CIMAPRA19-F02-1 Exam Dumps

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 financialinstrument?

Show Answer Hide Answer

FG acquired 75% of the equity share capital of HI on 1 September 20X3.

On the date of acquisition, the fair valueof thenet assets wasthe same as thecarrying amount, with the exception of a contingent liability disclosed by HI and relating to a pending legal case. At 1 September 20X3, the contingent liability wasindependentlyvalued at $1.2 million.

At the current year end, 31 March 20X5, the legal case is still outstanding. The fair value ofthe liabilityhas now been estimated at $1.4 million, and the case is expected to be resolved in the forthcoming financial year.

How should this contingent liability be recorded in the consolidated financial statements for the year ended 31 March 20X5?

Show Answer Hide Answer

KL acquired 2 million $1 equity shares in MN on 18 July 20X0 for $1.65 a share and classified this investment as available for sale (AFS) in accordance with IAS 39 Financial instruments: Recognition andMeasurement.

KL paid a 0.5% transaction fee to its broker on this transaction. MN's shares were trading at $1.78 on 31 December 20X0.

Which of the following journals records the subsequent measurement of this investment at 31 December 20X0?

Show Answer Hide Answer

Which TWO of the following would be the primary disadvantages of producing the disclosures required in IFRS12 Disclosure of Interests in Other Entities?

Show Answer Hide Answer

XY has a weighted average cost of capital (WACC) of 12%.Thedebt:equity ratiois 1:3 and this is considered low for the industry. XY needs to raise finance to purchase newmachinery in the coming year.

Which of the following forms of finance is most likely to increase the WACC?

Show Answer Hide Answer