#4 Flashcards
For interim reporting purpose, how do you account for taxes and other expenses and shit?
Costs that benefit multiple periods should be allocated equally to those periods.
How to calculate income tax expense on an interim statement
The income generated this year so far, multiply by the most current effective annual tax rate, minus the income tax expense recorded in the previous quarter.
How are discontinued operations and extraordinary items that occur at midear initially reported?
Included in net income and disclosed in the notes to interim financial statements.
What constitutes a reportable operating segment?
When it has 10% of all REVENUE or asset, and management reports directly to chief operating officer. Does not take elimination entries into consideration.
What information should a public company present about revenue from its reporting segment?
Unaffiliated customers sales and intracompany sales must be disclosed separately
Size test for a reportable segment when it has loss and profit
It meets the size test of the absolute amount of its reported profit or loss is 10% or more of the greater amount in absolute value of:
- the combined reported profit of all operating segments that did not report a loss or
- the combined reported loss of all operating segments that did report a loss
Does segment cash flow need to be reported?
No. Neither IFRS nor GAAP requires it.
Difference in reporting between development stage and established operating enterprise
Development stae enterprises must use all the same principles as established enterprises. It actually has to provide MORE disclosures than established operating enterprises. SURPRISE MOTHERFUCKA
What can a development stage enterprise capitalize as organizational cost?
NOTHING. All organizational costs (start-up costs) are expensed when incurred. SURPRISE AGAIN, MOTHERFUCKA!
When you adopt IFRS in year 10, what’s your date of transition to IFRS?
January 1, Year 9. Because IFRS mandates beginning of the period prior to adoption for transition.
On its opening IFRS balance sheet, an entity may not elect to use fair value to report:
a. fixed assets
b. inventory
c. investments in joint ventures
d. financial assets
b. On the opening IFRS balance sheet, inventory must be reported at the lower of cost or net realizable value.
Minimum reporting requirement for first IFRS financial statements
3 statements of financial position (balance sheets) and 2 of all other shits, and an explicit statement regarding compliance with IFRS
What forms contain unaudited financial statements
Form 6-k and 10-Q
Interim financial statements filed with the SEC would not include statement of what for the most recent fiscal quarter
Statement of cash flow for the most recent quarter would not be included in interim financial statements filed with the SEC
An entity’s annual financial statement filed with the SEC should include a minimum of how many balance sheets?
- So balance sheet for the 2 most recent fiscal year and for other shits, 3 because of 3 fiscal years. So it’s switched around from IFRS.
Filing period (10-K) for non-accelerated filer, accelerated filer, and large accelerated filer
Non-accelerated filer: 90 days
Accelerated filer: 75 days
Large accelerated filer: 60 days
Absent of seasonal fluctuation that could have a significant impact on financial conditions. In addition to the most recent quarter end, the company is required to present balance sheets on what period on Form 10-Q?
The end of preceding fiscal year
When to file 10-Q for corporations
40 days for large corporations and 45 days for small corporations
FASB’s conceptual framework explains both financial and physical capital maintenance concepts. Which capital maintenance concept is applied to currently reported net income, and which is applied to comprehensive income
TRICK QUESTION, financial capital for both, motherfucka! Financial capital concept is the capital maintenance concept in primary financial statements.
What is revenue
inflows or other enhancements of assets and/or decrease in liability resulting from ongoing major operations
