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Myanmar CPA Part I (MAC)

Practice Questions100 questions

Exam Review

Key Facts: Myanmar CPA Part II Exam

6 Papers

Total advanced written subject examination papers in CPA Part II

Myanmar Accountancy Council syllabus structure

50 points

Minimum qualifying mark required in each subject paper

Myanmar Accountancy Council examination regulations

5 sittings

Maximum consecutive examinations for passing both modules

Myanmar Accountancy Council examination rules

22% CIT

Standard corporate income tax rate under Myanmar tax legislation

Internal Revenue Department / Union Taxation Law

The MAC CPA Part II Examination comprises 6 advanced written subject papers across two modules. Candidates must score at least 50 points in every subject. Passing Part II earns the CPA Examination Passed Certificate; full-fledged and public-practice registration require additional MAC steps.

Sample Myanmar CPA Part II Practice Questions

Try these sample questions to review concepts for the Myanmar CPA Part II exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under IFRS 10 (Consolidated Financial Statements), an investor controls an investee if and only if the investor possesses which three cumulative elements of control?

A.Ownership of more than 50% of the voting shares, physical possession of share certificates, and board member majority

B.Power over the investee, exposure or rights to variable returns from its involvement with the investee, and the ability to use its power over the investee to affect the amount of the investor's returns

C.Veto power over annual budget expenditures, joint liability for bank borrowings, and shared corporate branding

D.Registration as a holding company with DICA, holding common directorships, and unified tax filing under the Tax Administration Law

Explanation: IFRS 10 establishes a single control model applicable to all entities. Under paragraph 7, an investor controls an investee if and only if the investor has all of the following: (a) power over the investee (existing rights that give the current ability to direct relevant activities); (b) exposure, or rights, to variable returns from its involvement with the investee; and (c) the ability to use its power over the investee to affect the amount of the investor's returns (the link between power and returns).

2On 1 January 2025, Parent Corp acquires 80% of the equity shares of Subsidiary Ltd for a cash consideration of 120,000,000 MMK. On that date, the fair value of Subsidiary's identifiable net assets is 100,000,000 MMK. The group policy is to measure non-controlling interest (NCI) at its proportionate share of the acquiree's identifiable net assets. Under IFRS 3 (Business Combinations), what is the amount of Goodwill recognized on acquisition?

A.40,000,000 MMK

B.20,000,000 MMK

C.24,000,000 MMK

D.16,000,000 MMK

Explanation: Under the proportionate share method of measuring NCI: NCI at acquisition = 20% of identifiable net assets = 20% * 100,000,000 MMK = 20,000,000 MMK. Goodwill = Consideration transferred (120,000,000 MMK) + NCI at acquisition (20,000,000 MMK) - Fair value of identifiable net assets (100,000,000 MMK) = 140,000,000 MMK - 100,000,000 MMK = 40,000,000 MMK. (Equivalently: Consideration of 120,000,000 MMK - Parent share of net assets of 80,000,000 MMK = 40,000,000 MMK).

3On 1 January 2025, Alpha Co acquires 100% of the voting shares of Beta Co for a cash payment of 75,000,000 MMK. On that date, Beta Co's identifiable assets have a fair value of 110,000,000 MMK and its recognized liabilities have a fair value of 20,000,000 MMK (net identifiable assets = 90,000,000 MMK). After reassessing the identification and measurement of all acquired assets and liabilities, the net asset value of 90,000,000 MMK is confirmed. Under IFRS 3, how should the resulting difference of 15,000,000 MMK be accounted for?

A.Recognized immediately as a 'Bargain Purchase Gain' (negative goodwill) in profit or loss on the acquisition date

B.Credited directly to equity as a capital reserve in other comprehensive income

C.Recognized as deferred income on the balance sheet and amortized over 5 years

D.Deducted proportionally from the fair values of the acquired non-current assets

Explanation: Under IFRS 3 paragraph 34-36, when the fair value of net identifiable assets acquired (90,000,000 MMK) exceeds the aggregate consideration transferred (75,000,000 MMK), a bargain purchase (negative goodwill) arises. After the acquirer reassesses whether it has correctly identified and measured all acquired assets and assumed liabilities, the remaining excess of 15,000,000 MMK must be recognized as a gain in profit or loss on the acquisition date.

4Under IAS 28 (Investments in Associates and Joint Ventures), an investor is presumed to exercise 'Significant Influence' over an investee when it directly or indirectly holds what percentage of the voting power?

A.At least 5% of voting rights

B.20% or more of the voting power of the investee, unless it can be clearly demonstrated that this is not the case

C.More than 50% of the voting power

D.100% of the voting power through a statutory trust

Explanation: Under IAS 28 paragraph 5, if an entity holds, directly or indirectly, 20 percent or more of the voting power of the investee, it is presumed that the entity has significant influence, unless it can be clearly demonstrated that this is not the case. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. Associates are accounted for using the equity method.

5A parent company sold inventory to its 75%-owned subsidiary during the year for 20,000,000 MMK at a profit markup of 25% on cost. At the year-end reporting date of 31 December 2025, 40% of this inventory remains unsold in the subsidiary's warehouse. In preparing the consolidated financial statements under IFRS 10, what is the required consolidation elimination adjustment for unrealized intragroup profit?

A.Debit Consolidated Cost of Sales 1,600,000 MMK and Credit Consolidated Inventory 1,600,000 MMK

B.Debit Consolidated Retained Earnings 2,000,000 MMK and Credit Consolidated Inventory 2,000,000 MMK

C.Debit Consolidated Sales 20,000,000 MMK and Credit Cost of Sales 20,000,000 MMK with zero adjustment to inventory

D.Debit Consolidated Inventory 1,600,000 MMK and Credit Non-Controlling Interest 1,600,000 MMK

Explanation: Transfer price is 20,000,000 MMK. A 25% markup on cost equals a 20% margin on selling price, so total intragroup profit is 4,000,000 MMK. Because 40% remains unsold, 1,600,000 MMK is unrealized. For the current-year downstream sale, the consolidation adjustment debits cost of sales and credits inventory by 1,600,000 MMK; a retained-earnings debit would be relevant only when eliminating profit carried forward from a prior period.

6Under IFRS 9 (Financial Instruments), what are the two statutory tests that a debt instrument must satisfy to be measured subsequently at 'Amortized Cost'?

A.The Fair Value Test and the Legal Title Test

B.The Business Model Test (held to collect contractual cash flows) and the Contractual Cash Flow Characteristics Test (Solely Payments of Principal and Interest - SPPI)

C.The Active Market Test and the Management Intent Test

D.The Credit Rating Test and the Central Bank Approval Test

Explanation: IFRS 9 paragraph 4.1.2 mandates that a financial asset is measured at amortized cost if both of the following conditions are met: (1) The Business Model Test: the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and (2) The SPPI Test: the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

7An entity tests a Cash-Generating Unit (CGU) for impairment under IAS 36. The carrying amounts are: Goodwill = 20,000,000 MMK; Building = 60,000,000 MMK; Plant & Equipment = 40,000,000 MMK (Total carrying amount = 120,000,000 MMK). The recoverable amount of the CGU is determined to be 90,000,000 MMK. None of the individual assets has a fair value less costs of disposal that can be determined. How should the total impairment loss of 30,000,000 MMK be allocated across the assets of the CGU?

A.Goodwill: 20,000,000 MMK; Building: 6,000,000 MMK; Plant & Equipment: 4,000,000 MMK

B.Goodwill: 5,000,000 MMK; Building: 15,000,000 MMK; Plant & Equipment: 10,000,000 MMK

C.Goodwill: 0 MMK; Building: 18,000,000 MMK; Plant & Equipment: 12,000,000 MMK

D.Goodwill: 10,000,000 MMK; Building: 10,000,000 MMK; Plant & Equipment: 10,000,000 MMK

Explanation: Total impairment loss = Carrying amount (120,000,000 MMK) - Recoverable amount (90,000,000 MMK) = 30,000,000 MMK. Under IAS 36 paragraph 104, the impairment loss must be allocated in the following strict order: (1) First, to reduce the carrying amount of any goodwill allocated to the CGU until goodwill is reduced to zero (20,000,000 MMK written off); (2) Second, any remaining impairment loss (10,000,000 MMK) is allocated pro rata across the other identifiable assets based on relative carrying amounts: Building = (60m / 100m) * 10,000,000 MMK = 6,000,000 MMK; Plant & Equipment = (40m / 100m) * 10,000,000 MMK = 4,000,000 MMK.

8Under IAS 19 (Employee Benefits), how are 'Remeasurements of the Net Defined Benefit Liability (Asset)' (such as actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions) accounted for?

A.Recognized in profit or loss on a systematic basis over the expected remaining working lives of employees using the corridor method

B.Recognized immediately in other comprehensive income (OCI) and never reclassified (recycled) to profit or loss in subsequent periods

C.Deferred on the statement of financial position and amortized against future pension contributions

D.Expensed in profit or loss only upon final liquidation of the pension fund

Explanation: Under IAS 19 (revised 2011), the former 'corridor method' was completely abolished. All remeasurements of the net defined benefit liability/asset (including actuarial gains/losses and the return on plan assets excluding net interest) must be recognized immediately in other comprehensive income (OCI). These amounts are transferred directly to retained earnings and are never reclassified (recycled) to profit or loss in subsequent accounting periods.

9On 1 January 2025, an enterprise grants 100 share options to each of its 200 employees, conditional upon the employees remaining in service for 3 years (vesting date 31 December 2027). The fair value of each option at the grant date is 3,000 MMK. At 31 December 2025, the company estimates that 10% of employees will leave during the 3-year period. During 2025, 6 employees actually left. Under IFRS 2 (Share-based Payment), what is the compensation expense to be recognized in profit or loss for the year ended 31 December 2025?

A.18,000,000 MMK

B.20,000,000 MMK

C.60,000,000 MMK

D.19,400,000 MMK

Explanation: Under IFRS 2 for equity-settled share-based payment transactions, the fair value is determined at the grant date (3,000 MMK per option) and is not subsequently remeasured. Expected options to vest = 200 employees * 90% (100% - 10% expected departures) * 100 options = 180 employees * 100 options = 18,000 options. Total expected fair value = 18,000 options * 3,000 MMK = 54,000,000 MMK. Cumulative expense required at Year 1 of the 3-year vesting period = 54,000,000 MMK * (1 / 3) = 18,000,000 MMK. Because no expense was recognized previously, the expense recognized in profit or loss for 2025 is 18,000,000 MMK.

10Under IAS 21 (The Effects of Changes in Foreign Exchange Rates), how must an entity translate the financial statements of a foreign operation into its presentation currency when consolidating?

A.Assets and liabilities at historical exchange rates; income and expenses at closing rate; exchange differences to profit or loss

B.Assets and liabilities at the closing rate at the reporting date; income and expenses at exchange rates at the dates of transactions (or an appropriate average rate); all resulting exchange differences recognized in other comprehensive income (OCI)

C.All balance sheet and income statement items at the opening exchange rate of the financial year

D.Monetary items at current rate and non-monetary items at fair value, with all translation differences charged to share capital

Explanation: IAS 21 paragraph 39 mandates the translation method for foreign operations whose functional currency is not hyperinflationary: (a) assets and liabilities (both monetary and non-monetary) are translated at the closing rate at the date of that statement of financial position; (b) income and expenses are translated at exchange rates at the dates of the transactions (an average rate is acceptable if exchange rates do not fluctuate significantly); and (c) all resulting exchange differences are recognized in other comprehensive income and accumulated in a separate component of equity (Foreign Currency Translation Reserve).

About the Myanmar CPA Part II Exam

The Myanmar Certified Public Accountant (CPA) Part II Examination is the advanced examination stage administered by the Myanmar Accountancy Council. It evaluates advanced financial reporting, practical auditing, strategic management accounting, business analysis and information systems, financial knowledge and current economic affairs, and taxation. Five papers are taught and answered in English, while Taxation is not. This is independent English-language MCQ study practice, not an official translation, examination paper, or simulation of the official written-response format.

Exam sponsor: Myanmar Accountancy Council (MAC / မြန်မာနိုင်ငံစာရင်းကောင်စီ), Union Auditor General Office. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

6 written papers across Module 1 and Module 2: Advanced Accounting and Financial Reporting II, Practical Auditing II, Strategic Management Accounting, Business Analysis and Strategic Information System, Financial Knowledge and Current Economic Affairs, and Taxation.

Time Limit

Published in sitting-specific timetables; no stable duration is stated in the standing official exam rules

Passing Score

50 points in each of the 6 subject papers

Exam / Certification Fees

Exam and application fees apply; current amounts are not published in the standing official exam rules.

Exam sponsor website

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

Official sources

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.

1 of 6 papers

Advanced Accounting and Financial Reporting II

Group consolidations, business combinations (MFRS 3), goodwill, joint arrangements, revenue recognition, leases, and deferred tax.

1 of 6 papers

Practical Auditing II

Group audit engagements, Key Audit Matters (KAM), going concern disclosures, fraud risk, quality control, and statutory auditor reporting.

1 of 6 papers

Strategic Management Accounting

Strategic cost management, Activity-Based Costing, target costing, divisional performance metrics (ROI, RI, EVA), and transfer pricing policies.

1 of 6 papers

Business Analysis and Strategic Information System

Strategic planning frameworks (BCG, Porter, VRIO), ERP architecture, relational database ACID integrity, cybersecurity, and IT governance.

1 of 6 papers

Financial Knowledge and Current Economic Affairs

Central Bank monetary policy, YSX securities regulation, Treasury bills, exchange rate regimes, CAPM valuation, and ASEAN CPA mobility.

1 of 6 papers

Taxation

Tax Administration Law 2019 self-assessment, Corporate Income Tax (22%), Commercial Tax (5%), Specific Goods Tax, and withholding taxes.

Preparing for the Myanmar CPA Part II Exam

What You Need to Know

Passing score: 50 points in each of the 6 subject papers
Assessment: 6 written papers across Module 1 and Module 2: Advanced Accounting and Financial Reporting II, Practical Auditing II, Strategic Management Accounting, Business Analysis and Strategic Information System, Financial Knowledge and Current Economic Affairs, and Taxation.
Time limit: Published in sitting-specific timetables; no stable duration is stated in the standing official exam rules
Exam / certification fees: Exam and application fees apply; current amounts are not published in the standing official exam rules. Official sources

Using Our Practice Resources

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Myanmar CPA Part II: Suggested Study Strategy

1Practice full consolidation worksheets, including non-controlling interest, fair value adjustments, and intra-group elimination entries.

2Work through Myanmar Corporate Income Tax and Commercial Tax computations under current Union Taxation Law schedules.

3Review Key Audit Matters (KAM) reporting rules under MSA 701 and group auditor responsibilities under MSA 600.

4Understand the mechanics of the Self-Assessment System (SAS) and formal dispute resolution procedures under the Tax Administration Law 2019.

Frequently Asked Questions

What is the relationship between CPA Part I and CPA Part II?

CPA Part I covers intermediate foundational professional subjects, while CPA Part II represents the advanced culminating stage. Candidates must pass or receive formal credit for all CPA Part I subjects before sitting CPA Part II.

What are the passing requirements for CPA Part II?

Candidates must score at least 50 points in each of the 6 subject papers. The standing official exam page does not state a separate aggregate threshold.

What practical training is required alongside the examinations?

Passing Part II earns the CPA Examination Passed Certificate. CPA full-fledged registration and later PAPP registration are separate steps with current documentary, experience, membership, and professional-development requirements.

Is this practice resource an official MAC test simulation?

No. This practice resource is an independent English-language MCQ study aid created by OpenExamPrep. It is neither approved nor published by the Myanmar Accountancy Council or the Union Auditor General Office.