Financial Accounting and Reporting
The importance of the IFRS treatment question in FAR
December 13, 2021
The IFRS treatment question, which is always found in every FAR paper, is generally worth around 30 to 35 marks every time.
This makes it the single most important question in any FAR paper, which is good news because it is potentially one of the questions which can be drilled extensively in advance of the examination.
The FAR examiners clearly have a relatively narrow set of perhaps 20 or 30 topic areas to draw from in this question and every time they test a topic area, both the question setup and the wording of the model answer will be extremely similar — sometimes, all the model answer does is change the figures and names of the relevant companies/individuals involved in the question: otherwise, the answer is absolutely identical to what we have seen in other past papers!
In some very rare instances, there are actually errors in the model answer because it is clear that the examiners have simply copied and pasted content from an earlier past paper answer but have then forgotten to update the latest answer for the new company name or relevant figures!
Another reason to spend time preparing for the IFRS treatment question is that this element of FAR is extremely similar to Corporate Reporting at the Advanced Level – often, a large number of marks in the Corporate Reporting examination will be based on the same technical content, question wording and answer requirements as FAR.
Therefore, you can definitely “kill two birds with one stone” by working hard on the IFRS treatment questions for FAR, given that you can reuse your knowledge and skills later for the Corporate Reporting paper.
To learn more about our FAR resources and how they can help with your ACA exam training, please click here.