Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions

CIMA Exam CIMAPRA19-F01-1 Topic 5 Question 106 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 106
Topic #: 5
[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.

Calculate the amount that will be shown as the share of profit of associate in PQ's consolidated statement of profit or loss for the year ended 31 December 20X0.

Show Suggested Answer Hide Answer
Suggested Answer: B

Contribute your Thoughts:

Cassandra
23 days ago
Haha, I bet the correct answer is 'D - $3,200' just because that seems like the most random and obscure option.
upvoted 0 times
...
Ashleigh
24 days ago
Hmm, the impairment of goodwill and investment in associate is throwing me off a bit. I'll need to double-check my calculations.
upvoted 0 times
Maryanne
4 days ago
User 2
upvoted 0 times
...
Doyle
17 days ago
User 1
upvoted 0 times
...
...
Marta
1 months ago
That makes sense, considering the information given.
upvoted 0 times
...
Alecia
1 months ago
Ugh, these consolidated financial statement questions are the worst. I bet the answer is B, just because it's the most straightforward.
upvoted 0 times
Mary
19 days ago
I think the answer is C, not B.
upvoted 0 times
...
Sharee
23 days ago
Yeah, I agree. Let's go with B.
upvoted 0 times
...
Shelba
1 months ago
I think it's B too, it does seem like the most straightforward option.
upvoted 0 times
...
...
Desmond
1 months ago
I think the answer might be C) $4,000.
upvoted 0 times
...
Audra
2 months ago
I agree, it involves calculations.
upvoted 0 times
...
Marta
2 months ago
This question looks tricky.
upvoted 0 times
...
Corrinne
2 months ago
This question is really testing our understanding of consolidation and intercompany transactions. I'm gonna have to think this through carefully.
upvoted 0 times
Kimberlie
1 months ago
User 2
upvoted 0 times
...
Shenika
1 months ago
User 1
upvoted 0 times
...
...

Save Cancel