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CIMAPRA19-F02-1 Exam - Topic 1 Question 62 Discussion

Which TWO of the following would be the primary disadvantages of producing the disclosures required in IFRS12 Disclosure of Interests in Other Entities?
A) The users of the financial statements may feel overburdened with information. and B) The disclosures take time and therefore incur costs which erodes shareholder value.
C) The disclosures will give competitors commercially sensitive information.
D) The disclosures will highlight the risks associated with interests in other entities.
E) The auditors will have to audit these disclosures.

CIMAPRA19-F02-1 Exam - Topic 1 Question 62 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 62
Topic #: 1
[All CIMAPRA19-F02-1 Questions]

Which TWO of the following would be the primary disadvantages of producing the disclosures required in IFRS12 Disclosure of Interests in Other Entities?

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Suggested Answer: A, B

by Van at Dec 12, 2022, 04:57 PM

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Novella
10 months ago
Wait, they actually have to audit those disclosures? That's wild!
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Louann
10 months ago
D is a disadvantage? I thought it was good to highlight risks!
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Daniel
10 months ago
I’m not sure about C, isn’t that just part of business?
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Makeda
11 months ago
Totally agree, the costs can really add up!
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Lavina
11 months ago
A and B seem spot on.
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Alesia
11 months ago
I practiced a question similar to this, and I think D is more about risks, which might not be a disadvantage.
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Deeanna
11 months ago
I'm not entirely sure, but I feel like C could be a concern about revealing sensitive info to competitors.
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Karima
11 months ago
I think B makes sense too, since the costs of disclosures can really impact shareholder value.
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Mattie
11 months ago
I remember discussing how too much information can overwhelm users, so A might be a good choice.
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Ludivina
11 months ago
Okay, I've got this. The operating break-even point is where total revenue equals total costs, and if the selling price per unit increases, you'd need to sell fewer units to reach that point. So the answer has to be A, the operating break-even point will fall.
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Silvana
11 months ago
This seems pretty straightforward. I'll just need to identify the values that cover the most boundary conditions.
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Halina
11 months ago
I think option B is really tricky. I remember studying that we shouldn't interact with the computer before seizing it, but I’m not entirely sure.
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Sylvia
11 months ago
For some reason, I keep mixing up which factors negatively affect the estimation. Was it II. and III. or II. and IV.? I can't recall exactly.
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