Balance Sheet & Disclosures Flashcards
IFRS Related Party Disclosures
Material related party transactions *including compensation arragements
Components of “Contributed” SH-Equity
Capital Stock-preferred & common
PIC
Internal Generated Components of Equity are:
Retained Earnings
Accumulated OCI
Treasury Stock (Contra-Equity)
Significant Accounting Policies are…
An INTEGRAL part of the Fin Stmts
SAP’s Identify & Describe
- Measurement bases 2. Accounting principles & methods 3. Criteria 4. Policies 5. Pricing
Common SAP’s
- Basis of consolidation 2. Depr. methods 3. Amort of Intangibles 4. Inventory pricing 5. Profit Recognition on LT construction contracts 6. Revenue Recognition from Franchising/Leasing
Items that are not in SAP note
- Compositions/Amounts in accounts 2. Detailed changes in accounting principles 3. Dates/Maturities of LTD 4. Depr, Depl, of Amort.
Other notes to F/S (besides SAPs)
- in SE 2. Mkt. Sec. disclosures 3. Contingency losses 4. Contractual obligations (Op Lease) 5. Pension plan description 6. Post-BS events
Related Party Disclosures GAAP
Material RP Transactions - Nature of relationship, description of transaction, dollar amounts/per period, Amounts due to/from, Name of RP.
Related parties include:
- Affiliates 2. Equity-method 3. Parent & subs 4. Pensions, profit sharing, trusts 5. Mgmt & Immediate family 6. Owners of 10% or more (not in IFRS)
Types of related party transactions
- Sales/Purchases/Transfers 2. Services 3. Use of property/equip 4. Borrowing/lendings 5. Maint. of bank balance 6. Intra-entity billings (allocations) 7. Filings of consol. tax returns.
Related Party Disclosures IFRS Differences
IFRS includes compensation arrangements, Bad debt expense and write-offs of related party amounts
Disclosures of Risk & Uncertainty (GAAP)
- Nature of Operations 2. Use of Estimates 3. Certain Significant Est. 4. Concentration risk (supplier/lender/customer/products)