CIMA F1 : Financial Reporting

  • Exam Code: F1
  • Exam Name: Financial Reporting
  • Updated: Sep 09, 2026
  • Q & A: 247 Questions and Answers

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CIMA F1 Exam Syllabus Topics:

SectionWeightObjectives
Principles of Taxation20%- Indirect taxes overview
- Deferred tax concepts
- Tax system and types of taxes
- Current tax calculation
Financial Statements45%- Preparation of single entity financial statements
  • 1. Statement of profit or loss
    • 2. Statement of financial position
      • 3. Statement of changes in equity
        • 4. Statement of cash flows
          - Interpretation and analysis of financial statements
          - Application of IFRS standards
          • 1. IAS 2 Inventories
            • 2. IFRS 16 Leases
              • 3. IAS 16 Property, Plant and Equipment
                • 4. IAS 36 Impairment of Assets
                  - Basic consolidated financial statements
                  Managing Cash and Working Capital25%- Management of receivables, inventory and payables
                  - Cash management and forecasting
                  - Short-term financing options
                  - Working capital cycle and objectives
                  The Regulatory Environment of Financial Reporting10%- Ethics in financial reporting
                  - Conceptual framework and regulatory bodies
                  - IFRS Foundation and IASB structure
                  - Principles vs rules-based regulation

                  CIMA Financial Reporting Sample Questions:

                  Question #1

                  BCD owns an item of plant which cost $20,000 and at the time of purchase was assessed to have a useful economic life of 8 years and a residual value of $2,000.
                  The carrying amount of the plant at 1 January 20X8 is $11,000. On that date BCD's directors estimate that the plant's remaining useful life is now 6 years.
                  The residual value remains unchanged at $2,000.
                  What is the depreciation charge for this plant for the year ended 31 December 20X8?
                  Give your answer to the nearest $.

                  Answer:

                  $1,688

                  Question #2

                  Which of the following would NOT be classified as part of non-current assets in a statement of financial position?

                  • A. A property held as an investment which is let to tenants.
                  • B. The goodwill arising on the acquisition of a subsidiary.
                  • C. The interest paid on a loan raised to fund the construction of a factory, where that factory is still not ready for its intended use.
                  • D. Assets held for sale, classified in accordance with IFRS 5 Non-current Assets Held for Sales and Discontinued Operations.
                  Answer: D
                  Question #3

                  Which THREE of the following matters should an entity consider when determining the credit terms granted to a customer?

                  • A. Discount offered by suppliers for early payment
                  • B. Bargaining power of the customer
                  • C. Typical credit terms operating within the industry
                  • D. Selling price of the goods being sold to the customer
                  • E. Risk of non-payment
                  • F. Number of suppliers
                  Answer: B,C,E
                  Question #4

                  PP supplies zero-rated and standard-rated goods. During the year ended 30 March 20X3, the standard-rated goods made up 50% of the total supplies. During the year ended 30 March 20X4 this percentage increased to 60%.
                  What percentage of input tax suffered can PP claim back in the year ended 30 March 20X4?
                  Give your answer as a whole number.

                  Answer:

                  100%

                  Question #5

                  AB has been asked to analyze the receivables days of an entity with a view to improving the working capital cycle.
                  The following results have been produced for receivable days:

                  Which of the following is NOT an explanation of why the days have increased?

                  • A. The entity has increased turnover for year ended 31 December 20X2 by offering extended credit terms.
                  • B. The entity has made substantial sales to overseas entities in the last few months of the year ended 31 December 20X2.
                  • C. The entity has transferred all receivables collections to a factoring agency during 20X2.
                  • D. An inexperienced credit controller was employed in the last few months of year ended 31 December and requires substantial training.
                  Answer: C

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