CIMA CIMAPRA19-F02-1 Exam Dumps

AB acquired a financial investment on 1 January 20X9, incurring $5,000 related agency fees. AB initially classified the investment as held for trading, in accordance with IAS 32 Financial Instruments: Presentation.

Which of the following statements reflects the accounting treatment that AB adopted in respect of this investment when it prepared its financial statements to 31 December 20X9?

A. Agency fees were recorded as an expense and the gain/loss on the remeasurement of the investment at the year end was recorded in profit or loss for the year.

B. Agency fees were recorded as an expense and the gain/loss on the remeasurement of the investment at the year end was recorded in other comprehensive income.

C. Agency fees were added to the cost of the investment and the gain/loss on the remeasurement of the investment at the year end was recorded in profit or loss for the year.

D. Agency fees were added to the cost of the investment and the gain/loss on the remeasurement of the investment at the year end was recorded in other comprehensive income.

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 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.

DE acquired 10% of the equity shares of KL on 31 December 20X2.

A further 50% of the equity shares of KL were acquired by DE on 1 January 20X4.

Which THREE of the following would be part of the process for recording the second purchase of shares?

A. The goodwill calculated at 31 December 20X2 being revalued at 1 January 20X4.

B. The 10% investment being revalued to fair value at 1 January 20X4.

C. Assets, liabilities, income and expenses being fully consolidated from 1 January 20X4.

D. Goodwill being calculated at 1 January 20X4 for the first time.

E. Net assets at 1 January 20X4 being compared to the purchase consideration and a transfer to equity made.

F. A 50% non controlling interest will be shown in the consolidated financial statements.