CMA Final · December 2025 · Paper 18
CMA Final Corporate Financial Reporting December 2025: paper analysis
Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICMAI; read them on ICMAI'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 |
|---|---|---|---|
| 2(a) | 7 | Deferred tax on a block of assets where accounting and tax depreciation and disposal treatment differ | Income Taxes (Ind AS 12) |
| 2(b) | 7 | Foreign currency payable for imported machinery with revaluation and exchange differences: journal entries over two years | The Effects of Changes in Foreign Exchange Rates (Ind AS 21) |
| 3(a) | 7 | Identifying reportable operating segments using revenue, result and asset thresholds | Operating Segments (Ind AS 108) |
| 3(b) | 7 | Value per equity share on a net assets basis with fully and partly paid shares and preference arrears | Valuation of Shares (including Determination of Goodwill) |
| 4(a) | 7 | Amortised cost of a term loan with upfront fees using the effective interest method, with journal entries | Accounting of Financial Instruments |
| 4(b) | 7 | Journal entries for an internal reconstruction with creditor sacrifices, share reduction and asset write-downs | Internal Reconstruction (Capital Reduction) |
| 5 | 14 | Acquisition accounting: purchase consideration with contingent consideration, fair value of net assets and goodwill or bargain gain | Accounting for Business Combination and Restructuring |
| 6 | 14 | Consolidated balance sheet with fair value adjustments, NCI, goodwill impairment, unrealised profits and intra-group debentures | Consolidated Financial Statements and Separate Financial Statements |
| 7(a) | 7 | Economic value added with capitalised research costs, economic depreciation and CAPM cost of equity | Recent Developments in Financial Reporting |
| 7(b) | 7 | Categories of capital under the integrated reporting framework | Recent Developments in Financial Reporting |
| 8(a) | 5 | Role of the Public Accounts Committee | Government Accounting in India |
| 8(b) | 5 | Constitution and structure of the Government Accounting Standards Advisory Board | Government Accounting in India |
| 8(c) | 4 | Group accounting entries when a parent sells part of its stake but keeps control | Consolidated Financial Statements and Separate Financial Statements |
What stood out
- Group accounting again anchored the paper: a 14-mark business combination, a 14-mark consolidated balance sheet and a 4-mark partial disposal without loss of control.
- The structure closely matched June 2026, including EVA and an integrated or digital reporting theory part in Question 7 and government accounting notes in Question 8.
- Ind AS computations covered deferred tax, foreign exchange, segment identification and effective interest amortisation, each for 7 marks.
- Share valuation and internal reconstruction each appeared as 7-mark numericals, confirming both as regular topics.
- MCQs spread across eleven chapters, including inventory valuation, diluted EPS, joint operations and government accounting standards, so broad concept revision is needed.
Practise the chapters that carried the marks
Consolidated Financial Statements and Separate Financial Statements, Accounting for Business Combination and Restructuring, Recent Developments in Financial Reporting: study guides and practice questions in the CMA Final format.