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Exam Review

Key Facts: CA ANZ Core 3: FAR Exam

CACC1502

FAR Subject Code

CA ANZ Course Descriptions

60%

Final Exam Weighting (Hurdle)

CA ANZ Subject Outline

2h 30m

Final Exam Duration

CA ANZ Subject Outline

9 weeks

Study Period

CA ANZ CA Program

100

Free Practice Questions

OpenExamPrep

1 Jan 2026

Standards Effective Date

IFRS Foundation / AASB

CA ANZ Core 3 FAR (CACC1502) is an online CA Program subject delivered over a 9-week study period. It is assessed by a written submission (40%) and a final invigilated examination (60%, 2 hours 30 minutes) that is a hurdle and requires applying IFRS Standards to business transactions. The exam emphasises standard application (~60%, e.g. IFRS 15, IFRS 16, IFRS 9, IAS 12, IAS 36, IFRS 2, IAS 37), consolidation and group accounts (~25%, IFRS 3, IFRS 10, IAS 28), and presentation, disclosure and ethics (~15%, IAS 1, IAS 8, APES 110). This free bank offers 100 MCQs covering topics from standards effective from 1 January 2026.

Sample CA ANZ Core 3: FAR Practice Questions

Try these sample questions to review concepts for the CA ANZ Core 3: FAR exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under IAS 1 Presentation of Financial Statements, which of the following is NOT one of the complete set of financial statements an entity must present?
A.A statement of financial position as at the end of the period
B.A statement of profit or loss and other comprehensive income for the period
C.A statement of value added showing wealth distributed to stakeholders
D.A statement of cash flows for the period
Explanation: IAS 1 requires a statement of financial position, a statement of profit or loss and OCI, a statement of changes in equity, a statement of cash flows, and notes. A statement of value added is a voluntary management report, not a required IFRS statement.
2An entity wishes to depart from a requirement of an IFRS Standard because management concludes compliance would be so misleading it conflicts with the objective of financial statements. Under IAS 1, when is such a departure permitted?
A.Never; IFRS requirements are mandatory in all circumstances
B.Whenever management considers an alternative treatment provides more relevant information
C.Only with prior written approval from the IFRS Interpretations Committee
D.Only in the extremely rare circumstance that the relevant regulatory framework does not prohibit it, with full disclosure of the departure
Explanation: IAS 1 permits a 'true and fair override' only in extremely rare circumstances where compliance would be so misleading it conflicts with the objective of financial statements, and only where the relevant regulatory framework does not prohibit departure. The entity must disclose the standard departed from, the treatment required, and the financial effect.
3Under IAS 8, a change from the FIFO to the weighted-average cost formula for measuring inventories is treated as:
A.A change in accounting estimate, applied prospectively
B.A change in accounting policy, applied retrospectively
C.A correction of a prior-period error, restated retrospectively
D.A reclassification with no effect on prior periods
Explanation: A cost formula for inventory is an accounting policy. Under IAS 8, a voluntary change in accounting policy is applied retrospectively, adjusting the opening balance of each affected component of equity for the earliest prior period presented as if the new policy had always been applied.
4Under IAS 8, a change in the estimated useful life of an item of property, plant and equipment from 10 years to 8 years is:
A.Recognised prospectively in the current and future periods
B.Recognised retrospectively by restating comparatives
C.Treated as a prior-period error
D.Recognised directly in other comprehensive income
Explanation: A revision of useful life is a change in accounting estimate. IAS 8 requires changes in estimate to be recognised prospectively by adjusting the carrying amount and depreciation in the current and future periods; comparatives are not restated.
5IAS 1 requires a third statement of financial position (an opening balance sheet) to be presented when an entity:
A.Changes its functional currency in the current period
B.Recognises any item in other comprehensive income
C.Applies an accounting policy retrospectively or makes a retrospective restatement that has a material effect on the opening balance sheet of the earliest comparative period
D.Pays a dividend during the reporting period
Explanation: IAS 1 requires a third statement of financial position as at the beginning of the earliest comparative period when an entity applies an accounting policy retrospectively, restates items retrospectively, or reclassifies items, and the effect on that opening balance sheet is material.
6Under IAS 12 Income Taxes, deferred tax is measured using the tax rates that:
A.Are currently enacted at the start of the reporting period
B.Represent the entity's long-run average effective tax rate
C.The directors expect will apply over the next five years
D.Are expected to apply when the asset is realised or the liability settled, based on rates enacted or substantively enacted by the end of the reporting period
Explanation: IAS 12 requires deferred tax assets and liabilities to be measured at the tax rates expected to apply to the period when the asset is realised or the liability settled, based on tax rates and laws enacted or substantively enacted by the reporting date.
7An asset has a carrying amount of $100,000 and a tax base of $60,000. The tax rate is 30%. Under IAS 12, what deferred tax balance arises?
A.A deferred tax asset of $12,000
B.A deferred tax liability of $40,000
C.A deferred tax liability of $12,000
D.A deferred tax asset of $18,000
Explanation: The taxable temporary difference is $100,000 − $60,000 = $40,000. When carrying amount exceeds the tax base of an asset, a taxable temporary difference and a deferred tax liability arise: $40,000 × 30% = $12,000 deferred tax liability.
8Under IAS 12, a deferred tax asset arising from unused tax losses is recognised:
A.In full whenever a tax loss is incurred
B.Only when the losses have actually been recovered against taxable profit
C.Only to the extent it is probable that future taxable profit will be available against which the unused tax losses can be utilised
D.Never, because tax losses are not assets
Explanation: IAS 12 permits recognition of a deferred tax asset for unused tax losses and credits only to the extent it is probable that future taxable profit will be available to utilise them. The existence of unused losses is strong evidence that future taxable profit may not be available, requiring careful assessment.
9Under IAS 12, the initial recognition exemption means deferred tax is NOT recognised on a temporary difference arising on the initial recognition of an asset or liability in a transaction that:
A.Affects neither accounting profit nor taxable profit and is not a business combination (and does not give rise to equal taxable and deductible differences)
B.Is a business combination
C.Involves a related party
D.Results in goodwill being recognised
Explanation: The initial recognition exemption applies where a transaction is not a business combination and, at the time of the transaction, affects neither accounting profit nor taxable profit, and does not give rise to equal and offsetting taxable and deductible temporary differences. Recognising deferred tax here would distort the carrying amount of the asset.
10Under IFRS 16 Leases, a lessee initially measures the right-of-use asset at:
A.The amount of the initial lease liability, plus lease payments made at or before commencement, initial direct costs, and an estimate of dismantling/restoration costs, less lease incentives received
B.The fair value of the underlying asset at commencement
C.The present value of only the fixed lease payments
D.The total undiscounted lease payments over the lease term
Explanation: Under IFRS 16, the right-of-use asset is initially measured at cost, comprising the initial measurement of the lease liability, lease payments made at or before commencement less incentives received, initial direct costs, and an estimate of dismantling, removal and restoration costs.

About the CA ANZ Core 3: FAR Exam

CA ANZ Core 3 Financial Accounting and Reporting (CACC1502) requires candidates to apply IFRS Standards (AASB in Australia, NZ IFRS in New Zealand) and regulatory and ethical requirements to account for and report on business transactions, with strong emphasis on standard application and consolidations.

Exam sponsor: Chartered Accountants Australia and New Zealand (CA ANZ). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Question count not published by the exam provider

Time Limit

Final invigilated examination of 2 hours 30 minutes

Passing Score

Pass the subject overall and meet the 60%-weighted final examination hurdle

Exam / Certification Fees

CA Program subject fee set per term by CA ANZ and payable on enrolment; no single fixed public exam fee is published

Exam sponsor website

Reported exam pass rate: not-published. CA ANZ does not publish a fixed public pass rate for the FAR subject; outcomes depend on overall subject performance and meeting the final examination hurdle. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

~60%

Standard Application (IFRS / AASB / NZ IFRS)

Applying IFRS 15 revenue, IFRS 16 leases, IFRS 9 financial instruments, IAS 12 income taxes, IAS 36 impairment, IFRS 2 share-based payments, and IAS 37 provisions and contingencies to account for and report on business transactions.

~25%

Consolidation and Group Accounts

IFRS 3 business combinations and the acquisition method, goodwill and non-controlling interests, IFRS 10 consolidated financial statements, intragroup eliminations, loss of control, and IAS 28 associates.

~15%

Presentation, Disclosure and Ethics

IAS 1 presentation and disclosure, IAS 8 accounting policies, estimates and errors, the IFRS compliance statement, and ethical issues in financial reporting under APES 110 (IESBA Code).

Preparing for the CA ANZ Core 3: FAR Exam

What You Need to Know

  • Passing score: Pass the subject overall and meet the 60%-weighted final examination hurdle
  • Assessment: Question count not published by the exam provider
  • Time limit: Final invigilated examination of 2 hours 30 minutes
  • Exam / certification fees: CA Program subject fee set per term by CA ANZ and payable on enrolment; no single fixed public exam fee is published Official sources

Using Our Practice Resources

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

CA ANZ Core 3: FAR: Suggested Study Strategy

1Practise applying each standard to a transaction, not just recalling rules, because the FAR final exam tests application of IFRS Standards.
2Drill consolidations thoroughly: goodwill, non-controlling interests, intragroup eliminations, and loss of control are high-value and error-prone.
3Build deferred tax fluency under IAS 12, including the tax-base concept, temporary differences, and where the tax effect is recognised (P&L versus OCI).
4Use the 9-week structure to layer standards progressively, then consolidate with timed full-length practice.
5Rehearse ethical scenarios under APES 110 so you can apply the conceptual framework and fundamental principles under exam pressure.
6Keep an error log tagged by standard (e.g. IFRS 15, IFRS 16, IAS 36) to focus revision before the hurdle examination.

Frequently Asked Questions

What is CA ANZ Core 3 FAR?

Core 3: Financial Accounting and Reporting (subject code CACC1502) is a Core subject in the CA ANZ CA Program. It requires candidates to apply IFRS Standards, or local equivalents (AASB in Australia, NZ IFRS in New Zealand), and regulatory and ethical requirements to account for and report on business transactions.

How is the CA ANZ FAR subject assessed?

FAR is assessed through a written submission assessment weighted 40% and a final invigilated examination weighted 60%. The final examination is a hurdle assessment lasting 2 hours 30 minutes and requires candidates to apply IFRS Standards to a diverse range of business transactions and events.

How long is the CA ANZ FAR study period?

CA ANZ delivers FAR as an online subject over a 9-week study period. Candidates commonly commit around 10 to 15 hours of study per week, with the final invigilated examination held near the end of the period.

Which accounting standards does FAR cover?

FAR covers the application of standards including IAS 1, IAS 8, IAS 12, IAS 36, IAS 37, IFRS 2, IFRS 9, IFRS 15, IFRS 16, IFRS 3, and IFRS 10, plus consolidation and ethical issues in financial reporting. This bank reflects standards effective from 1 January 2026.

Is the CA ANZ FAR exam multiple choice?

The FAR final invigilated examination uses a mix of question formats, including multiple-choice and extended-response items requiring application of IFRS Standards. CA ANZ does not publish a fixed question count, so the knowledge is strongly multiple-choice preppable.

What is the FAR passing requirement?

Candidates must pass the subject overall and meet the final examination hurdle. The final examination is weighted 60% and is a hurdle, meaning candidates must achieve the required standard on that exam in addition to passing the subject as a whole.

Who can enrol in CA ANZ FAR?

Candidates must hold provisional CA ANZ membership and be enrolled in the CA Program, having met the academic entry requirements through an accredited degree or recognised equivalent. Mentored practical experience is completed alongside subject study.

How does this free FAR practice bank help?

This free bank provides 100 multiple-choice questions covering topics from the FAR content areas, standard application, consolidations, and presentation and ethics, so candidates can test their IFRS knowledge and identify weak standards before the invigilated final exam.