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CIMAPRA19-F02-1 Exam - Topic 1 Question 40 Discussion

AB acquired a financial investment on 1 January 20X9, incurring $5,000 related agency fees. AB initially classified the investment as held for trading, in accordance with IAS 32 Financial Instruments: Presentation.Which of the following statements reflects the accounting treatment that AB adopted in respect of this investment when it prepared its financial statements to 31 December 20X9?
A) Agency fees were recorded as an expense and the gain/loss on the remeasurement of the investment at the year end was recorded in profit or loss for the year.
B) Agency fees were recorded as an expense and the gain/loss on the remeasurement of the investment at the year end was recorded in other comprehensive income.
C) Agency fees were added to the cost of the investment and the gain/loss on the remeasurement of the investment at the year end was recorded in profit or loss for the year.
D) Agency fees were added to the cost of the investment and the gain/loss on the remeasurement of the investment at the year end was recorded in other comprehensive income.

CIMAPRA19-F02-1 Exam - Topic 1 Question 40 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 40
Topic #: 1
[All CIMAPRA19-F02-1 Questions]

AB acquired a financial investment on 1 January 20X9, incurring $5,000 related agency fees. AB initially classified the investment as held for trading, in accordance with IAS 32 Financial Instruments: Presentation.

Which of the following statements reflects the accounting treatment that AB adopted in respect of this investment when it prepared its financial statements to 31 December 20X9?

Show Suggested Answer Hide Answer
Suggested Answer: A

by Stephaine at May 07, 2022, 12:17 AM

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Judy
10 months ago
I thought all gains/losses had to go through profit or loss, interesting!
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Ronny
10 months ago
Nope, definitely not B or D, those are wrong.
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Augustine
11 months ago
Wait, can agency fees really be added to the investment cost?
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Moon
11 months ago
Totally agree, option A makes the most sense!
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Colton
11 months ago
Agency fees are usually expensed, right?
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Arlette
11 months ago
Okay, I've got this. ARP is definitely the right answer here. It's the protocol that translates an IP address into a MAC address on a local network. I'm confident that's the protocol they're asking about.
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Janey
11 months ago
Hmm, this is a tricky one. I'll need to think carefully about the different ways Scrum handles architecture and infrastructure.
upvoted 0 times
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Maile
11 months ago
I'm a bit confused by the different options. I'll need to double-check the details and make sure I understand how the new system's failover time impacts the reliability metrics.
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