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

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 103
Topic #: 2
[All CIMAPRA19-F02-1 Questions]

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?

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Suggested Answer: A

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

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Kiley
6 months ago
B makes the most sense, no doubt about it!
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Lavera
6 months ago
Surprised it's not A, thought loans and receivables fit better!
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Annabelle
6 months ago
Wait, are we sure it's not C?
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Chaya
7 months ago
I agree, B is the right choice!
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Louis
7 months ago
Definitely B, held to maturity and measured at amortised cost.
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Caprice
7 months ago
I believe the answer is B, since we intend to hold the bonds until redemption, but I’m not completely confident about the measurement part.
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Noe
7 months ago
I’m a bit confused about the difference between amortised cost and fair value. I feel like I might have mixed them up in my notes.
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Elfrieda
8 months ago
I remember practicing a similar question where we had to identify the measurement basis for financial assets. I think "held to maturity" is definitely the right classification here.
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Salina
8 months ago
I think this is about how bonds are classified, but I'm not sure if "held to maturity" means they get measured at amortised cost.
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Alline
8 months ago
This is a tricky one. There are a few different factors to consider, like the intent to hold the bonds until redemption. I'll need to carefully read through the question and review the accounting standards to make sure I select the correct answer.
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Malcom
8 months ago
Okay, I think I've got this. Based on the information provided, the bonds would be classified as a "held to maturity" financial asset, which should be subsequently measured at amortized cost. I'll double-check my work, but I'm feeling confident about option B.
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Raylene
8 months ago
Hmm, I'm a bit unsure about this one. The question is asking about the classification and measurement, but there are a few different options. I'll need to review the definitions of the different financial asset categories to determine the right answer.
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Micaela
8 months ago
This looks like a straightforward classification and measurement question for financial instruments. I'll need to carefully consider the details provided about the bonds and the relevant accounting standards.
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Evan
1 year 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
1 year ago
D) A held to maturity financial asset subsequently measured at fair value with gains and losses in reserves.
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Sena
1 year ago
C) A loans and receivables financial asset subsequently measured at amortised cost.
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Catina
1 year ago
B) A held to maturity financial asset subsequently measured at amortised cost.
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Son
1 year ago
A) A loans and receivables financial asset subsequently measured at fair value with gains and losses in reserves.
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Keva
1 year 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
1 year 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
1 year ago
User 2: Yeah, I agree. It's important to consider the classification and measurement basis for financial instruments.
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Benton
1 year ago
User 1: I think option C is the correct one too. Amortised cost makes sense for bonds.
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Malcolm
1 year 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
1 year 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
12 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
1 year ago
Definitely not A) or D), they don't fit the situation at all.
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Iola
1 year ago
I agree, option B) seems to be the most appropriate for this scenario.
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Dominic
1 year ago
I think the correct classification is B) A held to maturity financial asset subsequently measured at amortised cost.
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Lashawn
1 year 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
1 year 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
1 year ago
I think the correct classification is B) A held to maturity financial asset subsequently measured at amortised cost.
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