CIMA Exam CIMAPRA19-F02-1 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?

AFair value excluding transaction costs.

BFair value including transaction costs.

CPresent value including transaction costs.

DPresent value excluding transaction costs.

Show Suggested Answer

Suggested Answer: B

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

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2 days 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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9 days ago

I agree with Nancey, because when acquiring a financial asset, transaction costs are usually not included in the value.

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13 days ago

I think the value of the financial asset on the date of acquisition is fair value excluding transaction costs.

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