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CIMA F1 Exam Syllabus Topics:

SectionObjectives
Topic 1: Financial Statement Analysis- Performance analysis
  • 1. Trend analysis
    • 2. Ratio analysis
      - Interpretation of financial information
      • 1. Limitations of financial statements
        • 2. Assessment of profitability and liquidity
          Topic 2: Financial Reporting Fundamentals- Regulatory Framework
          • 1. International Financial Reporting Standards (IFRS) principles
            • 2. Conceptual framework for financial reporting
              - Financial Statements Preparation
              • 1. Statement of profit or loss and other comprehensive income
                • 2. Statement of cash flows basics
                  • 3. Statement of financial position
                    Topic 3: Accounting Standards Application- Basic application of IFRS standards
                    • 1. Revenue recognition principles
                      • 2. Inventory valuation methods

                        CIMA Financial Reporting Sample Questions:

                        1. The United Kingdom (UK) uses a principle based approach to corporate governance which means:


                        2. WX is considering an investment in ST.
                        At 31 December 20X2 ST had the following balances in its statement of financial position:

                        Which of the following would cause ST to become an associate investment of WX?

                        A) WX purchases 15,000 of ST's $1 equity shares and 20,000 of ST's $1 preference shares.
                        B) WX purchases 75,000 of ST's $1 equity shares.
                        C) WX purchases 50,000 of ST's $1 preference shares.
                        D) WX purchases 25,000 of ST's $1 equity shares.


                        3. There are two main approaches to corporate governance: rules-based and principle-based.
                        Which THREE of the following are correct?

                        A) Sarbanes Oxley Act (SOX) is a principle-based approach to corporate governance.
                        B) Rules-based corporate governance applies to the USA and principle-based corporate governance applies to the UK.
                        C) Best practice will use a rules-based approach to corporate governance and will have appropriate penalties for transgression.
                        D) Sarbanes Oxley Act (SOX) is a rules-based approach to corporate governance.
                        E) Rules-based corporate governance applies to the UK and principle-based corporate governance applies to the USA.
                        F) A principle-based approach will mean the entity must comply or explain and a rules-based approach will have appropriate penalties for transgression.


                        4. Which THREE of the following are principles identified by the Code of Ethics?

                        A) Professional competence and expertise
                        B) Neutral
                        C) Understandability
                        D) Professional behavior
                        E) Professional competence and due care
                        F) Confidentiality


                        5. Which TWO of the following are implications of employee income tax being paid to the tax authority through a Pay-As-You-Earn scheme?

                        A) The tax authority deals directly with the employees rather than the employers.
                        B) The tax is paid after the employee completes a tax return.
                        C) The risk of employees defaulting on the payment of tax due is reduced
                        D) Most of the administrative costs of collecting the tax are borne by the tax authority
                        E) The government can budget its cash flows more easily.


                        Solutions:

                        Question # 1
                        Answer: Only visible for members
                        Question # 2
                        Answer: D
                        Question # 3
                        Answer: B,D,F
                        Question # 4
                        Answer: D,E,F
                        Question # 5
                        Answer: C,E

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