Day 6 - DNF Flashcards
1
Q
ABC issues qrtly interim FS, how should temporary market declines in inventory valuation be reported?
A
It is not, only permanent declines in inventory value are reflected in interim FS
MCQ-05921
2
Q
Rule of thumb: Lower of Cost or Market
A
Compare “floor” with “ceiling” and “replacement cost” (use middle amount)
Compare middle amount with “cost”
MCQ-00131
3
Q
3 conditions to start capitalizing interest expense:
A
- All permits / licenses have been filled
- Interest cost is being incurred
- Expenditures for asset have been made
MCQ-01546
4
Q
Where are gains and losses of foreign currency translation hedges reported for Fair Value & Net Investment?
A
Fair Value - Current Income
Net Investment - OCI
MCQ-07436
5
Q
When do you Accrue a loss
A
Only when PROBABLE
“reasonably possible” = Disclose
MCQ-00915
