CIMA F2 : Advanced Financial Reporting

  • Exam Code: F2
  • Exam Name: Advanced Financial Reporting
  • Updated: Sep 10, 2026
  • Q & A: 212 Questions and Answers

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CIMA F2 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Analysing Financial Statements15%- Ratio analysis and interpretation
- Limitations of financial analysis
- Impact of accounting policies
Topic 2: Group Accounts35%- Goodwill and non-controlling interest
- Consolidated financial statements
- Foreign currency consolidation
- Associates and joint ventures
Topic 3: Integrated Reporting10%- Sustainability and non-financial disclosures
- Integrated reporting framework
Topic 4: Financial Reporting Standards25%- IFRS framework and application
- Leases (IFRS 16)
- Financial instruments (IFRS 9)
- Revenue recognition (IFRS 15)
Topic 5: Financing Capital Projects15%- Capital structure theories
- Cost of capital calculations
- Sources of long-term finance

CIMA Advanced Financial Reporting Sample Questions:

Question #1

LM acquired 80% of the equity shares of ST when ST's retained earnings were $50 million. The fair value of the net assets of ST included a contingent liability with a fair value of $100 million at the date of acquisition and a fair value of $40 million at 31 December 20X6. No other fair value adjustments were required at the date of acquisition.
LM and ST had retained earnings of $200 million and $80 million respectively at 31 December 20X6.
The consolidated retained earnings of LM at 31 December 20X6 were:

  • A. $272 million
  • B. $176 million
  • C. $164 million
  • D. $284 million
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #2

XYZ had 600,000 ordinary shares in issue on 1 July 20X4. On 1 January 20X5, the entity made a 1 for 2 bonus issue. The profit attributable to ordinary shareholders for the year ended 30 June 20X5 was
$2,925,000.
What is the basic earnings per share for the year ended 30 June 20X5?

  • A. $1.63
  • B. $3.90
  • C. $4.88
  • D. $3.25
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #3

Which of the following principles are the basic principles followed by the consolidated income statement?
Select ALL that apply.

  • A. Include investment income from subsidiary to parent (e.g. dividend payments or loan interest)
  • B. Ignore investment income from subsidiary to parent (e.g. dividend payments or loan interest)
  • C. Include all of the parent's income and expenses minus all of the subsidiaries' income and expenses
  • D. Include all of the parent's income and expenses plus all of the subsidiaries' income and expenses
  • E. After profit for the period, show the profit split between amounts attributable to the parent's shareholders and other shareholders
Reveal Solution  Discussion  0

Correct Answer: B,D,E  🗳️

Question #4

Operating segments are separately reportable where they exceed 15% of revenue / profits / assets.
These must in total cover 80% of total revenue. Is this statement true or false?

  • A. True
  • B. False
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #5

On 1 January 20X4 JK had 1,500,000 ordinary shares in issue. On 1 September 20X4 JK issued 600,000 ordinary shares at the market value of $2.50 a share. For the financial year ended 31 December 20X4 the statement of profit or loss shows profit before tax of $625,000 and profit after tax of $500,000.
What is the earnings per share for the year ended 31 December 20X4?

  • A. 29.4 cents
  • B. 26.3 cents
  • C. 23.8 cents
  • D. 36.8 cents
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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