Effective encouragement

Our F2 study guide can energize exam candidate as long as you are determined to win. During your preparation period, all scientific and clear content can help you control all exam questions appearing in the real exam, and we never confirm to stereotype being used many years ago but try to be innovative at all aspects. Although the F2 real test is of great importance, you do not need to be over concerned about it. With scientific review and arrangement from professional experts as your backup, and the most accurate and high quality content, you will cope with it like a piece of cake. So our F2 practice materials will be your indispensable practice materials during your way to success.

It is a widespread disillusionment that the market fails to provide high quality practice materials for exam candidates. However, our F2 practice materials are different. It is incontrovertible high quality and high accuracy practice materials that have helped more than 98 percent of exam candidates who choose our F2 real test gets the certificate successfully. So we totally understand you inmost thoughts, and the desire to win the exam as well as look forward to bright future that come along. During your practice process accompanied by our F2 study guide, you will not only learn some salutary knowledge of the computer filed, but easily get the certificate you want. Then what made our F2 practice materials so amazing? Please have a look of their features as follows.

DOWNLOAD DEMO

Responsible company

At the moment when you decided to choose our F2 real test, we feel the responsibility to be with you during your journey to prepare for the exam. So we clearly understand our duty to offer help in this area. Not only do the F2 practice materials perfect but we have considerate company that is willing to offer help 24/7. Besides, our F2 study guide has reasonable prices that are accessible for every one of you. So it is incumbent upon us to support you. On the other side, we know the consumers are vulnerable for many exam candidates are susceptible to ads that boost about skills their practice with low quality which may confuse exam candidates like you, so we are trying hard to promote our high quality F2 study guide to more people.

Experts

Experience is subservient to knowledge and this is the truth applied to every area. Our experts have experience of the exam for over ten years. So our F2 practice materials are their masterpiece full of professional knowledge and sophistication to cope with the exam. They have sublime devotion to their career just like you, and make progress ceaselessly. By keeping close eyes on the current changes in this filed, they make new updates of F2 study guide constantly and when there is any new, we will keep you noticed to offer help more carefully.

CIMA Advanced Financial Reporting Sample Questions:

1. EF has redeemable 10% bonds which are currently trading at $94.00 for each $100 of nominal value. The bonds can be redeemed at par in five years' time. The corporate income tax rate is 22%.
The present value of the cash flows associated with $100 nominal value of these bonds at a discount rate of 7% is $9.28.
Calculate the post tax cost of debt.
Give your answer as a percentage to one decimal place.
%

2. 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.

A) Financial risk
B) Profitability
C) Profit distribution
D) Liquidity

3. DE acquired 10% of the equity shares of KL on 31 December 20X2.
A further 50% of the equity shares of KL were acquired by DE on 1 January 20X4.
Which THREE of the following would be part of the process for recording the second purchase of shares?

A) The 10% investment being revalued to fair value at 1 January 20X4.
B) The goodwill calculated at 31 December 20X2 being revalued at 1 January 20X4.
C) Net assets at 1 January 20X4 being compared to the purchase consideration and a transfer to equity made.
D) Assets, liabilities, income and expenses being fully consolidated from 1 January 20X4.
E) A 50% non controlling interest will be shown in the consolidated financial statements.
F) Goodwill being calculated at 1 January 20X4 for the first time.

4. XY has a weighted average cost of capital (WACC) of 10% based on its gearing level (measured as debt/debt+equity) of 40%. It is considering a signficant new project.
In which of the following situations would it be appropriate to appraise this project using XY's existing WACC of 10%?

A) The project is an extension of XY's current operations and is funded by equal amounts of debt and equity.
B) The project is in a different industry to XY's current operations and is funded by equal amounts of debt and equity.
C) The project is in a different industry to XY's current operations and funded entirely by equity.
D) The project is an extension of XY's current operations and is funded 40% by debt and 60% by equity.

5. KL issued $100,000 of 6% convertible debentures at par on 1 January 20X7. These debentures are redeemable at par or can be converted into 5 shares for each $100 of nominal value of debentures on
31 December 20X9.
The share price on 1 January 20X7 is $18 a share. The share price is expected to grow at a rate of 7% a year.
The expected redemption value for each $100 nominal value of debentures on the date of conversion is:

A) $100.00
B) $90.00
C) $103.04
D) $110.25

Solutions: