CIMA F2 - F2 Advanced Financial Reporting
Which TWO of the following are relevant ethical considerations when selecting an accounting policy?
Information from the financial statements of RST for the year ended 30 April 20X9 is as follows:
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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?
JK is seeking to raise new finance through a rights issue of equity shares.Â
Which THREE of the following statements are correct?
LM acquired 80% of the equity shares of ST when ST's retained earnings were $50 million. Â 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 $80 million respectively at 31 December 20X6.Â
The consolidated retained earnings of LM at 31 December 20X6 were:
Which of the following reduce the usefulness of ratio analysis when comparing entities that operate in the same industry? Select ALL that apply.
Which of the following is a related party according to the definition of a related party in IAS24 Related Party Disclosures?
When consolidating for group accounts, a number of calculations and adjustments are required to properly combine the entities into a single group. Which of the following processes are involved in this consolidation
method?
Select ALL that apply:
A group presents its financial statements in A$.
The goodwill of its only foreign subsidiary was measured at B$100,000 at acquisition. There have been no impairments to this goodwill.
Exchange rates (where A$/B$ is the number of B$'s to each A$) are as follows:
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The value of goodwill to be included in the group's statement of financial position in respect of its foreign subsidiary for the year ended 31 December 20X4 is:
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?
Which of the following would limit the effectiveness of analysis performed on the operating profit margins of two separate entities with the same total revenue over a12 month period?