Free CIMA F2 Exam Dumps Questions & Answers

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?

• A.  $120,000
• B.  $400,000
• C.  $200,000
• D.  $430,000

XY purchased $100,000 of quoted 8% bonds in the current year which it intends to hold until redemption.
Which of the following identifies the correct classification and subsequent measurement basis for this financial instrument?

• A.  A held to maturity financial asset subsequently measured at fair value with gains and losses in reserves.
• B.  A loans and receivables financial asset subsequently measured at fair value with gains and losses in reserves.
• C.  A held to maturity financial asset subsequently measured at amortised cost.
• D.  A loans and receivables financial asset subsequently measured at amortised cost.

In the year ended 31 December 20X7, FG leased a piece of machinery. The accountant of FG had prepared the financial statements for the year to 31 December 20X7 on the basis of the lease being an operating lease.
However, following the end of year audit it has been agreed that the machinery is in fact held under a finance lease and therefore the financial statements need to be corrected.
The correction will have which THREE of the following affects on the financial statements?

• A.  Current liabilities will increase.
• B.  Non-current assets will increase.
• C.  Depreciation costs will decrease.
• D.  Finance costs will increase.
• E.  Non-current assets will decrease.
• F.  Non-current liabilities will decrease.

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 Other comprehensive income
• B.  Dr Other comprehensive incomeCr Deferred tax provision
• C.  Dr Deferred tax provisionCr Tax expense
• D.  Dr Tax expenseCr Deferred tax provision

The following information is extracted from the financial statements of RS for the year ended 30 June 20X7:

RS has no other liability balances and has no associate investments.
Calculate return on capital employed for RS at 30 June 20X7.
Give your answer to the nearest whole %.
? %