CA Final FR amendments for Nov 2026: 5 Ind AS changes

The CA Final FR amendments for Nov 2026 are the two Ind AS notifications MCA issued in 2025: G.S.R. 291(E) of 7 May 2025 (Ind AS 21, lack of exchangeability) and G.S.R. 549(E) of 13 August 2025 (covenants under Ind AS 1, supplier finance arrangements under Ind AS 7 and Ind AS 107, and Pillar Two under Ind AS 12). ICAI explains both in Part I of the FR RTP for November 2026 (PDF) (opens in a new tab), and everything issued up to 30 April 2026 counts. Ind AS 117 stays out.

Your FR paper is on Monday, 2 November 2026 (timetable). Below: each change as ICAI states it, the exclusions, and one worked RTP question. The same for the other papers: CA Final Audit amendments for Nov 2026, CA Final DT amendments for Nov 2026 and CA Final IDT amendments for Nov 2026.

CA Final FR amendments for Nov 2026 at a glance

Source: FR RTP, Part I (PDF) (opens in a new tab). ICAI says these were notified after the November 2024 study material "but at least six months prior to the November 2026 Examination and are, therefore, applicable" (Group I RTP, PDF (opens in a new tab)).

For FR, ICAI's study material notice (PDF) (opens in a new tab) lists only the November 2024 edition (Reprint August 2025 onwards) plus the RTP for November 2026. There is no FR Statutory Update: ICAI's Final Amendments/Developments page (opens in a new tab) has updates only for DT and IDT.

Ind AS 21 amendment: lack of exchangeability

Ind AS 21 now covers a currency that can't be exchanged: first test exchangeability, and if it fails, estimate the spot rate.

ICAI's definition: a currency is exchangeable into another "when an entity can obtain the other currency within a time frame allowing for normal administrative delay, through a mechanism that creates enforceable rights".

Step I: is it exchangeable? Five factors:

1. Time frame. A normal administrative delay doesn't prevent exchangeability.
2. Ability, not intention. Can the entity obtain it, directly or via a third currency?
3. Enforceable rights. Only markets that create them count.
4. Purpose. Rates may differ by use, so assess for the specified purpose.
5. Limited amounts. If only an insignificant amount is obtainable for that purpose, it isn't exchangeable.

Step II: estimate the spot rate. The objective is the rate at which "an orderly exchange transaction would take place at the measurement date between market participants under prevailing economic conditions". You may use:

• an observable rate without adjustment that meets the objective (say, a spot rate for another purpose); or
• another estimation technique, such as an adjusted observable rate.

Disclosures include the currency and its restrictions, affected transactions and carrying amounts, the rates used and how they were estimated, and the risks involved; more for a foreign operation.

Transition: no restatement of comparatives. The entity adjusts opening retained earnings or the cumulative translation differences in equity.

Ind AS 1 amendment: covenants and current vs non-current

The right to defer settlement for at least 12 months no longer has to be "unconditional". It must exist at the reporting date and have substance.

• A covenant counts for classification only if it must be met on or before the reporting date. Covenants tested later (future covenants) don't.
• New disclosure for future covenants: their nature, when they must be met, the liabilities' carrying amount, and any signs the company may struggle to comply within 12 months.
• Convertible debt: when classifying the host liability, you can ignore only conversion options recognised as equity under Ind AS 32.
• Effective date: retrospective for annual periods beginning on or after 1 April 2025.

Breach of covenant: the 2025 and 2026 rules

ICAI's RTP gives two rules with two dates:

Check the period in the question first. Under the 2026 rule, refinancing, rectifying a breach, a grace period granted, or settling a non-current liability after the year end are non-adjusting events under Ind AS 10, to be disclosed.

Ind AS 7 and Ind AS 107: supplier finance arrangements

Companies must now disclose supplier finance arrangements (supply chain finance, payables finance or reverse factoring) and their effect on liabilities, cash flows and liquidity risk.

Finance providers pay the entity's suppliers; the entity pays the providers on the same date or later. Financial guarantees (including letters of credit used as guarantees) and credit cards are not such arrangements.

Disclose, in aggregate:

• the terms and conditions (separately for dissimilar ones);
• at the start and end of the period: carrying amounts and line items of the liabilities in the arrangement, the part already paid to suppliers by the finance providers, and the range of due dates compared with comparable trade payables;
• the type and effect of non-cash changes in those liabilities.

Effective for annual periods beginning on or after 1 April 2025, with transition reliefs in the first year (no comparatives, opening-date figures or interim disclosures).

Ind AS 12 amendment: Pillar Two

An entity neither recognises nor discloses deferred tax assets and liabilities related to Pillar Two income taxes. Pillar Two means the OECD model rules, including qualified domestic minimum top-up taxes.

It must instead disclose:

• that it has applied this exception;
• its current tax expense (income) related to Pillar Two separately;
• once the legislation is enacted or substantively enacted but before it takes effect, known or reasonably estimable information on its exposure (an indicative range is allowed).

What's excluded from CA Final FR for Nov 2026

Ind AS 117 is out. ICAI's Study Guidelines say that though it was notified on 12 August 2024, "being an industry specific standard, it has been excluded for November, 2026 Examination". The consequential changes it made to other applicable Ind AS are still in.

The full exclusions list, from the Group I RTP (PDF) (opens in a new tab), pages 106–107:

The same page adds: a newly notified Ind AS applies only one year after notification, and questions on AS 7, AS 9, AS 19 and AS 22 testing differences from Ind AS may be asked.

How an amendment is asked: a worked example from the RTP

The RTP tests the amendments in Questions 12 (Ind AS 1) and 13 (Ind AS 21). Here is Question 13, following ICAI's answer.

Facts. At 31 March 20X2, A Ltd. (functional currency LC) owes an FC 10,00,000 long-term borrowing and FC 10,000 of import trade payables. Imports in the year were FC 70,000. The authority lets A Ltd. obtain up to FC 1,00,000 a year for imports, but only FC 50,000 a year to repay borrowings, and quotas can't be swapped. Observable rates: LC 1.20 = FC 1 (the import rate) and LC 1.32 = FC 1 in an unofficial market that creates no enforceable rights. A Ltd. concludes that 1.20 meets the estimation objective.

Step I, purpose by purpose.

• Trade payables: FC 70,000 of imports is within the FC 1,00,000 limit, so FC is exchangeable.
• Borrowing: FC 50,000 is 5% of FC 10,00,000, "no more than an insignificant amount", so FC is not exchangeable.

Step II, rate and amounts.

The trap. The 1.32 parallel-market rate can't decide exchangeability: that market creates no enforceable rights. Once FC is non-exchangeable, ICAI's answer says such a rate may be an input to the estimate, adjusted as needed; the amendment sets no hierarchy of observable rates.

Question 12 (Ind AS 1) is summarised in CA Final FR important questions, and every Nov 2026 RTP is on our CA Final RTP page.

How to revise these before 2 November

• Make one sheet from the at-a-glance, covenant and exclusions tables above.
• Write RTP Questions 12 and 13 by hand and check them against ICAI's answers.
• Expect them inside a case. Papers 1 to 5 carry 30 marks of case-based MCQs (CA Final exam pattern); a new rule may sit in one sentence of the facts.
• Keep them in proportion: see CA Final FR chapter-wise weightage and the CA Final FR preparation strategy.

The general method for every paper is in how to revise amendments for CA exams.

Frequently asked questions

What is the cut-off date for CA Final FR amendments for Nov 2026?

30 April 2026. ICAI says amendments, notifications, circulars, rules and limited revisions to standards "issued up to 30th April, 2026 will be applicable for November, 2026 Examination" (Group I RTP, PDF (opens in a new tab)).

Where does ICAI publish CA Final FR amendments for Nov 2026?

In Part I of the Paper 1 RTP for November 2026, on ICAI's Final RTP page (opens in a new tab); exclusions are at the end of the Group I volume. The RTPs for all six papers are linked in CA Final RTP Nov 2026 with answers.

Does Ind AS 117 apply in CA Final FR for Nov 2026?

No. ICAI excludes Ind AS 117 for November 2026 as an industry-specific standard, though consequential revisions to other Ind AS apply.

Are the May 2026 FR amendments the same as Nov 2026?

Go by ICAI's November 2026 RTP and Study Guidelines: they set the 30 April 2026 cut-off and list the two 2025 notifications above. Cut-offs for every level and attempt are in what's applicable for your CA attempt.

Which breach-of-covenant rule should I apply in the exam?

The one for the period in the question. For periods beginning on or after 1 April 2026, a breach at the year end makes the loan current even if the lender agrees after the year end not to demand payment; for periods beginning on or after 1 April 2025 but before that, the Indian carve-out keeps it non-current in that case.

Practise the amendments in a full FR paper

Spotting a rule inside a 3-hour paper takes practice. Our CA Final FR mock tests are 3 full-syllabus papers set at the real ICAI exam standard, on the latest pattern, and they test every amendment applicable for November 2026. Answer each one by hand, scan the pages into a single PDF and upload it; the checked copy gives the reason for every mark cut, with the correct line to write. Mock Test 1 has preview pages open on that page, so you can judge the level first.

For every paper and level, see our CA test series and CA mock tests.