CH10 Flashcards
Bonus Method
Goodwill
Liquidation
changes partners captial
changes partnership total assets
based on capital accounts with poorest partners not receiving anything
Enterprise Wide disclosure requirements
must disclose for only public companies and production is required
Asset Retirement Obligation w/ accretion expense @ disposal
JE
ARO Liability XX
Additional Demo Exp. XX
Cash XX
Accretion expense formula
BEG ARO * risk adjusted rate
Troubled Debt restructuring gain
Carrying amount - Future cash flow payments
Debtor exchanges stock for debt; when is a gain recognized and how is it recognized
value of stock equals the amount originally owed if CS is less then amount owed it is a gain
Subsequent events that do not require inclusion to current year F/S
when the event takes place AFTER the year end
IFRS impairment losses
can be reversed to CY income
IFRS disallows FMV of what balance sheet item
INVENTORY
SPE must be consolidated when
company controls SPE
IFRS property in exchange for property & cash
cash is recorded as a loss
IFRS pension gains
actuarial gains go to OCI
IFRS Foreign exchange gain or loss for debt securities
Reported on I/S
IFRS deferred tax assets and liabilities
NONCURRENT
IFRS deferred lease gains can be amortized if
they are above sales price
IFRS research expenditures
always expense same as GAAP
Revaluation gains
Revaluation losses
can reverse prior losses I/S
can reverse prior gains OCI
Holding Gains for inventory
Replacement cost - Original
Derivatives include
future, forwards and swaps
OCI Derivatives
Effective Cash Flows
Effect Foreign Cash Flows
Foreign Investment Hedge
Fair Value Option is increased by
dividends received and increase in FMV
Income approach
Future Cash Flows
Discontinued Operations included FMV write down
in 1st year
IFRS Liquidation
no standards
Liquidation of assets increase
PROCEEDS
ARO Liability is expensed how
amortized over the passage of time
Fair Value is used to assess
amounts received for assets and amounts paid for liabilities
EXIT COST
Fair Value Measurement Market
Principle Market
Derivatives Assets or Liabilities
derivatives are not assets or liabilities themselves
Cash received from sale of equipment
Investing
Whereas gain or loss is operating
Allowance for collectibles is treated as what in regards to CF
ASSET
GAAP versus IFRS cash flows for bank overdrafts
GAAP - Financing
IFRS - Operating
Contingencies 1 - Losses 2 - Gains 3 - amount disclosed 4 - appeals
1 - disclose all except for probable then accrued
2 - disclose all except for remote; never accrued
3 - lowest estimate unless specially states an amount is most likely
4 - if gain is made but there is an appeal process DO NOT accrued gain
Accrued Liabilities can be offset by
INSURANCE; deductible remains as liability
Payroll Liability
Payroll Expense
included employee portion and FICA
only employer portion
Warranty Costs are recognized
at the date of the sale
Level 1
Level 2
Level 3
1 - quoted stock prices active marker
2 - observable and quote stock price similar market
3 - projections and internally developed
Fair Value Option Derivatives
1- An investment in a subsidiary that the entity is required to consolidate
2 - An interest in a variable interest entity that the entity is required to consolidate
3 - Employers’ and plans’ obligations (or assets representing net overfunded positions) for pension benefits, other postretirement benefits (including health care and life insurance benefits), postemployment benefits, employee stock option and stock purchase plans, and other forms of deferred compensation arrangements,
4- Financial assets and financial liabilities recognized under leases a
5- Deposit liabilities, withdrawable on demand, of banks, savings and loan associations, credit unions, and other similar depository institutions
6- Financial instruments that are, in whole or in part, classified by the issuer as a component of shareholder’s equity (including “temporary equity”). An example is a convertible debt security with a noncontingent beneficial conversion feature.
Settlement amount
underlying (original amount) * notion
Accretion Expense is not included in the ARO liability
n
