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CIMA Exam CIMAPRA19-F01-1 Topic 3 Question 94 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 94
Topic #: 3
[All CIMAPRA19-F01-1 Questions]

The statement of profit or loss for PQ, ST and AB for the year ended 31 December 20X0 are shown below:

1. PQ acquired 80% of its subsidiary, ST, on 1 January 20X0 and 40% of its associate, AB, on 1 September 20X0.

2. Since acquistion PQ has sold goods to ST and AB for $20,000 and $30,000 respectively. At the year end both ST and AB have 50% of these goods remaining in inventory. PQ uses a mark-up of 20% on all of its sales.

3. Since acquisition the goodwill in respect of ST has been impaired by $8,000 and the investment in AB has been impaired by $2,000.

4. PQ uses the fair value method for non-controlling interest at acquisition.

What is the revenue figure to be included in PQ's consolidated statement of profit or loss for the year ended 31 December 20X0?

Show Suggested Answer Hide Answer
Suggested Answer: C

by Alex at Aug 07, 2024, 03:36 AM

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Carmelina
7 months ago
Ah, the joys of consolidation. I feel like I'm doing a Sudoku puzzle here!
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Wenona
7 months ago
I'm pretty sure the answer is C. $480,000 just seems more logical to me.
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Gladys
6 months ago
I agree with you, I also believe the answer is B.
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Makeda
6 months ago
I think the answer is B. $440,000 makes more sense to me.
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Aimee
7 months ago
I think the correct answer is $450,000. The mark-up on sales should be added to the revenue figure.
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Evelynn
7 months ago
I'm not sure, I think it might be $440,000. The mark-up on sales needs to be considered.
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Jose
7 months ago
Wait, what? This question is giving me a headache. Can we get a calculator and some coffee over here?
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Patria
6 months ago
I agree, let's start by calculating the sales to ST and AB and applying the mark-up. Then we can work on the consolidated revenue figure.
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Lizbeth
6 months ago
Don't worry, let's break it down. First, we need to calculate the revenue figure for PQ's consolidated statement.
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Jesusa
7 months ago
Ooh, I bet it's D. $476,000 sounds about right after all the adjustments.
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Willow
6 months ago
User 2
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Lettie
7 months ago
User 1
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Jolene
8 months ago
I agree with you, Thurman. The sales to ST and AB should be included in the revenue figure.
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Thurman
8 months ago
I think the revenue figure should be $450,000.
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Danica
8 months ago
Hmm, this is tricky. We need to figure out the revenue figure after considering the intercompany transactions and impairments.
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Chauncey
7 months ago
So, the correct answer is B) $440,000.
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Cecil
7 months ago
The revenue figure to be included in PQ's consolidated statement of profit or loss for the year ended 31 December 20X0 is $440,000 (Option B).
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Denny
7 months ago
We need to calculate the revenue figure after considering the intercompany transactions and impairments.
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