FAR 326 Exam – What Could Be Tested?

By looking at the previous FAR exam and the topics covered in OA1 this term, we can make some reasonable predictions about what may appear in the 326 final exam.

The key principle here is not to predict exactly what will be tested.

Instead, we use an elimination approach: if a topic has already been tested extensively in the previous exam or in OA1, the likelihood of it being tested heavily again is probably lower.

FAR 326 Final Exam – For Reference Only

Topics less likely to be tested again:

• Partial goodwill – tested extensively in the 226 final exam

• 2.6 FVTOCI – Debt Instruments – tested extensively in the 226 final exam

• 2.2 Asset Impairment – CGU allocation – tested extensively in the 226 final exam and also covered in 326 OA1

• 2.5 Most Likely Amount; Contract Asset vs Accounts Receivable – already tested in 326 OA1

Other than the above, everything else is still on the table, including but not limited to:

3.2 Consolidated Financial Statements

Be comfortable with Steps 2–5 of the consolidation process. Apart from very complex NCI calculations, you should be able to deal with the other consolidation adjustments confidently.

3.1 Business Combinations

• Measurement period adjustments

• Contingent consideration

• Deferred consideration

• How these transactions are accounted for in the parent company's own financial statements

2.6 Financial Instruments

• Amortised cost

• FVTPL

• FVTOCI – Equity instruments

• Financial asset impairment

2.5 Revenue

• Step 2 – Identifying performance obligations

• Step 3 – Expected value and financing components

• Step 4 – Allocation of transaction price

• Step 5 – Revenue recognition

• Refund liability and return asset

• Warranties

2.4 Share-based Payments

2.3 Leases

• Initial recognition

• Lease payments in arrears

• Lease payments in advance

2.2 Impairment

• Impairment reversals

2.1 Income Tax

• Current tax liability

• Deferred tax

Chapter 1

We would expect Chapter 1 to appear in the exam, although historically it is unlikely to carry more than around 5 marks.

Again, this is not a prediction that certain topics will or will not be tested. It is simply a way of prioritising revision based on what has already been examined recently.

If you have enough time, you should still revise everything

But if you are trying to decide where to spend your final few days of revision, we would put more time into the topics that have not been heavily tested yet.