CS Executive · December 2025 · Paper 4
CS Executive Corporate Accounting and Financial Management December 2025: paper analysis
Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICSI; read them on ICSI's website.
Chapter-wise marks
Where the marks were in this paper (out of 100; internal-choice alternatives not double counted).
| Chapter | Questions | Marks | Share |
|---|---|---|---|
| Accounting for Share Capital | 8 | 39 | 29% |
| Capital Budgeting | 5 | 25 | 19% |
| Cash Flows | 2 | 10 | 7% |
| Capital Structure | 3 | 10 | 7% |
| Security Analysis | 2 | 10 | 7% |
| Accounting for Debentures | 1 | 6 | 4% |
| Forecasting Financial Statements | 2 | 5 | 4% |
| Financial Statement Analysis | 2 | 5 | 4% |
| Accounting Standards | 1 | 5 | 4% |
| Introduction to Corporate Accounting | 1 | 5 | 4% |
| Operational Approach to Financial Decision | 1 | 5 | 4% |
| Introduction to Financial Management | 1 | 5 | 4% |
| Time Value of Money | 1 | 5 | 4% |
What each question tested
In our words, by question number. Open the official paper for the full question.
| Q | Marks | Tests | Chapter |
|---|---|---|---|
| 1(a) | 10 | Journal entries for IPO at premium with pro-rata allotment, calls and forfeiture | Accounting for Share Capital |
| 1(b) | 3 | Computation of underwriting commission across multiple underwriters | Accounting for Share Capital |
| 1(c) | 2 | Journal entries for payment of underwriting commission | Accounting for Share Capital |
| 2(a) | 5 | Journal entries for employee stock options with partial exercise and lapse | Accounting for Share Capital |
| 2(b) | 6 | Journal entries for debentures issued at premium with oversubscription and pro-rata allotment | Accounting for Debentures |
| 2(c) | 4 | Bonus applied to make partly paid shares fully paid | Accounting for Share Capital |
| 3(a) | 5 | Redemption of preference shares at premium with fresh equity issue | Accounting for Share Capital |
| 3(b)(i) | 3 | Projected net income from forecast sales growth and cost ratio | Forecasting Financial Statements |
| 3(b)(ii) | 2 | Expected dividend growth rate with constant payout | Forecasting Financial Statements |
| 3(c)(i) | 3 | Trade receivables turnover ratio using credit revenue | Financial Statement Analysis |
| 3(c)(ii) | 2 | Average collection period from turnover ratio | Financial Statement Analysis |
| 4(a) | 5 | Journal entries for buy-back funded by sale of investments and preference issue | Accounting for Share Capital |
| 4(b) | 5 | Preparation of cash flow statement from given transactions | Cash Flows |
| 4(c) | 5 | Shares issued as purchase consideration for assets and related entries | Accounting for Share Capital |
| 4A(i) | 5 | Borrowing costs and conditions for capitalisation under AS 16 | Accounting Standards |
| 4A(ii) | 5 | Distinction between free cash flow to firm and to equity | Cash Flows |
| 4A(iii) | 5 | Key features of Schedule III format for financial statements | Introduction to Corporate Accounting |
| 5(a) | 5 | Ranking projects by payback period against a maximum payback criterion | Capital Budgeting |
| 5(b) | 5 | Ranking projects by profitability index and acceptance decision | Capital Budgeting |
| 5(c) | 8 | Coefficient of variation from probability distribution of cash inflows | Capital Budgeting |
| 5(d) | 2 | Choosing the less risky project based on relative dispersion | Capital Budgeting |
| 6(a) | 5 | Terminal value of project cash inflows at given cost of capital | Capital Budgeting |
| 6(b) | 5 | Pricing to achieve target profit using cost-volume-profit data | Operational Approach to Financial Decision |
| 6(c)(i) | 3 | Firm value under net income approach | Capital Structure |
| 6(c)(ii) | 2 | Overall cost of capital under net income approach | Capital Structure |
| 6(d) | 5 | Market value added after adjusting for treasury stock | Introduction to Financial Management |
| 6A(i) | 5 | Rule of 69 for doubling period, with benefits and limitations | Time Value of Money |
| 6A(ii) | 5 | Classification of risk events into systematic and unsystematic | Security Analysis |
| 6A(iii) | 5 | Relative strength index as a technical indicator | Security Analysis |
| 6A(iv) | 5 | Hamada equation linking leverage and beta | Capital Structure |
What stood out
- Share capital accounting dominated Part I: Accounting for Share Capital alone accounted for 8 entries and 39 marks, including the 15-mark IPO case in Q1.
- Capital Budgeting led Part II with 5 entries and 25 marks, anchored by a 20-mark case combining payback, profitability index and risk via coefficient of variation.
- The paper is overwhelmingly numerical; theory appears only in the optional 4A and 6A alternatives covering AS 16, Schedule III, FCFF vs FCFE, Rule of 69, risk types, RSI and Hamada.
- Both case studies (Q1 and Q5) included narrative context that was not needed for the computations, rewarding quick identification of relevant data.
- Lighter chapters such as consolidation, dividend decisions and working capital did not appear in this session.
Practise the chapters that carried the marks
Accounting for Share Capital, Capital Budgeting, Cash Flows: study guides and practice questions in the CS Executive format.