F1 Flashcards
What is included within the summary of significant accounting policies in the notes of the Financial Statements?
Measurement bases (basis) Policies and procedures criteria pricing policies principles and methods
What is the formula for segment profit (loss)
revenues
less: Directly traceable costs
Less: Reasonably allocated Costs
= the operating profit or loss
What is a form 10-k?
Must be filed annually by companies (issuers)
60 days after the filing period for large filers, 75 days for regular filers, and 90 days for all others
Large accelerated filers?
What are accelerated filers?
They have revenues of more than 700 million, and have worldwide market.
They are worldwide and have more than 75 million but not more than 700 million
What is form 10-Q?
Must be filed quarterly. The deadlines are 40 days and 45 days
What is form 11-k?
Employee benefit plan
What are forms 20-f and 40-F?
Filed annually by foreign private issuers.
Form 40-F is filed by Canadian companies with the SEC, and 20F is all other international filers
What is form 6-K?
Filed semi annually by foreign private issuers
What is form 8-K?
This form indicates major corporate events like asset disposals, changes in securities and trading markets, corporate asset acquisitions
What are forms 3, 4, 5?
These files are reported by directors, officers, or beneficial owners of more than 10% of a class of equity securities of a registered company
What is regulation S-X?
This sets forth the form and requirements of the annual and interim financial statements
What is included as selling expenses?
Freight out selling expense sales salaries Office space Advertising
What is part of the general and administrative expenses.?
Legal and audit fees
If the audit space is occupied by the accounting department
Insurance
Officer Salaries
How should a change in accounting estimate be reported?
It should not be reported anywhere, unless in the notes if it is material. The reason being it gets handed prospective treatment
What are freight in and Freight-out costs associated with?
Freight out is a selling expense
Freight in is a cost of inventory
Are operating or capital leases part of disposal activity?
The answer is that any cost associated with disposal of a lease will be considered okay, EXCEPT a capital lease.
What is the SEC standards that are in the code?
Regulation - Regulation s-x For - FRR Accounting - ASR I- IR interpretive releases S Emergin
What act of which year created the SEC?
What act do you have to comply with for a publicly traded company?
The act of 1933 created the SEC, and you must comply with the act of 1934.
What does passing confirms money mean?
Passing confirms money is a qualitative characteristic that fall under Relevance.
P- predictive value
C- conforming value
M - materiality.
What is the criteria under faithful representation?
This is the second topic under qualitative characteristics. Completely Neutral is Free from Error C- must be complete N- neutrality F - free from error
What are enhancing qualities?
- Comparability
- verifiability
- Timelines
- Understnadabiliy
What are the five elements of present value measurement?
EVTUO
- E= estimated future cash flow
- V= timing of the variations of future cash flow
- T= time value of money
- U= Price of uncertainty.
- O= Other factors.
What is the difference between replacement cost and market cost?
- Market cost is the price that you would get if you were to sell an asset, or get rid of a liability.
- Replacement cost is the cost to dispose of an asset and acquire another asset, the same one.
If you go from cash basis to a accrual basis how is this accounted for?
This is a change that is handled retrospectively and will be handled as an error for you are not allowed to use the cash basis of accounting.
