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CIMA F2 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Analysing Financial Statements15%- Impact of accounting policies
- Ratio analysis and interpretation
- Limitations of financial analysis
Topic 2: Financing Capital Projects15%- Capital structure theories
- Cost of capital calculations
- Sources of long-term finance
Topic 3: Group Accounts35%- Foreign currency consolidation
- Goodwill and non-controlling interest
- Consolidated financial statements
- Associates and joint ventures
Topic 4: Integrated Reporting10%- Integrated reporting framework
- Sustainability and non-financial disclosures
Topic 5: Financial Reporting Standards25%- Leases (IFRS 16)
- Financial instruments (IFRS 9)
- IFRS framework and application
- Revenue recognition (IFRS 15)

CIMA Advanced Financial Reporting Sample Questions:

Question #1

An accountant acting under their Code of Ethics would do which THREE of the following?

  • A. Report material conflicts of interest to a more senior level.
  • B. Resist pressure from the directors to recognise revenue on sales where the risks and rewards have not transferred to the customer.
  • C. Reject a justified change to a depreciation policy that increases profitability.
  • D. Accept a director's instruction to remove one element of their remuneration from the directors' remuneration report.
  • E. Make a provision for a liability of uncertain timing or amount, requested by the directors, where there is NOT a present obligation.
  • F. Accept a recommendation from the audit committee to increase segregation of duties within the finance department.
Reveal Solution  Discussion  0

Correct Answer: A,B,F  🗳️

Question #2

AB's financial information shows that the non current assets' carrying value is greater than the tax base at the year end.
What is the journal entry to record the movement in the provision for deferred tax resulting from this difference?

  • A. Dr Deferred tax provisionCr Tax expense
  • B. Dr Tax expenseCr Deferred tax provision
  • C. Dr Other comprehensive incomeCr Deferred tax provision
  • D. Dr Deferred tax provisionCr Other comprehensive income
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #3

AB, a listed entity, prepared its financial statements to 31 December 20X7, in accordance with international accounting standards.
Which THREE of the following were disclosed as related parties of AB in its financial statements?

  • A. AB's main supplier, GH, who supplies more than 70% of AB's goods for manufacture.
  • B. The wife of the Managing Director of AB, to whom AB sold a motor vehicle in the year to 31 December 20X7.
  • C. AB's bank that provides more than 60% of the entity's loan finance.
  • D. AB's defined benefit pension plan.
  • E. ST, an entity that was jointly established by AB and CD, and that is accounted for as a joint venture in AB's financial statements to 31 December 20X7.
Reveal Solution  Discussion  0

Correct Answer: B,D,E  🗳️

Question #4

Which of the following statements about ST is true?

  • A. The increase in administrative expenses is in line with the increase in revenues.
  • B. The ratio of distribution costs to revenue has increased significantly.
  • C. The return on the investment in associate on an annual basis is 14%.
  • D. The effective tax rate incurred by ST has remained largely the same.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #5

Information from the financial statements of RST for the year ended 30 April 20X9 is as follows:

At 30 April 20X9 the ordinary shares are trading at $4.75.
What is the price earnings (P/E) ratio for RST at 30 April 20X9?

  • A. 7.92
  • B. 10.56
  • C. 9.31
  • D. 15.83
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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