100+ Free ICAB PL Financial Accounting & Reporting Practice Questions

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2026 Statistics

Key Facts: ICAB PL Financial Accounting & Reporting Exam

3.5 hours

Exam duration

ICAB Syllabus-2025

100 marks

Total marks

ICAB Syllabus-2025

40-50%

Weighting of single entity financial statements

ICAB Syllabus-2025 specification grid

Tk. 2,500

Professional Level exam fee per paper

ICAB CA brochure, May 2025

ICAB PL Financial Accounting & Reporting is a core 100-mark, 3.5-hour Professional Level written exam testing comprehensive IFRS financial statement preparation and group consolidations. This practice question bank provides 100 rigorous MCQs with full step-by-step calculation workings across the four syllabus areas.

Sample ICAB PL Financial Accounting & Reporting Practice Questions

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

1According to the IASB Conceptual Framework for Financial Reporting, what is the primary objective of general purpose financial reporting?

A.To provide financial information about the reporting entity that is useful to existing and potential investors, lenders, and other creditors in making decisions relating to providing resources to the entity

B.To determine the taxable income and compute the corporate tax liability payable to the national revenue authority

C.To assess the liquidation value of the entity's net assets for secured creditors in the event of insolvency

D.To provide information exclusively tailored to internal management for operational day-to-day decision-making

Explanation: Under the IASB Conceptual Framework (Chapter 1), the primary objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders, and other creditors in making decisions about providing resources to the entity (e.g., buying, selling, or holding equity and debt instruments).

2Under the IASB Conceptual Framework, which two qualitative characteristics are identified as the 'fundamental' qualitative characteristics of useful financial information?

A.Relevance and Faithful Representation

B.Comparability and Verifiability

C.Timeliness and Understandability

D.Prudence and Substance Over Form

Explanation: The Conceptual Framework explicitly distinguishes fundamental qualitative characteristics (Relevance and Faithful Representation) from enhancing qualitative characteristics (Comparability, Verifiability, Timeliness, and Understandability). Financial information must be relevant and faithfully represented to be useful.

3Which of the following best describes the role of 'enhancing qualitative characteristics' in the IASB Conceptual Framework?

A.They enhance the usefulness of information that is already relevant and faithfully represented, but cannot make non-relevant or unfaithful information useful

B.They take precedence over fundamental qualitative characteristics when there is a conflict in measurement

C.They must all be fully satisfied before an entity is permitted to recognize an asset or liability

D.They allow entities to omit material disclosures if providing them would be costly or untimely

Explanation: Enhancing qualitative characteristics (comparability, verifiability, timeliness, understandability) improve the usefulness of information that is relevant and faithfully represented. Applying enhancing characteristics cannot make information useful if that information is irrelevant or does not provide a faithful representation.

4Under the revised IASB Conceptual Framework (2018), how is an 'asset' defined?

A.A present economic resource controlled by the entity as a result of past events

B.A resource with physical substance owned by the entity expected to generate future cash inflows

C.An inflow of economic benefits arising from ordinary activities of an enterprise

D.A past expenditure that guarantees profitable future commercial outcomes

Explanation: The Conceptual Framework defines an asset as 'a present economic resource controlled by the entity as a result of past events.' An economic resource is further defined as a right that has the potential to produce economic benefits.

5Under the IASB Conceptual Framework, which condition is essential for an entity to have a 'present obligation' that gives rise to a liability?

A.The entity has no practical ability to avoid the transfer of an economic resource, and the obligation has arisen from past events

B.The counterparty must have already initiated formal legal proceedings against the entity

C.The exact amount and timing of the cash outflow must be known with mathematical certainty

D.The obligation must be legally enforceable in a court of law with signed documentation

Explanation: A liability is defined as a present obligation of the entity to transfer an economic resource as a result of past events. An obligation exists if the entity has no practical ability to avoid the transfer as a result of past events, which includes constructive obligations as well as legal obligations.

6What is the IASB Conceptual Framework's criterion for the recognition of an item in the financial statements?

A.Only items that meet the definition of an asset, liability, equity, income, or expense are recognized, provided recognition provides relevant information and a faithful representation

B.Any item involving cash transactions must be recognized immediately regardless of future economic potential

C.An asset or liability is recognized only if the probability of economic inflow or outflow is 100% certain

D.Recognition is automatic whenever management signs a commercial contract without regard to execution

Explanation: Under Chapter 5 of the Conceptual Framework, an item is recognized only if it meets the definition of an element (asset, liability, equity, income, or expense) and recognition results in both relevant information about the item and a faithful representation of the item.

7The IASB Conceptual Framework categorizes measurement bases into two main categories: Historical Cost and Current Value. Which of the following is categorized under 'Current Value'?

A.Fair Value, Value in Use / Fulfilment Value, and Current Cost

B.Historical Cost less Accumulated Depreciation only

C.Net Realizable Value and Amortised Cost only

D.Nominal Par Value and Share Premium

Explanation: The Conceptual Framework (Chapter 6) groups measurement bases into Historical Cost and Current Value. Current value measurement bases include Fair Value (IFRS 13), Value in Use (for assets) / Fulfilment Value (for liabilities), and Current Cost.

8Under Section 181 of the Companies Act 1994 of Bangladesh, for what minimum period is a company required to preserve its statutory books of account?

A.At least 12 years immediately preceding the current year

B.At least 5 years immediately preceding the current year

C.At least 3 years immediately preceding the current year

D.At least 20 years immediately preceding the current year

Explanation: Section 181(3) of the Companies Act 1994 (Bangladesh) mandates that the books of account of every company relating to a period of not less than 12 years immediately preceding the current year, together with vouchers relevant to any entry in such books, shall be preserved in good order.

9Under Schedule XI of the Companies Act 1994 (Bangladesh), how must the Profit and Loss Account disclose managerial remuneration and auditor fees?

A.They must be disclosed separately under distinct statutory line items/notes in the Profit and Loss Account

B.They may be merged and aggregated within general office administrative expenses without separate disclosure

C.They must be directly deducted from opening retained earnings in the balance sheet

D.They are not required to be disclosed if the company is a private limited company

Explanation: Schedule XI Part II of the Companies Act 1994 explicitly requires detailed, separate disclosure of amounts paid to directors/managers as remuneration, fees, allowances, perquisites, and payments made to statutory auditors for audit and other services.

10Under Section 189 of the Companies Act 1994 (Bangladesh), who must sign the balance sheet and profit and loss account of a company before submission to the statutory auditors?

A.At least two directors, including the Managing Director where there is one, or by all directors if there are fewer than two

B.Only the Chief Financial Officer and internal auditor

C.The company secretary and the statutory audit partner alone

D.Any single shareholder holding more than 10% of voting shares

Explanation: Section 189(1) of the Companies Act 1994 specifies that every balance sheet and profit and loss account of a company must be approved by the board of directors and signed on behalf of the board by not less than two directors, one of whom shall be the Managing Director where there is one.

About the ICAB PL Financial Accounting & Reporting Exam

ICAB Professional Level Financial Accounting & Reporting develops candidates' ability to prepare, present, and analyze complex single entity and consolidated financial statements in full compliance with International Financial Reporting Standards (IFRS / BFRS), the Companies Act 1994, Bangladesh Securities and Exchange Commission (BSEC) regulations, and the IASB Conceptual Framework. The module tests thorough technical mastery of revenue recognition (IFRS 15), lease accounting (IFRS 16), business combinations (IFRS 3), group consolidation (IFRS 10), financial instruments (IFRS 9), impairment (IAS 36), deferred taxation (IAS 12), and earnings per share (IAS 33).

Assessment

ICAB Syllabus-2025 Professional Level Financial Accounting and Reporting (100 marks, 3.5 hours). Specification grid: Accounting and reporting concepts and ethics 5-10%; Single entity financial statements 40-50%; Consolidated financial statements 25-30%; Public Sector Financial Reporting and Accounting 10-15%; Islamic Finance 10-15%.

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

Professional Level examination fee Tk. 2,500 per paper (ICAB CA brochure, May 2025, following the fee revision agreed at the 778th Council meeting on 27 April 2025). ICAB's older FAQ page still prints the superseded Tk. 3,300 figure - confirm the fee on the sitting circular at exam.icab.org.bd. (Institute of Chartered Accountants of Bangladesh (ICAB))

ICAB PL Financial Accounting & Reporting Exam Content Outline

5-10%

Accounting and reporting concepts and ethics

The IASB Conceptual Framework - objective of general purpose financial reporting, fundamental and enhancing qualitative characteristics, the 2018 definitions of assets and liabilities, recognition criteria and the historical cost versus current value measurement bases - together with the Bangladeshi statutory reporting overlay (Companies Act 1994 books, signing and disclosure rules, BSEC listing and CEO/CFO certification requirements) and the ethical issues that arise in preparing financial statements.

40-50%

Single entity financial statements

Preparation and presentation of single entity financial statements under IAS 1 and the application of individual standards with supporting calculations: IAS 16 property, plant and equipment and revaluations, IAS 20 government grants, IAS 23 borrowing costs, IAS 36 impairment, IAS 37 provisions and contingencies, IAS 38 intangibles and development costs, IAS 40 investment property, IAS 12 income taxes and deferred tax, IFRS 13 fair value measurement, IFRS 15 revenue, IFRS 16 leases, IFRS 9 financial instruments, IAS 7 cash flows, IAS 8 policies, estimates and errors, and IAS 33 earnings per share.

25-30%

Consolidated financial statements

IFRS 3 business combinations - consideration, contingent consideration, goodwill under both NCI measurement bases, bargain purchases and step acquisitions; IFRS 10 control, intra-group eliminations, unrealised profit on upstream and downstream trading and asset transfers, fair value adjustments and additional depreciation, mid-year acquisitions, changes in ownership interest and disposals; and IAS 28 equity accounting for associates including unrealised profit and loss-limitation rules.

10-15%

Public Sector Financial Reporting and Accounting

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

10-15%

Islamic Finance

Accounting for Islamic financial products and the application of AAOIFI Financial Accounting Standards to single entity transactions and reporting scenarios, as newly introduced by ICAB Syllabus-2025. 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 PL Financial Accounting & 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 Professional Level Financial Accounting and Reporting (100 marks, 3.5 hours). Specification grid: Accounting and reporting concepts and ethics 5-10%; Single entity financial statements 40-50%; Consolidated financial statements 25-30%; Public Sector Financial Reporting and Accounting 10-15%; Islamic Finance 10-15%.
Time limit: 3.5 hours (210 minutes)
Exam fee: Professional Level examination fee Tk. 2,500 per paper (ICAB CA brochure, May 2025, following the fee revision agreed at the 778th Council meeting on 27 April 2025). ICAB's older FAQ page still prints the superseded Tk. 3,300 figure - 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 PL Financial Accounting & Reporting Study Tips from Top Performers

1Master consolidation standard workings: Working 1 (Group structure), Working 2 (Net assets of subsidiary at acquisition and reporting date), Working 3 (Goodwill / bargain purchase), Working 4 (Non-controlling interest), and Working 5 (Consolidated retained earnings).

2Practice multi-step deferred tax computations under IAS 12, distinguishing between taxable and deductible temporary differences, accelerated tax depreciation, and asset revaluations.

3Understand the 5-step model in IFRS 15 and know how to allocate transaction prices to separate performance obligations based on standalone selling prices.

4Be confident in lessee accounting under IFRS 16, including calculating initial right-of-use asset cost (present value of lease payments + initial direct costs + restoration provisions) and lease liability amortisation with split current/non-current presentation.

5Learn specific Bangladesh statutory requirements under the Companies Act 1994 (Schedule XI disclosure requirements, books of accounts) and BSEC corporate governance and quarterly reporting notifications.

Frequently Asked Questions

What is ICAB Professional Level Financial Accounting & Reporting?

It is a core technical paper in the Institute of Chartered Accountants of Bangladesh (ICAB) CA Professional Level curriculum under Syllabus 2023. It equips students to prepare and critique complex single entity and consolidated financial statements in accordance with IFRS/BFRS, company law, and securities regulations.

What is the format and duration of the ICAB PL FAR examination?

The official ICAB examination is a 3.5-hour (210 minutes) written paper carrying 100 marks. It includes major computational questions on group consolidation, comprehensive single entity financial statement preparation, and standard-specific accounting scenarios.

What accounting standards are tested in ICAB PL FAR?

The paper tests International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) as adopted in Bangladesh as BFRS/BAS. Key standards include IAS 1, IAS 12, IAS 16, IAS 20, IAS 23, IAS 28, IAS 33, IAS 36, IAS 37, IAS 38, IAS 40, IFRS 3, IFRS 9, IFRS 10, IFRS 13, IFRS 15, and IFRS 16.

What is the examination fee for ICAB Professional Level papers?

The Professional Level sitting fee is Tk. 2,500 per paper according to the ICAB CA brochure of May 2025, reflecting the fee revision agreed at ICAB's 778th Council meeting on 27 April 2025. ICAB's older education FAQ page still prints the superseded Tk. 3,300 figure, so verify the exact fee on the sitting circular at exam.icab.org.bd.

What is the pass mark for ICAB Professional Level examinations?

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.

How does this practice bank help prepare for the written ICAB PL FAR exam?

Although the official ICAB examination is written, this 100-question practice bank tests every computational mechanic, standard definition, consolidation adjustment, deferred tax calculation, lease amortisation, and regulatory rule in granular detail, ensuring thorough conceptual mastery and problem-solving speed.

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 each Professional Level paper runs for 3.5 hours, except IT Governance at 4 hours. Certificate Level papers are now sat online, while Professional and Advanced Level papers remain written apart from IT Governance. Older web sources still quote the 3-hour durations from the 2018 new-curriculum notice.