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CIMA F1 Exam Syllabus Topics:

SectionObjectives
Accounting Standards Application- Basic application of IFRS standards
  • 1. Revenue recognition principles
    • 2. Inventory valuation methods
      Financial Statement Analysis- Interpretation of financial information
      • 1. Limitations of financial statements
        • 2. Assessment of profitability and liquidity
          - Performance analysis
          • 1. Trend analysis
            • 2. Ratio analysis
              Financial Reporting Fundamentals- Financial Statements Preparation
              • 1. Statement of profit or loss and other comprehensive income
                • 2. Statement of cash flows basics
                  • 3. Statement of financial position
                    - Regulatory Framework
                    • 1. International Financial Reporting Standards (IFRS) principles
                      • 2. Conceptual framework for financial reporting

                        CIMA Financial Reporting Sample Questions:

                        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 $.

                        Answer:

                        $1,688

                        Country Q has the following rules in respect of capital tax on the disposal of assets:
                        *Capital gains are subject to tax at 25%.
                        *Capital losses can only be carried forward and offset against future capital gains.
                        The following data relates to ABC:

                        How much capital tax will be payable on the capital gain recorded in 20X3?
                        Give your answer to the nearest $.

                        Answer:

                        $62500

                        While conducting their audit, auditor 0 did not encounter issues which significantly limited the scope of their audit, however they did run into problems in that they disagreed with the management on facts in the statements.
                        These disagreements were somewhat material, but they did not affect the auditor's overall opinion of the business. Which of the following statements should auditor 0 issue?

                        • A. 'Except for' qualification
                        • B. Disclaimer of opinion
                        • C. Emphasis of matter
                        • D. Unqualified report
                        • E. Adverse audit opinion
                        Answer: C

                        An entity has a number of subsidiary and associate investments.
                        Which of the following must be disclosed in the entity's separate financial statements if it is exempt from presenting consolidated financial statements?

                        • A. A list of all its significant investments in subsidiaries and associates which includes the date of acquisition and the price paid.
                        • B. A list of its top ten shareholdings including number of shares held and their market value.
                        • C. The bases on which significant investments in subsidiaries and associates have been accounted for in those separate financial statements.
                        • D. A copy of the summarised financial statements of each of its subsidiaries.
                        Answer: C

                        Company Y is using some of the money from a share issue to purchase a new office building. The company is also using some of the money to purchase inventories. Which method of financing is this?

                        • A. Matching financing
                        • B. Conservative financing
                        • C. Aggressive financing
                        Answer: B

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