Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

FAR 1 > Accounting Standards and Conceptual Framework > Flashcards

Accounting Standards and Conceptual Framework Flashcards

1
Q

What is included in the FASB Accounting Standards Codification?
(FEDPRIA)

A
  1. Financial Accounting Standards Board (SFAS, Interpretations, Technical Bulletins, etc.)
  2. Emerging Issues Task Force (EITF) Abstracts and Topic D
  3. Derivative Implementation Group Issues
  4. Accounting Principles Board Opinions
  5. Accounting Research Bullletins
  6. Accounting Interpretations
  7. AICPA (Statements of position, auditing/acct guides, etc.)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What SEC standards are included in the Codification?

Regulation For Accounting IS Emerging

A
  1. Regulation S-X
  2. Financial Reporting Releases (FRR)
  3. Accounting Series Releases (ASR)
  4. Interpretative Releases (IR)
  5. Staff Accounting Bulletins (SAB)
  6. EITF Topic D and SEC Staff Observer Comments
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Private Company Council (PCC)

A

Created by the Financial Acct Foundation

Goal: establish alternatives to US GAAP to make private company FS more relevant, less complex, and cost-beneficial

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is included in the International Financial Reporting Standards?

A

IFRS
IASs
Interpretations developed by the IFRIC and former SIC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Under the FASB conceptual FW, what is the objective of general purpose financial reporting?

A

To provide financial info about the reporting entity that is useful to the primary users in making decisions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Primary users (external)

A

Existing/potential investors
Lenders
Creditors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Fundamental qualitative characteristics of useful financial info

A
  1. Relevance

2. Faithful representation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Relevance

Passing Confirms Money

A
  • Predictive value
  • Confirming value
  • Materiality
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Faithful Representation [Reliable]

Completely Neutral is Free from Error

A
  • Completeness
  • Neutrality
  • Freedom from error
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Enhancing Qualitative Characteristics

Compare and Verify in Time to Understand

A
  • Comparability (consistency)
  • Verifiability
  • Timeliness
  • Understandability
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Characteristics of nonbusiness orgs

A
  1. Resources from contributions/grants
  2. Operating purposes are other than to provide goods/services for profit
  3. Lack of ownership interests that can be sold, transferred, or redeemed
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Objectives of FR of nonbusiness orgs

A

Provide information:

  1. useful in making resource allocation decisions
  2. useful in assessing services/ability to provide services
  3. useful in assessing mgmt. stewardship/performance
  4. about economic resources, obligations, and net resources, org performance, nature/relationship b/w inflows/outfows
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Fundamental assumptions of US GAAP

A
  1. Entity assumption
  2. Going concern assumption
  3. Monetary unit assumption
  4. Periodicity assumption
  5. Historical cost principle
  6. Revenue recognition principle
  7. Matching principle
  8. Accrual accounting
  9. Full disclosure principle
  10. Conservatism principle
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Elements of FS

REGL ALE needs ID

A

Revenue
Expenses
Gains
Losses

Assets
Liabilities
Equity

Investments by owners
Distributions to owners

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Capital maintenance adjustments

A

Increases/decreases in equity that arise from the revaluation/restatement of assets/liabilities

Marked to market value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Five elements of present value measurement of FCF

A
  1. Estimate of future cash flow
  2. Expectations about timing variations of FCF
  3. Time value of money
  4. Price for bearing uncertainty
  5. Other factors (i.e. liquidity risk)
17
Q

Two approaches to determine PV

A
  1. Traditional approach (PV bonds - scheduled known pymts)

2. Expected CF approach (PV warranties - uncertain future pymts)

18
Q

According to the FASB and IASB conceptual FW, what is the objective of general purpose financial reporting?

A

To provide financial info that is useful to primary users

19
Q

What is conservatism?

A

A prudent reaction to uncertainty to try to ensure that uncertainty and risks inherent in business situations are adequately considered

20
Q

What underlying concept supports the immediate recognition of a contingent loss?

A

Conservatism (it is the recording of an amount representing uncertainty and risk)

21
Q

Recognition

A

The process of recording an item in the FS of an entity

22
Q

Allocation

A

Process of assigning/distributing an amount according to a plan or a formula

23
Q

Matching

A

Simultaneous or combined recognition of revenues and expenses that result directly and jointly from the same transactions or other events

24
Q

Realization

A

Process of converting noncash resources and rights into money

25
Q

If an entity makes a decision to end operations and quickly dispose of assets, what is the appropriate measurement basis for the equipment?

A

Net realizable value

26
Q

What is the single source of US GAAP?

A

FASB Accounting Standards Codification

27
Q

What are the five elements of present value (economic value) measurements used to establish the value of assets or liabilities using cash flow info?
(U-VOTE)

A 
U - The price for bearing Uncertainty
V - Expectations about timing Variations of future cash flows
O - Other factors
T - Time value of money
E - Estimate of future cash flows
28
Q

Does the rule of conservatism require the accrual of losses that are probable or reasonably possible?

A

Probable

29
Q

What assumptions means that money is the common denominator of economic activity and provides an appropriate basis fro accounting measurement and analysis?

A

Monetary assumption

30
Q

Replacement cost

A

The amount of cash or its equivalent that would be paid to acquire or replace an asset currently (acquisition cost)

31
Q

Net realizable value

A

Selling price of an asset less any disposal costs

32
Q

What is the only underlying assumption of financial statement preparation and presentation under the IASB conceptual FW?

A

Going concern

33
Q

How many members of the IASB must approve an exposure draft?

A

Nine members

34
Q

According to the FASB conceptual FW, for financial reporting to be useful, it should be understandable by whom?

A

Those who have a reasonable knowledge of business and economic activities and who are willing to study the info carefully

FAR 1 (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions