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CIMAPRA19-F02-1 Exam - Topic 1 Question 90 Discussion

A group presents its financial statements in A$.The goodwill of its only foreign subsidiary was measured at B$100,000 at acquisition. There have been no impairments to this goodwill.Exchange rates (where A$/B$ is the number of B$'s to each A$) are as follows:The value of goodwill to be included in the group's statement of financial position in respect of its foreign subsidiary for the year ended 31 December 20X4 is:
A) A$75,758.
B) A$66,667.
C) A$150,000.
D) A$132,000.

CIMAPRA19-F02-1 Exam - Topic 1 Question 90 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 90
Topic #: 1
[All CIMAPRA19-F02-1 Questions]

A group presents its financial statements in A$.

The goodwill of its only foreign subsidiary was measured at B$100,000 at acquisition. There have been no impairments to this goodwill.

Exchange rates (where A$/B$ is the number of B$'s to each A$) are as follows:

The value of goodwill to be included in the group's statement of financial position in respect of its foreign subsidiary for the year ended 31 December 20X4 is:

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Suggested Answer: A

by Emilio at Jun 22, 2024, 06:23 AM

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Rhea
8 months ago
What if the exchange rates change next year?
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Kimberely
8 months ago
Totally agree, A$75,758 makes sense!
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Aron
8 months ago
Wait, how can it be that low? Sounds off.
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Gracia
8 months ago
I think it's A$75,758 based on the exchange rate.
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Corazon
9 months ago
Goodwill was B$100,000 at acquisition.
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Laura
9 months ago
I’m leaning towards option D, A$132,000, but I might be mixing up the rates. We definitely covered how to handle these conversions in class.
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Edelmira
9 months ago
I feel like the answer might be A$75,758, but I’m not completely confident. I remember something about using the latest exchange rate for goodwill.
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Shaunna
9 months ago
I think we need to convert the B$100,000 using the exchange rate from the end of the reporting period. I just can’t recall what that rate was!
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Stephanie
9 months ago
I remember we practiced a similar question about converting foreign currency goodwill, but I’m not sure about the exact exchange rate to use here.
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Carole
9 months ago
I'm a bit confused by the different exchange rates. Do I need to use the rate for the year ended 31 December 20X4 specifically? Or should I be averaging the rates somehow?
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Wayne
9 months ago
Okay, I think I've got this. I just need to take the original goodwill amount of B$100,000 and convert it to A$ using the exchange rates provided for each year.
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Kristel
9 months ago
Hmm, this looks like a foreign currency translation question. I'll need to carefully apply the exchange rates given to convert the goodwill amount.
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Caprice
10 months ago
No problem, I've got a good handle on this. I'll just plug the numbers into the formula and calculate the goodwill amount in A$. Shouldn't be too tricky.
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Alise
10 months ago
I'm a bit unsure about the order of the fields in the /etc/fstab file. I'll have to think this through carefully and eliminate the options that don't seem right.
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Jennifer
10 months ago
Option E with the Planning P&L Data form and email notification could work, but I'm not sure if that would give me the level of formatting control that the question is asking for. I may need to explore the Financial Reporting and Smart View options in more depth.
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Dulce
10 months ago
Ah, I think I've seen this type of problem before. If the PC is in VLAN 68 and can't communicate with hosts outside of that VLAN, the issue is likely with the inter-VLAN routing. I'd try removing the HSRP configuration and see if that helps.
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Laticia
2 years ago
I'm feeling a bit 'foreign' to this exchange rate stuff. Maybe I should just 'convert' my answer to a lucky guess.
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Abraham
2 years ago
I agree, the exchange rates can be confusing but I also believe it's A) A$75,758.
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Leonor
2 years ago
I think it's A) A$75,758.
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Jame
2 years ago
I see where you're coming from, Hector. It's important to consider the exchange rates when determining the value of goodwill in a foreign currency.
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Silva
2 years ago
Goodwill? More like 'good riddance' to this tricky exchange rate question!
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Ezekiel
2 years ago
I'm going to go with the 'exchange rate at the date of acquisition' approach. Time to put my foreign currency knowledge to the test!
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Hector
2 years ago
I believe the correct answer is B) A$66,667 because we need to convert the B$100,000 using the exchange rates given.
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Nell
2 years ago
I agree with Rikki, the exchange rates provided are crucial in calculating the value of goodwill.
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Josphine
2 years ago
Wow, this is a real exchange rate conundrum! I'm just hoping the answer isn't 'D) A$132,000' - that would be too easy.
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Chau
2 years ago
I think it's A) A$75,758 too.
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Dean
2 years ago
A) A$75,758.
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Rikki
2 years ago
I think the answer is A) A$75,758.
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Eric
2 years ago
Wait, hold up! Shouldn't we be using the exchange rate from the acquisition date, not the year-end rate? I'm going with C) A$150,000.
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Izetta
2 years ago
Hmm, I'm not sure about this one. Maybe the answer is B$66,667 since that's the equivalent of B$100,000 at the 1.5 exchange rate.
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Reynalda
2 years ago
I think the answer is A$75,758. The exchange rates provided show that the goodwill of B$100,000 at acquisition would be worth A$132,000 at the year-end exchange rate.
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Dahlia
2 years ago
I agree with the first user, A$75,758 seems correct.
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Michell
2 years ago
I think it's A$66,667.
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Deonna
2 years ago
I believe the answer is A$75,758.
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