CIMAPRA19-F01-1 Exam - Topic 2 Question 1 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 1
Topic #: 2

Which THREE of the following statements about government grants are INCORRECT?

AA grant is recognised as revenue

BGrants must not be deducted from the related expenses in financial statements

CCapital grants relate to cash inflow and outflow

DA compensatory grant should be recognised in statements when it is received, not when the expenses it applies to occurred

EA grant is recognised only when there is reasonable assurance that the entity will comply with any conditions attached to the grant

Show Suggested Answer

Suggested Answer: A, B, C

by Sharee at May 09, 2022, 04:06 PM

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Lili

4 months ago

E makes sense, compliance is key for recognition!

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Veda

4 months ago

C is misleading; capital grants aren't just about cash flow.

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Ilda

4 months ago

Wait, are we sure about B? Seems off to me.

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Rosendo

4 months ago

Totally agree, A is definitely incorrect.

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Blossom

5 months ago

Grants are usually recognized as revenue, right?

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Olen

5 months ago

Hmm, I'm a bit unsure here. Should we notify the employees first before restricting access? I don't want to overlook any important steps.

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Natalie

5 months ago

This question seems straightforward, I think I can handle it.

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Willard

5 months ago

I feel like I encountered a similar question before, and we concluded that both can be loaded.

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