35 Flashcards
deck 35
is the G/L from TS transactions a direct adj. to SE under cost method?
yes
what is a distinguishing feature of a noncomp. SO?
no JE til employee purchases the stock
when is the earliest date that a company can record JE’s for a compensatory SO if it were initially issued “out of the money”?
at the svc. period date
will CY plan amendments to increase ben. payouts increase PBO?
yes, it will
under IFRS, are G/L amort’d out of OCI into the I/S?
no, they remain in OCI under IFRS
does IFRS include interest income on plan assets into defined benefit cost?
yes, they do
what is the JE to record a current period pension gain?
Dr: pen ben A/L
Cr: OCI
what is the treatment for retroactive adj’s under IFRS for pension plans?
it will increase defined ben. obl. and defined ben. svc. cost
for DCPP’s, is the burden of funding shared b/w employer and employee with no fixed amt promised at retirement?
yes, it is shared
*the burden falls on the employee, but employer may contribute as well
under GAAP, will a company disclose a reconc. of funded status b/w GAAP and IFRS related to its pen. plan?
no, it prob will not
what happens when avg. life expectancy decreases and retirement age increases in regards to pension plans?
amortization will decrease net per. pen. cost
can DCPP’s be over/underfunded?
no, they cannot
are net per. pen. costs affected by payouts?
no, but PBO and FV plan A’s are
what are the types of leases that can be tested for impairment?
- cap leases/lessees
- long-lived assets of lessors
subject to op. leases - proved oil and gas properties that are being acc’d for using successful-efforts method
- LT prepaid assets
which categories do IFRS allow an exception of “impracticality”?
change in AP and correction of errors
what are the 3 characteristics of a derivative instrument?
(1) underlying/notional amt
(2) little/no initial net investment
(3) its term req’s/permits net settlement
how should def’d comp. plans be acc’d for?
accrue current exp and accrued liability for each year of emp’s svc life
what is the the diff. b/w basic and diluted EPS?
- basic EPS = simple cap. structure and is req’d to report it on face of I/S for income from cont. op’s
- diluted EPS = complex cap. structure and must present basic + diluted EPS for income from cont. op’s on face and CI
what is the reporting for discont’d op’s?
must present basic + diluted EPS on face or notes
what is the treatment for div’s accu’d in period of cumu. PS and div’s declared on noncumu PS?
if div’s accu’d in period of cumu PS is present, ignore div’s declared/paid for PD’s
