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ACCAACCA FR Cheat Sheet: Key IFRS Standards and Adjustments (Updated for IFRS 18)
ExpertMinds Editorial·3 June 2026·9 min read
Practice ACCA questions while you read →FR (Financial Reporting) had a 50% pass rate in March 2026. The paper tests IFRS application, group accounting, and — critically — interpretation. The examiner consistently flags that candidates write generic comments that ignore the specific scenario. This cheat sheet covers the IFRS standards most frequently tested, including IFRS 18 which replaced IAS 1 from September 2025.
Key fact:FR exam format: 3-hour CBE · 100 marks · Pass mark 50%. Section A: 15 objective test questions (30 marks). Section B: 3 objective test cases (30 marks). Section C: 2 constructed response questions (40 marks) — typically one group accounting and one interpretation/single entity question.
IFRS 18 — Presentation and Disclosure (Replaced IAS 1, examinable from September 2025)
Key fact:IFRS 18 is the most significant change to FR content in years. IAS 1 is no longer examinable. The new standard restructures the income statement into five mandatory categories and introduces Management Performance Measures (MPMs).
| Income Statement Category | What it includes |
|---|---|
| Operating | Revenue, cost of sales, other operating income/expenses — the core trading results |
| Investing | Returns from assets not part of main business (e.g., investment property income, equity method share of profit) |
| Financing | Interest expense, fair value changes on financial liabilities at FVPL, expected credit losses on financial assets at FVOCI |
| Income taxes | Current and deferred tax — now a separate mandatory category |
| Discontinued operations | Results of operations meeting IFRS 5 criteria — still shown separately as before |
| MPM (Management Performance Measure) | Key requirements |
|---|---|
| Definition | A subtotal of income/expenses used in public communications outside financial statements — e.g., "Adjusted EBITDA" |
| Disclosure required | Reconciliation to nearest IFRS subtotal in the income statement; explanation of why the MPM is useful |
| Where shown | In a single note, clearly labelled, with the reconciliation and narrative explanation |
| Audit requirement | MPMs within audited financial statements are subject to audit |
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Key IFRS Standards — Quick Reference
| Standard | Topic | Key exam test points |
|---|---|---|
| IFRS 15 | Revenue Recognition | 5-step model: identify contract → identify POBs → determine transaction price → allocate → recognise. Variable consideration, contract modifications, principal vs agent |
| IFRS 16 | Leases | Lessee: recognise ROU asset + lease liability. Calculate interest (EIR on opening liability), depreciation (ROU asset). Short-term/low-value exemptions |
| IFRS 9 | Financial Instruments | Classification: AC, FVOCI, FVPL. Impairment: expected credit loss (12-month or lifetime). Hedge accounting basics |
| IFRS 3 | Business Combinations | Acquisition method: fair value of consideration + NCI + fair value of net assets. Goodwill calculation. Contingent consideration |
| IFRS 5 | Non-current Assets Held for Sale | Classify when: available for immediate sale, sale highly probable within 12 months. Measure at lower of CV and FV less costs to sell. Stop depreciating |
| IAS 36 | Impairment | Recoverable amount = higher of VIU and FVLCTS. Test annually for goodwill/indefinite life intangibles. Allocate impairment loss: goodwill first, then pro rata |
| IAS 37 | Provisions | Recognise when: present obligation, probable outflow, reliable estimate. Distinguish from contingent liability (disclose only) and contingent asset |
| IAS 38 | Intangible Assets | Research costs: expense. Development costs: capitalise when 6 criteria met (PIRATE). Internally generated goodwill: never capitalise |
| IAS 40 | Investment Property | Cost or fair value model. Fair value changes go to P&L (not OCI). Cannot use revaluation model |
| IAS 16 | Property Plant & Equipment | Cost or revaluation model. Depreciation over useful life. Revaluation surplus to OCI; impairment of revalued asset hits OCI first |
Watch out:FR examiner trap (March/June 2025): unrealised profit on intra-group inventory. The error is using margin when markup is given (or vice versa), and applying it to the wrong figure (e.g., the 75% sold — meaning 25% remains in closing inventory). Always: identify whether profit % is on selling price (margin) or cost (markup), then apply to the unsold portion of closing inventory.
Practise FR questions with full solutions
FR Section C questions are scenario-specific — generic knowledge is not enough. Practise applying IFRS to unfamiliar scenarios under time pressure.
Group Accounting — Consolidation Checklist
| Adjustment | What to do |
|---|---|
| Goodwill | FV of consideration + NCI share − FV of net assets at acquisition. Test for impairment annually |
| NCI (proportionate) | NCI % × fair value of net assets at reporting date |
| NCI (fair value method) | Fair value of NCI at acquisition + NCI % of post-acquisition retained earnings − NCI impairment |
| Pre-acquisition retained earnings | Exclude from group reserves; already captured in goodwill calculation |
| Intra-group balances | Cancel out in full (receivables vs payables; loans vs borrowings) |
| Unrealised profit in inventory | Eliminate from profit and closing inventory; tax effect if applicable |
| Associate (IAS 28) | Equity method: cost + share of post-acquisition profits − dividends received |
| Fair value adjustments | Uplift net assets to FV at acquisition; depreciate the uplift over remaining useful life post-acquisition |
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