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CIMAPRA19-F02-1 Exam - Topic 1 Question 88 Discussion

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 ofacquisition?
B) Fair value including transaction costs.
A) Fair value excluding transaction costs.
C) Present value including transaction costs.
D) Present value excluding transaction costs.

CIMAPRA19-F02-1 Exam - Topic 1 Question 88 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 88
Topic #: 1
[All CIMAPRA19-F02-1 Questions]

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 ofacquisition?

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Suggested Answer: B

by Florinda at May 20, 2024, 01:41 AM

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Celeste
8 months ago
I thought it included transaction costs, but I guess not!
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Von
8 months ago
Just to clarify, A is the standard for Available for Sale assets.
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Arleen
8 months ago
Wait, are we sure about that? Seems too straightforward.
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Shawna
8 months ago
I agree, A is the right choice!
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Stanton
9 months ago
It's definitely fair value excluding transaction costs.
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Cherrie
9 months ago
I feel like we had a question like this on the last practice exam, and it was definitely about fair value. I just can't recall the specifics about transaction costs.
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Ashlyn
9 months ago
I’m a bit confused about the difference between fair value and present value in this context. I hope I remember the right one!
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Leonardo
9 months ago
I think it's fair value excluding transaction costs, similar to what we practiced in class. That seems to be the standard approach.
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Desirae
9 months ago
I remember something about fair value being the key for available-for-sale assets, but I'm not sure if transaction costs are included or not.
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Amber
9 months ago
I'm a little confused here. Is fair value the same as present value? I'll need to review the definitions of these terms before I can confidently answer this.
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Candida
9 months ago
Okay, I think I've got it. Since it's an Available for Sale asset, we record it at fair value on the acquisition date, and the transaction costs are expensed separately. Option A looks like the right answer.
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Rodolfo
9 months ago
Hmm, I'm a bit unsure about this. Does the fact that it's an Available for Sale asset mean we need to include the transaction costs? I'll have to double-check the accounting standards.
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Louvenia
9 months ago
This one seems straightforward - the asset is classified as Available for Sale, so it should be recorded at fair value excluding transaction costs.
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Nina
10 months ago
This question seems straightforward, but I want to make sure I understand the role of the Agent correctly before selecting an answer.
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Emmanuel
10 months ago
I'm a bit confused by the wording of this question. I'll need to read it over a few times.
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Selma
1 year ago
This question is as clear as mud. I'll just go with C and hope for the best.
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Janae
1 year ago
I'll choose C) Present value including transaction costs.
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Janine
1 year ago
I'm going with B) Fair value including transaction costs.
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Della
1 year ago
I think the answer is A) Fair value excluding transaction costs.
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Hildred
1 year ago
Ah, the old 'include or exclude transaction costs' trick. I'm betting on B!
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Bea
1 year ago
Present value? Hmm, I'm not sure about that. I'll go with fair value, option A.
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Georgene
1 year ago
User3: I'm not sure, but I'll go with option A as well.
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Ryann
1 year ago
User2: I agree, fair value excluding transaction costs seems to be the most appropriate.
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Tommy
1 year ago
User1: I think fair value excluding transaction costs is the correct value.
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Francisca
1 year ago
Wait, don't we need to include transaction costs? I'm going with B.
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Arlyne
1 year ago
B) Fair value including transaction costs.
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Emerson
1 year ago
I agree, let's go with B.
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Joaquin
1 year ago
I think we should include transaction costs, so I'll go with B.
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Levi
1 year ago
Fair value excluding transaction costs? That's easy, it's option A!
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Princess
1 year ago
Definitely, knowing how to classify the value of financial assets is crucial for accurate reporting.
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Ellsworth
1 year ago
It's important to understand the difference between fair value excluding and including transaction costs.
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Sena
1 year ago
I thought it might be fair value including transaction costs, but now I see it's option A.
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Luke
1 year ago
Yes, you're right! It's option A, fair value excluding transaction costs.
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Frederica
1 year ago
I'm not sure, but I think it makes sense to only consider the fair value of the asset without the additional transaction costs.
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Lynna
1 year ago
I agree with Nancey, because when acquiring a financial asset, transaction costs are usually not included in the value.
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Nancey
1 year ago
I think the value of the financial asset on the date of acquisition is fair value excluding transaction costs.
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