Old Smokey,
Thanks for taking time out to look at my query. The normal theory of temp effect on altitude i'm perfectly familiar with.
However if you read the question again, you'll note that according to the JAA Question and their provided answer, - 10000' Indicated Altitude is in fact 10539' True Altitude if all the atmospheric levels below the aircraft are colder.
This is precisely the reverse of what you and everyone else who ever taught me have ever described. I know there are at least two of these questions have cropped up in the question bank and that the alleged correct answers are as above or reversed in the warm version of the question.
My personal feeling is that the answers in both these questions are wrong but I wanted to check here first as well as several other sources before challenging.
Thanks for your time