ACCA FA Common Mistakes & Examiner Insights
FA is technically demanding and the harder questions have pass rates well below the headline. Most lost marks come from a handful of recurring confusions in reconciliations, consolidations and cash flows. Here they are.
1. Bank reconciliations: ledger vs reconciliation
Candidates routinely put items on the wrong side. Errors and omissions in the cash book are adjusted in the ledger; timing differences (unpresented cheques, outstanding lodgements) go in the reconciliation. Keep the two clearly separate.
2. Use full consolidation, not proportional
A subsidiary is consolidated 100% line by line, with a non-controlling interest — never in proportion to the parent's holding. Proportional consolidation is a fundamental error and scores nothing.
3. Cash flow: classify disposals correctly
Disposal proceeds go under investing activities, not operating. Under the indirect method, get the working-capital movement directions right — an increase in receivables is a cash outflow, not inflow.
4. Adjusting vs non-adjusting events
Events after the reporting period are regularly tested. An adjusting event provides evidence of conditions that existed at the year end; a non-adjusting event arose after. Only adjusting events change the figures.
5. Use the ROCE relationship
ROCE = profit margin × asset turnover. These three are tested together, and candidates who don't know the relationship can't reconcile them. Learn it as a unit.
6. Don't assume a true/false mix in matching questions
Candidates assume matching questions must contain a balance of true and false. They needn't — answer each statement on its own merits.
7. Number entry: show the full working, enter the exact figure
For preparation and calculation questions, work the full chain and enter the precise number in the format requested. A small slip in a sub-total carries through to a wrong final answer.
Practise these in context: every FA question on GoQualified is mapped to the syllabus with a full worked explanation, so you can see exactly where the marks are. Switch to Exam Sim mode for a timed FA mock exam under real exam conditions. Free, no login.