A lot depends for a CA student on how well the first exam goes. Infact, I feel that it can make or break the entire resultand confidence for a CA Final student. A good start can give the much needed confidence and momentum for the next sevenpapers to come, while a poor performance can create self doubt and ruin the coming papers.
A good score in 'Financial Reporting' subject can be the game changer in CA Final Group 1 since the group comprises of two theoretical subjects of Law & Audit.
Even though the syllabus is relatively easy in comparison to other subjects of CA Final.
The first thing every student needs to do is to get acquainted with the syllabus. It can be divided into following groups:
What are the Broad groups the whole syllabus of FR can be bifurcated?
GROUP A -
1. Valuation of Goodwill, shares & business
2. Value Added Statement
3. Economic Value Added & Market Value Added
4. Share Based Payments
5. Corporate Restructuring - Demerger, Sale of division, Buy Back, Internal Reconstruction
6. Human Resource Accounting
7. Accounting of Mutual Funds
8. NBFCs
9. Financial Instruments
Students should start withthe chapters mentioned in Group A, preferablyin the same sequence mentioned above. The main feature of these topics is that these do not take up much preparation time and are fairly simple.
Infact, you need to allot just a day or two each for every Group A topic mentioned above. Follow this schedule and within no time, one would be done with more than half of the FR's syllabus and this would definitely give you a decent level of confidence and command over the CA Final FR syllabus.
GROUP B -
1. Accounting Standards, Guidance Notes & Schedule III
2. IND AS - Carve ins & Carve outs
3. Corporate Restructuring - Amalgamation
4. Consolidated Financial Statements of Group Companies
My few key tips for CA Final Financial Reporting
1. Do not indulge in selective studying if you wish to score well in CA Final. Many students leave it out due to its vastness. At final level, one cannot afford leaving a topic of the syllabus which has a definite weightage of 16 marks.
2. Every chapter comprises of various sub-topics. Always make a list of all the sub-topic in a chapter and attempt atleast one question based on each such sub-topic.
For example: Chapter of 'Share Based Payments' can be divided into following sub topics -
• Normal ESOPs
• ESPPs with post-vesting restrictions
• Graded Options
• ESOPs with cash alternatives
• SARs
• Repricing/ modification
• Basic & Diluted EPS
Treatment of each of these sub-topics is different from each other. Practise questions on every sub-topic.
3. Compulsory question no. 1 is generally asked on Accounting Standards. Even the Question 7 of the paper is based on Accounting Standards, guidance notes, IND AS carve in - carve outs & Schedule III. Accounting Standards is part of syllabus of even the CA Final Paper 3 - Advanced Auditing & Assurance. Thus it is essential to have a proper hold on Accounting Standards.
So effectively, AS have a weightage of around 40 marks. So try to practise all the illustrations and questions in Study Material & Practise Manual. Also, one can even buy a reference book such as Taxman's D.S. Rawat and practise the illustrations given in it.
4. Accounting Standards can be divided into two categories:
o Category A - AS 10, 11, 15, 16, 17, 19, 20, 22, 24, 25, 28
o Category B - AS 1, 2, 3, 4, 5, 6, 9, 12, 13, 18, 26, 29
Standards covered in Category A are extremely important for Final level as these are the standards from which questions are generally being asked. Category B comprises of those standards which are more relevant for the IPCC level.
5. Whenever you are not able to solve any question, make it a habit to note down its question no. These questions should be taken up again in the next revision of the topic.
6. 'Speed' is a very crucial factor for attaining success in CA Final exams. Question papers are often lengthy and test the swiftness of students. Added to it, the fact that it is the very first paper of CA final and students have not faced many exams in the last three years after IPCC, they often experience nervousness and lack of speed.
Thus, it is very important for students to give multiple time-based mock tests to ensure proper speed in the exam.
7. Attempt questions of the last 5 RTPs & MTPs as these question papers reflect the current trend of institute and is very helpful for proper revision of every chapter.
8. In the exam, always attempt the 'Holding Company/ Consolidation' question in the very end after all the other questions have been done. Taking it up at the end would allow students to attempt it with a relaxed mind and they can atleast score maximum out of step marking.
9. Never underestimate topics such as NBFCs, Human Resource Accounting & EVA. Though these topics come infrequently, they comprise of just one to two concepts and hold scoring opportunity of 4 marks each.
I have followed the same strategy and scored 79 in Financial Reporting in May 2018.
If you need any kind of help for the subject, feel free to comment below.
To enroll Financial Reporting (CA Final) subject by Prof. Rahul Malkan: Click Here
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