CIMA F1 case studies
CIMA F1 · Put your knowledge to work in context.
CIMA F1 Financial Reporting is the first objective test of the Operational level of the CGMA Professional Qualification offered by AICPA & CIMA, the body formed by the American Institute of CPAs and The Chartered Institute of Management Accountants. It is aimed at candidates who have completed the Certificate level and are building the technical accounting foundation for the Operational, Management and Strategic levels of the qualification. The CIMA F1 case studies are 5 cases and about 3,993 words.
1Kestrel Industrial Ltd: three disputed items under a profit covenant
Kestrel Industrial Ltd prepares IFRS financial statements for the year ended 31 December 20X5. Profit before tax was £1.9m in 20X4 and is £2.6m in 20X5, and a bank covenant requires restated profit before tax of at least £1.75m in each year.
802 words, about 4 min2Halvard Marine plc: audit committee independence and a lucrative non-audit relationship
Halvard Marine plc is listed on the London Stock Exchange and reports against the UK Corporate Governance Code on a comply-or-explain basis. The board has eight directors: the chair, three executives (including the CEO and finance director) and four non-executives.
777 words, about 4 min3Brentwood Precision Ltd: revaluation decrease or impairment?
Brentwood Precision Ltd reports under IFRS with a 31 December year end. Its factory was revalued on 31 December 20X3, creating a £600,000 surplus in other comprehensive income; no transfer to retained earnings has been made and depreciation is charged on the revalued amount.
833 words, about 4 min4Winterbourne Retail Ltd: five post-year-end events and a covenant to renew
Winterbourne Retail Ltd has a 31 December year end and its financial statements are approved on 18 March 20X6. Draft profit before tax is £1,250,000 and net assets £3,400,000.
816 words, about 4 min5Calderbank Foods Ltd: normal capacity, idle time and net realisable value
Calderbank Foods Ltd produces one product line at a plant with a normal capacity of 60,000 cases a year, a figure that already reflects the annual four-week maintenance refit. In the year to 31 December 20X5 it produced 48,000 cases and sold 45,000; three of the shortfall weeks were lost to an unplanned breakdown.
765 words, about 4 min