The exam is three hours long.

The exam is divided into three sections as follows:

• Section A – contains 15 objective test questions which may each cover any area(s) of the syllabus.
• Section B – contains three ‘case’ questions. For each of the three cases, candidates are presented with a single scenario and must answer five objective test questions based on that scenario. The cases may each cover any area(s) of the syllabus.
• Section C – contains two ‘constructed response’ (CR) questions. One CR will be on the interpretation of financial statements and one on the preparation of financial statements. One CR will be based on an individual entity and one will be based on a non-complex group of companies. The CR make use of word processing and spreadsheet software within the exam system.

The pass mark for the FR exam is 50%.

No, candidates only need to achieve 50% overall to pass.

No, all sections and questions are compulsory.

It is essential that a candidate sitting the FR exam has a thorough understanding of the syllabus, meaning that they must be able to produce narrative responses (Section C) and respond to narrative and discursive questions with the correct choice (Sections A and B). Being able to prepare calculations, make accounting adjustments and prepare financial statements is also essential but, in itself, is insufficient.  Many of the syllabus learning outcomes in the study guide use the verbs ‘explain’, ‘describe’ or ‘discuss’.

The marking guide is weighted towards analysis and interpretation of the financial statements that make use of calculated ratios and the key points from the scenario. The calculations of ratios are not worth a significant amount of credit.

Candidates are encouraged – using the Practice Platform – to review marking guides for past exams, where this point is illustrated.

Candidates may be asked to calculate the present value in one year’s time using a given interest rate. For example, to calculate the present value of $2.7m payable in one year and with an interest rate of 8%, candidates would be expected to perform the following calculation:

Present value = $2.7m ÷ 1.08^{1 year} = $2.5m

The relevant discount factors will be given for present values relating to more than one year. 

IFRS Accounting Standards and IFRS Sustainability Standards are examinable based on when they are issued by the International Accounting Standards Board. All IFRS Standards (and other related material) within the examinable documents may be tested. Only accounting treatments in accordance with examinable documents will be awarded credit.

Appropriate credit will always be given where the candidate has answered the question with workings in full, presented clearly.

Many candidates do not practise exam questions prior to the exam but, it is assumed, simply read the questions and model answers together. This is especially what is assumed with the discursive elements and narrative questions. Candidates are advised to practise questions under exam conditions.

Candidates are advised to regularly review the syllabus and study guide published on the ACCA website.

The ACCA website contains examinable documents which combine both FR and Strategic Business Reporting into a single document.