F1

Question 1

Detail the types of gains/losses that can be recorded on discontinued operations

Answer 1

• Impairment gain/loss: Write down the carrying value of available-for-sale (AFS) operations (net of selling expenses). Gains cannot exceed original carrying value.
• Operations gain/loss: Any operational gains or losses recorded under discontinued ops
• Gain/loss on sale: When sold, report gain/loss

Question 2

Name the four main components of OCI

Answer 2

1. Pension adjustments (PBO)
2. Unrealized gain/loss on debt/equity securities
3. Foreign translation gain/loss (not transaction gains/losses)
4. Insttument-specific value change due to credit risk

Question 3

Detail the types and deadlines for SEC filers and required reports.

Answer 3

• Large accelerated filer ($700M)
• Accelerated filer ($75M)
• non-accelerated filer

1. 10-K annual report, audited.
   - 60 days Large filer
   - 75 days Acc filer
   - 90 days non-acc filer
2. 10-Q quarterly report, unaudited.
   - 40 days Large / Acc filers
   - 45 days non-acc filer
3. 8-K timely info filing.
   - 4 business days from event

Question 4

List all potentially dilutive items for calculating EPS

Answer 4

• Convertible preferred stock
• Convertible bonds
• Contracts settled with stock
• Stock options

Question 5

How do you calculate double-declining balance depreciation?

Answer 5

Asset book value (gross of salvage & accumulated depreciation) * 2 / remaining useful life

** Use Excel to calculate