CIMA Exam CIMAPRA19-F02-1 Topic 2 Question 103 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 103
Topic #: 2

XY purchased $100,000 of quoted 8% bonds in the current year which it intends to hold until redemption.

Which of the following identifies the correct classification and subsequent measurement basis for this financialinstrument?

AA loans and receivables financial asset subsequently measured at fair value with gains and losses in reserves.

BA held to maturity financial asset subsequently measured at amortised cost.

CA loans and receivables financial asset subsequently measured at amortised cost.

DA held to maturity financial asset subsequently measured at fair value with gains and losses in reserves.

Show Suggested Answer

Suggested Answer: A

by Paz at Nov 15, 2024, 08:04 AM

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Nicolette

3 days ago

I'm going to go with option C. Amortized cost seems like the appropriate measurement basis for this type of instrument.

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Malcolm

5 days ago

I'm not sure, but I think option D) A held to maturity financial asset subsequently measured at fair value with gains and losses in reserves could also be a possibility.

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Britt

7 days ago

I'm not sure why anyone would even consider options A or D. Those are just blatantly wrong for this scenario.

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Lashawn

9 days ago

This is clearly a held-to-maturity financial asset that should be measured at amortized cost. Option B is the correct answer.

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Anna

9 days ago

I agree with Adelaide. Holding the bonds until redemption indicates they are held to maturity and should be measured at amortised cost.

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Adelaide

16 days ago

I think the correct classification is B) A held to maturity financial asset subsequently measured at amortised cost.

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