CA Final Financial Reporting case studies
CA Final Financial Reporting · Put your knowledge to work in context.
CA Final Financial Reporting is the advanced accounting and reporting paper of the Indian CA Final curriculum, examined by the Institute of Chartered Accountants of India (ICAI). It is aimed at candidates who have cleared the Intermediate level and articleship-stage requirements and who must now demonstrate that they can apply Indian Accounting Standards (Ind AS) to complex, real-world fact patterns rather than simply recall definitions. The CA Final Financial Reporting case studies are 5 cases and about 4,851 words.
1Performance Obligations, a Below-Standard Contract Modification and Principal vs Agent
Kalpana Systems Ltd (KSL), a listed software vendor with a 31 March year-end, signs a contract on 1 April 20X4 covering three items: a perpetual on-premise licence of its analytics platform for ₹4 crore, delivered immediately; a 24-month customisation project for ₹2 crore that significantly modifies the platform's output for the customer's regulatory filings, although the customer could use the unmodified licence on its own; and post-contract support for three years at ₹1 crore a year, which KSL sells to other customers at the same price. KSL has never sold the customisation separately.
886 words, about 4 min2SPPI Assessment, Staging of a Forborne Exposure and Fair Value Hierarchy
Vasudha Finance Ltd (VFL), an NBFC with a 31 March year-end, holds four financial assets at 31 March 20X5: (a) ₹90 crore of 6% bonds convertible at the holder's option into as many shares as ₹1,000 per bond will buy at the market price on conversion; (b) ₹60 crore of an 11% fixed-rate loan to a textile borrower repayable in 2028, with a borrower right to prepay at par plus accrued interest, no penalty; (c) ₹25 crore, the most subordinated tranche of an unrated securitisation SPV, which absorbs first losses on a ₹2,000 crore vehicle-loan pool and takes residual cash flows after senior tranches; there is no active market and it was bought at par 18 months ago; (d) ₹400 crore of term loans at amortised cost with an ECL allowance of ₹8 crore. In February 20X5, ₹70 crore due from a steel borrower was restructured after 90 days past due: the rating fell from A to BB, tenure was extended two years and the coupon cut 200 bps; no further deterioration is expected.
1,077 words, about 5 min3Control, De Facto Power and Joint Arrangements in One Group
Prakash Ltd, a listed infrastructure group, holds the following interests at 31 March 20X5. (a) 8% of the units of Sunrise Capital Fund, a closed-end fund it set up as seed investor, and it acts as investment manager for a 1.5% of NAV fee plus a 20% performance fee above an 8% hurdle.
966 words, about 5 min4Sale and Leaseback, Deferred Tax on Leases and a Foreign-Currency Lease
Nirmal Ltd sold its headquarters building to a fund on 1 April 20X4 for ₹180 crore, its fair value, and leased it back for 12 years at ₹14 crore a year payable in arrears. The building's carrying amount was ₹120 crore and its remaining useful life is 40 years; the lease contains no transfer of ownership and no bargain purchase option, and Nirmal's incremental borrowing rate is 9%.
953 words, about 5 min5Impairment of a Thermal Power CGU: Recoverable Amount, Allocation and a Post-Year-End Offer
Deccan Power Ltd operates a 300 MW thermal plant that is a single cash-generating unit. At 31 March 20X5 the unit comprises plant ₹780 crore, a right-of-use land asset ₹40 crore, and goodwill of ₹20 crore allocated to it on the 20X2 acquisition of the plant.
969 words, about 5 min