100+ Free ACA Corporate Reporting Practice Questions

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2026 Statistics

Key Facts: ACA Corporate Reporting Exam

3.5 hrs

Exam Duration

ICAEW Corporate Reporting Exam Resources

50%

Pass Mark

ICAEW ACA Exams Guide

Open book

Exam Conditions

ICAEW ACA Exams Guide

3 questions

Long-Form Written Questions

ICAEW Corporate Reporting Exam Resources

~40%

Weighting: IFRS Groups

ICAEW Corporate Reporting Syllabus

Jul 2027

Replaced by Technical Case Study

Next Generation ACA Syllabus Handbook

ICAEW ACA Corporate Reporting is a 3.5-hour, fully open-book Advanced Level exam with a 50% pass mark, comprising three long-form integrated written questions supported by advance information released around eight weeks ahead and an 11-month data set. It covers single-entity and consolidated IFRS financial statements (~40%), application of specific standards such as IFRS 9, IFRS 15, IFRS 16, IAS 12 and IFRS 2 (~30%), assurance and audit of corporate reports (~20%), and professional ethics and judgement (~10%). It is distinct from the capstone Case Study module. Under Next Generation ACA, from July 2027 Corporate Reporting is replaced by the Technical Case Study. This free bank offers 100 technical knowledge-prep questions.

Sample ACA Corporate Reporting Practice Questions

Try these sample questions to test your ACA 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, how is goodwill arising on acquisition of a subsidiary measured when the non-controlling interest (NCI) is measured at fair value (the full goodwill method)?

A.Consideration transferred less the parent's share of the book value of net assets acquired

B.Fair value of identifiable net assets acquired less consideration transferred

C.Consideration transferred plus fair value of NCI plus fair value of any previously held interest, less the fair value of identifiable net assets acquired

D.Consideration transferred less the parent's share of the fair value of identifiable net assets, ignoring NCI entirely

Explanation: Under the full (fair value) goodwill method, goodwill = consideration transferred + fair value of NCI + fair value of any previously held equity interest, less the fair value of the identifiable net assets acquired. This grosses up goodwill to include the NCI's share.

2A parent acquires 70% of a subsidiary. Two years later it acquires a further 10%, increasing its holding to 80% while retaining control. How is this further purchase accounted for under IFRS 10?

A.As a re-measurement of all net assets to fair value with a new goodwill calculation

B.As a disposal of the original interest and re-acquisition of an 80% interest

C.By recognising a gain or loss in profit or loss equal to the difference between consideration and NCI acquired

D.As an equity transaction between owners, adjusting NCI and recognising any difference directly in equity (no gain, loss or new goodwill)

Explanation: Because control already exists and is retained, an increase in stake is a transaction with owners in their capacity as owners. The carrying amount of NCI is adjusted to reflect the change, and any difference between consideration paid and the NCI reduction is recognised directly in equity. No new goodwill and no profit-or-loss effect arise.

3An investor holds 30% of the voting shares of an investee and has significant influence but not control. Under IAS 28, how should this investment generally be accounted for in the consolidated financial statements?

A.Consolidated line by line with recognition of NCI

B.Equity method: initially at cost, then adjusted for the investor's share of post-acquisition profits or losses

C.At fair value through profit or loss only, as a financial asset under IFRS 9

D.Proportionate consolidation of the investor's share of each asset and liability

Explanation: An associate (significant influence, typically 20%-50% of voting rights) is accounted for using the equity method under IAS 28. The investment starts at cost and is increased or decreased by the investor's share of the associate's post-acquisition profit or loss and other comprehensive income.

4Under IFRS 11 Joint Arrangements, what distinguishes a joint operation from a joint venture?

A.In a joint operation the parties have rights to the assets and obligations for the liabilities; in a joint venture they have rights to the net assets of the arrangement

B.A joint operation is always structured through a separate legal entity; a joint venture never is

C.A joint venture gives the parties rights to specific assets, whereas a joint operation gives rights to net assets

D.Both are accounted for using proportionate consolidation

Explanation: IFRS 11 classifies arrangements by the rights and obligations of the parties. A joint operation gives parties direct rights to assets and obligations for liabilities (recognised in proportion to their interest). A joint venture gives rights only to the net assets and is accounted for using the equity method.

5A parent sells inventory to its wholly owned subsidiary at a markup. At the year end, some of that inventory remains unsold by the subsidiary. What consolidation adjustment is required for the unrealised profit?

A.No adjustment, because the sale is a genuine external transaction

B.Recognise the full intra-group profit as consolidated revenue

C.Eliminate the unrealised profit, reducing consolidated inventory and consolidated profit

D.Transfer the unrealised profit to other comprehensive income

Explanation: Intra-group sales and the profit element in closing inventory are not realised from the group's perspective until sold externally. The unrealised profit in remaining inventory is eliminated: consolidated inventory is reduced to cost to the group, and consolidated profit is reduced by the same amount.

6Parent P owns 80% of subsidiary S. S earns post-acquisition profit of CU100,000 for the year. After eliminating an unrealised profit of CU20,000 arising on inventory S sold to P, how is profit attributable to NCI affected?

A.NCI is allocated 20% of CU100,000 = CU20,000, with no adjustment for unrealised profit

B.NCI is allocated 20% of CU100,000 = CU20,000 because the seller was the subsidiary, so the unrealised profit reduces S's profit before allocation

C.NCI is allocated 20% of (CU100,000 + CU20,000) = CU24,000

D.NCI is allocated 20% of (CU100,000 - CU20,000) = CU16,000 because the unrealised profit was in the subsidiary (the seller)

Explanation: When the subsidiary is the seller, the unrealised profit is deducted from the subsidiary's profit before allocating to NCI. Adjusted profit is CU80,000, so NCI receives 20% = CU16,000. If the parent had been the seller, the elimination would not affect the NCI allocation.

7An entity disposes of its entire holding in a subsidiary, losing control. Under IFRS 10, how is the gain or loss on disposal in the consolidated financial statements calculated?

A.Proceeds less the parent's original cost of investment only

B.Proceeds less the carrying amount of the subsidiary's share capital

C.Proceeds plus fair value of any retained interest, less net assets and goodwill derecognised attributable to the group, with reclassification of related amounts from other comprehensive income

D.The difference between proceeds and the NCI balance at disposal

Explanation: On loss of control, the group derecognises the subsidiary's assets (including goodwill) and liabilities, derecognises NCI, recognises the fair value of any retained interest and consideration received, and reclassifies relevant amounts previously recognised in OCI. The net of these gives the consolidated gain or loss.

8Under IAS 21, how are the results and financial position of a foreign subsidiary (with a functional currency different from the group's presentation currency) translated for consolidation?

A.All items at the closing rate, with no exchange differences arising

B.All items at the historical rate at the date of acquisition

C.Assets and liabilities at the closing rate, income and expenses at actual or average rates, with exchange differences recognised in other comprehensive income

D.Assets and liabilities at the average rate and income and expenses at the closing rate

Explanation: Under IAS 21, a foreign operation's assets and liabilities are translated at the closing rate; income and expenses at the rates at the dates of transactions (often approximated by average rates). The resulting exchange differences are recognised in other comprehensive income and accumulated in a translation reserve.

9When fair values are assigned to a subsidiary's identifiable net assets at acquisition that differ from their book values, what is the effect on subsequent consolidated profit?

A.Additional depreciation or amortisation is charged on uplifts to depreciable assets, reducing consolidated profit in subsequent periods

B.No effect, because fair value adjustments are only relevant to the goodwill calculation

C.The fair value uplift is credited directly to consolidated retained earnings each year

D.The uplift is recognised as revenue when the related asset is sold

Explanation: Fair value adjustments at acquisition form part of the consolidated carrying amounts of the subsidiary's net assets. Where a depreciable asset is revalued upward, additional depreciation (or amortisation for intangibles) is charged in the consolidated accounts in subsequent periods, reducing consolidated profit.

10A parent measures NCI using the proportionate share of identifiable net assets method rather than fair value. Goodwill is later found to be impaired. How is the goodwill impairment allocated?

A.Entirely to the parent, because NCI's share of goodwill is not recognised under this method

B.Split between parent and NCI in proportion to their ownership interests, with NCI's notional goodwill grossed up

C.Entirely to NCI

D.It is not recognised because partial goodwill cannot be impaired

Explanation: Under the proportionate (partial goodwill) method, only the parent's share of goodwill is recognised, so a goodwill impairment is charged wholly against the parent. Under the full goodwill method, by contrast, impairment is allocated between parent and NCI in proportion to ownership.

About the ACA Corporate Reporting Exam

ICAEW ACA Corporate Reporting is an Advanced Level module testing the preparation and interpretation of single-entity and consolidated financial statements under IFRS, the application of specific IFRS standards, the assurance and audit of corporate reports, and professional ethics and judgement.

Assessment

Question count not published by the exam provider

Time Limit

3.5 hours (210 minutes)

Passing Score

50% set by ICAEW

Exam Fee

Set by ICAEW in the current ACA fees schedule (GBP); see ICAEW for the exact Advanced Level entry fee. (Institute of Chartered Accountants in England and Wales (ICAEW))

ACA Corporate Reporting Exam Content Outline

~40%

Single-entity and consolidated financial statements under IFRS

Preparation and interpretation of single-entity and group accounts under IFRS, including business combinations (IFRS 3), control and consolidation (IFRS 10), associates and joint arrangements (IAS 28, IFRS 11), and foreign currency translation (IAS 21).

~30%

Application of specific IFRS Accounting Standards

Application of complex standards: financial instruments (IFRS 9), revenue (IFRS 15), leases (IFRS 16), income taxes (IAS 12), share-based payment (IFRS 2), and impairment (IAS 36).

~20%

Assurance and audit of corporate reports

Audit risk, planning and evidence, group audits (ISA 600), going concern (ISA 570), reporting and modified opinions (ISA 700/705), key audit matters (ISA 701), and assurance over corporate reports.

~10%

Professional ethics and corporate-reporting judgement

ICAEW Code of Ethics fundamental principles, threats and safeguards, independence, and exercising professional judgement and scepticism on corporate reporting and presentation issues.

How to Pass the ACA Corporate Reporting Exam

What You Need to Know

Passing score: 50% set by ICAEW
Assessment: Question count not published by the exam provider
Time limit: 3.5 hours (210 minutes)
Exam fee: Set by ICAEW in the current ACA fees schedule (GBP); see ICAEW for the exact Advanced Level entry fee.

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

ACA Corporate Reporting Study Tips from Top Performers

1Practise full consolidation workings (goodwill, NCI, intra-group eliminations, fair value adjustments) until they are second nature, because groups carry the largest weighting.

2Build standard-by-standard summaries for IFRS 9, IFRS 15, IFRS 16, IAS 12 and IFRS 2 so you can apply them quickly under open-book conditions.

3Do not treat open book as a substitute for knowing the standards; time pressure means you must know where to look and how to apply principles.

4Use the advance information released around eight weeks before the exam to research the entities and likely issues thoroughly.

5Integrate audit and ethics into reporting answers, since the exam tests assurance over corporate reports and professional judgement together.

6Write clearly and show calculations, because marks are awarded for explained, well-structured technical answers rather than final numbers alone.

Frequently Asked Questions

Is the ICAEW ACA Corporate Reporting exam multiple choice?

No. The real exam is not multiple choice. It consists of three long-form integrated written questions over 3.5 hours and is fully open book. This free bank provides 100 multiple-choice knowledge-prep questions to build the underlying IFRS, audit and ethics technical knowledge.

How long is the ICAEW ACA Corporate Reporting exam and what is the pass mark?

The current Corporate Reporting exam is 3.5 hours long with a 50% pass mark. It is one of three Advanced Level exams under the existing ACA, alongside Strategic Business Management and the Case Study.

Is Corporate Reporting open book?

Yes. The ICAEW Advanced Level exams, including Corporate Reporting, are fully open book, so students may take printed and written materials into the exam, replicating real-life access to resources.

What does the Corporate Reporting syllabus cover?

It covers preparation and interpretation of single-entity and consolidated IFRS financial statements (around 40%), application of specific IFRS standards such as IFRS 9, IFRS 15, IFRS 16, IAS 12 and IFRS 2 (around 30%), assurance and audit of corporate reports (around 20%), and professional ethics and judgement (around 10%).

Is Corporate Reporting the same as the ACA Case Study?

No. Corporate Reporting is a technical Advanced Level module focused on IFRS reporting, audit and ethics. The Case Study is a separate capstone module assessing the integration of professional skills across a complete business scenario.

What is happening to Corporate Reporting under Next Generation ACA?

Under the Next Generation ACA, which brings changes to the Advanced Level from July 2027, the Corporate Reporting exam is replaced by the Technical Case Study. Students should check current ICAEW guidance for the timing relevant to their pathway.