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CIMA Exam CIMAPRA19-F02-1 Topic 4 Question 107 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 107
Topic #: 4
[All CIMAPRA19-F02-1 Questions]

Which of the following statements are INCORRECT with regards to impairment of financial instruments; Select ALL that apply.

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Suggested Answer: A, B

by Latricia at Feb 09, 2025, 10:54 AM

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Margarett
10 days ago
E is the correct answer. I'm going to need a calculator the size of a small country to figure out those present value calculations.
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Gwen
11 days ago
D is correct. Impairment losses can be recorded directly against the asset or through an allowance account. Either way, the accountant's job is to make the numbers look as ugly as possible.
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Maia
17 days ago
C is correct. A breach of contract can be an indication of impairment. Looks like someone's been slacking off on their loan payments!
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Cristy
5 days ago
C) If a contract relating to a financial instrument is breached then this might be an indication of impairment.
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Cammy
10 days ago
A) Held to maturity instruments and available for sale assets are both measured at amortised cost and are therefore impacted by impairment.
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Cheryl
23 days ago
B is incorrect. If a loss is suspected, the asset should be written down to its recoverable amount, not its fair value.
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Izetta
5 days ago
A is incorrect. Held to maturity instruments are not measured at amortised cost, they are measured at cost less impairment.
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Izetta
7 days ago
B is incorrect. The asset should be written down to its recoverable amount, not its fair value.
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Lynelle
26 days ago
I believe statement C is incorrect because a breached contract is not necessarily an indication of impairment.
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Paulina
1 months ago
A and E are correct. If a financial instrument is held to maturity, it should be measured at amortized cost and impacted by impairment. The impairment loss is the difference between the carrying amount and the present value of future cash flows.
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Cassie
24 days ago
C) If a contract relating to a financial instrument is breached then this might be an indication of impairment.
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Rikki
1 months ago
B) If a loss is suspected following an impairment review, a financial asset is written down to its fair value.
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Marguerita
1 months ago
I disagree with you, Penney. Statement A is actually correct because both held to maturity instruments and available for sale assets are measured at amortised cost.
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Penney
2 months ago
I think statement A is incorrect because held to maturity instruments are not impacted by impairment.
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