Deck24 Flashcards
Under GAAP, the fair value measurement disclosure requirements differentiate when?
Between items that use FV on a reccurring basis and items that use FV on nonrecurring basis.
When would a company use the Installment Sales Method of Recognition?
When Installment payments are Material, and when there is no Reasonable basis for estimating Collectibility.
Under the Equity Method for Investments, are Dividends ever treated as Income?
NO
A property dividend should be recorded at_______ Value at the Date of __________.
Market, Declaration - It is an arms length transaction and is therefore measured at Market Value
Is the direct write off method consistent with accrual accounting?
No - because DWO method recognizes the bad debt expense in the year incurred which may not be the year of sale.
Personal Financial Statements should report Assets and Liabilities at:
Estimated Current Values at the date of the financial statement
How are organization costs treated on Financial Statements?
Expensed Immediately - only costs to outside entities are capitalized
Who does fundraising for IASB?
IFRS Foundation
Does the PCC(Private Company Council) allow Private Companies to Amortize Goodwill?
Yes - Over 10 Years
IFRS mandates that inventory be reported at what?
Lower of Cost or NRV (Replacement Cost could be lower that NRV and not be used)
Deferred Gross Profit Percentage =
Deferred Gross Profit/Accounts Receivable
Is there a value assigned to the conversion feature of Convertible Debt?
No - Bonds convertible to stock are recorded the same way as Noncovertible bonds
Is Income from discontinued Operations a Revenue?
No - it is a special disclosure found below Income from Continuing Operations on the Income Statement.
Accounts Receivable Turnover =
Net Credit Sales/ Avg Accounts Receivable
A change in Depreciation Methods (e.g. switch from SL to DDB) is treated as a(n):
Estimate Change - Deferred over life of Asset
