FAR 326 Exam Review – Overall Easier Than Expected

326, i.e. the 2026 Term 3 FAR final exam, was relatively straightforward overall.

We would rate the difficulty at around 1 star out of 3, and in our view it was easier than the first two FAR exams in 2026.

Overall Comments

1. Consolidation was always going to be a key area

As we said before the exam, Consolidation is a must-know topic.

Most of the question could be answered using the standard consolidation template.

This time, the exam included NCI calculations, which were very similar to the 126 exam. If you had properly practised the 126 past exam, the NCI calculation was basically easy marks.

2. Financial Instruments was another major area

Before the exam, we also said that apart from Consolidation, 2.6 Financial Instruments was highly likely to be tested.

We also said that FVTOCI – Debt Instruments was unlikely to come up again.

And that was exactly what happened.

Instead, the exam focused on:

• Amortised Cost

• FVTPL / financial asset classification

• Financial Asset Impairment

These are all core Financial Instruments topics.

3. Consolidation + Financial Instruments made up almost 50% of the exam

This is the most important point.

If you were well prepared for these two areas and could pick up most of the available marks, you were already close to the overall passing mark.

That gives you a lot more room for error in the remaining questions.

4. Leases also appeared exactly as expected

Before the exam, we said Leases was very likely to be tested.

And the very first question started with a lease paid in advance.

The calculation was very straightforward and could largely be handled using the standard template.

In our view, this was one of the easiest places to pick up marks in the whole paper.

5. Other topics tested

Other areas included:

• Share-based Payment – Non-market condition

• Revenue – Significant financing component

• Deferred Tax

Share-based Payment is hardly a surprise. We have said many times that SBP appears in FAR exams very frequently, so it should always be prepared.

The financing component under Revenue is a smaller topic and does not appear as frequently, but once again it can largely be dealt with using a standard approach.

Deferred Tax was also relatively straightforward. Once you understand the pattern behind calculating the tax base, these questions should be very manageable.

Overall, for students who prepared properly, passing this exam should not have been a major issue, and a high mark was certainly achievable.

Detailed Breakdown by Question

Q1 – Leases

Topics tested:

• Lease paid in advance – initial recognition and subsequent measurement

• Presentation in the Cash Flow Statement

• Classification in the Statement of Profit or Loss under IFRS 18

• Short-term lease

Overall, this question was very straightforward.

The lease-in-advance calculation could largely be completed using the standard template, so it should have been a good opportunity to pick up marks.

IFRS 18 is also becoming a hot topic. Classification of P&L items has now appeared in two consecutive final exams, so this is clearly an area students should continue paying attention to.

Q2 – Financial Instruments

Topics tested:

Financial Liability – Amortised Cost

• Initial recognition

• Subsequent measurement

This was relatively straightforward.

The main point to watch was that interest expense only needed to be calculated for six months.

Equity Investment

• FVTOCI

• Fair value adjustment journal entry

Debt Investment

• Amortised Cost

• ECL impairment

• Interest revenue

Again, these were mostly fundamental Financial Instruments concepts rather than particularly unusual or difficult areas.

The main exam technique point was to read exactly what the examiner asked for.

Do not simply write down every journal entry you know. If the question only asks for a particular adjustment or accounting treatment, answer that requirement directly.

Q3 – Revenue, Share-based Payment and Deferred Tax

Revenue – Financing Component, Payment in Arrears

This is a relatively small topic and is not tested that frequently.

However, if you know the standard approach, the answer can largely be worked through using the template.

Share-based Payment – Non-market Condition & Material Prior Period Error

Share-based Payment appears very frequently in FAR exams, so this part was not unexpected.

What made the question more interesting was that the examiner combined Share-based Payment with a Material Prior Period Error.

It was a nice combination of two different concepts rather than testing SBP completely on its own.

Deferred Tax

The question covered deferred tax relating to:

• Trade receivables

• Interest receivables

Again, the key is understanding the tax base.

Once you understand the pattern behind determining the tax base, this was a fairly basic Deferred Tax question and a good opportunity to pick up marks.

Q4 – Consolidation

Topics tested:

• Consolidation

• BCVR adjustments, including:

  • Brand name

  • Contingent liability

• NCI calculations

Most of this question could be answered using the standard Consolidation template.

The NCI calculation was also very similar to what appeared in the 126 exam.

Students who had properly worked through that past exam should have found this section very familiar.

Final Thoughts

Overall, 326 was one of the more manageable FAR papers we have seen recently.

There were no major surprises.

The biggest areas—Consolidation, Financial Instruments and Leases—were all topics we specifically highlighted before the exam.

A large proportion of the paper also tested fairly standard techniques rather than unusual technical issues.

For well-prepared students, the goal should not only have been to pass this exam.

A high mark was definitely achievable.