Exam F2 Topic 1 Question 79 Discussion
Actual exam question for CIMA's F2 exam
Question #: 79
Topic #: 1
Question #: 79
Topic #: 1
You are a Financial Controller at BCD and are in the process of preparing the year-end financial statements. A member of your finance team has come to see you about her provisions balance at year- end.
She says that the Managing Director has asked her to increase the provisions balance by $1 million overall. She thinks this is because BCD has had a very good year in terms of profit, and the Managing Director wants to put some profit aside to protect against any future reductions in profit. $1 million is material to BCD.
You believe that the provisions balance was fairly stated without the additional $1 million.
Which TWO of the following would be appropriate actions in this scenario?
She says that the Managing Director has asked her to increase the provisions balance by $1 million overall. She thinks this is because BCD has had a very good year in terms of profit, and the Managing Director wants to put some profit aside to protect against any future reductions in profit. $1 million is material to BCD.
You believe that the provisions balance was fairly stated without the additional $1 million.
Which TWO of the following would be appropriate actions in this scenario?
Suggested Answer: C,E Vote an answer
by June at Mar 09, 2024, 01:39 PM
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