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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
6 months ago
I thought it included transaction costs, but I guess not!
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Von
6 months ago
Just to clarify, A is the standard for Available for Sale assets.
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Arleen
6 months ago
Wait, are we sure about that? Seems too straightforward.
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Shawna
7 months ago
I agree, A is the right choice!
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Stanton
7 months ago
It's definitely fair value excluding transaction costs.
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Cherrie
7 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
7 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
8 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
8 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
8 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
8 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
8 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
8 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
8 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
8 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
11 months ago
I'll choose C) Present value including transaction costs.
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Janine
12 months 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
11 months ago
User3: I'm not sure, but I'll go with option A as well.
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Ryann
12 months 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
12 months ago
Definitely, knowing how to classify the value of financial assets is crucial for accurate reporting.
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Ellsworth
12 months ago
It's important to understand the difference between fair value excluding and including transaction costs.
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Sena
12 months 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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