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CIMA F1 Exam Syllabus Topics:

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

                  CIMA Financial Reporting Sample Questions:

                  For an entity to be exempt from preparing consolidated financial statements it must meet certain criteria specified in IFRS 10 Consolidated Financial Statements.
                  Which of the following conditions would give exemption from preparing consolidated financial statements?

                  • A. All of the parent's subsidiaries are in one country.
                  • B. The parent's securities are publicly traded.
                  • C. The parent is a wholly owned subsidiary of another entity.
                  • D. The parent is in the process of issuing securities in a public securities market.
                  Reveal Solution  Discussion  0

                  Correct Answer: C  🗳️

                  Which of the following would NOT normally be subject to a withholding tax?

                  • A. Profit for the year
                  • B. Royalties paid
                  • C. Interest on fixed term loans
                  • D. Equity dividends paid
                  Reveal Solution  Discussion  0

                  Correct Answer: A  🗳️

                  An entity's policy is to finance the investment in working capital using short-term financing to fund all of its investment in fluctuating net current assets as well as some of its investment in permanent net current assets.
                  What is this working capital financing policy known as?

                  • A. Moderate
                  • B. Short term
                  • C. Aggressive
                  • D. Conservative
                  Reveal Solution  Discussion  0

                  Correct Answer: C  🗳️

                  Which of the following are techniques that can be used by a company to ensure they receive timely payment of receivables? Select ALL that apply:

                  • A. Offering cash or early payment discount
                  • B. Assessing credit risk of customers before they are given credit
                  • C. Offering extended credit to return customers
                  • D. Charging interest on late payments
                  • E. Offering free items
                  Reveal Solution  Discussion  0

                  Correct Answer: A,B,D  🗳️

                  BBB has been experiencing liquidity problems and currently has an overdraft with the bank.
                  Which THREE of the following would be appropriate measures to help address this problem?

                  • A. Invest in a short term deposit with the bank.
                  • B. Offer early settlement discounts to encourage debtors to pay more quickly.
                  • C. Sell some surplus fixed assets.
                  • D. Reduce the selling price of goods to reduce the holding of stock.
                  • E. Shorten the time taken to pay creditors.
                  • F. Pay a dividend to shareholders.
                  Reveal Solution  Discussion  0

                  Correct Answer: B,C,D  🗳️

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