Online Access Free F2 Exam Questions

ST acquired 75% of the 2 million $1 equity shares of CD on 1 January 20X3, when the retained earnings of CD were S3,550,000. CD has no other reserves.
ST paid $5,600,000 for the shares in CD and the non controlling interest was measured at its fair value of S1,400,000 at acquisition.
At 1 January 20X3, the fair value of CD's net assets were equal to their carrying amount, with the exception of a building. This building had a fair value of $1,000,000 in excess of its carrying amount and a remaining useful life of 25 years on 1 January 20X3.
At 31 December 20X5, the retained earnings of ST and CD were $8,500,000 and $5,250,000 respectively.
What is the value of goodwill to be included in the consolidated statement of financial position of ST as at 31 December 20X5?

• A.$1,450,000
• B.$570,000
• C.$450,000
• D.$950,000

Which of the following reduce the usefulness of ratio analysis when comparing entities that operate in the same industry? Select ALL that apply.

• A.The effect of a material and unusual item being disclosed separately in the notes.
• B.An entity adopting a policy of revaluing its non current assets.
• C.Accounting estimates in respect of depreciation being different between entities.
• D.Ratios being quick and easy to calculate.
• E.The revenue figure being aggregated from many different activities and sources.
• F.Ratio calculations being based on historical information.

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

Which THREE of the following would determine the functional currency of an overseas subsidiary in accordance with IAS 21 The Effects of Changes in Foreign Exchange Rates?

• A.The currency which principally influences selling prices for goods and services.
• B.The currency in which all non-current assets are purchased and recognised.
• C.The currency which principally influences the choice of functional currency of the parent.
• D.The currency in which operating receipts are retained.
• E.The currency that mainly influences labour, material and other costs.
• F.The currency which the parent company uses to present its financial statements.

On 1 January 20X4 JK had 1,500,000 ordinary shares in issue. On 1 September 20X4 JK issued 600,000 ordinary shares at the market value of $2.50 a share. For the financial year ended 31 December 20X4 the statement of profit or loss shows profit before tax of $625,000 and profit after tax of $500,000.
What is the earnings per share for the year ended 31 December 20X4?

• A.29.4 cents
• B.23.8 cents
• C.26.3 cents
• D.36.8 cents