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100+ Free ACA Corporate Reporting Practice Questions
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Under IFRS 11 Joint Arrangements, what distinguishes a joint operation from a joint venture?
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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 Practice Questions
Verified exam format metadata for ICAEW ACA Advanced Level Corporate Reporting is pending. The practice questions above remain available while official exam length, timing, passing score, fee, and administrator details are reviewed.