Becker F1 Flashcards
What is the mnemonic for the literature that composes the codification?
FEDPRIA F-FASB E-Emergint Task Force abstracts D-Derivative implementation guide P-APB Opinions R-APB Research Bulletins I-Acct Interpretations A-AICPA stmts etc. \+relevant SEC Standards
How is the codification updated?
Through accounting standards updates ASUs. Issue exposure draft after majority vote, then ASU after majority vote.
What is the mnemonic for the elements of FS?
REGL ALE needs ID
What is the mnemonic for the PV measurement five elements?
UVOTE
- Uncertainty
- Variations in timing of FCF
- Other factors
- Time value of money
- Estimated future cash flow
What is the IS/RE mnemonic?
IDEA
- Income from continuing Ops - IS
- Discontinued Ops - IS - net of tax
- Extraordinary Items - IS - net of tax
- Accounting change cumulative effects - RE - net of tax
On the IS what is included in inventory costs?
purch price, freight in
On the IS what is included in selling exp?
Freight out, salaries/comm, advertising
On the IS what is included in G&A
salaries, acct, legal, ins
On the IS what is included in non-operating
aux activities, interest expense
What are the impairments/losses in discontinued ops?
Initial, gain/loss from ops, gain/loss from disposal. Can revalue later up through previous losses.
What is criteria for classifying as discontinued ops?
1) Mgmt plan to sell
2) component available for immediate sale in pres cond
3) active plan to locate buyer
4) expected to be completed within one year
What do IFRS and GAAP require for recognition of a liability on exit or disposal activities?
1) obligation event occurs
2) event results in present obligation to pay/svc
3) no discretion to avoid
How are accounting changes handled?
Prospectively
How are changes in accounting principle handled?
Retrospectively, except to LIFO and change in depr method
How are changes in accounting entity handled?
Retrospectively
How are error corrections handled?
Restatement
What is the mnemonic for OCI?
PUFER P-pension adjustments U-unrealized gains/losses on AFS F-Foreign currency translation adjustments E-Effective portion of cash flow hedges R - Revaluation surplus (IFRS only)
Is a compliance statement required under IFRS? GAAP?
Yes, no.
What are the tests for segment reporting?
10% of:
1) assets
2) revenue
3) profit of segments that dont report loss, or losses (whichever greater)
75% threshold must be met
How is segment P&L calculated?
Rev
-direct traceable costs
-reasonable allocation of costs (by cfo)
=Operating P or L
Is it required to disclose segment liabilities under IFRS? GAAP?
Yes, no.
What are the differences for reporting development stage enterprises? What additional disclosures necessary?
Startup/org costs, expense immediately. Follow GAAP. Disclose cum net loss, rev exp, cash flows
For first time IFRS adoption what is the transition date?
The beginning balance sheet date of the earliest period presented?
For first time IFRS adoption what are the required statements?
3 BS, 2 others.
How is first time transition to IFRS accounted for?
adjust RE for transition date. Restate ass/liab. for periods shown. Reconcile between last GAAP statement and transition date IFRS.
What are the SEC reporting forms?
10-k - annual and audited 10-q - quarterly and reviewed 8-k Major events 20-f, 40-f foreign equivalent of 10k 6-k semiannual foreign equivalent of 10q Forms 3,4,5 for directors
What statements are required under reg s-x?
2BS, 3is/cf
