Free F2 Exam Braindumps (page: 33)

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CORRECT TEXT
AB acquired 10% of the equity share capital of XY for $180 million in 20X4. On 1 January 20X8 AB acquired a further 45% of the equity share capital of XY for $900 million and at that date the original investment had a fair value of $200 million.
Place the correct values in the boxes below in order to complete the consideration transferred element of the goodwill calculation on the acquisition of XY.

  1. Answer is pending

Answer(s): A



Which of the following options provides a representation of how the non controlling interest in FG is measured in CD's consolidated statement of financial position at 31 December 20X8?


  1. - FV of NCI at acquisition; plus
    - NCI's share of post acquisition reserves of FG; plus
    - NCI's share of accumulated exchange differences arising on goodwill of FG.

  2. - FV of NCI at acquisition; plus
    - NCI's share of post acquisition reserves of FG; plus
    - NCI's share of exchange difference arising on goodwill of FG for the year.

  3. - FV of NCI at reporting date; plus
    - NCI's share of post acquisition reserves of FG; plus
    - NCI's share of exchange difference arising on goodwill of FG for the year.

  4. - FV of NCI at reporting date; plus
    - NCI's share of group reserves; plus
    - NCI's share of accumulated exchange differences arising on goodwill of FG.

Answer(s): A



CORRECT TEXT
CD reported a balance of $3,000,000 for property, plant and equipment in its individual financial statements at 31 December 20X8.
Calculate the value of the property, plant and equipment that will be included in CD's consolidated statement of financial position.
Give your answer to the nearest $000.

  1. 4481, 4481000, 4481481

Answer(s): A



Which of the following statements is true in respect of ST's gross profit margin based on the information given?

  1. Gross profit margin has increased as a result of management negotiating a premium price for the contract with the new customer.
  2. Economies of scale have been achieved from increased revenues resulting in a reduction in the gross profit margin.
  3. The associate's gross profit margin is greater than ST's leading to an overall increase in ST's margin.
  4. Gross profit margin has reduced due to the increased cost of the new contract.

Answer(s): A



Page 33 of 68



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