CA Final Paper 1
Financial Reporting Formulas & Ind AS Reference
Complete FR formula cheat sheet for CA Final May 2026. Covers EPS, Consolidation, Impairment, Leases, Revenue, Financial Instruments, and more.
Based on Ind AS framework. Print for quick revision.
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EPS | Consolidation | Impairment | Leases | Revenue | Financial Instruments | Foreign Currency | Ratios
1 Earnings Per Share (Ind AS 33)
| Formula | Calculation | Notes |
|---|---|---|
| Basic EPS | Net Profit attributable to Equity / WANO | WANO = Weighted Avg No. of Ordinary Shares |
| Diluted EPS | Adjusted Earnings / (WANO + Dilutive Potential Shares) | Include convertibles, options, warrants |
| Bonus Issue Adjustment | Pre-bonus shares × Bonus Factor | Bonus Factor = Shares after / Shares before |
| Rights Issue Factor | FV before rights / TERP | TERP = Theoretical Ex-Rights Price |
| TERP Calculation | (MV of shares before + Rights proceeds) / Total shares after | For rights issue adjustment |
2 Consolidation (Ind AS 110, 103)
| Formula | Calculation | Notes |
|---|---|---|
| Goodwill (Full) | Consideration + NCI at FV - Net Assets at FV | Full goodwill method |
| Goodwill (Partial) | Consideration + NCI at % of NA - Net Assets at FV | Partial goodwill method |
| NCI at Acquisition (FV) | NCI% × Fair Value of Subsidiary | Full goodwill approach |
| NCI at Acquisition (NA%) | NCI% × Net Assets at Fair Value | Partial goodwill approach |
| Post-acquisition Reserves | Total Reserves - Pre-acquisition Reserves | Parent's share goes to consolidated RE |
| NCI in P&L | NCI% × Subsidiary's Profit for Year | Allocated to NCI |
| Unrealized Profit (Downstream) | Profit × Unsold % × 100% | Parent sells to Sub - full elimination |
| Unrealized Profit (Upstream) | Profit × Unsold % × Parent's % | Sub sells to Parent - proportionate |
3 Impairment (Ind AS 36)
| Formula | Calculation | Notes |
|---|---|---|
| Recoverable Amount | Higher of (FV - Costs to Sell, Value in Use) | Ind AS 36 |
| Value in Use | PV of Future Cash Flows | Discounted at pre-tax rate |
| Impairment Loss | Carrying Amount - Recoverable Amount | If CA > RA |
| CGU Impairment Allocation | First Goodwill, then pro-rata to other assets | Cannot reduce below higher of VIU/FV-CTS/Zero |
4 Leases (Ind AS 116)
| Formula | Calculation | Notes |
|---|---|---|
| Right-of-Use Asset | Lease Liability + Initial Direct Costs + Prepayments - Incentives | Ind AS 116 initial recognition |
| Lease Liability | PV of Lease Payments | Discounted at implicit rate or IBR |
| Interest on Lease Liability | Opening Liability × Interest Rate | Charged to P&L |
| ROU Depreciation | ROU Asset / Lease Term (or useful life if shorter) | Straight-line unless another basis appropriate |
| Sale & Leaseback Gain | Gain × (ROU / FV of Asset) | Only recognize gain relating to rights transferred |
5 Revenue Recognition (Ind AS 115)
| Formula | Calculation | Notes |
|---|---|---|
| Transaction Price | Fixed + Variable (most likely/expected value) - Discounts | Ind AS 115 |
| Variable Consideration | Expected Value or Most Likely Amount | Constrained for uncertainty |
| Significant Financing | Cash Price × (1 + r)^n or PV of payments | Adjust if payment > 12 months |
| % Completion (Input) | Costs Incurred / Total Expected Costs | Over time recognition |
| % Completion (Output) | Work Done / Total Work | Surveys, milestones achieved |
| Contract Asset | Revenue Recognized - Amounts Billed | Unbilled receivable |
| Contract Liability | Amounts Billed - Revenue Recognized | Deferred revenue/Advance |
6 Financial Instruments (Ind AS 109, 32)
| Formula | Calculation | Notes |
|---|---|---|
| Effective Interest Rate | Rate that discounts future CFs to initial CA | Ind AS 109 |
| Amortized Cost | Initial Amount - Principal Repaid ± Amortization ± Impairment | Using EIR method |
| Interest Income (AC) | Gross Carrying Amount × EIR | Stage 1 & 2 assets |
| Interest Income (Credit-impaired) | Amortized Cost (net of ECL) × EIR | Stage 3 assets |
| ECL (12-month) | PD × LGD × EAD × Discount Factor | For Stage 1 assets |
| ECL (Lifetime) | Σ (PD × LGD × EAD) for each period | For Stage 2 & 3 assets |
| Debt vs Equity Split | Liability = PV of payments; Equity = Residual | Compound instruments |
7 Foreign Currency (Ind AS 21)
| Item | Translation Rate | Notes |
|---|---|---|
| Monetary Items | Closing Rate | Cash, receivables, payables |
| Non-monetary (Cost) | Historical Rate | PPE, inventory at cost, equity |
| Non-monetary (FV) | Rate at FV measurement date | Revalued assets, inventory at NRV |
| Income/Expense | Transaction Date Rate (or Average) | Practical expedient if not significant |
| Exchange Difference | Closing Rate Amount - Opening/Transaction Rate Amount | To P&L for monetary items |
| FCTR (Foreign Sub) | Assets/Liab at closing; Equity at historical; P&L at average | Difference to OCI |
8 Key Financial Ratios
| Ratio | Formula | Purpose |
|---|---|---|
| Return on Equity (ROE) | Net Profit / Average Equity × 100 | Profitability to shareholders |
| Return on Assets (ROA) | Net Profit / Average Total Assets × 100 | Asset efficiency |
| Return on Capital Employed | EBIT / (Equity + Long-term Debt) × 100 | Operating return |
| Asset Turnover | Revenue / Average Total Assets | Asset utilization |
| Debt-Equity Ratio | Total Debt / Total Equity | Leverage measure |
| Interest Coverage | EBIT / Interest Expense | Ability to pay interest |
| Current Ratio | Current Assets / Current Liabilities | Short-term liquidity |
| Quick Ratio | (CA - Inventory) / CL | Acid test ratio |