CIMA Exam CIMAPRA19-F02-1 Topic 2 Question 98 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 98
Topic #: 2

A group presents its financial statements in A$.

The goodwill of its only foreign subsidiary was measured at B$100,000 at acquisition. There have been no impairments to this goodwill.

Exchange rates (where A$/B$ is the number of B$'s to each A$) are as follows:

The value of goodwill to be included in the group's statement of financial position in respect of its foreign subsidiary for the year ended 31 December 20X4 is:

AA$75,758.

BA$66,667.

CA$150,000.

DA$132,000.

Show Suggested Answer

Suggested Answer: A

by Larae at Sep 16, 2024, 09:14 PM

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Louvenia

5 months ago

I bet the group's CFO is just sitting back, counting their A$s and laughing at us mere mortals trying to figure this out.

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Clay

6 months ago

A$75,758? Really? That's what I would've guessed, but I was hoping for something a bit juicier, you know?

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Paul

5 months ago

I agree, it's not the most exciting number but it's the right one.

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Lauran

5 months ago

Yeah, it does make sense based on the information given.

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Dahlia

5 months ago

A$75,758 seems like the correct answer.

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Royal

6 months ago

Hmm, I think I'll go with D. A$132,000 - it just sounds right, you know?

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Mirta

6 months ago

I see your point, but I still think A) A$75,758 is the right answer because of the exchange rates provided.

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Holley

6 months ago

I'm not sure about this one, the exchange rates are a bit confusing.

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Malcom

5 months ago

D: Agreed, that seems to be the right calculation based on the information given.

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Maryln

6 months ago

C: So, the correct answer should be A) A$75,758.

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Penney

6 months ago

B: Yeah, let's use the exchange rates provided to do the conversion.

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Maia

6 months ago

A: I think we need to convert the B$100,000 to A$ first.

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Raymon

6 months ago

I disagree, I believe the correct answer is D) A$132,000.

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Mirta

6 months ago

I think the answer is A) A$75,758.

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Salley

6 months ago

This is a straightforward question, the answer is clearly A$75,758.

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Rikki

6 months ago

Yes, I agree. The goodwill to be included in the statement of financial position is A$75,758.

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Luis

6 months ago

I think the answer is A$75,758.

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