CIMA Exam CIMAPRA19-F02-1 Topic 4 Question 108 Discussion

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

Question #: 108
Topic #: 4

KL acquired 2 million $1 equity shares in MN on 18 July 20X0 for $1.65 a share and classified this investment as available for sale (AFS) in accordance with IAS 39 Financial instruments: Recognition andMeasurement.

KL paid a 0.5% transaction fee to its broker on this transaction. MN's shares were trading at $1.78 on 31 December 20X0.

Which of the following journals records the subsequent measurement of this investment at 31 December 20X0?

AOption

BOption

COption

Show Suggested Answer

Suggested Answer: A

by Sage at Mar 07, 2025, 11:09 PM

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Wava

1 days ago

I'm not sure, but I think option B could also be a possible journal entry.

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Malissa

2 days ago

This question is testing our understanding of how to account for available-for-sale (AFS) investments under IAS 39. The key is to recognize that the investment should be measured at fair value, with the change in fair value recorded in other comprehensive income.

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Cyril

3 days ago

I agree with Roslyn, option C seems to be the correct journal entry.

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Roslyn

5 days ago

I think the answer is option C.

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