CIMAPRA19-F02-1 F2 Advanced Financial Reporting Exam Practice Test

Which of the following are limitations of financial statement figures for ratio analysis? Select the ALL that apply.

The IAS definitions of financial instruments dictate their classification between debt and equity. Which of of the following factors might this classification impact?

Select ALL that apply.

The tax benefit on a company's asset is 180,000 and the useful life on that asset is five years. The company creates a deferred tax provision to spread this benefit over the asset's useful life.

What entry is needed to reduce this deferred tax provision in the company's year two accounts?

When establishing a group structure, which of the following factors need to be considered: Select ALL that apply.

Information from the financial statements of an entity for the year to 31 December 20X5:

The gearing ratio calculated as debt/equity and interest cover are:

Whichof the following taken independently would explain the reduction in the profits as highlighted by the Chairman's press release?

Mr D, a CIMA qualified accountant, is working on the preparation of a long term profit forecast required by the local stock marketprior to a new share issue of equity shares. At the most recent board meeting the directors requested that the forecast be inflated. In Mr D's view this wouldgrossly overestimate the forecast profit. Theboard intends to publish the revised inflated forecast.

Which THREE of the following are the ethical options available to Mr D in this situation?