ACCA FR — Financial Reporting

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FR — Financial Reporting

Applied Skills • Free revision material, sample MCQs and mini mock.

What to Focus On

IFRS application, single-entity and group financial statements, analysis and interpretation.

2026/27 preparationFree MCQsMini mockTest-session support

5 Free FR MCQs

Attempt each question before opening the answer.

1. IAS 2 requires inventory to be measured at:
A. Lower of cost and NRVB. Fair value alwaysC. Higher of cost and NRVD. Historical selling price
Show answer

Lower of cost and NRV — Inventory is measured at lower of cost and net realisable value.

2. Under IAS 16, depreciation starts when an asset is:
A. Available for useB. OrderedC. Paid forD. Fully insured
Show answer

Available for use — Depreciation begins when the asset is available for use.

3. Goodwill on acquisition is generally:
A. Tested for impairmentB. Amortised over 5 years under IFRSC. Written off immediatelyD. Included in inventory
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Tested for impairment — IFRS requires impairment testing rather than systematic amortisation.

4. A current ratio above 1 generally indicates:
A. Current assets exceed current liabilitiesB. No debt existsC. Profit is guaranteedD. Cash exceeds revenue
Show answer

Current assets exceed current liabilities — The current ratio compares current assets with current liabilities.

5. Which item is eliminated on consolidation?
A. Intra-group balancesB. External receivablesC. Parent share capitalD. External cash
Show answer

Intra-group balances — Group accounts remove internal transactions and balances.

Free 5-Question Mini Mock

Try these without opening the answers first. Use them as a quick revision check.

1. Which item is eliminated on consolidation?
Check answer

Intra-group balances — Group accounts remove internal transactions and balances.

2. A current ratio above 1 generally indicates:
Check answer

Current assets exceed current liabilities — The current ratio compares current assets with current liabilities.

3. Goodwill on acquisition is generally:
Check answer

Tested for impairment — IFRS requires impairment testing rather than systematic amortisation.

4. Under IAS 16, depreciation starts when an asset is:
Check answer

Available for use — Depreciation begins when the asset is available for use.

5. IAS 2 requires inventory to be measured at:
Check answer

Lower of cost and NRV — Inventory is measured at lower of cost and net realisable value.

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