Page 22 - CIMA MCS Workbook November 2018 - Day 1 Tasks

Chapter 6

ADVANCED FINANCIAL REPORTING

(F2) FAMILIARISATION

1. ANALYSIS OF PERFORMANCE AND POSITION

● Using suitable ratios analyse the financial performance and position of Grapple using the
financial statements provided in the pre‐seen, together with any other relevant information
from the pre‐seen.
● Using suitable ratios analyse the financial performance and position of competitors using
the information available in the pre‐seen, together with any other relevant information
from the pre‐seen. Include any factors that may limit the interpretation of that information
for comparison with Grapple.

2. SOURCES OF LONG‐TERM FINANCE

● Consider the ways in which Grapple could raise long‐term finance together with the
reasons why they may wish to do so, and including any relevant implications.
● Comment on the availability of information to calculate a weighted average cost of capital
for Grapple from the pre‐seen, and its uses.

3. FINANCIAL REPORTING STANDARDS

Revise the requirements of each of the following financial reporting standards* / topics and
discuss how they may be relevant to Grapple and the pre‐seen information.

● IAS 8 Accounting policies, changes in accounting estimates and errors
● IAS 16 Property, plant and equipment
● IAS 36 Impairment of assets
● IAS 38 Intangible assets
● IAS 17 Leases
● IAS 18 Revenue
● IAS 20 Government grants and disclosure of government assistance
● IAS 37 Provisions, contingent liabilities and contingent assets
● IAS 21 Foreign currency – both foreign currency transactions and foreign operations
● IFRS 5 Assets held for sale and discontinued operations
● IFRS 8 Operating segments
● IFRS 3 Business combinations
● IFRS 10 Consolidated financial statements
● IFRS 11 Joint arrangements

*Note – whilst elements of IAS 21 Foreign currency is a topic from the F1 Financial Operations syllabus, knowledge of
this topic could still be tested within the managerial case study.

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