Questions in this paper
Our own one-line description of what each question tests. "Paper" jumps to the question's page in the official PDF; "Comments" to the examiners' notes on it.
| Q | Area | What it tests | Marks | Pass rate | Official | Walkthrough |
|---|---|---|---|---|---|---|
| Q1 | MCQs | Ten one-mark MCQs: capital maintenance and measurement bases, incomplete-records profit and inventory loss, depreciation changes and components, grant repayment, bearer plants, redeemable preference shares and profit vs cash. | 10 | 72% | Paper Comments | Q1 walkthrough |
| Q2 | Investment property (IAS 40) | Journal entries for property moving between owner-occupation and investment property under the fair value model, including a multi-unit property and a land/building split. | 10 | 50% | Paper Comments | Q2 walkthrough |
| Q3 | Impairment of assets (IAS 36) | Second impairment test on a plant previously written down: value in use from declining inflows and rising costs, fair value less costs of disposal, and the resulting loss. | 8 | 77% | Paper Comments | Q3 walkthrough |
| Q4 | Borrowing costs (IAS 23) | Borrowing costs on a warehouse funded in a set order (specific loan, investments, running finance), with surplus fund income, a government grant and a suspension of work. | 8 | 31% | Paper Comments | Q4 walkthrough |
| Q5 | Not-for-profit organisations (ASNPO) | Discussion of four NPO transactions under ICAP's ASNPO using the deferral method: an endowment with partly restricted income, a capital contribution, a debt-repayment contribution and donated supplies. | 8 | 29% | Paper Comments | Q5 walkthrough |
| Q6 | Statement of cash flows (IAS 7) | Email-style reply on IAS 7: direct vs indirect method, cash flows with a classification choice, maximising operating cash flow, and consistency of the chosen policy. | 6 | 20% | Paper Comments | Q6 walkthrough |
| Q7 | Intangible assets (IAS 38) | Intangible assets note covering an internally developed app (phase split and start of amortisation), ERP software costs, and a licence bought on deferred terms with a renewal option. | 15 | 46% | Paper Comments | Q7 walkthrough |
| Q8 | Preparing the SOFP and SOPL (IAS 1) | Prepare the SOPL and OCI and the SOFP from a trial balance with adjustments for an unrecorded return, rent, deposit interest, an asset disposal, a building revaluation and doubtful debts. | 20 | 9% | Paper Comments | Q8 walkthrough |
| Q9 | Equity transactions and SOCE | SOCE with comparatives: dividends declared vs recommended, interim dividend, bonus issue from share premium, rights issue with costs, a change in depreciation method and prior-period errors. | 15 | 22% | Paper Comments | Q9 walkthrough |
Marks by area
All 100 marks set, by area. MCQ items count towards their own area.
Equity transactions and SOCE16 marks
Intangible assets (IAS 38)15 marks
Investment property (IAS 40)10 marks
Borrowing costs (IAS 23)8 marks
Incomplete records2 marks
Government grants (IAS 20)1 marks
Agriculture (IAS 41)1 marks
Heavier and lighter than usual
Compared with the average across all 2 indexed sittings of CAF-1 (differences of 5 marks or more).
Heavier
- Intangible assets (IAS 38): 15 marks vs 7.5 average
- Equity transactions and SOCE: 16 marks vs 9 average
- Investment property (IAS 40): 10 marks vs 5 average
Lighter
- Property, plant and equipment (IAS 16): 2 marks vs 8.5 average
- Ratio analysis and working capital: 0 marks vs 5 average
Against the syllabus weightings
| Section | Syllabus weight | Spring 2026 marks |
|---|---|---|
| A. Preparation of statements of financial position and profit or loss | 30–40% | 32 |
| B. Statements of changes in equity and cash flows (incl. IAS 8, ratios) | 30–40% | 23 |
| C. Accounting for non-current assets | 25–35% | 45 |
Section totals use our classification of each question's area into the syllabus grid.
Pass rate by question
Published in the examiners' comments for this sitting.
Q1 · MCQs72%
What the examiners said
The main themes of the official examiners' comments, summarised in our own words. Read the full report for question-by-question detail.
- The 20-mark financial statements question (Q8) sank the result: only 9% passed it, and many scripts showed adjustments on one side of the double entry only.
- Candidates did well on short computational questions that resembled past papers but struggled where the testing angle was new.
- Missing workings and poor time allocation cost partial marks, especially in the long questions attempted last.
- Not-for-profit accounting and the IAS 7 discussion question both saw over a third of candidates score zero.