CA Final · May 2026 · Paper 1
CA Final Financial Reporting May 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 | Acquisition accounting including an unrecognised acquiree intangible, then a consolidated balance sheet eliminating intra-group balances and unrealised inventory profit | Ind AS 103 Business Combinations |
| 2(a) | 10 | Convertible debentures with a holder put option: split into liability and equity, initial entry and derecognition on early exercise | Financial Instruments: Equity and Financial Liabilities |
| 2(b) | 4 | Interim reporting of seasonal revenue, interim income tax using an estimated annual rate, and a revised warranty estimate | Ind AS 34 Interim Financial Reporting |
| 3(a) | 10 | Manufacturer or dealer lessor accounting for a finance lease, including selling profit and unguaranteed residual value | Ind AS 116 Leases |
| 3(b) | 4 | Identifying reportable segments using the quantitative revenue thresholds | Ind AS 108 Operating Segments |
| 4(a) | 6 | Defined benefit obligation: actuarial gains and losses, their recognition in OCI and the year-end liability | Ind AS 19 Employee Benefits |
| 4(b) | 8 | Recognition and presentation of different government grants including non-monetary grants and below-market loans | Ind AS 20 Accounting for Government Grants and Disclosure of Government Assistance |
| 5(a) | 5 | Identifying performance obligations and timing of revenue for goods held by the seller after completion | Ind AS 115 Revenue from Contracts with Customers |
| 5(b) | 5 | Convertible debentures redeemable at a premium: measuring liability and equity components | Financial Instruments: Equity and Financial Liabilities |
| 5(c) | 4 | Enhancing qualitative characteristics of useful financial information | Conceptual Framework for Financial Reporting under Indian Accounting Standards (Ind AS) |
| 5(c) OR | 4 | Initial measurement of assets and liabilities in at-market versus off-market transactions | Conceptual Framework for Financial Reporting under Indian Accounting Standards (Ind AS) |
| 6(a) | 5 | Cloud computing: meaning and common business applications | Accounting and Technology |
| 6(b) | 5 | Capitalisation of borrowing costs when parts of a qualifying building are completed in phases | Ind AS 23 Borrowing Costs |
| 6(c) | 4 | Fair value using principal market versus most advantageous market, considering transaction and transport costs | Ind AS 113 Fair Value Measurement |
What stood out
- Ind AS 103 and group accounting carried the compulsory 14-mark Question 1, combined with a consolidated balance sheet.
- Financial instruments appeared in several places: two MCQs plus two compound-instrument descriptive questions worth 15 marks together.
- The MCQ section ranged across 13 chapters, with Ind AS 28 and Ind AS 105 each tested twice.
- Theory was limited to the Conceptual Framework, government grants and a technology question on cloud computing.
- Ethics appeared only as a single MCQ, lighter than in January 2026.
Practise the chapters that carried the marks
Financial Instruments: Equity and Financial Liabilities, Ind AS 103 Business Combinations, Ind AS 116 Leases: study guides and practice questions in the CA Final format.