14 Flashcards
deck 14
what are the req’s of a reportable op. segment?
- engages in bus. act’s where it earns R and E
- op. results are reviewed by CODM
what method includes adj’s to both specific price changes and general price-level changes?
current cost/constant dollar
when is an IL recog’d on an exchange?
when the exchange is for similar productive assets if the CV > FV
when should long-lived assets be tested for recoverability?
when events or changes in circumstances indicate that its CV may not be recoverable
what methods of valuing EI is acceptable under IFRS?
only FIFO and average cost flow
if time was not tracked for R&D project done by CEO and CFO, is it operating exp. or R&D?
it is operating
how do you calculate CY expense when there is impairment?
IL + CY DE = CY exp
how do you calculate GW IL?
2 step process:
(GAAP - RU level)
(1) if CV > identified NA’s FV = potential impairment
(2) GW loss = FV - implied FV GW
(IFRS - CGU level)
(1) GW loss = CV - recov. amt
- recov amt = GREATER of FV or (FV[PV FCF] - cost to sell)
what is included in the IL for an intangible asset with a definite life?
for GAAP:
CV - PV FCF + cost to sell = IL
for IFRS:
1st, expected FCF < CV = IL
2nd, CV - recoverable amt = IL
* recov amt = GREATER of FV-cost or PV FCF
can a reversal of IL be allowed under GAAP?
only for IA held for disposal (not for sale)
can computer hardware be cap’d?
GAAP does not allow, but IFRS allows if tech. feas. is estab’d
what is FOB shipping point?
title passes to buyer when common carrier picks up the goods to be shipped
how do FIFO periodic and perpetual relate?
they have the SAME COGS and EI
how do you calculate inventory with moving average method?
after every purchase, compute the WA (total inv cost/total quantity) to get average per unit to get new EI
how is WA int. rate on other borrowings calculated?
bond + note interests / bond + note face amounts = WA int rate
how is avoidable int calc’d?
interest on other borrowings (WA int rate * excess for other borrowing amt) + cap’d interest = avoidable int.
(ex): 360 (WA) - 300 (constr) = 60 (other borrowing)
… 607.75% (WA int rate) = int on bother borrowing
… int on other borrowing + cap’d int = avoidable int
what is int. cap’d under a constr project?
the LESSER of avoidable int or actual int. incurred
how is int. exp calc’d for constr projects?
int. incurred - avoidable int
how is gain recog’d in receiving side of boot?
giving boot, you use boot/(NBV+boot) to get gain %, but receiving side you use boot/(FV+boot) = %
how is UOP dep. calc’d?
mfg units CY/ expected mfg total * (cost-SV)
