Financial Reporting (FR)
150 questions mapped to the official ACCA FR syllabus (S26-J27): updated for IFRS 18. Covers IFRS standards, group accounts, consolidations and financial statement interpretation. Filter by section, work at your own pace, see explanations for every answer, or switch to Exam Sim mode for a timed FR mock exam under real exam conditions.
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The FR exam format
3 hours, 100 marks in total. All questions are compulsory. The pass mark is 50%.
| Section A | 15 objective test questions worth 2 marks each | 30 marks |
|---|---|---|
| Section B | 3 case questions, each with 5 objective test questions worth 2 marks | 30 marks |
| Section C | 2 constructed response questions worth 20 marks each, on interpretation and accounts preparation | 40 marks |
Source: the official ACCA syllabus and study guide for this paper. Always check the current version on the ACCA website before you sit.
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FR Formula Sheet: all key IFRS standards and consolidation workings on two printable A4 pages. Free to download, or see what's on it.
↓ Download PDFSample FR questions
Three questions from this bank, each with its answer and worked explanation. The quiz above draws from all 150.
Denton Co uses the revaluation model for its land. Land was purchased for $800,000 and subsequently revalued to $950,000. The revaluation surplus of $150,000 was recognised in other comprehensive income. Two years later the land is revalued again and its fair value has fallen to $720,000. How should the $230,000 fall in value be treated?
- $150,000 is charged against the revaluation surplus in OCI; the remaining $80,000 is charged to profit or loss
- The full $230,000 is charged to other comprehensive income, reducing the revaluation surplus
- The full $230,000 is charged to profit or loss as an impairment loss
- $80,000 is charged against the revaluation surplus in OCI; the remaining $150,000 is charged to profit or loss
Show answer and explanation
Answer: A. Under IAS 16, a decrease on revaluation is first used to eliminate any existing revaluation surplus on that asset — charged to OCI. Any excess fall below the original cost is charged to profit or loss. Here: existing surplus = $150,000; total fall = $230,000. First $150,000 eliminates the surplus (OCI debit); remaining $80,000 ($230,000 − $150,000) goes to profit or loss. Option A would only apply if the fall didn't exceed the surplus. Option B ignores the existing surplus entirely. Option D reverses the order incorrectly.
Under IFRS 18 (which supersedes IAS 1 from September 2025), the statement of profit or loss must present income and expenses in specific categories. Which of the following is a required category under IFRS 18?
- Administrative expenses and distribution costs — these are the only two permitted categories
- All items must be presented gross — netting is prohibited under IFRS 18
- Profit before tax and profit after tax — all line items are optional
- Operating, investing, and financing categories — with a clear distinction between operating and non-operating items
Show answer and explanation
Answer: D. IFRS 18 introduces a structured income statement with five categories: (1) operating, (2) investing, (3) financing, (4) income taxes, and (5) discontinued operations. This replaces the more flexible IAS 1 format. The key change is the mandatory separation of operating from investing and financing activities, improving comparability. Administrative and distribution costs (A) are sub-classifications within operating — they are not the only categories. Netting prohibitions (C) apply to specific items, not everything. The line items within categories (D) have mandatory requirements.
Which of the following is a recognised way in which financial statements may be manipulated to produce a desired result?
- Choosing straight-line depreciation, which is always the most favourable method
- Applying IFRS consistently across all periods
- Classifying borderline expenditure as capital rather than revenue to increase reported profit in the current year
- Disclosing all related party transactions in the notes
Show answer and explanation
Answer: C. Capitalising costs that should be expensed increases assets and reduces expenses in the current year, inflating profit. This is a well-known manipulation technique — sometimes called 'aggressive capitalisation.' Straight-line depreciation (A) is not inherently manipulative. Consistent IFRS application (C) is good practice, not manipulation. Disclosing related party transactions (D) is a transparency measure. Other manipulation techniques include: changes in inventory cost formulas, understating provisions, early revenue recognition, and 'big bath' provisions.
About this question bank
150 questions across 4 syllabus sections, each mapped to a reference in the official ACCA syllabus for FR and each with a worked explanation. 104 are multiple choice and 46 are numerical, where you work the answer out before choosing it.
- Written to the ACCA syllabus and study guide for exams from September 2026 to June 2027.
- Spotted a mistake? Report it and it will be corrected.
| Syllabus section | Questions |
|---|---|
| A: Conceptual & regulatory framework | 18 |
| B: Accounting for transactions | 62 |
| C: Analysis & interpretation | 21 |
| D: Preparation of financial statements | 49 |