6

Question 1

how is a stock’s decline in value for AFS equity sec’s reported?

Answer 1

it is recognized as an UNREALIZED loss and part of income from cont op’s

Question 2

which statement of financial acct. concepts (SFAC) requires a statement of CI?

Answer 2

SFAC 5 requires CI as a part of a full set of FS’s

Question 3

what is the purpose of info presented in notes?

Answer 3

to provide disclosure req’d by GAAP

Question 4

what should be disclosed in sig. AP’s?

Answer 4

policies, measurement bases, methods, and criteria

*these disclosures are an integral part of the FS’s

Question 5

in regards to disclosure, what does IFRS require that GAAP doesn’t?

Answer 5

• statement of compliance with applicable AP’s

* disclosure of judgements made in the prep of the FS’s

Question 6

what should be included in the notes to FS’s?

Answer 6

info on changes in SE and sig. A and/or L accounts

Question 7

disclosure of vulnerability to conc. is req’d if all are met:

Answer 7

• conc. exists as of FS date
• conc. makes entity vulnerable to the risk of near-term severe impact
• it is at LEAST reas. poss. that the events could cause severe impact from the vuln. will occur in near term

Question 8

mgt is req’d to evaluate whether there is subs. doubt about an entity’s ability to continue as a GC for how long?

Answer 8

a reas. period of time not to exceed 1 year beyond date FS is issued

Question 9

under GAAP, what method of acct. must be used in prep of FS’s for an entity not considered a GC?

Answer 9

they must use the liquidation basis

Question 10

consideration should be given to an entity’s plans to mitigate the cond’s or events that raise subs. doubt about its ability to continue as GC only if:

Answer 10

it is PROBABLE that the plans will be EFFECTIVELY implemented and SUCCESSFUL

Question 11

under IFRS, when should an entity disclose subs doubt about an entity’s ability to continue as a GC?

Answer 11

when mgt is aware of material uncertainties that may give rise to subs. doubt

Question 12

FS’s are considered to be “avail. to be issued” when:

Answer 12

• FS’s are in form and format that comply with GAAP

* all approvals necessary for the issuance of the FS’s have been REC’D

Question 13

FS’s are c onsidered to be “issued” when:

Answer 13

• FS’s are in form and format that comply w/ GAAP

* FS’s have been widely DISTRIBUTED to FS users

Question 14

what is the subseq. event evaluation period for a filer w/ SEC and non-SEC filers?

Answer 14

• SEC = FS issuance date
• non-SEC = availability date

**SEC filers are usually public and non-SEC are privates

Question 15

how do entities that file w/ SEC report subseq. event evaluation dates?

Answer 15

they are not req’d to report

*only non-SEC are req’d to report the date their eval. period ended

Question 16

what is FV?

Answer 16

• the FV of an A/L is specific to the MARKET-specific measure (not entity)
• exit price (not entrance)
• includes transportation costs, not trans costs
• the price in the “P” market for an A/L will be the FV measurement

Question 17

a change from cost to market approach of measuring FV is what acct change?

Answer 17

a change in acct. est. (prospective)

Question 18

the FV for an A/L is measured as:

Answer 18

price rec’d for asset sale or paid when transferring a liability in an ORDERLY TRANSACTION b/w MARKET participants

Question 19

what is the “P” market?

Answer 19

the market with the greatest volume of activity for the particular asset for which FV is being det’d

Question 20

what is the FV of a nonfinancial asset? (FA, phys.)

Answer 20

the FV is the value at its highest and best use