CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 88 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 88
Topic #: 1

[All CIMAPRA19-F02-1 Questions]

On 30 November 20X9 OPQ acquires a financial asset that is classified as Available for Sale.

Which of the following describes the value of the financial asset on the date ofacquisition?

AFair value excluding transaction costs.

BFair value including transaction costs.

CPresent value including transaction costs.

DPresent value excluding transaction costs.

Show Suggested Answer

Suggested Answer: B

by Florinda at May 20, 2024, 01:41 AM

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Selma

1 months ago

This question is as clear as mud. I'll just go with C and hope for the best.

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Janae

3 days ago

I'll choose C) Present value including transaction costs.

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Janine

18 days ago

I'm going with B) Fair value including transaction costs.

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Della

20 days ago

I think the answer is A) Fair value excluding transaction costs.

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Hildred

1 months ago

Ah, the old 'include or exclude transaction costs' trick. I'm betting on B!

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Bea

2 months ago

Present value? Hmm, I'm not sure about that. I'll go with fair value, option A.

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Georgene

3 days ago

User3: I'm not sure, but I'll go with option A as well.

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Ryann

10 days ago

User2: I agree, fair value excluding transaction costs seems to be the most appropriate.

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Tommy

20 days ago

User1: I think fair value excluding transaction costs is the correct value.

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Francisca

2 months ago

Wait, don't we need to include transaction costs? I'm going with B.

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Arlyne

19 days ago

B) Fair value including transaction costs.

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Emerson

20 days ago

I agree, let's go with B.

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Joaquin

1 months ago

I think we should include transaction costs, so I'll go with B.

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Levi

2 months ago

Fair value excluding transaction costs? That's easy, it's option A!

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Princess

5 days ago

Definitely, knowing how to classify the value of financial assets is crucial for accurate reporting.

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Ellsworth

10 days ago

It's important to understand the difference between fair value excluding and including transaction costs.

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Sena

18 days ago

I thought it might be fair value including transaction costs, but now I see it's option A.

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Luke

2 months ago

Yes, you're right! It's option A, fair value excluding transaction costs.

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Frederica

2 months ago

I'm not sure, but I think it makes sense to only consider the fair value of the asset without the additional transaction costs.

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Lynna

2 months ago

I agree with Nancey, because when acquiring a financial asset, transaction costs are usually not included in the value.

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Nancey

3 months ago

I think the value of the financial asset on the date of acquisition is fair value excluding transaction costs.

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