F-1BS

Question 1

What do a classified Balance Sheet?

Answer 1

Distinguish between non-current assets and current assets as sales as non current liabilities and non-current liabilities.

Question 2

Types of Assets?

Answer 2

• Current Assets
• Investments
• PP&E
• Intagibles
• Other Assets

Question 3

Types of liabilities?

Answer 3

• current liabilities

- long-term liabilities

Question 4

What require IFRS and GAAP about notes?

Answer 4

require that a description of all significant policies must be include as an integral part of F/S.

Question 5

What is the preferred presentation?

Answer 5

Summary of Significant Accounting Policies

Question 6

Items identify and describe in Summary of Significant Accounting Policies?

Answer 6

• Measurement basis uses in do the F/S
• Accounting Principles and Methods
• Criteria
• Pricing
• Policies

Question 7

Accounting policies described?

Answer 7

• Basis of consolidation
• depreciation methods
• amortization of intangibles
• inventory pricing
• accounting for recognition of profit on LT-construction contracts
• recognition revenue from franchising or leasing operations.

Question 8

Items not included ?

Answer 8

• Composition of accounts and amounts in dollar of account balances
• Details relating to changes in accounting principle
• dates of maturity and amounts of LT-Debt
• Yearly computation of depreciation, depletion, amortization

Question 9

Remaining notes to the financial statements?

Answer 9

Contain all other information relevant to decision makers. Are not presented either the body of the financial statement or in the summary of significant accounting policies.

Question 10

Examples of remaining notes?

Answer 10

• changes in stockholder equity
• required marketable securities (carrying value and gross unrealized)
• contingency losses
• contractual obligations
• pension plan description
• post balance sheet disclosures

Question 11

What include related party disclosure?

Answer 11

• affiliate of an entity
• entities counted for using the equity method(investment in affiliate and joint ventures)
• parents or subsidiary or subsidiaries of a common parent
• Trusts for the benefit of employees such as pensions and profit sharing trust
• Management of an entity and their immediate family members
• owners of more than the 10%(principal members) and there immediate family.

Question 12

Examples of related party transactions?

Answer 12

• sales, purchase, and transfer of real or personal property
• services received
• use of property and equipment by lease
• borrowing, lending and guarantees.
• Maintenance of compensating bank balances for the benefit of related party
• intra-entity billings based on allocation of common cost
• Filings of consolidates tax returns.

Question 13

what include Material Related Party Transaction? US GAAP

Answer 13

• -Nature of the relationship
• a description of the transaction for each period
• dollar amounts of the transactions
• Amounts due to or from the related parties at each balance sheet date.
• the name of the related party if necessary to understand the relationship

Question 14

What exclude Material Related Party Transaction?

Answer 14

• compensation arrangement
• expenses allowances
• other similar items

Question 15

What include Material Related Party Transaction? IFRS

Answer 15

• compensation arrangement
• -Nature of the relationship
• a description of the transaction for each period
• dollar amounts of the transactions
• Amounts due to or from the related parties at each balance sheet date.
• allowances for bad debts related to amounts due from related parties
• bad debt expense or write offs of debts due from related parties.

Question 16

What is and what include disclosure of compensation arrangements? IFRS

Answer 16

entities are require to disclose key management personnel compensation in total.

• short term employee benefit
• post-employment benefit
• other long-term benefits
• termination benefits
• share-based payments

Question 17

US GAAP require disclosure of compensation arrangements?

Answer 17

• No. However, SEC regulation do require that disclosure

- IFRS also require that type of disclosure.

Question 18

What include Disclosure of Risks and Uncertainties ?

Answer 18

• Nature of operations
• Use of estimates in the presentation of F/S
• Certain Significant Estimates
• Current Vulnerability Due to Certain Concentrations

Question 19

What mean certain significan estimates? Examples?

Answer 19

• When that estimate will change in the near term and that the effect of the change will be MATERIAL, an estimate of the effect of the change should be disclose.
• EXAMPLE:
  
  • deferred tax asset
  • capitalized computer software
  • Loan valuation allowances
  • amounts reported in long-term contracts
  • litigation-related obligations

Question 20

What mean current vulnerability due to certain concentrations?

Answer 20

-arise when an entity is exposed to risk of loss that could be mitigated through diversification.

Question 21

Examples of concentrations?

Answer 21

• concentrations in:
  
  • volume of business transacted with a particular customer, supplier, lender
  • revenue from particular product, services, or fund-arisings
  • the available supply resources, such as materials, labor, services
  • market or geographic area

Question 22

How it disclose current vulnerability due to concentrations?

Answer 22

-Should met all of the following:
1-concentration exist at the F/S date
2-concentration makes the entity vulnerable to the risk of a near-term sever impact.
3- it is at least reasonably possible that the event that cut cause the sever impact will occur in the near term.