CA CAF FAR2 Guide 2026: Syllabus, Exam & CAF 6 Changes

CA CAF FAR2 (Financial Accounting and Reporting II) is the advanced financial reporting paper at ICAP's CAF level. Under ICAP's Education Scheme 2025, it is now examined as CAF 6: Corporate Reporting, covering consolidation, deferred tax, IFRS 15, IFRS 16, IFRS 9, EPS and ethics. Students preparing today can start with ICT's CA CAF FAR2 course.

If you are a CA student in Pakistan, FAR2 is probably the paper your seniors warned you about. It is where accounting stops being about single-company bookkeeping and starts being about groups, taxes, leases, revenue contracts and professional judgment.

This guide is written for students at every stage. Some are just finishing CA PRC. Some are planning their CAF Group A and Group B papers. Others are legacy students who are confused about what happened to FAR2 after ICAP's new scheme.

At ICT Business School, our CA faculty in Islamabad teach FAR2 and its new CAF 6 version every session. We see the same questions every intake: Is FAR2 still there? What is CAF 6? What changed in the syllabus? How do I pass it in one attempt? This article answers all of them in one place, using ICAP's official syllabus and scheme documents.

If you are new to the CA route, start with our complete Chartered Accountancy guide for Pakistan, then come back here for the FAR2 deep dive.

CA CAF FAR2 (Financial Accounting and Reporting II) is the second financial reporting paper of ICAP's Certificate in Accounting and Finance (CAF) stage. It tests how well you can apply International Financial Reporting Standards (IFRS) to prepare and present company financial statements, including simple group accounts.

FAR2 builds directly on CAF FAR1 (Financial Accounting and Reporting I). FAR1 teaches you to prepare a single company's statements. FAR2 then adds complexity:

In simple terms, FAR1 teaches you to build one house. FAR2 teaches you to build a housing society and report on all of it together.

Explore the Course: CA CAF FAR2 at ICT Business School

Yes, but under a new name. Under ICAP's Education and Training Scheme 2025, the FAR2 paper is now examined as CAF 6: Corporate Reporting. Students who passed FAR2 under Scheme 2021 receive credit for CAF 6. Students who had not passed it now prepare for CAF 6 instead.

This is the single most important update for 2026, and most FAR2 content online has not caught up yet.

ICAP restructured its CA qualification into a new scheme. The Institute confirmed that Scheme 2025 became effective on 16 January 2026, and ICAP's new CAF study resources now list papers under new names. The current CAF list runs from CAF 1 Financial Accounting and Reporting through CAF 5 Management Accounting, CAF 6 Corporate Reporting, CAF 7 Business Insights and Analysis and CAF 8 Audit and Assurance Essentials. Institute of Chartered Accountants of PakistanInstitute of Chartered Accountants of Pakistan

The exam calendar confirms it. In ICAP's Spring 2026 CAF programme, CAF-6 Corporate Reporting was scheduled for Tuesday, 10 March 2026, under Paper ID B. Institute of Chartered Accountants of Pakistan

Source: ICAP FAQs on Education and Training Scheme 2025 (paper-wise credit table).

Also note the related change in law papers: ICAP will now assess CAF-4 Business Law and CAF-7 Company Law together as one paper. Our ICAP registration process guide explains how to register under the current scheme. Institute of Chartered Accountants of Pakistan

CAF 6 keeps the core of FAR2 (consolidation, deferred tax, revenue, leases, financial instruments, provisions, EPS) and adds three new areas: professional ethics, ESG and sustainability basics, and local Companies Act 2017 reporting requirements. Some single-entity standards now sit in CAF 1.

The technical heart of the paper did not change. ICT's FAR2 course page describes the paper as moving the focus from single-entity records to holding groups and more technical reporting requirements, and that is exactly what CAF 6 still tests. ICT Business School

Several single-entity standards are now examined in CAF 1. The CAF 1 syllabus lists IAS 1, IAS 7, IAS 8, IAS 16, IAS 20, IAS 23, IAS 36, IAS 40, IAS 41, accounting for not-for-profit organisations and ratio analysis. So topics like cash flow statements, PPE and impairment are now mainly CAF 1 territory. Because CAF 6 builds on them, you still need them in your toolkit.

CAF 6 is compulsory for anyone completing the CAF stage of Chartered Accountancy in Pakistan, unless they qualify for an exemption. It is especially relevant for:

Who may be exempt? Candidates who have passed all ACCA papers are exempt from PRC and from CAF 1, CAF 5, CAF 6 and CAF 8. CAF 8 is exempt only where Advanced Audit and Assurance is passed. Certain university graduates may also qualify for exemptions, subject to ICAP's criteria. Check the CA eligibility criteria in Pakistan before registering.

To attempt CAF 6 (FAR2), you must be registered at ICAP's CAF stage and must have passed or at least attempted CAF 1 Financial Accounting and Reporting in an earlier session. CAF exams are held twice a year, and you can sit up to four CAF papers per session.

Here are the key rules:

Practical sequencing tip: Because CAF 6 unlocks CAF 8, many students pair CAF 1 in one session with CAF 6 in the next. Planning this early saves an entire session. Our guide on CAF Group B difficulty and career path helps you build the right combination.

The current FAR2 / CAF 6 syllabus has three sections: (A) Financial Statements and their Analysis, (B) Essential Financial Transactions, Ethics and Sustainability, and (C) Other Areas of IFRS. Section B carries the highest weightage at 35–45%.

Source: ICAP CAF Syllabus, Education Scheme 2025 (Spring 2027).

ICAP defines the competency for CAF 6 as understanding how selected accounting standards, laws and regulations apply when preparing financial statements.

Testing levels cap the maximum marks a topic can carry in one paper. A T1 topic can carry at most 8 marks, with all T1 topics together capped at 35 marks per attempt. A T2 topic can carry up to 20 marks, and a T3 topic up to 25. Icap

Why this matters for your study plan: T2 topics (consolidation, IAS 12, IFRS 15, IFRS 16, IAS 37, IAS 33, IAS 38) can each carry a full long question. They deserve most of your practice time. T1 topics still matter, since together they can carry up to 35 marks.

This section explains what each major standard tests, and where students usually lose marks.

Consolidation means combining a parent and its subsidiary as if they were one economic entity. In FAR2 you prepare a consolidated statement of financial position and a consolidated statement of profit or loss and OCI, involving one subsidiary and one associate.

Key workings to master:

Example: If a parent sells goods to its subsidiary at a profit and the goods are still in the subsidiary's inventory at year end, that profit is unrealised for the group. It must be removed from group inventory and group profit.

An associate is an entity over which the investor has significant influence, usually 20–50% of voting rights. It is not consolidated line by line. It is accounted for using the equity method: cost plus share of post-acquisition profits, less dividends received and impairment.

IAS 12 requires companies to account for current tax (tax payable for the year) and deferred tax (future tax effects of temporary differences). Deferred tax arises when the carrying amount of an asset or liability differs from its tax base.

Common exam areas: accelerated tax depreciation, provisions deductible only when paid, tax losses carried forward, and the tax rate reconciliation. Students with a background in CAF Taxation Principles and Compliance find IAS 12 much easier, because they already understand how tax bases work in Pakistan.

IFRS 15 uses a five-step model: identify the contract, identify performance obligations, determine the transaction price, allocate the price, and recognise revenue when (or as) each obligation is satisfied.

Watch for bundled sales (for example, a phone plus a service contract), variable consideration, warranties and revenue over time for long-term contracts.

Under IFRS 16, a lessee recognises a right-of-use asset and a lease liability for almost all leases. The liability is the present value of lease payments. The asset is depreciated, and interest is charged on the liability. Lease modifications, sale and leaseback, and reassessment are excluded from the CAF 6 syllabus.

FAR2 tests the basics of recognition, classification and measurement of financial assets and liabilities, including journal entries and the basic concept of expected credit loss (ECL). Complex impairment, reclassification, derivatives, embedded derivatives, hedge accounting, de-recognition and modification are excluded. Also know amortised cost using the effective interest rate, and the difference between FVTPL and FVOCI.

A provision is recognised when there is a present obligation, an outflow is probable, and a reliable estimate can be made. Contingent liabilities are disclosed, not recognised. Contingent assets are disclosed only when an inflow is probable. The syllabus includes IFRIC 1 (changes in decommissioning liabilities).

Basic EPS equals profit attributable to ordinary shareholders divided by the weighted average number of ordinary shares. Diluted EPS adjusts for potential shares such as convertibles and options. Bonus issues and rights issues require retrospective adjustment of the share count, and this is where most marks are lost.

Research costs are expensed, while development costs are capitalised only if strict criteria are met (technical feasibility, intention to complete, ability to use or sell, probable future benefits, resources, and reliable measurement). Website costs are specifically included.

Adjusting events give evidence of conditions that existed at the reporting date (for example, a customer's bankruptcy discovered after year end). Non-adjusting events relate to conditions that arose after year end (for example, a fire in January). Only adjusting events change the figures.

Foreign currency transactions are initially recorded at the spot rate. Monetary items are retranslated at the closing rate, and exchange differences go to profit or loss. Non-monetary items at historical cost are not retranslated. Given regular rupee movements against the dollar, this topic has strong practical relevance in Pakistan.

IFRS 8 requires listed entities to disclose information about reportable segments as seen by the chief operating decision maker. Know the quantitative thresholds (10% tests) and the 75% external revenue rule.

Expect short, scenario-based questions. For example, what should an accountant do if a manager pressures them to inflate profit? The answer usually follows a sequence: identify the threat, evaluate it, apply safeguards, and escalate internally before considering resignation. For sustainability, focus on IFRS S1's core concepts and how ESG connects to financial reporting. Students who want to go deeper can later explore CFAP 03 Sustainability Reporting and Assurance.

The CAF 6 Corporate Reporting paper is a written exam combining MCQs with longer descriptive and computational questions. According to the published CAF 6 model paper, it lasts 3 hours 15 minutes, including 15 minutes of reading time. Section A (MCQs) carries roughly 45–55 marks.

The CAF 6 model paper, as shared on student study platforms, instructs examinees to answer all nine questions within 3 hours and 15 minutes, which includes 15 minutes of reading time. Section A ranges from 45 to 55 marks and is made up of multiple-choice questions answered in the answer script. Always confirm the latest instructions in ICAP's official model paper before your exam.

What the MCQ section means for you: You cannot rely only on long consolidation questions. MCQs spread marks across the whole syllabus, so leaving T1 topics like IAS 21, IAS 10 and IFRS 8 unprepared is risky.

How answers are marked: ICAP marks on merit, not on memorised wording. ICAP has stated there is no prescribed text for answers. However, questions on law, standards or recognised theories require the correct technical terms, which cannot be swapped for your own terminology. In FAR2, write "right-of-use asset", not "leased asset value".

FAR2 is widely regarded as one of the most demanding papers at the CAF stage. The difficulty comes from its volume of IFRS standards, the length of consolidation workings, and the need to apply judgment rather than memorise formats.

Why students find it hard:

Why it is very passable:

Our article on why students fail CA and ACCA exams explains the preparation mistakes that turn a passable paper into a repeat attempt.

The most effective FAR2 preparation follows four phases: concept building, standard-wise practice, integrated past-paper practice, and timed mock exams. ICAP's syllabus allocates 109–131 teaching hours, so plan for roughly 14–16 weeks alongside other papers.

This is a suggested plan from classroom experience, not an ICAP requirement. Adjust it to your pace and paper combination.

The most reliable FAR2 resources are ICAP's own study text, ICAP past papers and examiner comments, and the official model paper for CAF 6. Third-party notes help with revision, but they should never replace the official study text.

Expert insight: Legacy FAR2 past papers are the most underused resource. Most consolidation, deferred tax and lease questions are still fully relevant to CAF 6. Students who solve at least 5–6 past sessions topic-wise usually walk into the exam far more confident.

Book a Seat: Join a structured FAR2 / CAF 6 batch with regular mocks. Contact ICT Business School

FAR1 (CAF 1) builds single-entity reporting skills. FAR2 (CAF 6) adds group accounts and advanced IFRS topics. CFAP 1 Advanced Corporate Reporting takes both to professional level, with complex groups and judgment-heavy scenarios.

ICAP credits CFAP 1 Advanced Corporate Reporting (Scheme 2025) against CFAP-1 Advanced Accounting and Financial Reporting (Scheme 2021). A strong FAR2 foundation makes CFAP 1 far more manageable. Read our guide to CFAP, the final stage of Chartered Accountancy, to see where this path leads.

Students comparing qualifications often ask how FAR2 relates to ACCA. Much of the IFRS content overlaps with ACCA Financial Reporting (FR), while complex group topics resemble ACCA Strategic Business Reporting (SBR). For a full comparison of routes, read CA vs ACCA.

FAR2 skills are used daily in audit firms, corporate finance teams, banks and regulators. Anyone who prepares, audits or analyses IFRS financial statements in Pakistan relies on the standards covered in this paper.

Practical roles where FAR2 knowledge applies directly:

Training and stipend: Passing CAF is also the gateway to ICAP training. From 1 July 2025, the minimum stipend for a CAF-passed trainee at the start of training is Rs. 25,000 per month, and training organisations may pay more than the minimum rates. Learn more in our CA articleship guide and our overview of CA scope in Pakistan. Institute of Chartered Accountants of PakistanInstitute of Chartered Accountants of Pakistan

Career outcomes vary by firm, city, performance and exam progress. FAR2 alone does not guarantee a job, but it gives you the technical base that employers expect from CA trainees.

Passing FAR2 depends less on how many notes you collect and more on how well you are taught to apply IFRS under exam conditions. That is where ICT Business School focuses its CA teaching.

Enroll Now: Secure your place in the next FAR2 / CAF 6 batch. Contact our admissions team or visit the admission page.

1. Is CAF FAR2 still available in 2026?
FAR2 is now examined as CAF 6 Corporate Reporting under ICAP's Education and Training Scheme 2025, effective 16 January 2026. Students who passed FAR2 earlier receive credit for CAF 6.

2. What is the difference between FAR2 and CAF 6 Corporate Reporting?
CAF 6 keeps FAR2's core topics, such as consolidation, IAS 12, IFRS 15, IFRS 16 and IFRS 9. It adds professional ethics, IFRS S1 sustainability basics and Companies Act 2017 reporting requirements.

3. Can I attempt FAR2 without passing FAR1?
You must pass or at least attempt CAF 1 Financial Accounting and Reporting in an earlier session before attempting CAF 6 Corporate Reporting.

4. Which topics carry the most marks in FAR2?
T2 topics can carry up to 20 marks each. These include consolidation, IAS 12 deferred tax, IFRS 15 revenue, IFRS 16 leases, IAS 37 provisions, IAS 33 EPS and IAS 38 intangibles.

5. How long should I prepare for CAF FAR2?
ICAP's syllabus allocates 109 to 131 teaching hours. Most students need around 14 to 16 weeks of consistent study, including past papers and timed mock exams.

6. Are old FAR2 past papers still useful for CAF 6?
Yes. Legacy FAR2 past papers remain very useful for consolidation, deferred tax, revenue and lease questions. Skip questions on standards that moved to CAF 1 or are now excluded.

7. Is FAR2 harder than FAR1?
Yes, FAR2 is generally harder than FAR1. It adds group accounts, deferred tax and several advanced IFRS standards, and it requires more judgment and longer workings.

8. Are ACCA members exempt from CAF 6?
Yes. Candidates who have passed all ACCA papers are exempt from CAF 6 Corporate Reporting, along with PRC and certain other CAF papers, subject to ICAP's criteria.

CA CAF FAR2 has a new name, but its role in Chartered Accountancy has not changed. Whether you call it FAR2 or CAF 6 Corporate Reporting, it remains the paper that turns you from a bookkeeper into a financial reporting professional. It is also the paper that decides how smoothly you will handle CFAP 1 later.

Key recommendation: Prepare for the current CAF 6 syllabus, not old FAR2 notes alone. Build consolidation and IAS 12 first, practise legacy FAR2 past papers topic-wise, and do not ignore the new ethics and sustainability areas.

Your next step: Check your CAF 1 status, plan your CAF 6 session, and join a structured batch with regular mocks. Browse all our programmes on the courses page, and read more CA guides on the ICT blog.

Book a Seat in ICT Business School's next CA CAF FAR2 / CAF 6 batch today. Contact us here.