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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Evan

4 months ago

I thought this was a test about buying and selling bonds, not a game of 'which answer is the least wrong'.

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Ciara

3 months ago

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

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Sena

3 months ago

C) A loans and receivables financial asset subsequently measured at amortised cost.

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Catina

4 months ago

B) A held to maturity financial asset subsequently measured at amortised cost.

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Son

4 months ago

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

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Keva

4 months ago

I'm just glad I don't have to worry about all these accounting rules and regulations. I'd much rather be an astronaut or a professional wrestler.

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Nicolette

4 months 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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Shanda

3 months ago

User 2: Yeah, I agree. It's important to consider the classification and measurement basis for financial instruments.

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Benton

4 months ago

User 1: I think option C is the correct one too. Amortised cost makes sense for bonds.

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Malcolm

4 months 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

4 months 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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Devorah

3 months ago

So it's settled then, option B) is the correct classification and subsequent measurement basis for the financial instrument.

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Mable

3 months ago

Definitely not A) or D), they don't fit the situation at all.

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Iola

3 months ago

I agree, option B) seems to be the most appropriate for this scenario.

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Dominic

3 months ago

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

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Lashawn

4 months 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

4 months 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

5 months ago

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

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