CIMA F2 : Advanced Financial Reporting

F2 real exams

Exam Code: F2

Exam Name: Advanced Financial Reporting

Updated: Sep 12, 2026

Q & A: 212 Questions and Answers

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CIMA F2 Exam Syllabus Topics:

SectionWeightObjectives
Group Accounts35%- Foreign currency consolidation
- Goodwill and non-controlling interest
- Associates and joint ventures
- Consolidated financial statements
Analysing Financial Statements15%- Limitations of financial analysis
- Ratio analysis and interpretation
- Impact of accounting policies
Integrated Reporting10%- Sustainability and non-financial disclosures
- Integrated reporting framework
Financing Capital Projects15%- Cost of capital calculations
- Capital structure theories
- Sources of long-term finance
Financial Reporting Standards25%- Financial instruments (IFRS 9)
- Leases (IFRS 16)
- IFRS framework and application
- Revenue recognition (IFRS 15)

CIMA Advanced Financial Reporting Sample Questions:

Question #1

The capital structure of ST is summarised in the table below:

What is the weighted average cost of capital of ST?
Give your answer as a percentage to one decimal place.
? %

Reveal Solution  Discussion  0

Correct Answer:

12.7, 12.67, 12.6

Question #2

What figure will be presented for "dividend paid to shareholders of GHI" in GHI's consolidated statement of changes in equity for the year ended 31 December 20X4?
Give your answer to the nearest $000.
$ ? 000

Reveal Solution  Discussion  0

Correct Answer:

500, 500000

Question #3

A convertible bond with a nominal value of $100 can be redeemed at par in 5 years' time or be converted into 1 new equity share for every $5 of bond held.
The current equity share price is $3.50 and it is anticipated that this will grow at a rate of 7% per year.
What is the value of the conversion option of the bond in 5 years' time?
Give your answer to two decimal places.
$ ?

Reveal Solution  Discussion  0

Correct Answer:

98.18, 98.17, 98.179, 98.178

Question #4

Which of the following taken independently would explain the reduction in the profits as highlighted by the Chairman's press release?

  • A. Installation costs of new equipment.
  • B. Amortisation of development expenditure.
  • C. Extended credit terms to customers.
  • D. Staff training costs.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #5

LM are just about to pay a dividend of 20 cents a share. Historically, dividends have grown at a rate of
5% each year.
The current share price is $3.05.
The cost of equity using the dividend valuation model is:

  • A. 7.4%
  • B. 6.9%
  • C. 12.4%
  • D. 11.9%
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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