CIMA Financial Reporting : F1

CIMA F1 Actual PDF
  • Exam Code: F1
  • Exam Name: Financial Reporting
  • Updated: Sep 13, 2026
  • Q & A: 247 Questions and Answers
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CIMA F1 Exam Syllabus Topics:

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

                  CIMA Financial Reporting Sample Questions:

                  Question #1

                  Which of the following methods could be used by a tax authority to reduce tax evasion and avoidance?

                  • A. Simplify the tax structure, minimizing allowances and exemptions.
                  • B. Reduce requirements to have tax returns audited.
                  • C. Increase tax rates to compensate for losses due to evasion.
                  • D. Reduce penalties for avoidance.
                  Answer: A
                  Question #2

                  The statement of profit or loss for PQ, ST and AB for the year ended 31 December 20X0 are shown below:

                  1. PQ acquired 80% of its subsidiary, ST, on 1 January 20X0 and 40% of its associate, AB, on 1 September
                  20X0.
                  2. Since acquistion PQ has sold goods to ST and AB for $20,000 and $30,000 respectively. At the year end both ST and AB have 50% of these goods remaining in inventory. PQ uses a mark-up of 20% on all of its sales.
                  3. Since acquisition the goodwill in respect of ST has been impaired by $8,000 and the investment in AB has been impaired by $2,000.
                  4. PQ uses the fair value method for non-controlling interest at acquisition.
                  What is the revenue figure to be included in PQ's consolidated statement of profit or loss for the year ended 31 December 20X0?

                  • A. $450,000
                  • B. $440,000
                  • C. $476,000
                  • D. $480,000
                  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. Selling price of the goods being sold to the customer
                  • C. Bargaining power of the customer
                  • D. Typical credit terms operating within the industry
                  • E. Risk of non-payment
                  • F. Number of suppliers
                  Answer: C,D,E
                  Question #4

                  ABC uses an aggressive approach to managing its working capital. XYZ uses a conservative approach to managing its working capital.
                  Which of the following is ABC more at risk of compared to XYZ?

                  • A. High finance costs
                  • B. Running out of cash
                  • C. Receivables not paying on time
                  • D. Inventory obsolescence
                  Answer: B
                  Question #5

                  Statements of financial position for YZ, BC and DE at 31 March 20X2 include the following balances:

                  YZ purchased 90% of BC's equity shares for $508,000 on 1 January 20X2. On 1 January 20X2 BC's retained earnings were $183,000. YZ uses the proportion of net assets method to value non-controlling interest at acquisition.
                  YZ purchased 30% of DE's equity shares on 1 April 20X1 for $112,000. DE's retained earnings at 1 April
                  20X1 were $88,000.
                  On 1 February 20X2 YZ sold goods to BC for $28,000 at a mark up of 25% on cost. All the goods were still in BC's inventory at 31 March 20X2.
                  Calculate the amount of the non-controlling interest to be included in YZ's consolidated statement of financial position at 31 March 20X2.
                  Give your answer to the nearest whole $.

                  Answer:

                  $47900

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