CIMA Exam CIMAPRA19-F02-1 Topic 2 Question 98 Discussion

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

Question #: 98
Topic #: 2

Which of the following principles are the basic principles followed by the consolidated income statement?

Select ALL that apply.

AInclude all of the parent's income and expenses plus all of the subsidiaries' income and expenses

BIgnore investment income from subsidiary to parent (e.g. dividend payments or loan interest)

CAfter profit for the period, show the profit split between amounts attributable to the parent's shareholders and other shareholders

DInclude all of the parent's income and expenses minus all of the subsidiaries' income and expenses

EInclude investment income from subsidiary to parent (e.g. dividend payments or loan interest)

Show Suggested Answer

Suggested Answer: A

by Larae at Sep 16, 2024, 09:14 PM

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Aimee

1 days ago

Haha, this question is a real brain-teaser! I'm tempted to just choose all the options and see what happens. But seriously, I think A, C, and E are the way to go. Gotta love those tricky accounting principles, am I right?

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Olga

4 days ago

Wow, this question is really testing our knowledge of consolidated financial statements! I'm pretty sure A, C, and E are the right answers, but I'm a little unsure about B and D. Guess I'll have to brush up on my accounting rules before the exam.

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Alfreda

10 days ago

I think options A, C, and E are the correct principles. The consolidated income statement should include all of the parent's and subsidiaries' income and expenses, show the profit split between the parent's shareholders and other shareholders, and include investment income from subsidiary to parent.

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Marshall

10 days ago

Hmm, that makes sense too. Let's review the principles again to make sure we understand them correctly.

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Skye

12 days ago

I disagree, I believe the correct answer is C) After profit for the period, show the profit split between amounts attributable to the parent's shareholders and other shareholders.

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Marshall

16 days ago

I think the answer is A) Include all of the parent's income and expenses plus all of the subsidiaries' income and expenses.

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