CIMA Exam CIMAPRA19-F02-1 Topic 2 Question 98 Discussion

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

Question #: 98
Topic #: 2

Which of the following principles are the basic principles followed by the consolidated income statement?

Select ALL that apply.

AInclude all of the parent's income and expenses plus all of the subsidiaries' income and expenses

BIgnore investment income from subsidiary to parent (e.g. dividend payments or loan interest)

CAfter profit for the period, show the profit split between amounts attributable to the parent's shareholders and other shareholders

DInclude all of the parent's income and expenses minus all of the subsidiaries' income and expenses

EInclude investment income from subsidiary to parent (e.g. dividend payments or loan interest)

Show Suggested Answer

Suggested Answer: A

by Larae at Sep 16, 2024, 09:14 PM

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Lonna

4 months ago

Alright, time to put my consolidated income statement expertise to the test! I'm confident that A, C, and E are the correct answers. Now if only I could remember the difference between a parent and a subsidiary. Ah, the joys of accounting...

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Dottie

2 months ago

That's correct! The consolidated income statement combines the financial results of both the parent and subsidiary companies.

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Domonique

2 months ago

Remember, the parent company owns the subsidiary company.

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Clorinda

3 months ago

I think you're right! A, C, and E are the correct principles to follow.

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Aimee

4 months ago

Haha, this question is a real brain-teaser! I'm tempted to just choose all the options and see what happens. But seriously, I think A, C, and E are the way to go. Gotta love those tricky accounting principles, am I right?

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Alfreda

2 months ago

Let's go with A, C, and E then. Good choices!

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Susy

2 months ago

Yeah, those accounting principles can be tricky to navigate.

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Tamar

2 months ago

I think you're on the right track with A, C, and E.

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Fidelia

2 months ago

I agree, this question is definitely a brain-teaser!

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Glendora

2 months ago

I'm glad we're on the same page. Let's hope we got it right!

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Gladis

3 months ago

Yeah, those principles can definitely be confusing. But I agree with your choices.

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Kristal

3 months ago

I think A, C, and E are correct too. Accounting can be tricky!

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Olga

4 months ago

Wow, this question is really testing our knowledge of consolidated financial statements! I'm pretty sure A, C, and E are the right answers, but I'm a little unsure about B and D. Guess I'll have to brush up on my accounting rules before the exam.

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Alfreda

4 months ago

I think options A, C, and E are the correct principles. The consolidated income statement should include all of the parent's and subsidiaries' income and expenses, show the profit split between the parent's shareholders and other shareholders, and include investment income from subsidiary to parent.

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Becky

3 months ago

I think you're right, those principles make sense for a consolidated income statement.

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Becky

4 months ago

I agree, options A, C, and E are the correct principles to follow.

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Marshall

4 months ago

Hmm, that makes sense too. Let's review the principles again to make sure we understand them correctly.

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Skye

4 months ago

I disagree, I believe the correct answer is C) After profit for the period, show the profit split between amounts attributable to the parent's shareholders and other shareholders.

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Marshall

4 months ago

I think the answer is A) Include all of the parent's income and expenses plus all of the subsidiaries' income and expenses.

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