CIMA Advanced Financial Reporting : F2

F2 pass collection

Exam Code: F2

Exam Name: Advanced Financial Reporting

Updated: Oct 23, 2026

Q & A: 212 Questions and Answers

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About CIMA Advanced Financial Reporting : F2 Exam

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CIMA F2 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Integrated reporting and sustainability reporting10%
Topic 2: Group accounts25%
Topic 3: Financing capital projects15%
Topic 4: Financial reporting standards25%
Topic 5: Analysing financial statements25%

CIMA Advanced Financial Reporting Sample Questions:

Question #1

Ratios calculated from the financial statements of ST Group for the years ended 31 August 20X7 and
20X6 are as follows:

Which of the following would have contributed to the movements in these ratios?

  • A. During 20X7 ST Group increased the useful life of its vehicles to five years from four and adjusted the depreciation charge accordingly.
  • B. The fair value of an investment acquired in 20X7 and classified as fair value through profit or loss has increased in value by the year end.
  • C. During 20X7 ST Group acquired an associate which made a relatively small profit for the year.
  • D. ST Group extended its customer base which resulted in an increase in the volume of sales during
    20X7.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #2

AB acquired 90% of the equity of YZ on 31 December 20X2. On the same date YZ acquired 60% of the equity shares of VW for $750,000. AB has no other subsidiaries.
The following information regarding YZ and VW was available:

What amount will AB include in its consolidated statement of financial position in respect of non controlling interest at 31 May 20X6?

  • A. $741,400
  • B. $811,000
  • C. $816,400
  • D. $840,600
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #3


Calculate the exchange difference arising on the retranslation of goodwill on the acquisition in the consolidated statement of financial position of CD at 31 December 20X7.
Give your answer to the nearest $000.
$ ? 000

Reveal Solution  Discussion  0

Correct Answer:

14, 14000,
13636, 13637

Question #4

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?

  • A. * 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.
  • B. * 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.
  • C. * 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.
  • D. * 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.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #5

PQ is a retail business. In recent years they have improved their financial performance and increased their revenue. The following ratios have been calculated for the years ended 31 December 20X4 and
20X3:

Which of the following explanations of PQ's financial performance is consistent with these ratios?

  • A. In 20X4 PQ sold a retail outlet resulting in a significant gain on disposal which has been deducted from administrative expenses.
  • B. In 20X4 taxation legislation was amended which reduced the rate of corporate income tax by 3.5%.
  • C. In 20X4 PQ reduced the unit selling price resulting in an increase in volumes sold and an increase in overall revenue.
  • D. PQ changed suppliers early in 20X4 because the new supplier agreed to supply the same goods at a cheaper price.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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