Deck 6 Flashcards
how are contingent shares included in EPS?
contingent shares are included in EPS when the condition is satisfied
restricted vs unrestricted net position
funds designated by city officials are considered unrestricted. Only external parties can restrict funds
how are fair value hedges reported?
both the hedge and gains and losses from the hedge are recognized as income in continuing operations
how are lease payments reported in cash flow statemt?
principal-financing outflow
interest-operating outflow
how are additional shares treated when acquired during the year in basic EPS?
if 1,500 were outstanding and 500 more were issued, calculate 1,500*months outsatnding and add 2,000 * months outstanding to the caluclation.
how is a gain or loss calculated in an acquisition that started as equity ownership into consolidation?
if 30% was acquired, take purch price \+30%NI -30% div =invest in sub at year end
THEN
45% more was acquired at a pp
fair value is more than pp at the date.
adjust previously held adjustment: fair value of new price*30%
start with invest in sub end of year
Plug-gain associated in acquisition
=fair value price at the date in question
what is included in investing and financing cash flow note disclosures?
disclose non-cash portion. For example if 50,000 shares at 19 fair value price. disclose 19*50,000 amount.
Do DTAs or DTLs add to taxable income in the future?
DTLs
if it adds to future taxes(taxable income) it will cause future book income to be lower
Today, DTLs will reduce taxable income( less now, more later)
dtas reduce future taxable income/future taxes.
what is included in the total cost for %complete
how is % complete calculated
Total costs=contract price +cost to date+est remaining cost
% complete=cost to dat/total costs
how is a change in estimate reflected?
prospectively, in income from continuing ops
how are gov activities change in net position calculated?
start w/change in fund balance add capital outlay add principal add asset disposal subtract sources, other financing source add deferred inflows subtract unpaid interest subtract depreciation expense =change in net position
*ignore interest payment(expense in GAAP)
what is the opening balance journal entry to record beginning capital assets for government wide financials?
Capital assets
A/D
net position
for a semiannual payable bond issued at jan 1. Face =50,000
rate is 8%, 46,139, 10% market how is interest expense and interest payable calculated?
interest payable=50,000(face)4% rate stated semiannual
interest expense=46,139(issue price).05 market rate semi
amortization=difference between 2
if its a discount, add amortization to issue price
if its a premium, subtract amortization to issue price to get carry value
if the bond is semiannual, there are two payments in the year
what is the treatment for stock splits and reverse splits?
keep equity the same, so if 100,000 shares become 5:1 split to 500,000 change par value to get it to 100,000 from 10 to 2 price
what is the MD&A and where is it reported?
provides a brief overview of financials and analytics and is reported before the basic financials
