CA Intermediate · May 2026 · Paper 1
CA Intermediate Advanced Accounting 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(a) | 5 | Measuring a defined benefit obligation using projected unit credit method and present value factors | AS 15 Employee Benefits |
| 1(b) | 5 | Cost of a machine, depreciation and accounting for an upward revaluation with revised depreciation charge | AS 10 Property, Plant and Equipment |
| 1(c) | 4 | Computing total tax expense with current tax and deferred tax arising from timing differences | AS 22 Accounting for Taxes on Income |
| 2 | 14 | Preparing a company Balance Sheet and Statement of Profit and Loss under Schedule III with notes and adjustments | Financial Statements of Companies |
| 3(a) | 6 | Preparing a cash flow statement with operating, investing and financing sections using the indirect method | AS 3 Cash Flow Statement |
| 3(b) | 8 | Journal entries for a capital reduction scheme and the post-reconstruction balance sheet | Internal Reconstruction |
| 4 | 14 | Amalgamation in the nature of purchase: net assets, purchase consideration, capital reserve and merged balance sheet | Amalgamation of Companies |
| 5(a) | 10 | Consolidated statement of profit and loss with intra-group sales, unrealised profit and inter-company fees eliminated | AS 21 Consolidated Financial Statements |
| 5(b) | 4 | Whether a planned piecemeal disposal of a business division qualifies as a discontinuing operation | AS 24 Discontinuing Operations |
| 6(a) | 4 | Reasons driving convergence of Indian accounting standards with global financial reporting standards | Introduction to Accounting Standards |
| 6(a) OR | 4 | Exchange differences on a foreign currency loan for a depreciable asset with and without the Para 46A option | AS 11 The Effects of Changes in Foreign Exchange Rates |
| 6(b) | 4 | Classifying situations as a change in accounting policy, change in estimate or adoption of a new policy | AS 5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies |
| 6(c) | 6 | Reason for invoice-price loading and branch-side adjustment entries for in-transit items and head office allocations | Accounting for Branches including Foreign Branches |
What stood out
- The paper carried a 30-mark case-scenario MCQ section of 15 questions, so only 70 marks were descriptive; plan time for objective work in Advanced Accounting too.
- MCQs spread across 13 chapters, with AS 10 and Buyback of Securities the only chapters tested twice, rewarding breadth over depth.
- Company accounts carried the written part: Schedule III final accounts, amalgamation and internal reconstruction together made up 36 marks.
- Consolidation stayed significant through a consolidated profit and loss with intra-group eliminations, backed by an associate MCQ.
- Theory was limited to the convergence question and short AS 5 and AS 24 judgement items; the paper was heavily numerical.
Practise the chapters that carried the marks
Financial Statements of Companies, Amalgamation of Companies, Internal Reconstruction: study guides and practice questions in the CA Intermediate format.