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Sample ICMAP Managerial Level Practice Questions
Try these sample questions to review concepts for the ICMAP Managerial Level exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 113+ question experience with AI tutoring.
1Under IAS 1 Presentation of Financial Statements, which of the following is NOT required as part of a complete set of financial statements?
A.A detailed management discussion and analysis (MD&A) report
B.Statement of financial position as at the end of the period
C.Statement of profit or loss and other comprehensive income for the period
D.Statement of cash flows for the period
Explanation: IAS 1 identifies statements of financial position, profit or loss and other comprehensive income, changes in equity, cash flows, and notes, with comparative requirements. MD&A is not one of those financial statements. Management commentary has separate IFRS guidance; it is not wholly outside all IFRS guidance.
2Under IAS 16 Property, Plant and Equipment, which of the following costs incurred in relation to a newly acquired production machine should be expensed immediately rather than capitalised?
A.Site preparation costs incurred prior to installation
B.Staff training costs on how to operate the new machine
C.Initial delivery and handling charges
D.Professional installation and assembly fees
Explanation: IAS 16 paragraph 19(b) explicitly prohibits the capitalisation of costs of training staff to use an asset. Staff training is treated as an operational expense because the economic benefits flow to the employee (human capital), who can leave the entity, meaning the entity does not control the future economic benefits.
3Under IAS 38 Intangible Assets, how must research costs and development costs be treated once technical feasibility and commercial viability of a project are established?
A.Both research and development costs must be capitalised as intangible assets
B.Both research and development costs must be expensed as incurred until commercial production commences
C.Research costs are expensed as incurred; development expenditure is capitalised only once all six IAS 38 recognition criteria are demonstrated
D.Development costs are expensed as incurred, while research costs are capitalised and amortised over 5 years
Explanation: IAS 38 strictly requires all research costs to be expensed in profit or loss as incurred because an entity cannot demonstrate that an intangible asset exists that will generate probable future economic benefits. In contrast, development costs must be capitalised once all six recognition criteria (including technical feasibility, intention to complete, and ability to generate future economic benefits) are met.
4On 1 January 2024, Karachi Manufacturing Ltd purchased an industrial plant for PKR 40,000,000 with an estimated useful life of 10 years and zero residual value, using straight-line depreciation. On 31 December 2025, the company revalued the plant to its fair value of PKR 36,000,000. Assuming the company uses the net replacement value method and there was no previous revaluation, what is the balance credited to the Revaluation Surplus in Other Comprehensive Income on 31 December 2025?
A.PKR 36,000,000
B.PKR 8,000,000
C.PKR 12,000,000
D.PKR 4,000,000
Explanation: Annual straight-line depreciation is PKR 4,000,000 (PKR 40,000,000 / 10 years). At 31 December 2025 (2 years of usage), accumulated depreciation is PKR 8,000,000, resulting in a carrying amount of PKR 32,000,000 (PKR 40,000,000 - PKR 8,000,000). The revaluation surplus is the excess of fair value over carrying amount: PKR 36,000,000 - PKR 32,000,000 = PKR 4,000,000, recognized in Other Comprehensive Income under IAS 16.
5Lahore Packaging Ltd owns specialized printing machinery with a carrying amount of PKR 25,000,000 on 31 December 2025. An impairment review reveals that the machinery's fair value less costs of disposal is PKR 21,000,000, and its value in use (discounted present value of estimated future net cash flows) is PKR 22,500,000. What is the impairment loss to be recognized in profit or loss under IAS 36?
A.PKR 2,500,000
B.PKR 4,000,000
C.PKR 1,500,000
D.PKR 0
Explanation: Under IAS 36, the recoverable amount of an asset is the higher of its fair value less costs of disposal (PKR 21,000,000) and its value in use (PKR 22,500,000), which equals PKR 22,500,000. The impairment loss is the amount by which the carrying amount exceeds the recoverable amount: PKR 25,000,000 - PKR 22,500,000 = PKR 2,500,000.
6Under IFRS 15 Revenue from Contracts with Customers, what is the correct sequential order of the 5-step model for revenue recognition?
A.Determine transaction price; Identify the contract; Allocate transaction price; Identify performance obligations; Recognize revenue
B.Identify the contract; Identify performance obligations; Determine transaction price; Allocate transaction price; Recognize revenue when performance obligations are satisfied
C.Identify performance obligations; Determine transaction price; Identify the contract; Recognize revenue; Allocate transaction price
D.Identify the contract; Determine transaction price; Recognize revenue; Identify performance obligations; Allocate transaction price
Explanation: IFRS 15 establishes a core 5-step framework: Step 1: Identify the contract with a customer; Step 2: Identify the performance obligations in the contract; Step 3: Determine the transaction price; Step 4: Allocate the transaction price to performance obligations; Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
7Multan Telecom Ltd enters into a contract with a customer to provide a smartphone and a 12-month data plan for a bundled price of PKR 60,000. If sold separately, the standalone selling price of the smartphone is PKR 50,000 and the standalone selling price of the 12-month data plan is PKR 25,000. How much of the transaction price should be allocated to the smartphone under IFRS 15?
A.PKR 50,000
B.PKR 35,000
C.PKR 40,000
D.PKR 30,000
Explanation: Under IFRS 15, the transaction price must be allocated to distinct performance obligations in proportion to their relative standalone selling prices. Total standalone selling prices = PKR 50,000 + PKR 25,000 = PKR 75,000. The allocation fraction for the smartphone is PKR 50,000 / PKR 75,000 = 2/3. Allocated transaction price = PKR 60,000 * (2/3) = PKR 40,000.
8On 1 January 2025, Faisalabad Mills Ltd enters into a 4-year lease for a warehouse with annual lease payments of PKR 2,000,000 payable at the end of each year. The interest rate implicit in the lease is 10% per annum. The cumulative 4-year ordinary annuity factor at 10% is 3.169. At what amount should the lease liability be initially recognized on 1 January 2025 under IFRS 16?
A.PKR 8,000,000
B.PKR 6,000,000
C.PKR 5,500,000
D.PKR 6,338,000
Explanation: Under IFRS 16 paragraph 26, at the commencement date, a lessee measures the lease liability at the present value of the lease payments that are not paid at that date, discounted using the interest rate implicit in the lease. PV = Annual payment * Cumulative annuity factor = PKR 2,000,000 * 3.169 = PKR 6,338,000.
9Sialkot Sports Corp enters into a 5-year lease of factory equipment. At commencement, the present value of the lease payments is PKR 10,000,000. In addition, the lessee pays initial direct legal fees of PKR 500,000, receives a lease incentive of PKR 300,000 from the lessor at commencement, and recognizes an equipment dismantling and site restoration obligation under IAS 37 with a present value of PKR 800,000. What is the initial carrying amount of the Right-of-Use (ROU) asset under IFRS 16?
A.PKR 11,000,000
B.PKR 10,200,000
C.PKR 10,000,000
D.PKR 9,400,000
Explanation: Under IFRS 16 paragraph 24, the initial cost of an ROU asset equals: Initial lease liability (PKR 10,000,000) + Initial direct costs (PKR 500,000) - Lease incentives received (PKR 300,000) + Dismantling and restoration obligation (PKR 800,000) = PKR 11,000,000.
10Under IAS 7 Statement of Cash Flows, how should cash proceeds from the issuance of ordinary share capital and cash paid for the redemption of debentures be classified?
A.Both as operating activities
B.Both as financing activities
C.Proceeds from shares as financing, redemption of debentures as investing
D.Proceeds from shares as investing, redemption of debentures as financing
Explanation: Financing activities are defined in IAS 7 paragraph 6 as activities that result in changes in the size and composition of the contributed equity and borrowings of the entity. Issuing share capital alters contributed equity, and redeeming debentures alters long-term borrowings; therefore, both transactions are classified as financing activities.
About the ICMAP Managerial Level Exam
Independent Managerial Level practice. This English-language MCQ study adaptation is not an official translation or format simulation and does not replace written answers, spreadsheet performance, presentations or practical modules.
Exam sponsor: Institute of Cost and Management Accountants of Pakistan (ICMA International). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.
Assessment
Question count varies by module
Time Limit
M4 and M6: 3h; other papers: see pattern
Passing Score
50% per course
Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.
Official sources
- ICMA 2025 syllabus guide · Source checked 2026-10-07Six courses, progression, advanced costing, organization and digital modelling.
- M6 Corporate Framework and Reporting · Source checked 2026-10-07Governance 25%, IFRS framework 30%, corporate disclosure 25%, controls/ethics 20% syllabus guidance.
- February 2026 question-paper patterns · Source checked 2026-10-07
- 2026–27 fee notification · Source checked 2026-10-07
- ICMA examination language · Source checked 2026-10-07English confirmed explicitly.
- ICMA examination results policy · Source checked 2026-10-07
- FBR current Income Tax Ordinance · Source checked 2026-10-07Residence, payroll, deductions and current tax procedure; historical cases retain their year.
- FBR Sales Tax Act amended through June 2026 · Source checked 2026-10-07Section 8B default limit, exceptions, digital-compliance notifications and eligible input tax.
- IFRS IAS 19 employee benefits · Source checked 2026-10-07Financial reporting content.
- Microsoft Excel NPV function · Source checked 2026-10-07Spreadsheet cash-flow timing and financial models.
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.
Separate course
M1: Financial Accounting and Corporate Reporting
IFRS recognition, measurement, groups and statements.
Separate course
M2: Business Taxation
Income tax, indirect tax and compliance.
Separate course
M3: Organizational Management
People, organizations and change.
Separate course
M4: Digital Accounting and Financial Modelling
Digital systems, spreadsheet models and financial decisions.
Separate course
M5: Advanced Management Accounting
Costing, budgets, variances and performance.
Separate course
M6: Corporate Framework and Reporting
Governance, framework, disclosure, controls and ethics.
Preparing for the ICMAP Managerial Level Exam
What You Need to Know
- Passing score: 50% per course
- Assessment: Question count varies by module
- Time limit: M4 and M6: 3h; other papers: see pattern
- Exam / certification fees: PKR 7,400 per course (August 2026 onward) Official sources
Using Our Practice Resources
- Work through all 113 available questions
- Review every answer and explanation
- Track weak areas and revisit them
- Use our AI tutor for tough concepts
ICMAP Managerial Level: Suggested Study Strategy
1Practice each current course, including M4 and M6.
2Reconcile formulas, reference locking and cash-flow timing in actual spreadsheets.
3Check statutory provisions and the relevant tax year instead of applying every rate universally.
Frequently Asked Questions
What is the official M4/M6 question mix?
The February 2026 pattern specifies 30 two-mark MCQs and eight five-mark descriptive questions in three hours, without extra reading time.
Does a correct MCQ answer demonstrate spreadsheet proficiency?
No. Build and check models in a spreadsheet and complete the required practical and presentation assessments separately.