Most Recent CIMAPRA19-F02-1 Exam Questions & Answers

Prepare for the CIMA F2 Advanced Financial Reporting exam with our extensive collection of questions and answers. These practice Q&A are updated according to the latest syllabus, providing you with the tools needed to review and test your knowledge.

QA4Exam focus on the latest syllabus and exam objectives, our practice Q&A are designed to help you identify key topics and solidify your understanding. By focusing on the core curriculum, These Questions & Answers helps you cover all the essential topics, ensuring you're well-prepared for every section of the exam. Each question comes with a detailed explanation, offering valuable insights and helping you to learn from your mistakes. Whether you're looking to assess your progress or dive deeper into complex topics, our updated Q&A will provide the support you need to confidently approach the CIMAPRA19-F02-1 exam and achieve success.

The questions for CIMAPRA19-F02-1 were last updated on Nov 24, 2024.

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Question No. 1

AB acquired a financial investment on 1 January 20X9, incurring $5,000 related agency fees. AB initially classified the investment as held for trading, in accordance with IAS 32 Financial Instruments: Presentation.

Which of the following statements reflects the accounting treatment that AB adopted in respect of this investment when it prepared its financial statements to 31 December 20X9?

AAgency fees were recorded as an expense and the gain/loss on the remeasurement of the investment at the year end was recorded in profit or loss for the year.

BAgency fees were recorded as an expense and the gain/loss on the remeasurement of the investment at the year end was recorded in other comprehensive income.

CAgency fees were added to the cost of the investment and the gain/loss on the remeasurement of the investment at the year end was recorded in profit or loss for the year.

DAgency fees were added to the cost of the investment and the gain/loss on the remeasurement of the investment at the year end was recorded in other comprehensive income.

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Correct Answer: A

Question No. 2

On 1 January 20X1KL acquired 75% of the equityshares of PQ. Goodwill arising on the acquisition was $480,000. On 31 December 20X3 KLsold the full investment of PQ to XY Groupfor $2,000,000. On this date the net assetsof PQ were $1,340,000 and the non-controlling interests stood at $410,000.

What is the gain on disposal to be recognised in the consolidated statement of profit or loss of KL?

A$590,000

B$180,000

C$660,000

D$635,000

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Correct Answer: D

Question No. 3

UV has raised $100,000 through theissue of two irredeemable financial instruments:

* 6% debentures with a current market value of $101.50 per $100 nominal value; and

* 8% preference shares with a current share price of $2.20 each.

The corporateincometax rate is 20%

What is the post tax cost of debt foreach of theseinstruments?

AOption

BOption

COption

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Correct Answer: A

Question No. 4

ABacquired 90% of the equity ofYZon31 December 20X2. On the same date YZ acquired 60% of the equity shares ofVW for $750,000. AB has no other subsidiaries.

The following information regarding YZ and VW was available:

Whatamount will AB include in its consolidated statement of financial position in respect ofnon controlling interestat 31 May 20X6?

A$816,400

B$741,400

C$840,600

D$811,000

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Correct Answer: B

Question No. 5

LM are just about to pay a dividend of 20 cents a share. Historically, dividends have grown at a rate of 5% each year.

The current share price is $3.05.

The cost of equity using the dividend valuation model is:

A12.4%

B11.9%

C7.4%

D6.9%

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Correct Answer: A

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