiary's separate financial statements
B.They must be recognized separately from goodwill at fair value on acquisition date if they are separable or arise from contractual or legal rights
C.They must be subsumed into goodwill regardless of whether they can be reliably measured or separated
D.They should be recognized only if cash flows can be independently guaranteed by an external valuation specialist
Explanation: IFRS 3.B31-B34 requires the acquirer to recognize identifiable intangible assets acquired in a business combination separately from goodwill if they meet the identifiability criterion (separable or arising from contractual/legal rights), even if the acquiree had not recognized them prior to the combination because they were internally generated.
10In a business combination, the seller agrees to fully indemnify the acquirer for the outcome of a pending tax lawsuit against the acquiree. The acquirer recognizes an environmental liability of Tk. 80,000 at fair value. How should the indemnification asset be recognized and measured under IFRS 3 at the acquisition date?
A.Recognized at its nominal maximum claim amount of Tk. 100,000 as a contingent asset
B.Recognized at the same time and on the same measurement basis as the indemnified liability, subject to any collectibility valuation allowance (Tk. 80,000)
C.Netted against the environmental liability with zero net disclosure on the statement of financial position
D.Deducted directly from goodwill with no separate asset recognized
Explanation: IFRS 3.27-28 requires an indemnification asset to be recognized at the same time and measured on the same basis as the indemnified item (in this case Tk. 80,000), subject to the need for a valuation allowance for uncollectible amounts.

About the ICAB AL Corporate Reporting Exam

ICAB Advanced Level Corporate Reporting is the pinnacle financial accounting and assurance module of the ICAB CA qualification. It integrates complex IFRS/BFRS business combinations, group restructuring, advanced accounting standards (IFRS 9, 15, 16, IAS 12, 19, 36), BSA/ISA group and forensic auditing, Key Audit Matters (ISA 701), and professional ethics alongside IFRS S1/S2 sustainability reporting.

Assessment

ICAB Syllabus-2025 Advanced Level Corporate Reporting (100 marks, 3.5 hours). Specification grid: Corporate Reporting - Compliance 40-50%; Corporate Reporting - Financial Statement Analysis 10-15%; Audit and Assurance 30-40%; Ethics 5-10%; Public Financial Management 5-10%.

Time Limit

3.5 hours (210 minutes)

Passing Score

Not published as a percentage. ICAB reports subject-wise pass/fail results per sitting and does not publish a permanent public pass mark - confirm the current examination regulations on icab.org.bd.

Exam Fee

Advanced Level examination fee Tk. 5,500 per technical paper (ICAB CA education FAQ). ICAB revised Certificate and Professional Level fees at its 778th Council meeting on 27 April 2025 without announcing an Advanced Level change - confirm the fee on the sitting circular at exam.icab.org.bd. (Institute of Chartered Accountants of Bangladesh (ICAB))

ICAB AL Corporate Reporting Exam Content Outline

40-50%

Corporate Reporting - Compliance

Formulating, implementing and evaluating accounting and reporting policies for single entities and groups: IFRS 3 business combinations including contingent consideration, measurement period adjustments, step acquisitions and indemnification assets; IFRS 10 control, complex and vertical group structures, intra-group eliminations, changes in ownership and loss of control; IAS 21 translation of foreign operations; IAS 28 associates; IFRS 9 classification, measurement, expected credit losses, compound instruments and hedge accounting; IFRS 15 revenue including variable consideration and principal versus agent; IFRS 16 leases and sale and leaseback; IAS 12 deferred tax on business combinations and losses; IAS 19 defined benefit plans and the asset ceiling; and IAS 36 cash-generating unit impairment.

10-15%

Corporate Reporting - Financial Statement Analysis

Analysis and interpretation of corporate reports for a range of stakeholders - ratio and trend analysis, segmental and cash flow analysis, evaluating the effect of accounting policy choices and off-balance-sheet structures on reported performance and position, and identifying earnings manipulation and creative accounting. NOTE: this practice bank does not yet carry questions dedicated to this syllabus area - see the review record for the outstanding coverage gap.

30-40%

Audit and Assurance

Group audits under ISA 600 (Revised) including significant components, component materiality and group audit instructions, auditing accounting estimates and Level 3 valuations under ISA 540 (Revised), external confirmations, substantive analytical procedures, going concern evaluation and reporting under ISA 570 (Revised), Key Audit Matters under ISA 701, modified opinions under ISA 705 (Revised), Emphasis of Matter and Other Matter paragraphs under ISA 706 (Revised), and agreed-upon procedures engagements under ISRS 4400 (Revised).

5-10%

Ethics

The IESBA and ICAB fundamental principles and conceptual framework, threats and safeguards, key audit partner rotation and non-assurance service prohibitions for public interest entities, non-compliance with laws and regulations (NOCLAR), confidentiality and permitted disclosure, conflicts of interest, and the ethical evaluation of aggressive earnings management. This area also carries the sustainability reporting content of the module - IFRS S1 and IFRS S2 - which this bank groups with ethics and governance.

5-10%

Public Financial Management

Public financial management and public sector reporting, including IPSAS application and the transition from cash to accrual accounting. NOTE: this practice bank does not yet carry questions on this syllabus area - see the review record for the outstanding coverage gap.

How to Pass the ICAB AL Corporate Reporting Exam

What You Need to Know

  • Passing score: Not published as a percentage. ICAB reports subject-wise pass/fail results per sitting and does not publish a permanent public pass mark - confirm the current examination regulations on icab.org.bd.
  • Assessment: ICAB Syllabus-2025 Advanced Level Corporate Reporting (100 marks, 3.5 hours). Specification grid: Corporate Reporting - Compliance 40-50%; Corporate Reporting - Financial Statement Analysis 10-15%; Audit and Assurance 30-40%; Ethics 5-10%; Public Financial Management 5-10%.
  • Time limit: 3.5 hours (210 minutes)
  • Exam fee: Advanced Level examination fee Tk. 5,500 per technical paper (ICAB CA education FAQ). ICAB revised Certificate and Professional Level fees at its 778th Council meeting on 27 April 2025 without announcing an Advanced Level change - confirm the fee on the sitting circular at exam.icab.org.bd.

Keys to Passing

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

ICAB AL Corporate Reporting Study Tips from Top Performers

1Master standard 5-step group consolidation workings: (W1) Group structure, (W2) Net assets of subsidiary at acquisition & reporting date, (W3) Goodwill calculation, (W4) Non-controlling interest, and (W5) Consolidated retained earnings.
2Work through complex step-acquisition calculations where previously held equity interests are remeasured to fair value through profit or loss under IFRS 3.
3Thoroughly practise IFRS 9 staging rules and the 3-stage Expected Credit Loss (ECL) model, including the difference between 12-month ECL and lifetime ECL.
4Understand the mechanics of deferred tax on business combination fair value adjustments under IAS 12 and its direct impact on goodwill.
5In assurance scenarios, practice articulating specific, substantive audit procedures tailored to the risks identified (e.g. testing assumptions in DCF models for IAS 36 impairment or ISA 540 estimates).
6Frame ethical answers using the IESBA conceptual framework: Identify threats to fundamental principles, evaluate their significance, and propose practical safeguards.

Frequently Asked Questions

What is the format and duration of the ICAB Advanced Level Corporate Reporting exam?

The examination is a 3.5-hour (210 minutes) written paper comprising 100 marks. It features 3 to 4 comprehensive, multi-disciplinary case scenarios combining group accounting, financial reporting standards, audit issues, and professional ethics.

How are group accounts and business combinations tested in Corporate Reporting?

Candidates are tested on complex consolidation techniques under IFRS 3, IFRS 10, and IAS 28, including step acquisitions, piecemeal disposals, vertical (chain) and mixed group structures, foreign currency subsidiaries (IAS 21), and intra-group unrealized profit eliminations.

What accounting and auditing standards are examined?

The paper examines Bangladesh Financial Reporting Standards (BFRS/IFRS), International Financial Reporting Standards (IFRS), Bangladesh Standards on Auditing (BSA/ISA), the ICAB/IESBA Code of Ethics, and recent sustainability disclosure standards (IFRS S1 and S2).

What is the examination fee for ICAB Advanced Level Corporate Reporting?

The examination fee for Advanced Level subjects is Tk. 5,500 per subject under current ICAB circulars. Candidates should verify the exact sitting fee on exam.icab.org.bd when registering.

How does this practice bank help candidates prepare for a written exam?

While the official ICAB examination is case-study written, this 100-question practice bank isolates core technical principles, complex worked calculation mechanics (goodwill, NCI, deferred tax, ECL, lease amortisation), and audit/ethical judgment scenarios to build strong conceptual mastery.

What is the passing score for Advanced Level papers?

ICAB does not publish a percentage pass mark for this paper. Results are reported subject by subject as pass or fail, and the widely repeated '50%' figure could not be confirmed in any ICAB syllabus, brochure or examination-regulation source. Prepare to the standard of the specification grid and confirm the current examination regulations on icab.org.bd.

Which ICAB syllabus applies to the 2026 examinations?

ICAB has published the Revised CA Syllabus-2025, which applies from the November 2026 examination session onwards (coaching under the revised curriculum started 10 August 2026). Under that syllabus the Advanced Level Corporate Reporting and Strategic Business Management & Leadership papers each run for 3.5 hours and the Case Study runs for 4.5 hours; all three remain written papers. Older web sources still quote the 3-hour and 4-hour durations from the 2018 new-curriculum notice.