SOCPA Fellowship Financial Accounting Exam Content: 3 Topics, 7 Units

Last verified: 31 October 2026. Topics and weights can change, so check the Fellowship exam page on the SOCPA website and the exam topics document before you start studying. This is an independent guide and is not affiliated with the Saudi Organization for Chartered and Professional Accountants (SOCPA) or any government body.

Financial accounting has been one of six Fellowship subjects since the third sitting of 2025. It is built on IFRS as endorsed in Saudi Arabia. Most questions are cases with figures: you work out a carrying amount, a depreciation charge, a lease liability or earnings per share, then pick the treatment the standard requires.

Two parts on one day

The structure is set out in SOCPA's amendments to the structure and weights of the Fellowship exams, which made no change to this subject, and the timing is in the exam schedule. You can register for this subject on its own. Once you pass it, you have 4 years and 30 days from its exam date to pass the other Fellowship subjects, or the pass is cancelled. The question bank and practice test on this site cover Part 1 only. Part 2 has its own essay questions guide. Fees and dates are in the registration guide.

The three official topics and their weights

In its Fellowship exam topics document SOCPA splits the subject into only three topics, each with a minimum and a maximum share:

Topic 2 alone is more than half the questions. It covers assets, liabilities, equity and revenue item by item, and most of the calculation questions come from it.

The seven units on this site

Three broad topics do not show you where you lose points, so we split Topic 2 into four units and Topic 3 into two, following the order of the items in SOCPA's document. The counts in the table are approximate, set at the middle of each official range, and are not numbers SOCPA publishes.

Unit 1: Framework and the accounting cycle (about 6 questions)

This unit is the whole of official Topic 1. From the Conceptual Framework: the objective of financial reporting and its users, the fundamental qualitative characteristics (relevance and faithful representation) and the enhancing ones (comparability, verifiability, timeliness and understandability), the going concern assumption, the five elements, recognition and derecognition, measurement bases and the two concepts of capital maintenance. Then presentation of financial statements under IAS 1 and first-time adoption under IFRS 1. From the accounting cycle: double entry, adjusting entries (accruals, prepayments, depreciation, doubtful debts), the trial balance and closing.

Unit 2: Cash, financial instruments and receivables (about 8 questions)

• Statement of cash flows (IAS 7): what counts as cash equivalents, operating, investing and financing classification, indirect-method adjustments, and the choices for classifying interest and dividends.
• Financial instruments (IFRS 9 and IAS 32): classification at amortised cost, fair value through OCI or fair value through profit or loss, the effective interest method, the three stages of expected credit losses, and liability versus equity and compound instruments.
• Receivables and notes receivable: measurement, the simplified approach to the loss allowance, discounting notes, write-offs and later recoveries.

Unit 3: Inventories and non-current assets (about 10 questions)

The largest unit in Topic 2, covering five standards:

• Inventories (IAS 2): cost components, lower of cost and net realisable value, FIFO and weighted average, and reversal of write-downs.
• Property, plant and equipment (IAS 16): initial cost, subsequent expenditure, the cost and revaluation models, depreciation methods, components and derecognition.
• Investment property (IAS 40): definition, the fair value and cost models, and transfers in and out.
• Intangible assets (IAS 38): identifiability, the research and development phases, no recognition of internally generated goodwill, and assets with indefinite lives.
• Assets held for sale and discontinued operations (IFRS 5): classification criteria, measurement at the lower of carrying amount and fair value less costs to sell, stopping depreciation, and presentation.

One point specific to Saudi Arabia: the Capital Market Authority announced that from 1 January 2022 listed companies may choose the fair value model for investment property or the revaluation model for property, while plant, equipment and intangible assets stay on the cost model. See the CMA announcement.

Unit 4: Leases, liabilities and equity (about 8 questions)

• Leases (IFRS 16): the lessee's right-of-use asset and lease liability, the short-term and low-value exemptions, finance and operating leases for lessors, and sale and leaseback.
• Current liabilities and deferred accounts: the criteria for current classification, accrued expenses and income received in advance.
• Provisions, contingent liabilities and contingent assets (IAS 37): the three recognition criteria, best estimate, discounting, onerous contracts, restructuring and disclosure.
• Non-current liabilities and equity: bonds at a premium or discount and their amortisation by the effective interest method, treasury shares, dividends, share capital and reserves.

Unit 5: Revenue, zakat and income taxes (about 7 questions)

Revenue under IFRS 15: the five-step model, performance obligations, variable consideration, allocating the transaction price, recognition at a point in time or over time, principal versus agent, and contract costs. Then income taxes under IAS 12 (current and deferred tax, temporary differences and recognising a deferred tax asset), and zakat, which no IFRS covers, so it follows the other standards and pronouncements SOCPA has endorsed.

Unit 6: Policies, events and special measurement topics (about 13 questions)

The largest unit on the site, because it gathers most of official Topic 3:

• Accounting policies, changes in estimates and errors (IAS 8), and adjusting and non-adjusting events after the reporting period (IAS 10).
• Related parties (IAS 24), basic and diluted earnings per share (IAS 33) and share-based payment (IFRS 2).
• Employee benefits (IAS 19), including the end-of-service benefit treated as a defined benefit plan, and retirement benefit plans (IAS 26).
• Foreign currency (IAS 21), hyperinflation (IAS 29), branch accounting, interim reporting (IAS 34) and operating segments (IFRS 8).
• Impairment of assets (IAS 36), borrowing costs (IAS 23) and fair value measurement (IFRS 13).
• Agriculture (IAS 41), insurance contracts (IFRS 17), government grants (IAS 20), mineral resources (IFRS 6) and the IFRS for SMEs.

Unit 7: Consolidation, business combinations and investments (about 8 questions)

Business combinations under IFRS 3 (the acquisition method, goodwill and bargain purchases, measuring non-controlling interests and contingent consideration), consolidated statements under IFRS 10 (the elements of control, eliminating intragroup transactions and unrealised profit, and loss of control), then the equity method for associates (IAS 28), joint arrangements (IFRS 11), separate statements (IAS 27) and disclosure of interests in other entities (IFRS 12). Questions in this unit run longer than the rest, and many need a small consolidation worksheet.

The standards behind the exam

• IFRS as endorsed in Saudi Arabia: all standards issued by the IASB, with disclosure requirements added by SOCPA. Details on the Saudi Arabia page of the IFRS Foundation website.
• Other standards and pronouncements endorsed by SOCPA for matters IFRS does not cover, such as zakat.
• IFRS 18 replaces IAS 1 and takes effect on 1 January 2027. The 2026 sittings stay on IAS 1, and the questions on this site are written on it. See the IFRS 18 page.

How the questions are asked

• Cases with figures: a depreciation charge, the lease liability at the end of year one, an expected credit loss allowance, or diluted earnings per share.
• Treatment questions: where an item is presented, when it is recognised, which measurement model is allowed.
• You can sit the exam in Arabic or English, so learn each term in both languages (for example amortised cost: التكلفة المستنفدة).

What to do after this guide

• See where you stand now with the 10 free questions, no sign-up: you get your score and your weakest units.
• Order your time by the weights in the study plan.
• Prepare the essay part with the essay questions guide, because the question bank here does not cover it.

This is an independent guide and is not affiliated with the Saudi Organization for Chartered and Professional Accountants (SOCPA) or any government body.