ICAEW ACA FAR case studies

ICAEW ACA FAR · Put your knowledge to work in context.

The ICAEW ACA Financial Accounting and Reporting (FAR) exam sits at the Professional Level of the ACA qualification. FAR develops the technical financial reporting skills expected of a chartered accountant: preparing financial statements for single entities, applying accounting standards and the conceptual framework, and preparing and interpreting consolidated financial statements for groups. The ICAEW ACA FAR case studies are 5 cases and about 3,373 words.

SaaS Contract with Implementation, Bonus and Seat Addition

Northwind Software Ltd, a UK SaaS provider, signed a three-year contract on 1 January 20X5 with a retail customer. The fixed consideration is £1,200,000: £900,000 for cloud subscription, £200,000 for implementation and configuration, and £100,000 for support.

706 words, about 4 min 2

Mid-Year Acquisition with Fair Value Uplift and Intra-Group Inventory

On 1 July 20X4, Pine plc acquired 80% of Sycamore Ltd for £10 million cash. At acquisition, Sycamore’s share capital was £2 million and retained earnings £3 million.

678 words, about 3 min 3

Legal Claim, Restructuring Announcement and Onerous Warehouse Lease

Harbour Logistics Ltd has a 31 December year end. In November 20X4 a customer sued Harbour for £700,000 over delayed deliveries.

673 words, about 3 min 4

Lease Term, Turnover Rent and Fit-Out Incentive under IFRS 16

Riverton Retail Ltd leases a retail unit under a five-year lease starting 1 January 20X5. Annual payments are £120,000, paid in arrears, and increase by 3% each year.

670 words, about 3 min 5

Adjusted Operating Profit and Working Capital Deterioration at Meridian Foods

Meridian Foods plc reports revenue £50 million, operating profit £6 million and profit before tax £4.5 million for the year. Operating profit includes a £1.2 million goodwill impairment, a £0.8 million restructuring charge, a £0.5 million gain on disposal of a property, and £1.0 million of capitalised development costs, of which £0.2 million was amortised.

646 words, about 3 min