ACCA · Applied Skills

ACCA FR Formula Sheet

The key formulas for ACCA FR (Financial Reporting) on two A4 pages, free to download and print. Built to the paper's current examinable scope.

FR Formula Sheet · PDF · 2 pages · A4 · print-ready

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Updated 25 September 2026: the group statement of cash flows and foreign subsidiary translation have been removed, as neither is examinable in FR; the intragroup profit note now covers both mark-up and margin; and several wording errors are fixed. If you printed an earlier copy, please download it again.

The formulas on the FR sheet

The full sheet, reproduced as text so you can revise on screen. Last checked September 2026. Spotted an error? Report it and it will be corrected.

IAS 16 — Property, Plant & Equipment

Initial cost: purchase price + directly attributable costs + dismantling costs
Revaluation: Dr Asset (increase) Cr OCI / Revaluation surplus
Depreciation on revalued asset: revalued amount ÷ remaining useful life
Disposal gain/loss: proceeds − carrying amount → P&L
Revaluation surplus transferred to retained earnings as asset is used — not recycled to P&L

IAS 36 — Impairment

Recoverable amount = Higher of: Fair value less costs of disposal & Value in use
Impairment loss = Carrying amount − Recoverable amount
Impairment of revalued asset: first reduces revaluation surplus, then to P&L
Reversal of impairment: increase carrying amount, but not above original depreciated cost

IAS 38 — Intangible Assets

Research: always expensed to P&L
Development: capitalise when all 6 PIRATE criteria met
Purchased intangible: capitalise at cost
Internally generated goodwill, brands, mastheads: never capitalise

IAS 37 — Provisions

Recognise when: present obligation + probable outflow + reliable estimate
Measure at best estimate (expected value if range of outcomes)
Contingent liability: disclose, do not recognise (no disclosure if remote)

IFRS 9 — Financial Instruments (Amortised Cost)

Year-end balance = Opening balance × (1 + EIR) − Cash received/paid
Interest: Dr Financial asset Cr Finance income (EIR × opening balance)
Always use EIR on opening carrying amount — not the coupon rate on nominal

IFRS 16 — Leases

Right-of-use asset = PV of lease payments + initial direct costs
Lease liability = PV of future lease payments at commencement
Interest: Opening liability × effective rate → Dr Finance cost, Cr Liability
Payment: Dr Liability, Cr Cash
Short-term exemption: elected by CLASS of asset · Low-value: lease-by-lease
Sale & leaseback gain recognised = (FV − Lease liability) ÷ FV × Total gain

IAS 12 — Deferred Tax

Deferred tax liability = Taxable temporary difference × Tax rate
Deferred tax asset = Deductible temporary difference × Tax rate
Temporary difference = Carrying amount − Tax base
Tax base of asset = amount deductible against future taxable profits

IFRS 15 — Revenue

Step 1: Identify the contract
Step 2: Identify performance obligations
Step 3: Determine the transaction price
Step 4: Allocate price to performance obligations
Step 5: Recognise revenue when/as obligation is satisfied

IAS 41 — Agriculture & Biological Assets

Biological assets: fair value less costs to sell at each reporting date
Gains/losses on fair value changes: recognised in P&L
Agricultural produce at point of harvest: measure at fair value less costs to sell

IAS 8 — Accounting Policies, Estimates & Errors

Change in policy: retrospective restatement (restate comparatives)
Change in estimate: prospective (current and future periods only)
Prior period error: retrospective restatement

IAS 10 — Events After Reporting Period

Adjusting: evidence of condition existing at reporting date
Non-adjusting: condition arising after reporting date
Non-adjusting: disclose if material — do not adjust figures

Interpretation — Key Ratios

ROCE = PBIT ÷ Capital employed × 100
ROCE = Profit margin × Asset turnover
Gross margin = Gross profit ÷ Revenue × 100
Operating margin = Operating profit ÷ Revenue × 100
Gearing = Debt ÷ (Debt + Equity) × 100
Interest cover = PBIT ÷ Finance costs
Current ratio = Current assets ÷ Current liabilities
Quick ratio = (Current assets − Inventory) ÷ Current liabilities
Receivable days = Receivables ÷ Revenue × 365
Payable days = Payables ÷ Cost of sales × 365
Inventory days = Inventory ÷ Cost of sales × 365
EPS = Earnings attributable to ordinary shareholders ÷ Weighted avg shares

Goodwill & NCI (IFRS 3)

Goodwill = Consideration + NCI at acquisition − FV of net assets acquired
NCI at fair value (gross-up): goodwill includes NCI's share
NCI at proportionate share: NCI % × FV of identifiable net assets
Goodwill: not amortised — test for impairment annually

Group SFP — Working

NCI = NCI at acquisition + NCI % × post-acquisition RE + NCI % × post-acquisition OCI
Group RE = Parent RE + Parent % × subsidiary post-acquisition RE − unrealised profit adj.
Post-acquisition = since date of acquisition only

Intragroup Eliminations

Intragroup sales/purchases: eliminate in full from revenue and cost of sales
Intragroup balances: eliminate receivable & payable in full
Intragroup dividend: eliminate only the parent's received portion
Unrealised profit on inventory: reduce inventory; adjust against seller's RE
Unrealised profit on PPE transfer: reduce PPE; adjust depreciation each year
Check whether the question gives a mark-up (profit ÷ cost) or a margin (profit ÷ selling price)

Mid-Year Acquisitions

Time-apportion subsidiary P&L: pre-acquisition → goodwill; post-acquisition → group
Assets & liabilities: use fair values at acquisition date (not year end)

Associates (IAS 28)

Investment = Cost + Share of post-acquisition profit − Dividends received
P&L: Dr Investment, Cr Share of profit of associate
Time-apportion the associate's profit in the year of acquisition
Eliminate investor's share of unrealised profit only

Deferred Consideration (IFRS 3)

Discount to PV at acquisition date using appropriate discount rate
Unwinding: Dr Finance cost (below operating profit), Cr Deferred consideration
Deferred consideration in shares: fair value at acquisition date — no remeasurement

Revaluation in Consolidation

Only POST-acquisition OCI included in group at parent's % — not full balance
Pre-acquisition revaluation surplus: part of FV of net assets → reduces goodwill

Foreign Currency (IAS 21)

Monetary items: retranslate at closing rate → gains/losses to P&L
Non-monetary (cost model): translate at transaction date rate — no retranslation
Translating a foreign subsidiary for consolidation is not examinable in FR

Statement of Cash Flows

Classify cash flows as operating, investing or financing
Indirect method: adjust profit for non-cash items and working capital changes
FR requires extracts for a single entity only; group statements of cash flows are not examinable

Interpretation — Key Principles

Always use scenario data — generic answers score zero
Link ratio movements to each other: ROCE = Margin × Asset turnover
Consider both financial and non-financial performance indicators
Identify limitations: window dressing, different accounting policies, inflation
For groups: intercompany transactions affect comparability with prior periods

IFRS 18 — Income & Expense Categories

Operating: main business activities (revenue, cost of sales, admin)
Investing: returns from investments held (interest/dividends from investments)
Financing: cost of financing (interest on debt, lease interest)
MPM (Management-defined Performance Measures): not examinable at FR

How to use it

A formula sheet is a revision aid, not a substitute for practice. Reading formulas builds recognition; applying them under time pressure builds recall, and it's recall the exam tests. The most effective way to use this sheet is alongside questions: attempt a question first, then check the sheet only when you're stuck, rather than working with it open in front of you.

Print it and keep it beside you while you work through FR questions. Once you stop reaching for it, you know the formulas are in place.

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This sheet is an original compilation of standard formulas mapped to ACCA FR's current examinable scope. It is a revision aid only and is not a substitute for the official formulae and rates provided in your exam. Looking for another paper? See all ACCA formula sheets. GoQualified is not affiliated with ACCA.