1. Pass CIMA F2 - Advanced Financial Reporting exam in just 24 HOURS! 100% REAL EXAM QUESTIONS ANSWERS CIMA F2 - Advanced Financial Reporting Certifications Exam Buy Complete Questions Answers File from http://www.exams4sure.com/CIMA/F2-practice-exam- dumps.html 100% Exam Passing Guarantee & Money Back Assurance

2. QUESTION NO: 1 Which THREE of the following would typically indicate a finance lease? A.An asset with a useful life of ten years is being leased for ten years. B.The lessor is responsible for the annual maintenance of the asset. C.The lessee has the option to buy the asset at the end of the lease for $1. D.The lease contract for an asset includes an upgrade to the asset every two years. E.A leased asset has been specifically modified for the lessee's use. Answer: A, C, E QUESTION NO: 2 AB acquired 90% of the equity of YZ on 31 December 20X2. On the same date YZ acquired 60% of the equity shares of VW for $750,000. AB has no other subsidiaries. The following information regarding YZ and VW was available: What amount will AB include in its consolidated statement of financial position in respect of non controlling interest at 31 May 20X6?

3. A. $816,400 B. $741,400 C. $840,600 D. $811,000 Answer: B QUESTION NO: 3 ST acquired 75% of the 2 million $1 equity shares of CD on 1 January 20X3, when the retained earnings of CD were S3,550,000. CD has no other reserves. ST paid $5,600,000 for the shares in CD and the non controlling interest was measured at its fair value of S1,400,000 at acquisition. At 1 January 20X3, the fair value of CD's net assets were equal to their carrying amount, with the exception of a building. This building had a fair value of $1,000,000 in excess of its carrying amount and a remaining useful life of 25 years on 1 January 20X3. At 31 December 20X5, the retained earnings of ST and CD were $8,500,000 and $5,250,000 respectively. What is the value of goodwill to be included in the consolidated statement of financial position of ST as at 31 December 20X5? A. $450,000 B. $1,450,000 C. $950,000 D. $570,000 Answer: A

4. QUESTION NO: 4 The dividend yield of ST has fallen in the year to 31 May 20X5, compared to the previous year. The share price on 31 May 20X4 was $4.50 and on 31 May 20X5 was $4.00. There were no issues of share capital during the year. Which of the following should explain the reduction in the dividend yield for the year to 31 May 20X5 compared to the previous year? A.The dividend paid in the year was reduced in order to pay for new assets. B.Surplus cash was used to pay a special dividend in addition to the normal dividend in the year. C.The profit for the year fell significantly and the dividend per share stayed the same. D.To compensate investors for the reduction in share price a higher dividend per share was paid. Answer: A QUESTION NO: 5 CD commenced a construction contract on 1 April 20X9. The contract value was agreed at $100,000. CD had incurred $40,000 costs to date and estimated costs to completion were $50,000. At the year ended 31 December 20X9 this contract was estimated to be 60% complete. CD adopted the provisions of IAS 11 Construction Contracts when preparing its financial statements for the year to 31 December 20X9. What value should be included in CD's profit for the year ended 31 December 20X9 in respect of this contract? Give your answer to the nearest whole number. $ ? Answer: 6000, 6

5. QUESTION NO: 6 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? 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. Answer: A, B, E

6. QUESTION NO: 7 MN had the following profit figures for the year ended 30 November 20X6: MN's statement of financial position at 30 November 20X6 included the following: Calculate return on capital employed for MN for the year ended 30 November 20X6. Give your answer to one decimal place. ? % Answer: 15.9, 15.91, 15.90, 16, 16.0 QUESTION NO: 8 GH granted 100 share options to each of its 1,000 employees on 1 January 20X8. The fair value of each option was $7 on 1 January 20X8 and had risen to $8 at 31 December 20X8. Which of the following statements represents the treatment that GH adopted to account for the related expense of these share options in its financial statements for the year ended 31 December 20X8, in accordance with IFRS 2

7. Share-based Payments? A.The expense was measured using the fair value of $7 and the credit entry was to equity. B.The expense was measured using the fair value of $7 and the credit entry was to liabilities. C.The expense was measured using the fair value of $8 and the credit entry was to equity. D.The expense was measured using the fair value of $8 and the credit entry was to liabilities. Answer: A QUESTION NO: 9 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:

8. 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. Answer: 14, 14000, 13636, 13637 QUESTION NO: 10 LK acquired 100% of the equity shares of TU on 1 January 20X4. LK disposed of 60% of TU for £2,400,000 on 30 September 20X4. The sale proceeds reflected the fair value of TU's shares on that date. The remaining 40% shareholding gave LK the ability to exercise significant influence over the activities of TU. TU reported profit of $1,800,000 for the year ended 31 December 20X4 and this accrued evenly throughout the year. Calculate the investment in associate that will be presented in LK's consolidated statement of financial position as at 31 December 20X4. Give your answer to the nearest whole $'000. $000 Answer: 1780, 1780000 http://www.exams4sure.com/CIMA/F2-practice-exam- dumps.html Buy Complete Questions Answers File from 100% Exam Passing Guarantee & Money Back Assurance  PDF Version + Test Engine Software Version  90 Days Free Updates Service  Valid for All Countries

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