Strategy for Preparing Financial Reporting Paper CA and CMA Final Examination
Being a chartered accountant financial reporting examination is one of the most important paper in your CA /CMA FINAL examination as this will be forming a strong basis of your career as an accountant professional. You all are studying financial reporting from class 11th and this one subject you can score the highest marks with proper study plan
This article is divided in two parts
1-subject preparation strategy
2- Exam day strategy
So let see it one by one
1) SUBJECT PREPARATION STRATEGY
There are many topics which can be prepared with 100% accuracy in short period of time. In which you can secure40-50 marks easily with full accuracy
Topic in order of preference of study
1. Value Added Statements -Economic Value Added, Market Value Added, Shareholders’ Value Added
|2. Share-Based Payments – Sums on ESOP, ESPS etc (It can be covered From ICAI Study mat)|
|3. Miscellaneous Topics – Financial Reporting by Mutual funds, Non-banking finance companies, Merchant bankers, Stock and commodity market intermediaries + Human Resource Accounting|
|4. Valuation of Goodwill, Shares, Business, Brands etc ( V.IMP)|
|5. Corporate Restructuring – sums on capital reduction, demerger, buy back etc|
|6. Accounting for Financial Instruments(AS 30,31,32)-Sums on forex, derivative, call /put options etc.|
|8. Consolidated Financial Statements (Holding Company)|
In starting take up some practical topic like corporate restructuring i.e. merger, amalgamations, take over, internal restructure, spin off, sale etc., consolidated financial statements, share-based payments etc. Accounting Standards, is very crucial as these cover 20-30 percentage of exam paper in paper 1 “financial Reporting” and also in paper 3 “Auditing and Assurance”. Weightage of Accounting Standards usually remains 25-30 marks so prepare each and every topic of this subject.
HOW TO STUDY AND OTHER KEY POINTS
1. a) First of all revise the Accounting standards (15,16,17,18,19,20,22,25,26,28) thereafter focus on some small topics like Value Added Statement, NBFC, Share-based Accounting. Thereafter you would gain confidence on the subject. Then accomplish the topics Valuation of goodwill, Amalgamation, Corporate Restructuring and Accounting standard remaining topics.
2) Thereafter dived the whole syllabus into small chunks for practicing practical problems like 10 questions or 15 question per day.
3) Accounting Standards can be prepared on a daily basis like ONE AS every day along with practical case studies on AS.
4) Financial reporting is purely practical based subject so practice as many as questions possible by your own don’t copy the solutions from the guide textbooks or notebooks.
5) Try to solve as many questions as you can and also go through Practice Manual, Revision test papers, Suggested answers, Mock Test papers. (To the extent possible and available).
6) Take up some mock test paper and revision or last year paper which will give you the feel of real exam and you can also measure your preparation level and area of improvement in the subject. It is advised you to attempt Revision test papers, Suggested answers, Mock test papers at least one in a day this will help you in your preparation make it stronger.
2 – EXAM DAY STRATEGY
To Score high in this paper, keep these points in your mind while preparing for this paper.
(i) Financial reporting exam is of 3 hours. 15 min are given to read the question paper in starting this 15 minutes are very crucial, please don’t write anything on the answer sheet at this time. Utilize this time for reading the question paper and make statistics and divide the question paper into category of the questions you know very well, the questions about which you have some idea and the question which you don’t know. After this make strategy how will you move in exam i.e. which question to attempt first and which afterwards? Solve all the questions first which are easy to you or you know the answer very well. And keep the difficult question one at last.
(ii) “First impression is the last impression “write all the answers neat and clean, use the left hand side of the sheet for working notes and right hand side of the sheet for fair answer . Use last sheet of the answer book for rough. Avoid too much of striking off and cuttings the answers, it makes the answer sheet look clumsy and dirty.
(iii) Find out your strong area of answers i.e. either practical question or theory question and solve it first accordingly. In practical question solve the answers step by step as steps carry marks and it will also help you in rechecking your answer. If your answer is not correct recheck it once more here you should note that don’t waste too much time in rechecking and also don’t write false answer by modifying the answer. Theoretical questions usually consume less time to complete.
(iv)Try to attempt 100% of question paper by managing proper time divide your time wisely and allot each question according the time allotted. Try to solve the questions fast which you know very well , by saving time here you and allot more time in lengthy questions or the questions about which you known less.
(v)Try to write in proper order i.e. if you are writing the answer of 3 then write all the parts of answer in order i.e.3 (a), 3(b), 3(c) in order not like 3(a) is in page no. 1 and 3(b) is in page no. 8. Writing in order gives the examiner good impression.
(vi) Do not leave any question if you don’t know the answer of any question well than at least write something related to the topic it can fetch you one or half marks which are very crucial for you. So attempt each and every question.
(vii) The most important part of the exam is be calm and be positive don’t get overexcited if you know most of the answers and also don’t get demotivated if you know less answers . Be calm patient and confident during exam. It will help you to sail through the exam.
That’s all!!These were all the tips I am sure that you all will pass with flying colors in this upcoming exam.
All the best!!
Author Namrata Mishra