7

Question 1

what info should a public company present about revenues from its reporting segments?

Answer 1

disclose sep’ly the amt of sales to unaffiliated customers and the amt of intracompany sales

Question 2

for segment reporting, what factors det. whether an identified seg. of an enterprise should be reported?

Answer 2

• segments’ A, P/L (do not net), or revenue 10%+ is reported

* segment L 10%+ (IFRS)

Question 3

when should a company disclose major customer data?

Answer 3

if sales to a single customer is 10%+

*identity customer not req’d for disclosure

Question 4

in general, an enterprise preparing interim FS’s should:

Answer 4

use the same AP’s followed in prep’ing latest annual FS’s

Question 5

under Reg. S-X, an entity’s FS’s filed w/ SEC should include:

Answer 5

min. 2 BS’s, changes in SE, 3 CF’s of most recent audited BS

Question 6

what are forms 3,4,5

Answer 6

filed by directors, officers, or ben. owners of 10%+ equity sec’s of registered co

*does not contain FS’s, not exhibited by XBRL FS’, and no MDA

Question 7

what Reg. sets forth the form and content of req’s for interim and annual FS’s to be filed w/ SEC?

Answer 7

Reg. S-X

*reg. S-K sets forth NON-FIN. reporting req’s

Question 8

what is form 6K?

Answer 8

form 6K is filed semiannually by foreign private issuers and has UNAUDITED FS’s (similar to 10Q)

Question 9

what is form 20F and 40F?

Answer 9

(both like 10K)
-form 20F = foreign Co. w/ SEC

• form 40F = CANADIAN companies registered w/ SEC

Question 10

what should the effective IT rate for operations reflect for the full year?

Answer 10

it should reflect foreign tax rates + avail. tax planning alt’s

Question 11

what is the exchange rate for the translation of assets?

Answer 11

the current exchange rate

Question 12

what are the items listed to be disclosed about reportable segment’s P/L?

Answer 12

• revenues from ext. customers
• I/C rev trans.
• int. rev + exp
• dep,depl, and amort exp.
• unusual items, equity in NI of investees acc’d by equity method
• ITE/ben
• sig. noncash items other than dep/depl/amort exp

Question 13

How do you calculate income recog’d under installment method?

Answer 13

• income = GP% * cash collected

**GP % = (SP-cost)/SP

Question 14

according to installment method, GP on an installment sale is recog’d in income:

Answer 14

in proportion to the cash collection

Question 15

what is the exchange rate used for capital stock account and APIC?

Answer 15

historical exchange rate

• the date cannot be earlier than the date the parent acq’d the investment in the sub

Question 16

to convert from cash to accrual for operating expenses:

Answer 16

cash paid for OE + increase in EB AL - increase in EB PPD exp = accrual OE

*CRAP-I

Question 17

in FS’s prep’d on the IT basis, how should the nondeductible portion of exp’s such as meals and entertainment be reported?

Answer 17

include in exp. category

Question 18

what does OCBOA require in regards to FS titles?

Answer 18

diff. names compared to accrual basis

Question 19

what are common modifications used to prep. the mod. cash basis?

Answer 19

• recording LTD
• accrual of IT’s
• cap’n of inv.

*NOT recognizing rev. when earned

Question 20

how do you find EB of PPD ins.?

Answer 20

BB + pmt towards PPD - exp = EB

Question 21

what do you do with uncoll. rents WO for accrual method to cash?

Answer 21

add it back to get rent revenue in cash basis