CA Final · January 2026 · Paper 1
CA Final Financial Reporting January 2026: paper analysis
Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICAI; read them on ICAI's website.
Chapter-wise marks
Where the marks were in this paper (out of 100; internal-choice alternatives not double counted).
What each question tested
In our words, by question number. Open the official paper for the full question.
| Q | Marks | Tests | Chapter |
|---|---|---|---|
| 1 | 14 | Consolidated balance sheet after acquisition with share, cash and deferred consideration plus intra-group sale of equipment | Ind AS 110 Consolidation Procedure for Subsidiaries |
| 2(a) | 10 | Interest-free intra-group loan: initial fair value measurement and treatment in standalone and consolidated statements | Classification and Measurement of Financial Assets and Financial Liabilities |
| 2(b) | 4 | Current versus non-current classification of a loan refinanced before or after the reporting date | Ind AS 1 Presentation of Financial Statements |
| 3(a) | 8 | Cost of a new machine acquired with a supplier buy-back of the old machine and resulting gain or loss | Ind AS 16 Property, Plant and Equipment |
| 3(b) | 6 | Deferred tax on investments in associates and other temporary differences under different situations | Ind AS 12 Income Taxes |
| 4(a) | 6 | Whether a temporarily idle plant qualifies as held for sale, and its correct measurement and depreciation | Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations |
| 4(b) | 8 | Recognising revenue-related, asset-related, non-monetary and unconditional government grants | Ind AS 20 Accounting for Government Grants and Disclosure of Government Assistance |
| 5(a) | 5 | Significant financing component in a sale with deferred payment terms | Ind AS 115 Revenue from Contracts with Customers |
| 5(b) | 5 | Opening equity reconciliation from previous GAAP to Ind AS at the transition date | Ind AS 101 First-time Adoption of Ind AS |
| 5(c) | 4 | Need for converged Indian Accounting Standards in place of the earlier standards | Introduction to Indian Accounting Standards |
| 5(c) OR | 4 | Companies Act provisions on Ind AS compliance and related board and auditor reporting | Introduction to Indian Accounting Standards |
| 6(a) | 5 | Ethical implications of earnings management pressure on a finance head under the Code of Ethics | Professional and Ethical Duty of a Chartered Accountant |
| 6(b) | 5 | Short-term compensated absences, profit-sharing and defined contribution plans | Ind AS 19 Employee Benefits |
| 6(c) | 4 | Fair value per share combining market and income approaches with discounts for liquidity and lack of control | Ind AS 113 Fair Value Measurement |
What stood out
- Investments in associates dominated the MCQs with three linked questions, alongside two compound financial instrument items.
- Question 1 was a pure consolidation problem focused on purchase consideration components and an intra-group asset transfer.
- Classification of a refinanced loan and transition to Ind AS tested judgement more than computation.
- Ethics was examined in both parts: one MCQ on conflict of interest and a 5-mark descriptive question.
- Ind AS 20 grants appeared for 8 marks in both May 2026 and January 2026, making it a recurring descriptive area.
Practise the chapters that carried the marks
Ind AS 110 Consolidation Procedure for Subsidiaries, Classification and Measurement of Financial Assets and Financial Liabilities, Ind AS 16 Property, Plant and Equipment: study guides and practice questions in the CA Final format.