CMA Final Paper 18 (CFR) case studies
CMA Final Paper 18 (CFR) · Put your knowledge to work in context.
CMA Final Paper 18, usually labelled Cost and Financial Reporting (CFR), is the advanced-level paper in the CMA Final stage that tests how well a candidate can move between cost records and published financial statements. It suits candidates who already understand basic costing and accounting and now need to apply standards, statutory disclosure rules and judgement to realistic corporate situations. The CMA Final Paper 18 (CFR) case studies are 5 cases and about 4,714 words.
1Under-absorption, abnormal idle capacity and a below-cost export order
Vasanth Alloys Ltd runs a single blast furnace and rolling mill. For the year to 31 March 20X6 budgeted fixed production overhead was ₹1,200 lakh on a normal capacity of 60,000 machine hours, a recovery rate of ₹2,000 per machine hour.
916 words, about 5 min2Cost auditor independence and a CFO request to suppress findings
Bharat Agro Chemicals Ltd manufactures fertilisers, has turnover of ₹1,850 crore and is covered by the Companies (Cost Records and Audit) Rules. Its proposed cost auditor for FY 20X5-X6 is a practising cost accountant whose firm also provides the company with internal audit, transfer pricing documentation and SAP implementation support.
935 words, about 5 min3Variable consideration, uninstalled materials and a discounted contract variation
Nirmal Solar EPC Ltd has a single contract to design, build and commission a 250 MW solar plant for a state utility for ₹480 crore over 30 months from 1 April 20X4. The contract gives a bonus of ₹1.50 crore for each month of early completion, capped at ₹12 crore, and imposes liquidated damages of ₹2 crore per month of delay, capped at ₹18 crore.
962 words, about 5 min4NCI, a step-up purchase and impairment in a fully-goodwilled group
Pinnacle Holdings Ltd acquired 60% of Suryan Ltd on 1 April 20X2 for ₹480 crore, measuring the non-controlling interest at its fair value of ₹300 crore. The fair value of Suryan's identifiable net assets at that date was ₹660 crore.
1,003 words, about 5 min5Bill-and-hold revenue, a covenant breach and an intimidated finance head
Meenakshi Raman, a cost accountant, has just joined Sundaram Auto Components Ltd, a listed company, as head of finance. On 27 March 20X6 the company invoices a distributor ₹36 crore for a consignment that is still in Sundaram's own warehouse.
898 words, about 4 min