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Exam Code: F2
Exam Name: Advanced Financial Reporting
Updated: Sep 12, 2026
Q & A: 212 Questions and Answers
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| Section | Weight | Objectives |
|---|---|---|
| Group Accounts | 35% | - Foreign currency consolidation - Goodwill and non-controlling interest - Associates and joint ventures - Consolidated financial statements |
| Analysing Financial Statements | 15% | - Limitations of financial analysis - Ratio analysis and interpretation - Impact of accounting policies |
| Integrated Reporting | 10% | - Sustainability and non-financial disclosures - Integrated reporting framework |
| Financing Capital Projects | 15% | - Cost of capital calculations - Capital structure theories - Sources of long-term finance |
| Financial Reporting Standards | 25% | - Financial instruments (IFRS 9) - Leases (IFRS 16) - IFRS framework and application - Revenue recognition (IFRS 15) |
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.
? %
Correct Answer:
12.7, 12.67, 12.6
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
Correct Answer:
500, 500000
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.
$ ?
Correct Answer:
98.18, 98.17, 98.179, 98.178
Which of the following taken independently would explain the reduction in the profits as highlighted by the Chairman's press release?
Correct Answer: D 🗳️
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:
Correct Answer: C 🗳️
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