F1M1

Question 1

SEC established year, and purpose of SEC

Answer 1

1934, issues acc rules and regulations

Question 2

CAP and APB

Answer 2

committee on accounting procedure, accounting principle board

Question 3

PCC

Answer 3

private company council

Question 4

ASC

Answer 4

accounting standard codification

Question 5

purpose of ASC

Answer 5

1. provide background info. 2. update info. 3. describe the basis for conclusion on changes

Question 6

IFRS

Answer 6

2001, established as part of IFRS foundation, issues IFRS

Question 7

IASB

Answer 7

includes IFRSs IASs, SIC interpretation by IFRIC

Question 8

conceptual framework of FASB

Answer 8

provides concept of FA basic reasoning, it is called SFAC

Question 9

purpose of FR

Answer 9

provide info to primary users for the purpose of DM

Question 10

Primary users includes

Answer 10

exiting and potential investors lenders creitors and regulators

Question 11

Fundamental qualitative characteristics of Info.

Answer 11

Relevance and faithful representation

Question 12

Faithful presentation includes

Answer 12

complete neutral free from error

Question 13

relevance includes

Answer 13

predictive value , confirmation value, materiality

Question 14

enhancing qualitative characteristics

Answer 14

comparability varfiability, timelinese, understandability

Question 15

nonbusiness characteristics

Answer 15

lack of ownership interests, operation purpose, significant portion of resource come from contributions and grants

Question 16

users of nonbusiess orgs info

Answer 16

resource provider constituents govering and oversight bodies managers

Question 17

objective of FR of none bus orgs

Answer 17

resource allocation assessing services and the ability to provide services; assessing mgt stewardship and performance, info about operation

Question 18

What is PUFE

Answer 18

part of comprehensive income; pension adjustment unrealized gains or losses foreign currency items effective portion cash flow hedges

Question 19

fundamental recognition criteria

Answer 19

definitions measurability relevance reliability

Question 20

5elements of present value measurement developed by FASB

Answer 20

VOTEU: timing variation of FCF; other factors(liquidity issues and market imperfection); Time value of money; estimate of FCF; price for bearing uncertainty

Question 21

what if Fair value cannot be determined in markeplace

Answer 21

estimate fair value using the pv of FCFs

Question 22

Two approach of PV computation

Answer 22

1. traditional (one discount rate); 2. expected CF(use risk free rate of return as discount rate)

Question 23

congrats and keep it up!

Answer 23

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