Concepts CH 4 Flashcards
Summary of Significant Accounting Policies
1 Basis of Consolidation 2 Depreciation Methods 3 Amortization of Intanibles 4 Inventory Pricing 5 Recognition of Revenue Contracts 6 Recognition of Revenue Leases
Segment Reporting - Op Segment
1 Business component that have Rev & Exp
2 Result Regularly Review by CODM
3 Seperate Fin Info Available
Segment Reporting - Quantitative Thresholds
1 Revenue > 10% (include (in and out) of all op seg)
2 Asset > 10% of all segments
3 Profit/(loss) > Absolute amount of profit or loss 10%
Going Conern
Disclosure S/B made in notes about doubts and managements mitigation
Nature of OPs
1 Major Product/Service 2 Principal Markets 3 Locations of these markets ALSO All industries in which there are ops Relative importance Basis for determination of importance
Concentrations - Disclose IF
Known to exist Vulnerable to severe impact Reasonably possible Include Volume, Customer, supplier, vendor Revenue product/service Available supplies Geographic Location
Subsequent Events
Events that occur after balance sheet date but prior to the issuance of financial statements
Subsequent Events - Recognized
Conditions existed at balance sheet date
Subsequent Events - Unrecognized
Conditions that did not exist at balance sheet date
Sub Events - Unrecognized but require disclose
Sale of bond/capital stock Business combo Settlement of claim after balance sheet Loss of Inv Fire/Disaster Loss of Receivable
Instruments
FV of Financial Instruments (instrument by instrument basis)
Level of FV heirarchy
Level of FV Hieracrchy
Level 1 - Unadjusted Market Price Quotes
Level 2 - Observable but exclude quoted prices
Level 3 - Unobservable
Credit Risk
An entity must disclose most significant risk arising from instruments.
Credit Risk is the risk of accounting loss from financial instrument because of possible failure to perform by another party
IFRS LIFO
Not permitted per IFRS
Fair Value of Asset or Liability
The price that would be received when selling an asset or paid when transferring liability in orderly transaction between market particpants
Market participants
Are willing and able to engage in transactions involving assets and liabilities
Disclosure regarding external customers
If 10% or more of revenue is derived form one external customer 1) that fact 2) the amount form each such customer and 3) the segment reporting revenues must be disclosed
Presentation of Financial Asset & Liabilities is required to be disaggregated only by
Form of Financial Asset
Measurement Category
Property Taxes - Interim Reporting
Relates to all four Quarters
Bonus - Interim Reporting
Relates to services rendered by quarter regardless of whether it is paid
Disposal of Componet
Reported in period it occurred
Flood Loss
Unusual or Infrequently occurring items must not be prorated over balance of fiscal year
Level 1 inputs are
unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date.
A transaction is assumed
To occur in the reporting entity’s principal market for assets or liability. In the absence of such a market, it is assumed to occur in the most adventageous market. The FMV is the price without adjustment (cost to sell)
