Deck12 Flashcards
IFRS is an acronym for what?
International Financial Reporting Standards
Who is a member of the Monitoring Board?
Chair of the SEC
The IFRS foundation takes into consideration the needs of only corporations?
False - they take into consideration the needs of entities of diverse backgrounds and different global settings
What is an SME under IFRS?
Small and medium sized entities. Defined by (a)NOT having public accountability and (b) publishing general purpose financial statements for external users
What defines “Public Accountability”?
(a) files financial statements for the purpose of issuing securities (b) holds assets in a fiduciary capacity for outsiders (banks, etc)
When a percentage of “receivables” is used to decide Allowance for Uncollectible Accounts”, then the adjustment is the amount needed to bring the account up to this amount. When is the opposite true?
When the percentage is based on Sales. The percentage of Sales is the adjusting entry, not the ending entry.
On a simple interest note, how many times is the principle due?
Once
How is a note receivable that matures in less than a year reported? Face Value or Present Value
Face Value - Current Notes need not be measured at present Value
For accounting, what rate of interest should be imputed for non-interestbearing notes?
Market Rate - and is also imputed for notes with an unrealistic interest rate
What is “Factoring”?
Selling Receivables
In a pledge arrangement, the title stays with who?
Originator
What is Impairment of a Loan?
When the amount of Cash I expect to get out of it is less than what I have it on my books for
For Impairment of a Loan, what account is it recorded on?
Bad Debt Expense
Under IFRS, A “CGU” (Cash Generating Unit) is:
The smallest group of assets that can be identified to produce cash flows independently of other assets
For Inventory, Transportation costs do NOT count toward Purchase costs when figuring COGS. T or F`
False - Transportation costs and Freight In are figured in Purchase cost
