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CIMA F2 Exam With Confidence Using Practice Dumps

Exam Code:
F2
Exam Name:
Advanced Financial Reporting
Certification:
Vendor:
Questions:
248
Last Updated:
Dec 25, 2024
Exam Status:
Stable
CIMA F2

F2: CIMA Management Exam 2024 Study Guide Pdf and Test Engine

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Advanced Financial Reporting Questions and Answers

Question 1

LM are just about to pay a dividend of 20 cents a share. Historically, dividends have grown at a rate of 5% each year.

The current share price is $3.05.

The cost of equity using the dividend valuation model is:

Options:

A.

12.4%

B.

11.9%

C.

7.4%

D.

6.9%

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Question 2

KL acquired 75% of the equity share capital of MN on 1 January 20X8. The group's policy is to value non-controlling interest at fair value at the date of acquisition. MN acquired 60% of the equity share capital of PQ on 1 January 20X9 for $360 million.

At 1 January 20X9 the fair value of the non-controlling interest in PQ was $220 million and the fair value of the net assets of PQ at 1 January 20X9 were $320 million.

Calculate the goodwill arising on the acquisition of PQ at 1 January 20X9.

Give your answer to the nearest million.

$  ?   million

Options:

Question 3

MNO has calculated its return on capital employed ratio for 20X4 and 20X5 as 41% and 56% respectively.

Taking each statement in isolation, which would explain the movement in the ratio between the 2 years?

Options:

A.

In 20X5 the average interest rate on borrowing decreased compared to 20X4.

B.

In 20X4 an onerous contract was provided for and this provision did not change in 20X5.

C.

In 20X5 the increase in value of MNO's head office was reflected in the financial statements.

D.

In 20X4 an unused building was sold at a price in excess of its carrying value.