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The ACCA Financial Reporting (FR) exam is a fundamental step towards qualifying as a Chartered Certified Accountant and is the link between the fundamentals of simple bookkeeping and advanced, strategic reporting at the Professional Level.
In order to earn top marks in the ACCA FR exam, you require an effective Financial Reporting Strategy that will allow you to score maximum points by working quickly and accurately while having a solid understanding of International Financial Reporting Standards (IFRS).
This article explains how the ACCA FR 2025 exam is set up and presents the ACCA FR Ultimate Study Plan to enable you to succeed on your first attempt.
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What Is The 2025 Exam Structure?
The ACCA FR exam is 3 hours long and is a Computer-Based Exam (CBE). To get the most benefit from your time on the Exam, you should be aware of how the exam structure is set up and how you will manage your time.
Section A (30 Marks): 15 Objective Test Questions (OTQs), worth 2 marks each, covering the entire syllabus. Therefore, it is critical that you answer all the questions, including small topics.
Section B (30 Marks): 3 "Mini Case Studies," with each of these cases containing 5 OTQs, worth 2 marks each, that test on specific standards, such as IFRS 16 (Leases) or IAS 36 (Impairment of Assets).
Section C (40 Marks): 2 constructed-response questions of 20 marks each. You will be using the CBE's spreadsheet and word processing tools to prepare your answers. One of these questions will typically require you to prepare Consolidated Financial Statements, and the other will require you to analyse and interpret Financial Ratios.
The "Core Four" Syllabus Areas to Study
Understanding these Four Pillars are essential to securing high marks in ACCA FR because they make up most of your exam paper.
Preparation of Financial Statements - i.e., you'll need to prepare a Statement of Profit or Loss, Statement of Financial Position, including adjustments for depreciation, accruals, and taxes. From this point onwards, learning how to analyse a Company's Balance Sheet will be your 'base' skillset.
Consolidation (Group Accounts) - It is crucial that you exercise and understand how to calculate Goodwill, Non-Controlling Interest (NCI), and Group Retained Earnings when preparing your answer in Section C of your exam.
Financial Ratio Analysis - While it is essential to be able to calculate the relevant ratios, you need to be able to identify what a 'Good' ratio looks like. For example, a Good Inventory Turnover Ratio will prompt better commentary in this area.
Conceptual Framework & Standards - It's important to know why regulations exist. Make sure to review the updated emphasis on IFRS 18 (Revenue Recognition) and Sustainability (IFRS S1) reporting, which will apply as of 2025.
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ACCA FR Step-by-Step Preparation Strategy
If preparing for ACCA FR is going to be successful, you need a planned approach to your study over the 6-week period from when you start planning your studies until the day you sit your exam:
Weeks 1-3: Technical Knowledge
Research each of the seven International Financial Reporting Standards (IFRS) individually. Instead of reading the full text of the IFRSs, you should summarise each Standard on a single page. Make sure to focus on IFRS 15 (Revenue Recognition) and IAS 37 (Provisions).
Weeks 4-5: Intensive Question Practice
Weeks 4 and 5 will be dedicated to intensive question practice and transitioning from reading to solving questions using the Practice Kit for all of Section A and Section B to really learn Financial Reporting (FR). FR is very calculation-intensive and therefore requires a similar learning process to that of learning Fundamental Analysis in the stock market, in that you need to fully understand the company's "underlying value" and "overall health".
Week 6: Mock Exams & The Practice Platform
You should complete Mock Exams using the Practice Platform to simulate studying within the official ACCA CBE environment. Also, using the Practice Platform before you complete the official ACCA CBE exams will help you prepare to use the spreadsheet functionality of the ACCA Practice Platform, as it might be slightly different from what you are used to from using Microsoft Excel.
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How to Score High Marks in ACCA FR Exams?
Make sure that you perform your best to achieve high pass marks (above 50%). Here are some of the tips for successfully passing the ACCA FR exams:
Use cell referencing in your calculation in Section C (the Financial Statements). If you have a mistake but your calculations rely solely upon cell references, you will still receive the "own figure rule" bonus marks from the examiner.
For a question where the examiner asks why a certain ratio increased (increased Operating Profit), you should not merely state "the ratio increased", but you should provide a detailed explanation of why the ratio increased (e.g., if the Operating Profit was increased due to an increase in Raw material costs, which were not passed on to the customers).
Do not neglect the importance of theoretical understanding. Many candidates fail their exams due to not studying enough or understanding the underlying theoretical definitions in the conceptual framework. For Section A of the ACCA FR exams (theoretical/definitions), the examiner may consider awarding only approximately 4-6 marks for purely theoretical (definitions) responses.
Having experience in an Accounting system like Tally can make this shift to digital easier. You can look at the Top 40 Tally Interview Questions & Answers to get a sense of how digital Accounting relates to the logic of your examination.
Conclusion
The ACCA Financial Reporting examination tests both your technical skills and your ability to effectively communicate about Financial Performance. By becoming proficient in the "Core Four" and thoroughly practicing through the CBE platform, you can achieve a high mark in this challenging area of study. Also, keep in mind that Financial Reporting is the language of business. If you are seeking a career in the field of Audit or simply want to know how to find the Right Stocks to buy for the Long-Term, the skills you acquire will benefit you throughout your Professional Career.
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