Management Level Paper
F2 – Financial Management May 2012 examination
Examiner’s Answers Note: Some of the answers that follow are fuller and more comprehensive than would be expected from a well-prepared candidate. They have been written in this way to aid teaching, study and revision for tutors and candidates alike.
SECTION A Answer to Question One
Rationale This question was intended to test two of the key areas in Syllabus Section B, being retirement benefits and share-based payments. The actuarial gains and losses were to be calculated and it was important that candidates displayed an understanding of how each element of pensions affects the assets and liabilities of the plan. The share-based payment involved a calculation of an equity-settled share-based payment in year two of recognition plus required an explanation of the principles of recognition of IFRS 2. This question examined learning outcome B1(f).
Suggested Approach Candidates should have been familiar with the format of the answer provided and those who have completed past paper questions were likely to set their workings out in this format.
Turn over for answers to (a) and (b)
May 2012
1
Financial Management