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FAR > Anna Cards > Flashcards

Anna Cards Flashcards

1
Q

How are gain contingencies accounted for?

A

They are not accrued for (reflected in any account.) They should be disclosed.

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2
Q

How are loss contingencies accounted for?

A

They should be accrued for the most likely possibility/award, or the lowest amount from the range of possible awards if none are most likely.

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3
Q

What do you compare to see if there should be a gain on debt restructuring?

A

Compare total future cash payments to the carrying value of debt.

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4
Q

What does the 10-Q contain?

A

1) Financial Statements
2) Discussion from Management
3) List of material events that have occurred within the company.

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5
Q

What do you do when there is an AFS unrealized holding loss?

A

Debit OCI

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6
Q

What do you do when you sell the AFS security that you originally had the unrealized holding loss on?

A

Credit OCI

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7
Q

What is the formula to figure out COGS?

A 
Beginning Inventory
\+ Purchases
- Purchase Discounts
\+ Freight In
- Ending Inventory
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8
Q

How do you value stock rights on a balance sheet?

A

amount you already have * (mkt value of stock rights/(total value of all CS + mkt val of rights))

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9
Q

How do you recognize differences in the application of GAAP and IFRS?

A

Recognize as an adjustment directly to RE at date of the transition to IFRS

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10
Q

GASB says the MD&A should…

A

1) focus on the primary governnment
2) be restricted to specifically listed information
3) use condensed financial information for year to year comparisons
* *Dont “boilerplate” language - dont copy/paste same text each year

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11
Q

How is gain computed at the time of death of an insured officer or employee?

A

Gain is the excess of the face amount of the policy over the cash surrender value at the time (face - csv = gain)

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12
Q

Dividends received under equity method

A

reduce the carrying amount. do not affect income

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13
Q

Equity in earnings received under equity method

A

include this amount in income

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14
Q

Buildings included in consolidated FS are reported how?

A

at fair value

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15
Q

The purpose of modified cash basis is….

A

to provide more information to users than cash basis accounting while still avoiding the complexities of GAAP.

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16
Q

What is selectivity and what does it relate to?

A

Selectivity relates to the disclosure of risks. It is the specified criteria that screens risks and uncertainties encountered by each company.

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17
Q

How is the 10-Q filed?

A

Electronically on EDGAR

18
Q

Steps in the SEC rule-making process

A

1) concept release
2) rule proposal
3) rule adoption

19
Q

4 types of comprehensive basis of accounting other than GAAP

A

1) government-type provisions
2) income tax
3) cash receipt and cash disbursement basis
4) criteria that meet substantial support like price level basis

20
Q

What is a special item?

A

A special item is like an extraordinary item because it is unusual and infrequent, but it is under management’s control.

21
Q

What is the maximum number of reportable segments

A

10

22
Q

What is an asset retirement obligation?

A

An obligation associated with the retirement of a tangible long lived asset

23
Q

How much gain does the debtor recognize in troubled debt restructuring?

A

the excess of the CV of the payable over FV of the asset transferred to the creditor.

24
Q

What principle is financial accounting based on?

A

Historical cost principle

25
Q

Capital lease criteria

A

1) bargain purchase option
2) title transfer
3) 75% life
4) pv = 90% fv

26
Q

What does any FV measurement assume?

A

Assumes the transaction is occurring in the principal market for the asset/liability

27
Q

What are the 3 acceptable methods to report taxable income?

A

1) Cash method
2) Accrual method
3) Hybrid method

28
Q

What’s the purpose of debt covenants?

A

to protect the interest of the lending institution

29
Q

When is technological feasibility reached?

A

Upon completion of detailed program design

Upon completion of a working model

30
Q

What type of rules does the SEC make?

A

SEC issues Financial Reporting Standards that usually agree with GAAP.

31
Q

Where is basic EPS reported?

A

On the face of the income statement

32
Q

How do you record the transfer of non-monetary items in a nonreciprocoal transfer (property dividend)?

A

Record at the FV of asset and a G/L is recorded

33
Q

What is the journal entry for the payment of life insurance premiums?

A

Interest expense XX

Cash XX

34
Q

What is the journal entry for the payment of life insurance premiums as CSV increases?

A

CSV of life insurance XX
insurance expense XX
Cash XX

35
Q

What is a cash flow hedge?

A

Hedge of variable cash flows of recognized assets and liabilities or forecasted transactions that is attributable to a particular risk.

36
Q

What is a fair value hedge?

A

Hedge in change of fair value of recognized assets, liabilities, or firm commitments that are attributable to a particular risk.

37
Q

What is the purpose of the notes to the financial statements?

A

To provide disclosures required by GAAP.

38
Q

What is the purpose of Regulation S-X?

A

Provide guidance for the issuer regarding form and content of financial info submitted to the SEC.

39
Q

What is a rabbi trust?

A

It is a grantor trust that allows it to qualify for deferral of employee compensation paid from it. Funds are available to pay creditors incase of employers bankruptcy.

40
Q

How can you tell if it is diluted?

A

Market price > exercise price

41
Q

Calculation for G/L on settlement of Asset Retirement Obligation

A

(ARO Liability on Settlement Date)-(Actual Settlement Cost)=G/L

FAR (20 decks)

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