4 Flashcards
1
Q
TS
A
current asset = CFO
FV = all g/l on IS
2
Q
AFS
A
either CA or NCA = CFI
FV = realized = IS
= unrealized = OCI
3
Q
HTM
A
either CA or NCA = CFI
amortized cost
4
Q
reclass - from TS
A
no reverse
5
Q
reclass - to TS
A
recognize earnings immediately
6
Q
reclass - HTM to AFS
A
record in OCI (go from amort to FV)
7
Q
reclass - AFS to HTM
A
amort over remaining life and adjust of yield
8
Q
permanent impairment
A
TS - loss already on IS
AFS- unrealized g/l on IS
HTM - mark to FMV and loss on IS
must be other than temp
9
Q
sale
A
TS = SP - CV @ sale AFS = SP - OG cost
10
Q
disclose
A
credit risk
11
Q
equity method
A
sig influence (20-50%)
12
Q
formula
A
Beg + investee earnings - investee div = end
13
Q
stock div
A
memo entry only
14
Q
transition to equity
A
add the cost of acq. the additional interest
adopt equity method
15
Q
Acquisition method
A
subs equity is eliminated
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