Online Access Free F2 Exam Questions

When consolidating for group accounts, a number of calculations and adjustments are required to properly combine the entities into a single group. Which of the following processes are involved in this consolidation method?
Select ALL that apply:

• A.Add together the assets and liabilities of parent and subsidiary
• B.Adjustment for depreciation and amortisation
• C.Adjust for investment in subsidiaries
• D.Adjustment for profits
• E.Adjustment for equity

Information from the financial statements of RST for the year ended 30 April 20X9 is as follows:

At 30 April 20X9 the ordinary shares are trading at $4.75.
What is the price earnings (P/E) ratio for RST at 30 April 20X9?

• A.10.56
• B.7.92
• C.15.83
• D.9.31

MS Group's total profit for period on their consolidated income statement is £31,000. This includes adjusting for their share of joint venture JV2. Calculate the share of joint venture MS Group received based on the following information.
MS operating profit £41,000
Dividend from JV2 £5,000
Finance cost £3,000
Tax £11,000

• A.£6,000
• B.£7,000
• C.£9,000
• D.£5,000
• E.£4,000
• F.£1,000

AB's financial information shows that the non current assets' carrying value is greater than the tax base at the year end.
What is the journal entry to record the movement in the provision for deferred tax resulting from this difference?

• A.Dr Tax expenseCr Deferred tax provision
• B.Dr Other comprehensive incomeCr Deferred tax provision
• C.Dr Deferred tax provisionCr Tax expense
• D.Dr Deferred tax provisionCr Other comprehensive income

Which TWO of the following are relevant ethical considerations when selecting an accounting policy?

• A.It is straightforward to implement.
• B.It shows faithful representation of the financial statements.
• C.It is in accordance with International Financial Reporting Standards.
• D.It maximises shareholder wealth.
• E.It shows a favourable view of performance.