Quick Answer: What Is CA CAF FAR1?
CA CAF FAR1 (Financial Accounting and Reporting I) is the first paper of ICAP's Certificate in Accounting and Finance level. It tests how well you prepare company financial statements using selected IAS standards, covering the statement of financial position, profit or loss, changes in equity, cash flows, and non-current assets. It is the foundation for every later reporting paper in chartered accountancy. You can explore the CA CAF FAR1 course at ICT Business School for structured preparation.
Introduction
If you have cleared your PRC stage and are stepping into CAF, FAR1 is usually the paper that tells you whether chartered accountancy "clicks" for you. It is where bookkeeping stops being about debits and credits alone and starts becoming professional financial reporting: applying standards, making judgments, and presenting numbers that a real investor or banker would rely on.
Many students underestimate it. They assume that because they did well in accounting at intermediate or PRC level, FAR1 will feel familiar. Then they meet a cash flow statement with a revaluation surplus, a disposal, and a prior period error all in one question, and the confidence disappears.
This guide is written to prevent that. At ICT Business School, we see FAR1 as the paper that shapes a student's entire reporting career, from CAF 6 Corporate Reporting to CFAP 1. Below you will find the current ICAP syllabus, topic weightage, examinable standards, worked examples, a realistic study plan, and practical exam strategy.
If you are still mapping out the full qualification, start with our complete chartered accountancy guide for Pakistan and our explainer on the ICAP CAF Group A subjects and exam structure. Then come back here for the FAR1 deep dive.
Key Takeaways
- FAR1 is CAF 1 in ICAP's Education Scheme 2025, titled "Financial Accounting and Reporting." Students still widely call it FAR1 or FAR-I from the earlier scheme.
- The syllabus has three sections: preparing the statements of financial position and profit or loss, preparing the statements of changes in equity and cash flows, and accounting for non-current assets.
- Twelve knowledge references are examinable, including the Conceptual Framework, IAS 1, IAS 7, IAS 8, IAS 16, IAS 20, IAS 23, IAS 36, IAS 40, IAS 41, accounting for not-for-profit organizations, and ratio analysis.
- ICAP suggests 110–130 teaching hours for the paper.
- Topics like revenue (IFRS 15), provisions (IAS 37), and consolidations are not FAR1 topics under Scheme 2025. They appear in CAF 6 Corporate Reporting.
- Bookkeeping basics from PRC (trial balance, journals, adjustments) are assumed knowledge and can still be tested lightly.
- The best preparation combines concept clarity, full-length practice questions, and past paper work under timed conditions.
What Is CA CAF FAR1 and Where Does It Fit in the CA Journey?
CA CAF FAR1 is the first financial reporting paper at ICAP's CAF (Certificate in Accounting and Finance) level. It sits after the PRC (Pre-Requisite Competence) stage and before CFAP. Its role is to move students from basic bookkeeping to preparing IFRS-based financial statements for companies and not-for-profit organizations.
The Chartered Accountancy qualification from the Institute of Chartered Accountants of Pakistan (ICAP) runs in stages:
| Stage | Purpose | Where FAR1 fits |
|---|---|---|
| PRC | Fundamentals of accounting, quantitative skills, business and economics | Builds the bookkeeping base FAR1 relies on |
| CAF | Certificate in Accounting and Finance, eight papers across two groups | FAR1 is CAF 1, the first reporting paper |
| Training (Articleship) | Practical experience with an ICAP-approved training organization | FAR1 skills are used daily in audit and accounts work |
| CFAP / Strategic Case Study | Advanced professional papers | Advanced corporate reporting builds directly on FAR1 |
If you are new to the PRC stage, read our guide on CA PRC as the first step to becoming a CA in Pakistan, and strengthen your base with CA PRC-1 Foundation of Accounting before tackling FAR1.
Why is FAR1 so important?
FAR1 matters because almost every later reporting topic assumes you can already prepare a clean set of financial statements. Consolidations, deferred tax, leases, and financial instruments all end up as figures inside the statements you first learn to build in FAR1. Weakness here compounds at every later stage.
FAR1 Under ICAP Education Scheme 2025: What Changed?
Under Education Scheme 2025, FAR1 is listed as "CAF 1: Financial Accounting and Reporting." The "I" has been dropped from the official title, but the paper keeps the same role. Students, teachers, and bookshops still commonly refer to it as FAR1, FAR-I, or CAF-1 FAR.
This matters when you search for resources. You may find two kinds of material online:
- Scheme 2021 material, where the paper was titled "CAF-1 Financial Accounting and Reporting-I" and sat alongside papers such as CAF-2 Tax Practices, CAF-3 Cost and Management Accounting, CAF-4 Business Law, CAF-5 Financial Accounting and Reporting-II, CAF-6 Managerial and Financial Analysis, and CAF-7 Company Law.
- Scheme 2025 material, where the CAF papers are CAF 1 Financial Accounting and Reporting, CAF-2 Taxation Principles and Compliance, CAF 3 Data, Systems and Risks, CAF 4 Business Law Dynamics, CAF-5 Management Accounting, CAF 6 Corporate Reporting, CAF-7 Business Insights and Analysis, and CAF-8 Audit and Assurance Essentials.
Practical advice: Always check that your study text, question bank, and notes match the syllabus for your exam session. ICAP publishes its CAF syllabus per session, and the latest version at the time of writing is marked for Spring 2027 under Education Scheme 2025. You can view it on the ICAP CAF syllabus page.
What moved out of FAR1?
A common search query is "CAF FAR1 revenue recognition" or "FAR1 provisions." Under Scheme 2025, revenue from contracts with customers (IFRS 15), provisions and contingencies (IAS 37), and consolidation basics sit in CAF 6 Corporate Reporting, not FAR1. ICAP's CAF 6 knowledge reference lists IAS 37: Provisions, Contingent Liabilities and Contingent Assets, IAS 38: Intangible Assets, IFRS 10: Consolidated Financial Statements, and IFRS 15: Revenue from Contracts with Customers, among others.
That does not mean you can ignore these concepts completely in FAR1. You still need to understand what a provision or accrual is when presenting a statement of financial position. You just will not be tested on the detailed IFRS 15 or IAS 37 rules in this paper.
CAF FAR1 Syllabus and Weightage (Section by Section)
The CAF FAR1 syllabus has three sections: A (statements of financial position and profit or loss), B (statements of changes in equity and cash flows), and C (accounting for non-current assets). ICAP allocates 110–130 teaching hours in total, and each section carries a weightage range rather than a fixed mark count.
The official grid, according to ICAP, is as follows: Section A, Preparation of Statements of Financial Position and Profit or Loss, carries 32-43 teaching hours and 30-40 weightage; Section B, Preparation of Statements of Changes in Equity and Cash Flows, carries 28-30 teaching hours and 30-40 weightage; Section C, Accounting for Non-Current Assets, carries 50-57 teaching hours and 25-35 weightage, for a total of 110-130 hours.
| Syllabus Section | Teaching Hours | Weightage (%) | What it really tests |
|---|---|---|---|
| A. Statements of Financial Position and Profit or Loss | 32–43 | 30–40 | Conceptual Framework, IFRS regulatory system, IAS 1 presentation, not-for-profit accounts |
| B. Statements of Changes in Equity and Cash Flows | 28–30 | 30–40 | SOCE, IAS 8 policies/estimates/errors, IAS 7 cash flows, ratio analysis |
| C. Accounting for Non-Current Assets | 50–57 | 25–35 | IAS 16, IAS 23, IAS 36, IAS 40, IAS 20, IAS 41 |
| Total | 110–130 | 100 |
An important observation: Section C has the most teaching hours but not the highest weightage. That tells you non-current assets are technically heavy (many standards, many rules), while Sections A and B reward presentation skill and practice. Many students overspend time memorizing IAS 16 details and underpractice full statement preparation, which is where most marks sit.
Section A: Preparation of Statements of Financial Position and Profit or Loss
This section covers four learning outcomes:
- Applying and discussing the Conceptual Framework for Financial Reporting (qualitative characteristics like relevance and faithful representation, the elements of financial statements, recognition criteria, and measurement bases such as historical cost and fair value).
- Understanding the regulatory system, including the roles of the IFRS Foundation, IASB, IFRS Advisory Council, IFRS Interpretations Committee, and ISSB.
- Applying principles, laws, and concepts to prepare and present a company's statement of financial position and statement of profit or loss.
- Preparing financial statements for not-for-profit organizations and describing the relevant accounting standards.
Section B: Preparation of Statements of Changes in Equity and Cash Flows
Section B covers:
- Preparing the statement of changes in equity (share issues, rights issues, bonus issues, dividends, revaluation surplus movements, transfers to retained earnings).
- Selecting and applying accounting policies, accounting for changes in accounting estimates, and correcting prior period errors under IAS 8.
- Preparing the statement of cash flows under IAS 7.
- Calculating and interpreting ratios to assess performance and financial position, and discussing window dressing.
Section C: Accounting for Non-Current Assets
Section C is standard-heavy:
- Property, plant and equipment (IAS 16): recognition, initial and subsequent measurement, depreciation, revaluation, derecognition, and impairment.
- Borrowing costs (IAS 23): capitalization of borrowing costs on qualifying assets.
- Impairment of assets (IAS 36): carrying assets at no more than recoverable amount, excluding cash-generating units and goodwill.
- Investment property (IAS 40): recognition, measurement, transfers, disposals, and disclosure.
- Government grants (IAS 20): grants, other government assistance, and subsidized or forgivable government loans.
- Agriculture (IAS 41): biological assets, agricultural produce, and related government grants.
Examinable Standards: The FAR1 Knowledge Reference Explained
FAR1 has twelve specific examinable knowledge references. ICAP lists them as the Conceptual Framework for financial reporting, IAS 1: Presentation of Financial Statements, IAS 7: Statement of Cash Flows, IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors, IAS 16: Property, plant and equipment, IAS 20: Accounting for government grants and disclosure of government assistance, IAS 23: Borrowing costs, IAS 36: Impairment of assets, IAS 40: Investment property, IAS 41: Agriculture, Accounting standards for Not-for-profit organizations, and Ratios Analysis.
Here is what each one means in plain language and where students typically lose marks:
| Reference | What it covers | Common trap |
|---|---|---|
| Conceptual Framework | Why and how items are recognized and measured | Writing vague theory instead of linking to the scenario |
| IAS 1 | Format and content of financial statements | Wrong classification of current vs non-current items |
| IAS 7 | Cash flow statement (operating, investing, financing) | Missing non-cash adjustments or double-counting disposals |
| IAS 8 | Policies, estimates, and errors | Treating a change in estimate as retrospective |
| IAS 16 | Property, plant and equipment | Incorrect revaluation surplus transfers and depreciation after revaluation |
| IAS 20 | Government grants | Netting grants incorrectly or ignoring deferred income |
| IAS 23 | Borrowing costs | Capitalizing interest after the asset is ready for use |
| IAS 36 | Impairment | Comparing with fair value only, instead of the higher of fair value less costs of disposal and value in use |
| IAS 40 | Investment property | Mixing up fair value and cost model effects, or mishandling transfers |
| IAS 41 | Biological assets and produce | Confusing the point of harvest with later processing |
| Not-for-profit standards | Accounts for NPOs | Using company formats and terminology |
| Ratio analysis | Performance and position assessment | Calculating ratios without interpreting them |
For the official, current wording of every standard, the authoritative source is the IFRS Foundation at ifrs.org. ICAP's own study text is written to the Pakistani exam context and should be your primary reading.
How Is the CAF FAR1 Paper Tested? Proficiency and Testing Levels
FAR1 learning outcomes are tagged with a proficiency level (P1 or P2) and a testing level (T1 or T2). The proficiency level tells you how deeply you must understand a topic. The testing level caps how many marks one topic can carry in a single paper.
Proficiency levels
- P1 (foundation): defining, explaining, and interpreting principles. In FAR1, only the IFRS regulatory system is at P1.
- P2 (intermediate): independently applying, comparing, and analyzing principles to complete work and make decisions. Almost all FAR1 outcomes are at P2, which means ICAP expects application, not memorization.
Testing levels
ICAP defines them clearly: at T1, the maximum limit per topic and a maximum aggregate limit of testing level-1 topics will be 8 marks and 35 marks respectively in an attempt, and at T2 the maximum limit per topic will be 20 marks.
| Testing Level | Max marks per topic | FAR1 topics at this level |
|---|---|---|
| T1 | 8 (aggregate cap of 35 across all T1 topics) | Conceptual Framework, regulatory system, IAS 8, IAS 23, IAS 36, IAS 20, IAS 41 |
| T2 | 20 | Statement of financial position and profit or loss, NPO accounts, SOCE, cash flows, ratios, IAS 16, IAS 40 |
What this means for your preparation: The big, high-mark questions will come from T2 topics. Full statement preparation, cash flows, SOCE, IAS 16, IAS 40, and ratio analysis deserve the most practice. T1 topics still matter because together they can carry up to 35 marks, but each individual T1 topic is capped.
ICAP also notes that T1 topics include all topics assessed at earlier stages of qualification, as well as new topics included in the syllabus for the first time. So your PRC bookkeeping knowledge can appear in FAR1, within the T1 limits.
What does the exam paper look like?
Recent ICAP past papers show a mix of short objective-style questions and longer computational questions based on company data. The Autumn 2024 CAF-1 paper, for example, includes multiple-choice style options on topics such as equity and earnings-related figures alongside scenario data presented in "Rs. in million." Always check ICAP's current examination directives for your session's exact duration, format, and passing rules, since these are set by ICAP and can change.
Eligibility: Who Can Attempt CAF FAR1?
You can attempt CAF FAR1 once you are registered as a CAF student with ICAP. Most students reach CAF by passing PRC, while some qualify through recognized degrees or other professional qualifications that ICAP accepts for CAF registration.
A few practical rules under Education Scheme 2025, as stated in ICAP's FAQs:
- Students are allowed to take up to a maximum of four papers in one sitting of CAF, and examinees can appear in CAF Group B papers on passing two papers of CAF Group A.
- ICAP's FAQs also state that a student who has passed any two papers of CAF Group A, whether under the Education Scheme 2021 or the Education Scheme 2025, shall be eligible to appear in Group B of the CAF.
- ICAP has indicated that CAF examinations will be conducted in August and February. Confirm the exact dates on ICAP's before planning.
- ICAP also offers online remote proctoring examinations, subject to its directives.
Since FAR1 is a Group A paper, passing it early helps unlock Group B. For the full eligibility picture, read our guide on CA eligibility in Pakistan and the step-by-step ICAP registration process.
Assumed Knowledge: What You Must Know Before Starting FAR1
FAR1 assumes you already understand the accounting cycle, double-entry bookkeeping, and year-end adjustments. These are not separately listed in the FAR1 syllabus, but every FAR1 question depends on them. Weak bookkeeping is the single biggest reason good students struggle in this paper.
Before your first FAR1 class, make sure you are comfortable with:
- The accounting equation (Assets = Liabilities + Equity) and how every transaction keeps it balanced.
- Debit and credit rules, journal entries, and ledger accounts.
- Trial balance preparation and what it can and cannot detect.
- Adjusting entries: accruals, prepayments, depreciation, bad debts, and allowances for receivables.
- Closing entries and moving from a trial balance to draft financial statements.
- Bank reconciliation and correcting errors through suspense accounts.
- Inventory basics: cost formulas and lower of cost and net realizable value.
- Basic accounting concepts: going concern, accrual basis, materiality, consistency, and comparability.
A quick self-test: Take any trial balance with five year-end adjustments and try to prepare a statement of profit or loss and statement of financial position in 45 minutes. If you cannot, spend two weeks revising PRC-level material first. It will save you months later.
Worked Examples of Core FAR1 Topics
The examples below are simplified and illustrative, written to show the thinking FAR1 expects. Real exam questions combine several of these issues in one scenario.
Example 1: IAS 16 Revaluation and Depreciation
A company buys a building on 1 July 2024 for Rs. 50 million, with a useful life of 25 years and no residual value. It uses the revaluation model. On 30 June 2025, the building is revalued to Rs. 55.2 million.
- Depreciation for 2024–25: Rs. 50m ÷ 25 = Rs. 2 million
- Carrying amount at 30 June 2025: Rs. 50m − Rs. 2m = Rs. 48 million
- Revaluation surplus: Rs. 55.2m − Rs. 48m = Rs. 7.2 million, credited to other comprehensive income and accumulated in equity
- Depreciation for 2025–26: Rs. 55.2m ÷ 24 remaining years = Rs. 2.3 million
- Incremental depreciation: Rs. 2.3m − Rs. 2m = Rs. 0.3 million, which can be transferred each year from revaluation surplus to retained earnings (through the SOCE, not through profit or loss)
Why students lose marks: They forget to use the remaining useful life after revaluation, or they pass the surplus transfer through profit or loss.
Example 2: IAS 8 Change in Estimate vs Error
- Change in estimate: A machine's useful life is revised from 10 years to 6 years. This is applied prospectively. You adjust depreciation from the current year onward. No restatement.
- Prior period error: Last year's depreciation was omitted by mistake. This is corrected retrospectively by restating comparatives and adjusting opening retained earnings in the SOCE.
Simple test: Ask yourself, "Was the information available and misused last year?" If yes, it is an error. If new information has arrived, it is a change in estimate.
Example 3: IAS 7 Cash Flow from a PPE Disposal
A company sells equipment with a carrying amount of Rs. 3 million for Rs. 3.8 million.
- In operating activities (indirect method), deduct the Rs. 0.8 million gain from profit before tax, because it is non-cash income.
- In investing activities, show the Rs. 3.8 million proceeds as a cash inflow.
Why students lose marks: They either leave the gain inside operating cash flows or show the carrying amount instead of the actual proceeds.
Example 4: IAS 36 Impairment Test
An asset has a carrying amount of Rs. 12 million. Its fair value less costs of disposal is Rs. 9 million and its value in use is Rs. 10.5 million.
- Recoverable amount = higher of Rs. 9m and Rs. 10.5m = Rs. 10.5 million
- Impairment loss = Rs. 12m − Rs. 10.5m = Rs. 1.5 million
Why students lose marks: They compare the carrying amount only with fair value.
Example 5: Ratio Interpretation, Not Just Calculation
If the current ratio rises from 1.2 to 1.8, a weak answer says "liquidity has improved." A strong FAR1 answer asks why: Did receivables balloon because customers are paying late? Did the company build excess inventory? Was a loan reclassified to non-current just before year-end? That last point is exactly the kind of window dressing the syllabus asks you to discuss.
How Should You Prepare for CAF FAR1? A 12-Week Study Plan
The most effective way to prepare for CAF FAR1 is to follow a structured 12-week plan: build concepts in weeks 1–8, integrate topics in weeks 9–10, and sit full past papers in weeks 11–12. ICAP's 110–130 suggested teaching hours make this roughly 10–12 hours per week, plus self-study.
| Week | Focus | Output by end of week |
|---|---|---|
| 1 | PRC revision: adjustments, trial balance to statements | Prepare two full sets of statements from a trial balance |
| 2 | Conceptual Framework and IFRS regulatory system | One-page summary of recognition and measurement bases |
| 3 | IAS 1: statement of financial position and profit or loss | Three company-format questions under time pressure |
| 4 | IAS 16: cost model, revaluation model, disposals | Complete PPE working template that you can reuse |
| 5 | IAS 23, IAS 36, IAS 20 | Mixed short questions on each standard |
| 6 | IAS 40 and IAS 41 | Transfer and fair value questions |
| 7 | SOCE and IAS 8 | SOCE with bonus, rights issue, errors, and surplus transfers |
| 8 | IAS 7 cash flow statement | Three full cash flow statements (indirect method) |
| 9 | Not-for-profit accounts and ratio analysis | NPO question plus two written interpretation answers |
| 10 | Integrated questions combining multiple standards | Two long mixed questions, marked against solutions |
| 11 | Past papers under exam conditions | Two full papers, timed, self-marked |
| 12 | Weak-area repair and final mocks | Final mock plus a formula and format summary sheet |
Working professionals: If you are studying alongside a job, stretch the plan to 16–18 weeks, but never skip the past paper weeks.
Retake students: Start with a diagnostic past paper in week 1. Let your weakest two areas decide the order of revision, not the syllabus sequence.
CAF FAR1 Past Papers and Practice Questions: How to Use Them
CAF FAR1 past papers are the closest thing you have to the real exam, and ICAP publishes them on its website. Use them in three stages: topic-wise practice after each chapter, integrated practice after completing the syllabus, and full timed papers in the final three weeks.
You can access official papers from the .
A simple method that works:
- Attempt first, read the solution later. Reading solutions without attempting gives false confidence.
- Mark yourself honestly using the suggested answer. Note where marks were lost: presentation, calculation, or concept.
- Keep an error log. Write each mistake in one line. Review the log weekly. Patterns appear quickly.
- Re-attempt the same question after two weeks. If you still make the same mistake, the concept is not fixed yet.
- Watch for syllabus alignment. Papers from Scheme 2021 may include topics now tested in CAF 6. Skip those, or use them only for general understanding.
For students unsure why earlier attempts did not work, our analysis of why students fail CA and ACCA exams explains the most common patterns and how to fix them.
Common Mistakes FAR1 Students Make
- Studying only theory. FAR1 is P2 application. Reading the study text without solving questions rarely works.
- Weak formats. Examiners award marks for correct presentation. Learn the IAS 1 and IAS 7 layouts until you can draw them without thinking.
- Skipping workings. Clear, referenced workings earn method marks even when the final figure is wrong.
- Ignoring time management. Spending 40 minutes on a 15-mark question is a common way to fail an otherwise passable paper.
- Using outdated material. Scheme 2021 notes can mislead you on what is examinable now.
- Neglecting interpretation. Ratio questions ask for analysis. A table of numbers without comments earns limited marks.
- Confusing SOCE and profit or loss. Revaluation surplus transfers, dividends, and error corrections belong in equity, not profit or loss.
- Leaving IAS 41 and IAS 20 to the end. They are T1, but they appear, and they are easy marks if prepared.
Expert Exam Tips for FAR1
- Read the requirement first. Before reading the scenario, check what is asked. You will read the data with purpose.
- Build a proforma immediately. Draw the statement format, then fill it as you work through the notes.
- Label every working. "W1 PPE," "W2 Cash from disposal," and so on. Examiners follow referenced workings more easily.
- Follow a mark-per-minute budget. Allocate time in proportion to marks and move on when time is up.
- Explain judgments in one line. For example, "Treated prospectively as a change in estimate under IAS 8." This shows understanding.
- Practice without a calculator memory habit. Write intermediate figures on paper. It prevents lost marks from careless slips.
- Use your own words. ICAP's FAQs address whether answers must reproduce study text wording. Clear explanations in your own words are what examiners are looking for.
- Revise formats the night before, not new topics. Late new learning rarely sticks under pressure.
How Does FAR1 Connect to Later Papers?
FAR1 is the base of the reporting stream in chartered accountancy. What you learn here is reused in CAF 6 Corporate Reporting, applied during audit work in CAF 8, and expanded at CFAP level. Students who master FAR1 formats find later reporting papers far less overwhelming.
| Later paper | How it builds on FAR1 |
|---|---|
| CAF FAR2 / Corporate Reporting | Adds consolidations, deferred tax, IFRS 15, IFRS 16, IAS 37, and financial instruments to the statements you built in FAR1 |
| CAF Audit and Assurance | Auditors test the same balances you learned to prepare, such as PPE, provisions, and cash |
| CAF Managerial and Financial Analysis | Uses ratio and cash flow understanding for business decisions |
| CFAP Advanced Corporate Reporting | Applies reporting at an advanced, judgment-heavy level |
FAR1 also pairs naturally with the other Group A tax paper. Many students take it alongside CAF Taxation Principles and Compliance, since both reward structured, format-based answers. When you reach the next group, our guide on CAF Group B difficulty level and career path will help you plan. For the final stage, read about CFAP as the final stage of chartered accountancy.
CAF FAR1 vs ACCA Financial Accounting and Financial Reporting
CAF FAR1 sits between ACCA's Financial Accounting (FA) and Financial Reporting (FR) in depth. It goes beyond FA's bookkeeping focus by applying IAS standards to company statements, but it covers fewer standards than FR, which also includes consolidations and more complex IFRS topics.
| Feature | ICAP CAF FAR1 | ACCA FA | ACCA FR |
|---|---|---|---|
| Level | CAF (intermediate) | Applied Knowledge (foundation) | Applied Skills |
| Focus | IAS-based statement preparation, non-current assets, cash flows | Double-entry, basic statements | Full IFRS reporting, including group accounts |
| Consolidations | Not included (moved to CAF 6) | Basic introduction | Included |
| Local context | Pakistani companies, NPO standards | Global | Global |
| Awarding body | ICAP | ACCA | ACCA |
If you are still choosing between qualifications, our detailed comparison of CA vs ACCA in Pakistan sets out the genuine pros and cons of each route. ACCA students can look at ACCA Financial Accounting and ACCA Financial Reporting for the equivalent courses.
Cost, Duration, and Career Value of Passing FAR1
How long does FAR1 take to prepare?
Most students need three to four months of structured study to prepare for CAF FAR1. ICAP recommends 110–130 teaching hours. With self-study and past paper practice, full-time students usually manage it within one exam cycle. Working professionals may need a longer runway.
How much does it cost?
The total cost combines ICAP's examination and registration fees with tuition, study material, and practice resources. ICAP revises its fees periodically, so check the "Fee and Forms" section of the for current figures. For a full breakdown of the qualification cost, see our guides on CA fees in Pakistan and the CA fee structure for 2026.
What is the career value of FAR1?
FAR1 alone is not a job qualification, but it is one of the most practical papers in the CA journey. The skills it builds, preparing statements, handling fixed asset registers, reconciling cash flows, and analyzing ratios, are exactly what trainees use from day one of CA articleship in Pakistan.
Passing the full CAF level also opens other doors. For example, PIPFA offers a Gateway route for ICAP students; it states that students of ICAP passed up to CA Inter/Module D/CAF or equivalent are eligible for getting registered in its Gateway scheme.
Long-term outcomes depend on completing the qualification, your training firm, and market conditions, so avoid anyone who promises a guaranteed salary. For a balanced view, read about CA scope in Pakistan, salary after CA in Pakistan and abroad, and whether CA is worth it in Pakistan.
Latest Updates and Trends Affecting FAR1
- Scheme 2025 syllabus in force: ICAP's current CAF syllabus document is issued for Spring 2027 under Education Scheme 2025. Match all study material to it.
- Sustainability awareness: The FAR1 regulatory outcome now names the ISSB alongside the IASB, reflecting the growing role of sustainability reporting. Detailed ESG content appears in later papers.
- Technology in accounting: Real-world reporting is increasingly done in ERP systems and spreadsheets. FAR1 is still a paper-based skills test, but understanding the logic behind automated statements makes you more employable.
- Remote proctoring: ICAP's option of online remote proctored exams gives students outside major cities more flexibility, subject to ICAP's rules.
Why Choose ICT Business School for CA CAF FAR1 Preparation
Choosing where to study FAR1 matters because this paper rewards guided practice more than solo reading. ICT Business School offers a dedicated CA CAF FAR1 course designed around the ICAP Scheme 2025 syllabus, with teaching that moves from concept to ICAP-style questions rather than stopping at theory.
The institute is led by professionals who work in accounting, tax, and law, and you can review the teaching team on our faculty page. With campuses in Islamabad, Lahore, and Karachi, ICT is accessible for students across the twin cities of Islamabad and Rawalpindi as well as other major cities.
Beyond FAR1, ICT covers the wider CA route, from PRC Foundation of Accounting to CAF and CFAP papers, so you can continue with the same institute as you progress. You can see the full range on our courses page or read why students compare options in our guides to the best CA institute in Islamabad and the best CA institute in Rawalpindi.
Explore the Course: CA CAF FAR1 at ICT Business School | Enroll Now: Admission | Book a Seat: Contact Us
Frequently Asked Questions (FAQs)
What is CA CAF FAR1?
CA CAF FAR1 is ICAP's first financial reporting paper at the Certificate in Accounting and Finance level. It tests preparation of company and not-for-profit financial statements using selected IAS standards, including IAS 1, IAS 7, IAS 8, IAS 16, and IAS 40.
Is FAR1 the same as CAF 1?
Yes. Under ICAP Education Scheme 2025, FAR1 is officially titled "CAF 1: Financial Accounting and Reporting." Students still commonly call it FAR1 or FAR-I, the name used under the earlier Scheme 2021.
What are the main topics in the CAF FAR1 syllabus?
The CAF FAR1 syllabus has three sections: preparing the statements of financial position and profit or loss, preparing the statements of changes in equity and cash flows, and accounting for non-current assets under IAS 16, IAS 20, IAS 23, IAS 36, IAS 40, and IAS 41.
How many teaching hours does ICAP recommend for FAR1?
ICAP recommends 110 to 130 teaching hours for CAF FAR1. Section C on non-current assets has the most teaching hours, while Sections A and B each carry a weightage of 30 to 40 percent.
Is revenue recognition part of CAF FAR1?
No. Under Education Scheme 2025, revenue from contracts with customers (IFRS 15) is examined in CAF 6 Corporate Reporting, along with provisions, leases, and consolidations. FAR1 focuses on statement preparation and non-current assets.
How long does it take to prepare for CAF FAR1?
Most students need about three to four months of structured study to prepare for CAF FAR1. Working professionals may need four to five months, including at least two to three weeks of timed past paper practice.
Where can I find CAF FAR1 past papers?
Official CAF FAR1 past papers are available on the ICAP website under past examination papers for CAF-1. Check that each paper matches the current Scheme 2025 syllabus before relying on it.
Can I attempt CAF Group B before passing FAR1?
According to ICAP's Scheme 2025 FAQs, students can appear in CAF Group B after passing any two Group A papers. Passing FAR1 early is still wise because later reporting papers build directly on it.
Conclusion
CA CAF FAR1 is more than one exam. It is the paper where you learn to think like a financial reporter: applying standards, making judgments, and presenting information clearly. Under ICAP's Education Scheme 2025, it focuses on three areas, statement preparation, equity and cash flows, and non-current assets, supported by twelve examinable references and 110–130 recommended teaching hours.
Our key recommendation: Secure your bookkeeping base first, practice full statements every week, give extra time to cash flows and IAS 16, and finish with timed past papers. Students who follow that sequence usually find FAR1 manageable and carry that confidence into CAF 6, articleship, and CFAP.
Your next step: Review the CA CAF FAR1 course at ICT Business School, check the admission process, and when you are ready, Book a Seat for the upcoming FAR1 batch.
Last Updated: 21 September 2026. Updated for ICAP Education Scheme 2025 and the CAF syllabus issued for Spring 2027. This article should be reviewed every six months, or whenever ICAP issues a revised syllabus or examination schedule.