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CPA Australia Financial-Accounting-and-Reporting : CPA Financial Accounting and Reporting Exam

Financial-Accounting-and-Reporting

Exam Code: Financial-Accounting-and-Reporting

Exam Name: CPA Financial Accounting and Reporting Exam

Updated: Sep 09, 2026

Q & A: 100 Questions and Answers

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CPA Australia Financial-Accounting-and-Reporting Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Revenue, Provisions and Liabilities14%- Revenue from contracts with customers
- Provisions, contingent liabilities and assets
Topic 2: Presentation of Financial Statements15%- Statement of profit or loss and OCI
- Statement of financial position
- Statement of cash flows and notes
Topic 3: Financial Instruments12%- Classification and measurement
- Recognition, derecognition and disclosure
Topic 4: Impairment of Assets6%- Impairment testing and recognition
- Impairment indicators and recoverable amount
Topic 5: Business Combinations and Group Accounting20%- Consolidation principles and procedures
- Business combinations and goodwill
- Non-controlling interests
Topic 6: Role and Regulatory Framework of Financial Reporting15%- Business entities and reporting obligations
- Conceptual framework and qualitative characteristics
- Regulatory environment and standards setting
Topic 7: Income Taxes18%- Tax effects in financial statements
- Current and deferred tax calculation

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

Question #1

XYZ Ltd is listed on the Australian Securities Exchange (ASX). Which one of the following reports is the company required to prepare as a part of its annual financial report?

A. sustainability report
B. management commentary
C. chairman's statement
D. corporate governance statement


Question #2

According to IASB's Conceptual Framework, an expense is a decrease in economic benefits in the form of
I.
outflows.
II.
decreases of assets.
III.
incurrences of liabilities.
IV.
contributions to equity holders.

A. I, II and IV only
B. I, III and IV only
C. II, III and IV only
D. I, II and III only


Question #3

A company purchased a machine 10 years ago for $143 890. It is expected that the machine will generate future revenues of $108 495. The machine could be scrapped for $81 232. An equivalent machine in the same condition would cost $94 950 to buy now. What is the deprival value of the asset?

A. $35 395
B. $94 950
C. $81 232
D. $108 495


Question #4

A rules-based approach to standard setting

A. helps a standard-setting body to prioritise matters.
B. ensures there are no conflicts within accounting standards as each issue is handled just once.
C. prescribes standards that attempt to cover all eventualities a business may face.
D. provides a broad framework for standard setting.


Question #5

Which of the following are the stated objectives of the International Accounting Standards Board (IASB)?
I)Enforce accounting standards.
II)Develop accounting standards.
III)Work for convergence of accounting standards.

A. II and III only
B. III only
C. I and II only
D. I only


Solutions:

Question #1
Answer: D
Question #2
Answer: D
Question #3
Answer: B
Question #4
Answer: C
Question #5
Answer: A

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Financial-Accounting-and-Reporting - CPA Financial Accounting and Reporting Exam
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