Online Access Free F2 Exam Questions

Which of the following would cause a deferred tax balance to be included in the statement of financial position for an entity?

• A.Impairment of goodwill that arose on the acquisition of a subsidiary entity.
• B.The acquisition of land for which there is no tax depreciation.
• C.The acquisition of plant and equipment a year ago where the tax depreciation rate is different to the accounting depreciation rate.
• D.Expenses in the statement of profit or loss which are not allowable for tax creating a permanent difference.

KL sells luxury leather handbags and has 3 stores in exclusive shopping areas. Following years of static revenues and margins, in August 20X6 KL opened a fourth store at a busy airport terminal which is proving to be successful.
The revenue and gross profit of KL for the years ended 31 March 20X7 and 20X6 are as follows:

Which of the following would be a contributing factor to the movement in the gross profit margin of KL?

• A.The opportunity to sell handbags in the airport store at a premium price.
• B.KL locating a new supplier closer to the warehouse, reducing distribution costs.
• C.KL locating a new supplier prepared to supply handbags at a cheaper price.
• D.A worldwide shortage of leather resulting in increased prices from suppliers.

On 1 January 20X1 KL acquired 75% of the equity shares of PQ. Goodwill arising on the acquisition was
$480,000. On 31 December 20X3 KL sold the full investment of PQ to XY Group for $2,000,000. On this date the net assets of PQ were $1,340,000 and the non-controlling interests stood at $410,000.
What is the gain on disposal to be recognised in the consolidated statement of profit or loss of KL?

• A.$180,000
• B.$590,000
• C.$635,000
• D.$660,000

Operating segments are separately reportable where they exceed 15% of revenue / profits / assets.
These must in total cover 80% of total revenue. Is this statement true or false?

• A.False
• B.True

AB acquired an investment in a debt instrument on 1 January 20X5 at its nominal value of $25,000, which it intends to hold until maturity. The instrument carried a fixed coupon interest rate of 5%, payable in arrears. Transactions costs of $5,000 were paid in respect of this investment. The effective interest rate applicable to this instrument was estimated at 9%.
Calculate the value of this investment that AB will include in its statement of financial position at 31 December 20X5.
Give your answer to the nearest whole number.
$ ?