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CIMA F2 Exam Dumps Questions and Answers

Exam Code: F2
Certification: CIMA Management
Vendor: CIMA
Last Update: Apr 26, 2024
Questions: 268
10  Customers Passed CIMA F2
94%  Average Success In Real Exam
93%  Questions came word by word from this dump
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F2 Advanced Financial Reporting Questions and Answers

Questions 1

CD acquired 100% of the equity share capital of FG for cash consideration of Kr1,200,000 on 1 January 20X7.

Retained earnings of FG at the date of acquisition was Kr800,000. CD operates from Country A and its functional and presentation currency is $. FG is located and trades throughout Country B and its functional currency is the Krona (Kr).

CD has no other subsidiaries. Goodwill had not suffered any impairment to date.

Summarised data from the statements of financial position for both entities at 31 December 20X7 is presented below:

Calculate the exchange difference arising on the retranslation of goodwill on the acquisition in the consolidated statement of financial position of CD at 31 December 20X7.  

Give your answer to the nearest $000.

Options:

Questions 2

You are a Financial Controller at BCD and are in the process of preparing the year-end financial statements. A member of your finance team has come to see you about her provisions balance at year-end.

She says that the Managing Director has asked her to increase the provisions balance by $1 million overall. She thinks this is because BCD has had a very good year in terms of profit, and the Managing Director wants to put some profit aside to protect against any future reductions in profit. $1 million is material to BCD.

You believe that the provisions balance was fairly stated without the additional $1 million.

Which TWO of the following would be appropriate actions in this scenario?

Options:

A.

Discuss the matter with the Finance Director as he is your immediate line manager.

B.

Speak to the Managing Director to explain that the level of provisions is governed by financial reporting standards.

C.

Tell the member of your finance team to ignore the Managing Director and to leave the provisions balance as it was.

D.

Contact the external auditors of BCD and tell them that the Managing Director wants to change the provisions balance.

E.

Speak to the shareholders at the upcoming annual general meeting about this issue.

Questions 3

Which THREE of the following statements are true in relation to financial assets designated as fair value through profit or loss under IAS 39 Financial Instruments: Recognition and Measurement?

Options:

A.

Shares in another entity held for short term trading purposes fall within this category.

B.

Transaction costs in relation to these assets are expensed to profit or loss on acquisition.

C.

Transaction costs in relation to these assets are added to the initial cost of the asset on acquisition.

D.

The gain or loss on the subsequent measurement of these assets is recorded within other comprehensive income.

E.

 The gain or loss on the subsequent measurement of these assets is recorded within profit for the year.

F.

Once the asset has been subsequently measured to fair value an impairment review is undertaken.