Becker FAR Flashcards
What are the authoritative literature included in the codification?
FEDPRIA, Financial Accounting Standards Board, Emerging issues Task Force Abstracts and Topic D, Derivative Implementation Group issues, Accounting Principles Board opinions, Accounting research bulletins, Accounting interpretations, American Institute of Certified Public Accountants
What are the elements of financial statements?
REGL ALE needs ID, Revenues, Expenses, Gains, Losses (impairement/writedown), Assets, Liabilities, Equity, Investments by owners, Distributions by owners
What is the presentation of an income and retained earnings statement?
IDEA, Income (or loss) from continuing operations, Income (or loss) from discounted operations, extraordinary items, Cumulative effect of change in accounting principle
What is included in Other comprehensive income?
PUFER, Pension adjustments, Unrealized gains and losses (AFS securities), Foreign currency items, Effective portion cash flow hedges, Revaluation surplus (IFRS only)
What is the equity method account analysis?
BASE, Beginning balance, Add: Investors share of investee earning, Subtract: Investors share of investees dividends, Ending balance
How does a corporation adjust the acquisition method during consolidation?
CAR IN BIG, Common Stock, APIC, Retained earnings are eliminated, Investment in subsidiary is eliminated, Noncontrolling interest is created, Balance sheet of subsidiary is adjusted to fair value, Identifiable intangible assets of the subsidiary are recorded at their fair value, Goodwill (or Gain) is required
How do you calculate accounts receivable?
Beginning balance, +Credit sales, -Writeoffs, -Convert to note, -Cash collected, =Ending balance
How do you calculate market ceiling (NRV)?
Selling price, -Costs of completion, =Market Ceiling (NRV)
How do you calculate Market Floor?
Market Ceiling (NRV), -Normal Profit (profit margin), = Market Floor
What do you use to compute depletion on land?
REAL property, Residual value (subtract), Extraction/development cost, Anticipated restoration cost, Land purchase price
What is the conditions to capitalize a capital lease (US GAAP)?
OWNS, Ownership transfers at end of lease, Written option for bargain purchase, Ninety percent of leased property, Seventy five percent or more of asset economic life is being committed in lease term, Only 1 is required
What are the finance lease criteria (IFRS)?
OWES FACS, Ownership, Written bargain, Economic life, Substantially all of the fair value, Fluctuation, Ability to continue the lease, Cancel the lease, Specialized nature
What are the sales type/direct financing type criteria (US GAAP)?
LUC, Lessee owns the leased property, Uncertainties do not exist regarding any unreimbursable costs to be incurred, Collectability of the lease payments is reasonably predictable, Must have all three
How do you calculate Net periodic pension costs?
SIRAGE, Current service cost, +Interest cost, - Return on Plan assets, +Amortization of prior service cost, -Gains and +Losses, +Amortization of existing net obligation or net asset, =Net periodic pension cost
How do you calculate Basic EPS?
Basic EPS=, Income available to common shareholders (NI - PD)/, Weighted average number of common shares outstanding
How do you calculate Weighted average number of common shares outstanding (WACSO)?
Shares outstanding at the beginning of the period, +Shares sold during the period (on a time weighted basis), -Shares reacquired during the period (on a time weighted basis), +Stock dividends and stock splits (retroactively adjusted), -Reverse stock splits (retroactively adjusted), =Weighted average number of common shares outstanding for the entire period (WACSO)
