CIMA F2 : Advanced Financial Reporting

F2 real exams

Exam Code: F2

Exam Name: Advanced Financial Reporting

Updated: Oct 17, 2026

Q & A: 212 Questions and Answers

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CIMA F2 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Analysing Financial Statements15%- Impact of accounting policies
- Ratio analysis and interpretation
- Limitations of financial analysis
Topic 2: Integrated Reporting10%- Integrated reporting framework
- Sustainability and non-financial disclosures
Topic 3: Financing Capital Projects15%- Cost of capital calculations
- Sources of long-term finance
- Capital structure theories
Topic 4: Group Accounts35%- Goodwill and non-controlling interest
- Associates and joint ventures
- Consolidated financial statements
- Foreign currency consolidation
Topic 5: Financial Reporting Standards25%- IFRS framework and application
- Financial instruments (IFRS 9)
- Leases (IFRS 16)
- Revenue recognition (IFRS 15)

CIMA Advanced Financial Reporting Sample Questions:

Question #1

Which of the following are limitations of financial statement figures for ratio analysis? Select the ALL that apply.

  • A. Contains complicated information that needs to be summarised
  • B. Only provides forecast data
  • C. Only provides financial information
  • D. Only provides historic data
  • E. Provide only summarised information
  • F. Limited information to identify trends over time
Reveal Solution  Discussion  0

Correct Answer: C,D,E,F  🗳️

Question #2

The following information has been extracted from the financial records of DEF for the year ended 31 December 20X2.

What is the operating cycle of DEF at 31 December 20X1?
Assume there are 365 days in the year.
All workings should be rounded to whole days.
Give your answer in whole days.
? days.

Reveal Solution  Discussion  0

Correct Answer:

80, 81

Question #3

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 of acquisition?

  • A. Present value excluding transaction costs.
  • B. Fair value excluding transaction costs.
  • C. Present value including transaction costs.
  • D. Fair value including transaction costs.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #4

Which TWO of the following are true in relation to IAS21 The Effects of Changes in Foreign Exchange Rates when consolidating an overseas subsidiary?

  • A. Goodwill is reflected in the consolidated statement of financial position translated at the exchange rate on the date of acquisition.
  • B. Goodwill is re-translated at the end of each reporting period and reflected at the period end exchange rate in the consolidated statement of financial position.
  • C. The statement of profit or loss of the subsidiary is translated for the reporting period using the closing exchange rate.
  • D. A current period exchange gain or loss is shown within the consolidated statement of comprehensive income within other comprehensive income.
  • E. Assets and liabilities of the subsidiary are translated at each reporting date using the average exchange rate for the period.
Reveal Solution  Discussion  0

Correct Answer: B,D  🗳️

Question #5

Information from the financial statements of an entity for the year to 31 December 20X5:

The gearing ratio calculated as debt/equity and interest cover are:

  • A. gearing of 15% and interest cover of 6.
  • B. gearing of 16% and interest cover of 4.
  • C. gearing of 15% and interest cover of 4.
  • D. gearing of 16% and interest cover of 6.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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