CIMA F1 real exam prep : Financial Reporting

  • Exam Code: F1
  • Exam Name: Financial Reporting
  • Updated: Sep 11, 2026
  • Q&As: 247 Questions and Answers

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CIMA F1 Exam Syllabus Topics:

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

                  CIMA Financial Reporting Sample Questions:

                  Question #1

                  ABC has the following working capital ratios at 31 December 20X2:
                  During the year ended 31 December 20X4 credit purchases were $1,700,000 and at 31 December 20X4 the outstanding trade payables balance was $340,000

                  Calculate the working capital cycle for ABC.
                  Give your answer to the nearest whole number of days and assume there are 365 days in a year.

                  Reveal Solution  Discussion  0

                  Correct Answer:

                  Pending

                  Question #2

                  In accordance with IAS 16 Property, Plant and Equipment, in which of the following situations would subsequent expenditure on a non-current asset be capitalised?

                  • A. An entity purchased an aircraft five years ago, when its engines were separately identified in the accounting records. The engines now need to be replaced at a cost of $2 million each. When the engines are replaced the aircraft is expected to be airworthy for a further 5 years.
                  • B. An entity's head office building suffered a major fire, the upper floors and roof were completely destroyed. The entity proposes to restore the building at a cost of $1 million and move back in to the building to use it as a head office again.
                  • C. A manufacturing entity closes its factory for two weeks each summer for routine maintenance and repairs. The current year's cost of maintenance and repairs was $62,000.
                  • D. An entity's delivery vehicle was in a car park when the car park was flooded. The engine and interior of the vehicle needed extensive repair and renovation costing $25,000.
                  Reveal Solution  Discussion  0

                  Correct Answer: A  🗳️

                  Question #3
                  Question #4

                  The following information is extracted from the statement of financial position for ZZ at 31 March 20X3:

                  Included within cost of sales in the statement of profit or loss for the year ended 31 March 20X3 is $20 million relating to the loss on the sale of plant and equipment which had cost $100 million in June 20X1.
                  Depreciation is charged on all plant and equipment at 25% on a straight line basis with a full year's depreciation charged in the year of acquisition and none in the year of sale.
                  The revaluation reserve relates to the revaluation of ZZ's property.
                  The total depreciation charge for property, plant and equipment in ZZ's statement of profit of loss for the year ended 31 March 20X3 is $80 million.
                  The corporate income tax expense in ZZ's statement of profit or loss for year ended 31 March 20X3 is $28 million.
                  ZZ is preparing its statement of cash flows for the year ended 31 March 20X3.
                  What figure should be included for corporate income tax paid in order to arrive at the net cash flow from operating activities?
                  Give your answer to the nearest $ million.

                  Reveal Solution  Discussion  0

                  Correct Answer:

                  $21 million

                  Question #5

                  Which TWO of the following are features of a bank overdraft?

                  • A. Repayments are scheduled in advance
                  • B. The amount off overdraft utilised will fluctuate according to the needs off the borrowing entity.
                  • C. The bank cannot demand repayment of the overdraft before the end of the agreed period.
                  • D. Interest is charged on the balance outstanding.
                  • E. A fixed amount of interest is determined for the period of the overdraft
                  Reveal Solution  Discussion  0

                  Correct Answer: B,D  🗳️

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