CIMA F1 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Financial Statement Analysis | - Interpretation of financial information
|
| Topic 2: Accounting Standards Application | - Basic application of IFRS standards
|
| Topic 3: Financial Reporting Fundamentals | - Regulatory Framework
|
CIMA Financial Reporting Sample Questions:
Question #1
The International Accounting Standards Board's "The Conceptual Framework for Financial Reporting" identifies fundamental and enhancing qualitative characteristics of financial statements.
Which of the following is included within the fundamental characteristics?
A. Comparability
B. Materiality
C. Verifiability
D. Understandability
Question #2
Which of the following is a condition that has to be met for an entity to be exempt the requirement to prepare consolidated financial statements?
A. The parent entity's debt or equity instruments are not traded in a public market.
B. The parent entity's equity instruments are only traded in one country.
C. The parent's equity has a nominal value of less than $1 million.
D. The parent's net asset value is less than $1 million.
Question #3
BCD owns an item of plant which cost $20,000 and at the time of purchase was assessed to have a useful economic life of 8 years and a residual value of $2,000.
The carrying amount of the plant at 1 January 20X8 is $11,000. On that date BCD's directors estimate that the plant's remaining useful life is now 6 years.
The residual value remains unchanged at $2,000.
What is the depreciation charge for this plant for the year ended 31 December 20X8?
Give your answer to the nearest $.
Question #4
Entity RH has an recognised a taxable profit of $1.Smillion for 20X1'. In Entity RH's resident country.
Country M, depreciation charges and entertaining expenses are disallowed expenses. Below is some information on Entitry RH's outgoings for the period:
Depreciation charged on PPE: $450,000
Political donations: $155,000
Staff parties: $3,200
Cost of updating assets: $10,000
Other expenses: $83,500
In Country M, there is a standard corporation tax of 12% charged on all corporation profits. What is Entity RH's total tax liability for this period?
A. $125,616
B. $252,984
C. $234,384
D. $254,184
Question #5
The statement of profit or loss for PQ, ST and AB for the year ended 31 December 20X0 are shown below:
1. PQ acquired 80% of its subsidiary, ST, on 1 January 20X0 and 40% of its associate, AB, on 1 September
20X0.
2. Since acquistion PQ has sold goods to ST and AB for $20,000 and $30,000 respectively. At the year end both ST and AB have 50% of these goods remaining in inventory. PQ uses a mark-up of 20% on all of its sales.
3. Since acquisition the goodwill in respect of ST has been impaired by $8,000 and the investment in AB has been impaired by $2,000.
4. PQ uses the fair value method for non-controlling interest at acquisition.
What is the value of the unrealized profit in inventory adjustment required to inventory in PQ's consolidated statement of financial position at 31 December 20X0?
A. $3,333
B. $2,000
C. $4,000
D. $1,667
Solutions:
| Question #1 Correct Answer: B | Question #2 Correct Answer: A | Question #3 Correct Answer: Only visible for members | Question #4 Correct Answer: C | Question #5 Correct Answer: D |
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