Online Access Free F2 Practice Test

CD granted 1,000 share options to its 100 employees on 1 January 20X8.To be eligible, employees must remain employed for 3 years from the grant date. In the year to 31 December 20X8, 15 staff left and a further 25 were expected to leave over the following two years.
The fair value of each option at 1 January 20X8 was $10 and at 31 December 20X8 was $15.
Which THREE of the following are true in respect of recording these share options in the year ended 31 December 20X8?

• A.The calculation of the charge for the year will be adjusted for actual and estimated leavers.
• B.The calculation of the charge for the year will be adjusted for actual leavers only.
• C.The credit entry will be to equity.
• D.Fair value at 1 January 20X8 will be used to value the options.
• E.The credit entry will be to non-current liabilities.
• F.Fair value at 31 December 20X8 will be used to value the options.

EF acquired a copy machine under a three-year operating lease. EF will pay nothing in year one and then will pay $6,000 in years two and three. The estimated economic useful life of the machine is six years.
Which THREE of the following statements are true in respect of how EF will account for its use of the machine and the associated operating lease payments?

• A.EF will record no expense in year one in respect of the operating lease charges for this machine.
• B.EF will charge $4,000 to profit or loss in each of the three years in respect of this operating lease.
• C.EF will record a credit to bank of $6,000 in year two.
• D.EF will include an accrual of $4,000 at the end of year one in respect of the lease payments.
• E.An asset of $12,000 will be included in EF's property, plant and equipment at the start of the lease.
• F.EF will include an accrual of $6,000 at the end of year one in respect of the lease payments.

The IAS definitions of financial instruments dictate their classification between debt and equity. Which of of the following factors might this classification impact?
Select ALL that apply.

• A.Liquidity
• B.Financial risk
• C.Profit distribution
• D.Profitability

On 30 November 20X9 OPQ acquires a financial asset that is classified as Available for Sale.
Which of the following describes the value of the financial asset on the date of acquisition?

• A.Present value including transaction costs.
• B.Fair value including transaction costs.
• C.Present value excluding transaction costs.
• D.Fair value excluding transaction costs.

What is the total comprehensive income attributable to the non-controlling interest that will be presented in GHI's consolidated statement of changes in equity for the year ended 31 December 20X4?

• A.$595,000
• B.$575,000
• C.$190,000
• D.$95,000