KASNEB CPA Advanced case studies

KASNEB CPA Advanced · Put your knowledge to work in context.

KASNEB - the Kenya Accountants & Secretaries National Examinations Board - is a State Corporation under The National Treasury and Economic Planning, established by the Government of Kenya in 1969. Its mandate covers the development of syllabuses, the conduct of professional, diploma and technician examinations, and the certification of candidates in accountancy, finance, credit, governance and management, information technology and related disciplines, together with the accreditation of relevant training institutions in liaison with the ministry in charge of education. The KASNEB CPA Advanced case studies are 5 cases and about 5,471 words.

Principal or Agent? Voucher Revenue, an IAS 8 Correction and a Covenant Cliff

Baraka Distributors Ltd sells physical goods and, from 1 January 2025, also sells third-party digital vouchers. The draft statement of profit or loss for the year to 31 December 2025 shows revenue of KES 300 million, including KES 60 million of voucher face value sold on behalf of Vocha Ltd.

1,113 words, about 6 min 2

Group Audit: Access Denied at a 22%-of-Assets Component

Mzizi Group Ltd prepares consolidated financial statements for the year ended 31 December 2025. Group profit before tax is KES 420 million, including a one-off KES 90 million gain on disposal of a warehouse.

1,057 words, about 5 min 3

Interest Limitation, EBITDA Base and a Related-Party Pricing Question

Zawadi Manufacturing Ltd is a Kenyan resident company with a 31 December year end. Accounting profit before tax for 2025 is KES 180 million, after charging: finance costs of KES 130 million, of which KES 90 million is interest at 15% on a KES 600 million loan from its Mauritian parent (10% withholding tax was correctly deducted and remitted), and KES 40 million to a local bank; depreciation of KES 70 million; and KES 8 million of fines and penalties.

1,093 words, about 5 min 4

Throughput Ranking, a Special Order and the Cost of Idle Reasoning

Tawi Ltd runs a single machining line with capacity of 34,000 machine hours a year; a second shift cannot be added before 2027. Per-unit data: Product A: price KES 1,200, variable cost KES 720, 2 hours, annual demand 8,000 units.

1,150 words, about 6 min 5

Acquisition Valuation and a CFO Asked to Bend the Discount Rate

Sahara Holdings Ltd is evaluating a cash offer for 100% of Delta Ltd. Delta's free cash flow to the firm for the year just ended was KES 480 million, expected to grow at 4% a year in perpetuity.

1,058 words, about 5 min