F1

Question 1

What is the order of standard setting bodies that determined GAAP?

Answer 1

1939- CAP, 1959- APB, 1973- FASB

Question 2

What is the FASB’s Accounting Standards Codification (ASC)?

Answer 2

effective July 1, 2009. single source of authoritative nongovernmental US GAAP

Question 3

What authoritative literature is included in the ASC?

Answer 3

FED PRIA. FASB, EITF, Derivative Implementation Group Issues, APB, ARB, Accounting Interpretations, AICPA

Question 4

What is the purpose of the IASB (International Accounting Standards Board)?

Answer 4

to develop a single-set of high-quality, global accounting standards

Question 5

What does the IFRIC (International Financial Reporting Interpretations Committee) do?

Answer 5

provides guidance on newly identified financial reporting issues not addressed in IFRS, and assists IASB in achieving convergence of international accounting standards

Question 6

What is included in IFRS (international Financial Reporting Standards)?

Answer 6

IFRS, IASs, & interpretations developed by IFRIC and former SIC

Question 7

IASB & FASB have been working towards convergence of GAAP and IFRS since when?

Answer 7

2002

Question 8

What are the SFAC?

Answer 8

The Statements of Financial Accounting Concepts are the basic reasoning behind FASB pronouncements

Question 9

What is SFAC No.8 Chapter 1?

Answer 9

defines primary users (existing & potential investors, lenders, and other creditors) & financial reports (must meet the users informational needs)

Question 10

What is SFAC No.8 Chapter 3?

Answer 10

defines the fundamental qualitative characteristics of useful financial information

Question 11

What are the Fundamental Qualitative Characteristics?

Answer 11

It is RELEVANT that your bf is FAITHFUL while you are studying…. Relevant & Faithful Representation

Question 12

In order to be relevant, info must have?

Answer 12

PASSING COMFIRMS MONEY. Predictive Value, Confirming Value, Materiality

Question 13

In order to meet Faithful Representation, info must be?

Answer 13

COMPLETELY NEUTRAL IS FREE FROM ERROR. Completeness, Neutrality, Freedom from error

Question 14

What are the Enhancing Qualitative Characteristics?

Answer 14

COMPARE & VERIFY IN TIME TO UNDERSTAND. Comparability, Verifiability, Timeliness, Understandability

Question 15

What is SFAC No. 5?

Answer 15

includes a full set of F/S, measurement attributes for A & L, and Fundamental assumptions

Question 16

What are the ways to measure A & L?

Answer 16

historical cost, current cost, NRV, market value, PVFCF

Question 17

What are the fundamental assumptions of GAAP?

Answer 17

entity, going concern, monetary unit, periodicity, historical cost principle, revenue recognition principle, matching principle, accrual accounting, full disclosure principle, conservationism principle

Question 18

What are the fundamental assumptions of IFRS?

Answer 18

accrual basis & going concern

Question 19

What is SFAC No. 6?

Answer 19

The elements of the financial statements

Question 20

What are the elements of the financial statements

Answer 20

REGL ALE needs ID. IS (REGL), BS (ALE), Inv & Dist to owners

Question 21

What is SFAC No. 7?

Answer 21

The framework for using FCF as a measurement basis for A&L

Question 22

What are the 5 elements of PV measurements?

Answer 22

Estimate FCF. Timing variations of FCF, TVM, Credit risk, etc.

Question 23

What are the 2 different approaches to calculating PV?

Answer 23

Traditional (scheduled known payments) or Expected (uncertain future payments)

Question 24

What is the presentation order for IS and RE?

Answer 24

IDEA. Income from Continuing Operations (gross & net), Income from Discontinued Operations, Extraordinary Items, Change in Acc Principle (RE only)

Question 25

What is the multiple step income statement?

Answer 25

REV & Exp from operating + rev & exp from non-operating – taxes = net income

Question 26

What is the single step income statement?

Answer 26

All rev & gains – all exp & losses = net income

Question 27

What is discontinued operations?

Answer 27

disposed of or held for sale

Question 28

How do you calculate income from discontinued operations?

Answer 28

Impairment Loss + Operations + G/L on disposal

Question 29

Where do you report unusual AND infrequent items?

Answer 29

Extraordinary Items

Question 30

Where do you report unusual OR infrequent items?

Answer 30

Non-operating in continuing operations

Question 31

What is a change in accounting estimate?

Answer 31

PROSPECTIVE.

Question 32

What is a change in accounting principle?

Answer 32

RETROSPECTIVE. (GAAP to GAAP). GR = cumulative effect is change in earliest beginning RE balance. Exception = prospective if to LIFO or change in depreciation method

Question 33

What is a change in accounting entity?

Answer 33

RETROSPECTIVE. GAAP ONLY

Question 34

What is an error correction?

Answer 34

PRIOD PD ADJ

Question 35

What is Comprehensive Income?

Answer 35

includes all change in owners equity other than transactions with owners. = NI + Other Comp Inc (PUFER)

Question 36

What is included in Other Comprehensive Income?

Answer 36

PUFER. Pension Adjustments. Unrealized G/L on AFS Securities. Foreign Currency Items. Effective Portion of CF Hedges. Revaluation Surpluses (IFRS ONLY)

Question 37

What are the presentation methods for Other Comprehensive Income?

Answer 37

Single Statement Approach (Start w/ rev), Two Statement Approach (start w/ NI), Statement of changes in equity (GAAP ONLY. Ending soon)

Question 38

What is a classified BS?

Answer 38

Current & non-current A&L

Question 39

What is required by GAAP and IFRS in note1 or 2?

Answer 39

Summary of Significant Accounting Policies

Question 40

Is interim financial reporting required?

Answer 40

not by GAAP or IFRS, but it is by the SEC

Question 41

Compare IFRS vs. GAAP for interim reporting.

Answer 41

IFRS requires same principles used in annual and also has minimum requirements. (GAAP does not)

Question 42

What is segment reporting?

Answer 42

required disclosures for all public companies. Use same principles as annual. Do not eliminate inter company transactions

Question 43

What is the qualitative threshold for a reportable segment?

Answer 43

10% of (all revenue, reported profit/loss, or assets). Keep adding segments until \>75% external revenue

Question 44

What is a development-stage enterprise?

Answer 44

(GAAP only). A start-up or pioneering development

Question 45

What is reported in first time adoption of IFRS?

Answer 45

3 BS. All other 2

Question 46

What is Form 10-K?

Answer 46

us annual audited report

Question 47

What is Form 10-Q?

Answer 47

us quarterly unaudited report

Question 48

What is Form 11-K?

Answer 48

employee benefits plan

Question 49

What is Form 20-F and 40-F?

Answer 49

like foreign 10-k

Question 50

What is Form 6-K?

Answer 50

like foreign 10-q but semiannually

Question 51

What is Form 8-K?

Answer 51

report major corporate events

Question 52

What are Forms 3, 4 and 5?

Answer 52

filed by directors, officers, and beneficial owners.

Question 53

What is Regulation S-X?

Answer 53

form and content of interim & annual F/S

Question 54

What are the requirements for interim FS?

Answer 54

Reviewed, 2 everything, adj for fair presentation

Question 55

What are the requirements for annual FS?

Answer 55

audit report. 2 BS & 3 IS/CF

Question 56

What is XBRL?

Answer 56

Extensible Business Reporting Language.

Question 57

What is XML?

Answer 57

Extensible Markup Language = data tags to describe financial information for bus & fin reporting

Question 58

What is a tag?

Answer 58

a machine-readable code. Provides contextual information

Question 59

What is taxonomy?

Answer 59

defines specific tags