CIMA F2 Exam Dumps

Which of the following actions should XY's management take in order to reduce its investment in working capital?

Which of the following reduce the usefulness of ratio analysis when comparing entities that operate in the same industry?Select ALL that apply. 

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? 

LM acquired 15% of the equity share capital of ST on 1 January 20X6 for $18 million. LM acquired a further 50% of the equity share capital of ST for $50 million on 1 January 20X7 when the fair value of ST's net assets was $82 million. The original 15% investment in ST had a fair value of $20 million at 1 January 20X7. The non controlling interest in ST was measured at its fair value of $30 million at the date control in ST was acquired. Calculate the goodwill arising on the acquisition of ST that LM included in its consolidated financial statements at 31 December 20X7. Give your answer to the nearest $ million. $ ? million

How would KL account for its investment in MN in its consolidated financial statements for the year to 31 December 20X9?

GH owned 70% of the equity share capital of XY at 1 January 20X6. GH acquired a further 20% of XY's equity share capital on 31 December 20X6 for $430,000. Non controlling interest was measured at $600,000 immediately prior to the 20% acquisition.Which of the following amounts will GH debit to non controlling interest when the 20% acquisition is adjusted for in its consolidated financial statements at 31 December 20X6?

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?

Which of the following, in accordance with IFRS 2 Share-based Payments, are only applicable to the accounting treatment of cash settled rather than equity settled sharebased payment schemes? Select ALL that apply

AB and FG incorporated on 1 January 20X1 in the same country and had similar investment in net assets. Both entities are financed entirely by equity. In the year to 31 December 20X1 both entities generated the same volume of sales. Which of the following, taken individually, would explain why AB's return on capital employed ratio was lower than that of FG? 

JJ's current share price is $1.80, with a dividend of $0.20 a share just about to be paid. Dividends have increased at an average annual growth rate of 4.5% and this is expected to continue into the future. What is JJ's cost of equity?

When accounting for a finance lease under IAS 17 Leases, which TWO of the following are recognised in the statement of profit or loss?

LM acquired 80% of the equity shares of ST when ST's retained earnings were $50 million. The fair value of the net assets of ST included a contingent liability with a fair value of $100 million at the date of acquisition and a fair value of $40 million at 31 December 20X6. No other fair value adjustments were required at the date of acquisition. LM and ST had retained earnings of $200 million and $80 million respectively at 31 December 20X6. The consolidated retained earnings of LM at 31 December 20X6 were:

EF have just paid a dividend of 20 cents a share and the current share price is $3.75. EF regularly reinvests 40% of its profit for the year and generates a return on reinvested funds of 12%. The cost of equity for EF using the dividend valuation model is: 

Which TWO of the following are true in relation to IAS21 The Effects of Changes in Foreign Exchange Rates when consolidating an overseas subsidiary?

GH issued a 6% debenture for $1,000,000 on 1 January 20X4. A broker fee of $50,000 was payable in respect of this issue. The effective interest rate associated with this debt instrument is 7.2%. The carrying value of the debenture at 31 December 20X4 is: 

LM acquired 15% of the equity share capital of ST on 1 January 20X6 for $18 million. LM acquired a further 50% of the equity share capital of ST for $50 million on 1 January 20X7 when the fair value of ST's net assets was $82 million. The original 15% investment in ST had a fair value of $20 million at 1 January 20X7. The non controlling interest in ST was measured at its fair value of $30 million at the date control in ST was acquired. Calculate the goodwill arising on the acquisition of ST that LM included in its consolidated financial statements at 31 December 20X7. Give your answer to the nearest $ million. $ ? million

RS is a listed entity that has no subsidiaries although its Finance Director is also a director of TU, an unconnected entity. It is preparing its financial statements to 30 September 20X6. Which of the following substantial transactions must be disclosed in these financial statements in accordance with IAS 24 Related Party Disclosures?

ST acquired 80% of the equity shares of AB on 1 January 20X7. AB acquired 60% of the equity shares of UV on 1 January 20X8. Profit for the year ended 31 December 20X9 for AB is $160,000 and for UV is $100,000. Calculate the non-controlling interest figure to be included within ST's consolidated statement of profit or loss for the year ended 31 December 20X9.Give your answer to the nearest whole number in $000s. $ ?

Which TWO of the following are TRUE in respect of preparing a consolidated statement of cash flows where there has been an acquisition of a subsidiary part way through the year?

RS has issued an instrument with a nominal value of $1 million, at a discount of 2.5%, and a coupon rate of 6%. The terms of the issue are that the instrument must either be redeemed at par, at the option of the holder, in three years' time, or alternatively converted into equity shares in RS. The characteristics of this instrument taken as a whole indicates that it would beclassifiedas which of the following?

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?

LM is preparing its consolidated financial statements for the year ended 30 April 20X5. During the year LM acquired 30% of the equity shares of AB giving it significant influence over AB.LM conducted ratio analysis comparing the financial performance of the group for 30 April 20X4 and 20X5.Which of the following ratios would not be comparable as a result of the acquisition of AB?

Information from the financial statements of an entity for the year to 31 December 20X5: The gearing ratio calculated as debt/equity and interest cover are:

XY has in issue a 6% convertible bond which is redeemable at par or convertible into equity shares in one year's time. The conversion terms are 20 equity shares for each $100 of convertible bond. The conversion value in one year's time is expected to be $105 per $100 nominal of the bond based on the current share price of $5.25. Which of the following statements about the bond is correct?

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 figure for non-controlling interest to be shown in the consolidated statement of financial position of ST as at 31 December 20X5?