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29/100 marks, marked line by line

Your paper

Financial Reporting – Mock Test 1

Question paper
100 marks · 3 hours
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Marks, question by question
29/100 marks · 7 questions
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Checked copy
The sheet with marks and corrections

Your marks

Question 1

12 marks lost · 8 mistakes

2 / 14

In your answer
Page 14, Q1, WN-2 Identifiable net asset: '730'
What went wrong
[-2] Net assets were taken at closing carrying values instead of being analysed at 1.10.2025 and 31.3.2026. Topaz's retained earnings at acquisition were 220, not 260, and the extra plant depreciation of 3 was ignored.
Correct approach
At acquisition 690; at reporting date 725; post-acquisition 35.
In your answer
Page 13, Q1, Goodwill: '28.5'
What went wrong
[-1] NCI (182.5) and net assets (730) are both wrong, so goodwill is wrong.
Correct approach
576 + 172.50 – 690 = 58.50
In your answer
Page 14, Q1, NCI value: '202.5'
What went wrong
[-1] Full-year profit of 80 was used, and the fair-value depreciation and unrealised profit were ignored.
Correct approach
172.50 + 25% × 35 = 181.25
In your answer
Page 14, Q1, investment in associate: missing
What went wrong
[-1.5] Opal's equity-method carrying amount was not worked out.
Correct approach
150 + 21 – 6 = 165
In your answer
Page 14, Q1, consolidated other equity: missing
What went wrong
[-2] Consolidated retained earnings were not computed.
Correct approach
545 – 6 + 21 + 26.25 – 8 = 578.25
In your answer
Page 14, Q1, unrealised profit and intra-group balances: missing
What went wrong
[-1] Unrealised profit on closing stock (2) and the intra-group receivable/payable of 15 were not eliminated.
Correct approach
Profit 48 × 20/120 = 8; × 1/4 = 2; receivables 305, payables 265.
In your answer
Page 14, Q1, contingent consideration and liability: missing
What went wrong
[-1] The increase of 8 in contingent consideration was not charged to profit or loss, and the liability (44) and provision (10) were not presented.
Correct approach
Financial liability 44 (non-current); provision 10 (current); 8 charged to profit or loss.
In your answer
Page 14, Q1, Consolidated Balance Sheet: missing
What went wrong
[-2.5] No Schedule III Consolidated Balance Sheet was prepared.
Correct approach
Total assets and total equity and liabilities of 2,428.50.

Question 2

11.5 marks lost · 9 mistakes

2.5 / 14

In your answer
Page 10, Q2(a), initial recognition: 'FV is 4810360'
What went wrong
[-0.5] Initial measurement was asserted as the 'transaction price' without showing it is net of the transaction costs of 1,89,640 (or the PV check).
Correct approach
50,00,000 – 1,89,640 = 48,10,360 (equals PV of cash flows at 10%).
In your answer
Page 10, Q2(a), (ii) 10% test: missing
What went wrong
[-2.5] Substantial-modification test and conclusion absent.
Correct approach
New cash flows at 10% plus fee = 42,91,740; difference 5,83,796 = 11.97% > 10%, so derecognise.
In your answer
Page 10, Q2(a), fair value of new loan: missing
What went wrong
[-1] Not computed.
Correct approach
3,00,000 × 3.6959 + 50,00,000 × 0.5935 = 40,76,270
In your answer
Page 10, Q2(a), gain and journal on 1.4.2025: missing
What went wrong
[-2] Gain on extinguishment and the journal entry were not done.
Correct approach
Dr Old loan 48,75,536; Cr New loan 40,76,270; Cr Bank 50,000; Cr Gain 7,49,266.
In your answer
Page 10, Q2(a), finance cost and carrying amount 2025-26: missing
What went wrong
[-2] Finance cost, its journal and the closing carrying amount were not worked out.
Correct approach
40,76,270 × 11% = 4,48,390; closing carrying amount 42,24,660.
In your answer
Page 9, Q2(b), provision: missing
What went wrong
[-1] The Ind AS 1 carve-out and its effective dates were not stated.
Correct approach
Carve-out applies up to periods beginning before 1.4.2026; removed for periods from 1.4.2026.
In your answer
Page 9, Q2(b)(i): 'adjusting event'
What went wrong
[-0.5] Wrong reason, and Ind AS 107 disclosure of the breach is missing.
Correct approach
Non-current under the carve-out, with disclosure under Ind AS 107 and para 76ZA.
In your answer
Page 9, Q2(b)(ii): 'No, answer will remain same'
What went wrong
[-1] The carve-out is not available for 2026-27.
Correct approach
Current; the waiver of 22.4.2027 is a non-adjusting event.
In your answer
Page 9, Q2(b)(iii): 'less than 12 months... current'
What went wrong
[-1] Grace period was wrongly measured; it extends more than 12 months beyond 31.3.2027.
Correct approach
Non-current.

Question 3

12.5 marks lost · 4 mistakes

1.5 / 14

In your answer
Page 12, Q3(a): missing
What went wrong
[-10] Q3(a) was not attempted.
Correct approach
Situation A: lease liability 7,98,79,800, ROU asset 4,79,27,880, gain 80,48,080. Situation B: additional financing of 1,00,00,000, ROU asset 4,19,27,880, gain 1,20,48,080. 2025-26: lease liability 7,48,67,780 and ROU asset 4,31,35,092.
In your answer
Page 11, Q3(b), cost with exclusions and reasons
What went wrong
[-0.5] No reasons given for excluding training and overheads.
Correct approach
Training is excluded by para 67(c) and general overheads by para 67(a).
In your answer
Page 12, Q3(b), impairment: 'NO impairment loss'
What went wrong
[-1] The test was done against a wrongly amortised 56 and the 31.12.2025 impairment was missed.
Correct approach
70 – 65 = 5 impairment, charged to profit or loss.
In your answer
Page 11, Q3(b), amortisation, carrying amount and total charge
What went wrong
[-1] Amortisation of 14 is a full year on 70. Carrying amount (56) and total charge (79) are therefore wrong.
Correct approach
65 ÷ 5 × 3/12 = 3.25; carrying amount 61.75; total charge 73.25.

Question 4

9.5 marks lost · 6 mistakes

4.5 / 14

In your answer
Page 7, Q4(a), movement table
What went wrong
[-2] Interest at 8% was omitted, contributions were placed against the DBO, and the balancing figures (10, 190) are wrong.
Correct approach
DBO: 1,200 + 96 + 90 – 60 = 1,326, so the actuarial gain is 16. Plan assets: 1,350 + 108 + 70 – 60 = 1,468, so the return excluding interest is 12. Effect of ceiling 50 + 4 = 54, with (4) remeasurement.
In your answer
Page 7, Q4(a), P&L: 'current service cost of 90'
What went wrong
[-1.5] Net interest of 8% × 100 = 8 (income) was not computed.
Correct approach
P&L expense = 90 – 8 = 82.
In your answer
Page 8, Q4(a), OCI: 'Net OCI Income is 180'
What went wrong
[-1.5] OCI is wrong, and the reconciliation of the net asset is missing.
Correct approach
OCI gain = 16 + 12 + 4 = 32. Reconciliation: 100 – 82 + 32 + 70 = 120.
In your answer
Page 4, Q4(b), provisions
What went wrong
[-1] The para 104 order of allocation and the para 105 floor (fair value less costs of disposal of plant) were not stated.
Correct approach
Goodwill first, then pro rata; no asset below its recoverable amount.
In your answer
Page 5, Q4(b)(ii), allocation table
What went wrong
[-2] Goodwill was impaired by only 160 and the other assets bore 160. The floor and reallocation were ignored, so every revised carrying amount is wrong.
Correct approach
Goodwill 200; balance 120 pro rata; plant restricted to 270; revised amounts Building 340, P&M 270, Patent 170.
In your answer
Page 5, Q4(b)(iii): missing
What went wrong
[-1.5] Loss recognised and its split between parent and NCI were not computed.
Correct approach
160 + 120 = 280; owners 256, NCI 24.

Question 5

14 marks lost

0 / 14

No marks for this question. Compare your answer with the official solution.

Question 6

10.5 marks lost · 8 mistakes

3.5 / 14

In your answer
Page 3, Q6(a): missing
What went wrong
[-5] Q6(a) was not attempted.
Correct approach
Explain RPA and blockchain, and apply each to Kaveri Consumer Ltd.'s bank and vendor reconciliations and distributor and related-party balance confirmations.
In your answer
Page 1, Q6(b), provisions
What went wrong
[-1] The Appendix B rule for advances (date of transaction is when the advance is paid or received) and the spot rate on initial recognition were not stated.
Correct approach
Ind AS 21 para 21 and Appendix B: use the rate on the date of each advance.
In your answer
Page 1, Q6(b), customer advance: '170000'
What went wrong
[-1] Arithmetic slip: 20,000 × 85 was written as 1,70,000.
Correct approach
₹17,00,000
In your answer
Page 1, Q6(b), cost of machine: '86,00,000'
What went wrong
[-1.5] The whole USD 1,00,000 was taken at 86, ignoring the advance paid at 84.
Correct approach
33,60,000 + 51,60,000 = 85,20,000
In your answer
Page 2, Q6(c)(i): non-adjusting
What went wrong
[-0.5] Treatment missing: disclosure of the ₹2 crore loss.
Correct approach
Disclose nature and estimated financial effect in the notes.
In your answer
Page 3, Q6(c)(ii): adjusting
What went wrong
[-0.5] No amount stated for the adjustment.
Correct approach
Write down the inventory by ₹30 lakh (1.20 crore – 0.90 crore).
In your answer
Page 3, Q6(c)(iii): adjusting
What went wrong
[-0.5] The additional provision was not quantified, and the ₹40 lakh was described as 'paid' when it was provided.
Correct approach
Increase the provision by ₹15 lakh (55 – 40) under Ind AS 37.
In your answer
Page 3, Q6(c)(iv): non-adjusting
What went wrong
[-0.5] Disclosure treatment missing.
Correct approach
Not recognised as a liability; disclose the proposed ₹1.50 per share dividend in the notes.

Question 7

15 marks lost · 11 mistakes

15 / 30

In your answer
Page 15, Part I MCQs, MCQ 4: 'B'
What went wrong
[-1] Wrong option. The 75% test uses external revenue only (700 against 750), so a shortfall of 50 exists.
Correct approach
(A) One
In your answer
Page 15, Part I MCQs, MCQ 9: 'B'
What went wrong
[-2] Wrong option. The old inspection component must be derecognised.
Correct approach
(D) 56.00 lakh
In your answer
Page 15, Part I MCQs, MCQ 10: 'B'
What went wrong
[-1] Wrong option. General administrative overheads are not directly related to the contract.
Correct approach
(D) 70,000
In your answer
Page 15, Part I MCQs, MCQ 13: 'A'
What went wrong
[-1] Wrong option. Ind AS 105 allows a gain up to the cumulative impairment loss, and there is no depreciation after classification.
Correct approach
(C) 84 lakh
In your answer
Page 15, Part I MCQs, MCQ 14: 'A'
What went wrong
[-1] Wrong option. The bonus element of the rights issue must be adjusted for.
Correct approach
(D) 7.00
In your answer
Page 15, Part I MCQs, MCQ 15: 'A'
What went wrong
[-1] Wrong option. PDL is a separate vehicle whose parties have no rights to its assets, so it is a joint venture.
Correct approach
(B) Joint venture, equity method
In your answer
Page 15, Part I MCQs, MCQ 16: 'A'
What went wrong
[-2] Wrong option. The initial loss on the purchased cows was omitted.
Correct approach
(C) 12,12,000
In your answer
Page 15, Part I MCQs, MCQ 17: 'C'
What went wrong
[-2] Wrong option. The SAR liability must use the current year's fair value of 27.
Correct approach
(A) 3,06,000
In your answer
Page 15, Part I MCQs, MCQ 18: 'A'
What went wrong
[-2] Wrong option. The expense is the closing liability less the opening liability.
Correct approach
(C) 1,62,000
In your answer
Page 15, Part I MCQs, MCQ 21: 'D'
What went wrong
[-1] Wrong option. Factoring of own receivables is not a supplier finance arrangement.
Correct approach
(A)
In your answer
Page 15, Part I MCQs, MCQ 23: missing
What went wrong
[-1] Not attempted.
Correct approach
(C) Equity, because the rights are offered pro rata to existing shareholders.