F1 Flashcards
BS, IS, & Comprehensive Income, EPS, Stockholders' Equity
10k filing requirements
annual filing
60 - large accelerated
75 - accelerated
90 - all other
10Q filing requirements
quarterly filing
40 - large accelerated & accelerated
45 - all others
8k filing requirements
changes when material events occur
True of False: Revenue from discontinued operations are included in income statement revenues
False; Discontinued operations are included in discontinued operations
what is stockholders’ equity? / how do you calculate?
the owner’s claim of residual assets (A-L) / toal shareholder’s equity (A-L) - preferred stock outstanding (greater of call price & par value) - cumulative preferred dividends
book value per common share
common shareholders’ equity / common shares outstanding (issued - repurchased)
Retained earnings = ?
Net income/loss - dividends declared (cash, property @ fv, stock +/- prior year adjustments net of tax (error corrections) +/- accounting changes reported retrospectively net of tax (usually lifo or depreciation change)
Treasury stock - cost method
gain/loss calc upon reissuance
original issuance:
cash (shares @ purchase price)
common stock (shares @ par)
APIC - CS (excess
Buyback:
Treasury stock
Cash
Reissuance above cost
Cash (shares @ par)
Treasury stock (shares @ cost)
APIC - TS (gain/excess)
Reissuance below cost:
Cash (shares @ par)
APIC - TS
Retained earnings (plug/excess)
Treasury stock
Treasury stock - legal/par method
Gain/loss immediately upon repurchase
original issue:
Cash (shares @ par)
Common stock (shares @ par)
APIC - CS (excess)
Buyback above purchase price:
treasury stock (shares @ par)
APIC - CS
Retained earnings (loss)
Cash (shares @ cost)
Buyback below purchase price
treasury stock (shares @ par)
apic - cs (reversal)
cash (shares @ par)
apic - ts (‘gain’)
Reissuance
cash (shares @ price)
treasury stock (shares @ par)
APIC - CS (plug)
treatment of property dividends
adjusted to fair value (gain/loss to net income) on date of declaration, recorded at FV at declaration date to retained earnings
treatment of stock dividends
no cash outflow, no dividend income to owner, increases amount of shares owned
donated treasury stock
no change in total stockholders’ equity, common shares outstanding decreases, book value per share increases
Cash
APIC
donated treasury stock
How should you distribute cash dividends to shareholders?
- Find capitalization of each group
# of shares x par value x dividend rate - allocate initial capitalization then excess based on relative capitalization
dividend received / total dividend declares = relative cap
@ declaration:
Retained earnings
Dividend payable
nominal accounts
temporary accounts that start at 0 each year
freight out
selling expense
freight-in
COGS
profit margin
net income / sales
net realizable value
selling price - cost to sell
comprehensive income = ?
Net income + OCI
= operating income - interest expense - inc taxes - discontinues ops + OCI
Other comprehensive income
PUFI
Pension adjustments
Unrealized gain/loss from AFS securities/bonds)
Foreign TRANSLATION adjustment
Instrument specific credit risk
AOCI
OCI & PUFI to date as of beg of year +/- PUFI in CY =?- reclassification adjustments
where are transaction gains/losses reported?
income statement
where are translation gains/losses reported?
OCI/PUFI
basic eps
net income available to common shareholders (NI - cumulative pref dividends) / weighted average # of common shares outstanding (wacso)
