Exams
Topic module

Leases, Impairment, Inventory and Subsequent Events

Lessee accounting, impairment, inventory measurement and adjusting versus non-adjusting events.

Long-form learning
Concept to Risk to Memory to Check-up

How to study CIMA Operational Level

Secure E1, P1 and F1 knowledge before practising integrated judgement and professional communication. These single-best-answer assets do not reproduce or claim to simulate the pre-seen, unseen information, timed written sections and human marking of the Operational Case Study.

Core concepts

Concept 1

Account for initial and subsequent lease balances.

Exam cue: Separate right-of-use asset from lease liability.

Concept 2

Measure impairment and inventory correctly.

Exam cue: Compare carrying amount with recoverable amount.

Concept 3

Classify events after the reporting period.

Exam cue: Ask whether the event evidences a year-end condition.

Risk pitfalls and guardrails

Using only fair value for recoverable amount.

Guardrail: Check the applicable blueprint, task verb, assumptions, units, timing, evidence provenance and whether the conclusion follows.

Including abnormal waste in inventory.

Guardrail: Check the applicable blueprint, task verb, assumptions, units, timing, evidence provenance and whether the conclusion follows.

Adjusting for a condition that arose after year end.

Guardrail: Check the applicable blueprint, task verb, assumptions, units, timing, evidence provenance and whether the conclusion follows.

Memory anchors

Recoverable amount

The higher of value in use and fair value less costs of disposal.

Inventory NRV

Estimated selling price less completion and selling costs.

Adjusting event

An event giving evidence of a condition existing at the reporting date.

Checkpoint rule

Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.

Knowledge Check (after reading)

Short check-up to confirm understanding of this module.

Check-up Questions

1-2 question checkpoint

At lease commencement, a lessee generally recognises what?

What initially measures the lease liability?

Answer all questions to submit.

Next step personalized recommendations

Continue learning

Move forward only after this module is stable.

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