9 Flashcards
Under IFRS what is done with the bond issuance costs:
They are netted against the carrying value of the bond liability.
Debenture bond definition:
Unsecured bonds
The market price of a bond is the:
Pv of the principal plus the pv of the interest payments at the market rate.
New partnership interest with investment of additional cap:
Exact method
Principal market definition:
The market with the greatest volume or level of activity for the assets or liability.
When notes maturity date don’t exceed one year, the must be recorded at:
face value.
Land purchase price includes (capitalizes):
real estate taxes in arrears, attorney fee, among others.
How should debt issuance costs be recorded on the balance sheet:
as a direct reduction to the carrying amount of the bond.
Depletion method formula:
Total depletion = depletion rate (depletion base/estimated recoverable units)
“X”
Number of units extracted
Depletion BASE formula
B - Cost to purchase property
Add - Development costs to prepare land for extraction
Add - Any estimated restoration costs
Subtract - Residual value of land after the resources are extracted
The net gain from the sale of a warehouse and a purchase of a new warehouse will fall under what section of the IS?:
Income from continuing operations on the income statement (under other revenues and gains)
The proper accounting for restoration costs when related to depreciation is:
the restoration costs should be added to the depreciable base of the life of the mining operation.
The required financial statement for an investment trust fund is:
statement of changes in fiduciary net position.
Routine employer contributions by the general fund to the pension trust fund would be accounted for as an expenditure in what fund?:
General fund
Fee earned/ withheld by county for administering tax receipts for other city districts journal entry would be:
DR. Cash
CR. Additions-Fees
What should done with inter-company profits and COGS when preparing the consolidated statements?:
They should be eliminated, even if 100% ownership inst present.
Define unassigned fund balance:
Unassigned fund balance represents the amount of current resources carried forward into the following year end and expenditures were less that appropriations.
Investing activities in the statement of CF’s includes:
acquisitions, sales, long term assets, or investment assets.
Financing activities in the statement of CF’s includes:
Obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed. Dividends paid.
how should lease payments be reported in the CF statement?:
Cash payment to reduce principal are recorded as financing activities. The interest portion is reported in the operating activities section.
How to record bond discount in a statement of CF?:
It is considered operating activity.
What increases/decreases CF from operations under the indirect method?:
non-cash items and increase/decrease in working capital.
