Becker F1

Question 1

What is the mnemonic for the literature that composes the codification?

Answer 1

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

Question 2

How is the codification updated?

Answer 2

Through accounting standards updates ASUs. Issue exposure draft after majority vote, then ASU after majority vote.

Question 3

What is the mnemonic for the elements of FS?

Answer 3

REGL ALE needs ID

Question 4

What is the mnemonic for the PV measurement five elements?

Answer 4

UVOTE

• Uncertainty
• Variations in timing of FCF
• Other factors
• Time value of money
• Estimated future cash flow

Question 5

What is the IS/RE mnemonic?

Answer 5

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

Question 6

On the IS what is included in inventory costs?

Answer 6

purch price, freight in

Question 7

On the IS what is included in selling exp?

Answer 7

Freight out, salaries/comm, advertising

Question 8

On the IS what is included in G&A

Answer 8

salaries, acct, legal, ins

Question 9

On the IS what is included in non-operating

Answer 9

aux activities, interest expense

Question 10

What are the impairments/losses in discontinued ops?

Answer 10

Initial, gain/loss from ops, gain/loss from disposal. Can revalue later up through previous losses.

Question 11

What is criteria for classifying as discontinued ops?

Answer 11

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

Question 12

What do IFRS and GAAP require for recognition of a liability on exit or disposal activities?

Answer 12

1) obligation event occurs
2) event results in present obligation to pay/svc
3) no discretion to avoid

Question 13

How are accounting changes handled?

Answer 13

Prospectively

Question 14

How are changes in accounting principle handled?

Answer 14

Retrospectively, except to LIFO and change in depr method

Question 15

How are changes in accounting entity handled?

Answer 15

Retrospectively

Question 16

How are error corrections handled?

Answer 16

Restatement

Question 17

What is the mnemonic for OCI?

Answer 17

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)

Question 18

Is a compliance statement required under IFRS? GAAP?

Answer 18

Yes, no.

Question 19

What are the tests for segment reporting?

Answer 19

10% of:

1) assets
2) revenue
3) profit of segments that dont report loss, or losses (whichever greater)

75% threshold must be met

Question 20

How is segment P&L calculated?

Answer 20

Rev
-direct traceable costs
-reasonable allocation of costs (by cfo)
=Operating P or L

Question 21

Is it required to disclose segment liabilities under IFRS? GAAP?

Answer 21

Yes, no.

Question 22

What are the differences for reporting development stage enterprises? What additional disclosures necessary?

Answer 22

Startup/org costs, expense immediately. Follow GAAP. Disclose cum net loss, rev exp, cash flows

Question 23

For first time IFRS adoption what is the transition date?

Answer 23

The beginning balance sheet date of the earliest period presented?

Question 24

For first time IFRS adoption what are the required statements?

Answer 24

3 BS, 2 others.

Question 25

How is first time transition to IFRS accounted for?

Answer 25

adjust RE for transition date. Restate ass/liab. for periods shown. Reconcile between last GAAP statement and transition date IFRS.

Question 26

What are the SEC reporting forms?

Answer 26

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

Question 27

What statements are required under reg s-x?

Answer 27

2BS, 3is/cf