ICAEW ACA FAR study guide
ICAEW ACA FAR · Work through your exam, one topic at a time.
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 published domain weights split evenly at 25% each across financial accounting and reporting, accounting standards and conceptual framework application, business combinations and consolidations, and analysis and interpretation of financial information. Candidates typically reach FAR after the Certificate Level accounting and assurance subjects, and it underpins later Advanced Level study such as Corporate Reporting, so the standard-setting knowledge and consolidation mechanics you build here carry forward. The ICAEW ACA FAR study guide has 4 sections and about 1,501 words.
01Financial accounting and reporting: preparing and interpreting financial statements
This domain tests whether you can prepare a complete set of general purpose financial statements for a single entity and read them coherently. The exam expects double-entry fluency, correct period-end adjustments, and an understanding of what each primary statement communicates rather than isolated calculations.
411 words, about 2 min02Accounting standards and conceptual framework application
This domain tests applying the Conceptual Framework and individual IFRSs to transactions and balances. You need to select the relevant standard, apply its recognition and measurement rules, and explain the resulting journal entries or presentation, rather than reciting definitions.
376 words, about 2 min03Business combinations, consolidations and group accounts
This domain tests acquisition accounting and the preparation of consolidated financial statements. The key question is whether the investor controls the investee: power over relevant activities, exposure to variable returns, and ability to use power to affect returns.
367 words, about 2 min04Analysis and interpretation of financial information
This domain tests ratio calculation and, more importantly, interpretation. You must explain what a ratio indicates, compare it with a benchmark or prior period, and link it to business drivers.
347 words, about 2 min