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CIMA Financial Reporting : F1

F1

Exam Code: F1

Exam Name: Financial Reporting

Updated: Aug 05, 2026

Q&A Number: 247 Q&As

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CIMA F1 Exam Syllabus Topics:

SectionObjectives
Topic 1: Accounting Standards Application- Basic application of IFRS standards
  • 1. Revenue recognition principles
    • 2. Inventory valuation methods
      Topic 2: Financial Statement Analysis- Performance analysis
      • 1. Ratio analysis
        • 2. Trend analysis
          - Interpretation of financial information
          • 1. Limitations of financial statements
            • 2. Assessment of profitability and liquidity
              Topic 3: Financial Reporting Fundamentals- Regulatory Framework
              • 1. International Financial Reporting Standards (IFRS) principles
                • 2. Conceptual framework for financial reporting
                  - Financial Statements Preparation
                  • 1. Statement of profit or loss and other comprehensive income
                    • 2. Statement of cash flows basics
                      • 3. Statement of financial position

                        CIMA Financial Reporting Sample Questions:

                        1. Which of the following is NOT a responsibility of the International Accounting Standards Board?

                        A) Withdrawal of international accounting reporting standards.
                        B) Final approval of interpretations by the international financial reporting interpretations committee.
                        C) Fundraising for the international accounting standards committee foundation.
                        D) Preparation of international financial reporting standards.


                        2. Which THREE of the following statements are NOT true of the IFRS Foundation trustees?

                        A) Are involved in the technical matters relating to accounting standards
                        B) Are mainly from Europe and the USA
                        C) Responsible for appointing members of the IA5B
                        D) Responsible of appointing members of the IFRS interpretations committee
                        E) Receive funding by donations from the general public


                        3. Which THREE of the following are part of the International Accounting Standards Committee (IASC) Foundation structure?

                        A) International Accounting Standards Board
                        B) Standards Advisory Council
                        C) International Organisation of Securities Commission
                        D) Standards Application Council
                        E) International Financial Reporting Interpretations Committee
                        F) International Financial Reporting Evaluations Committee


                        4. KL has S90.000 of plant and machinery which was acquired on 1 June 20X4. Tax depreciation rates on plant and machinery are 20% reducing balance. All plant and machinery was sold for 560,000 on 1 June 20X6 Calculate the tax balancing allowance or charge on disposal tor the year ended 31 May 20X7 and state the effect on the taxable profit.

                        A) A balancing allowance of $2,400 reduces taxable profit.
                        B) A balancing charge of $2,400 reduces taxable profit.
                        C) A balancing charge of $2,400 increases taxable profit.
                        D) A balancing allowance of $2,400 increases taxable profit.


                        5. What does the exemption method of giving double taxation relief mean?

                        A) The countries agree on certain types of income which will be exempt or partially exempt in one country or the other.
                        B) The countries agree on certain types of income which will be exempt or partially exempt in both countries.
                        C) The countries agree that all types of income will be exempt or partially exempt in both countries.
                        D) The countries agree that all types of income will be exempt or partially exempt in one country or the other.


                        Solutions:

                        Question # 1
                        Answer: C
                        Question # 2
                        Answer: A,B,E
                        Question # 3
                        Answer: A,B,E
                        Question # 4
                        Answer: C
                        Question # 5
                        Answer: A

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