F2 Flashcards
Items not included in summary of significant accounting policies
- composition & dollar amounts of account balances
- details relating to changes in accounting principles
- maturity dates & amounts for long term debt
- yearly computation of depreciations
Disclosures of Risks & Uncertainties
- Nature of operations
- Use of estimates in preparing financial statements
- Certain significant estimates that are material
- Vulnerability to certain concentrations
Examples of concentrations
- volume of business with someone
- revenue from certain shit
- available supply chain
- market or geographic area?
When should you disclose vulnerability to concentrations
- concentration exists at financial statement date
- there is a risk of near term severe impact
- reasonably possible that event that could cause a severe impact will occur in the near term
Recognized subsequent events
If a litigation or loss on an uncollectible receivable occurs after year end but before financial statements are issued or available to be issued then they are recognized
Evaluation period for subsequent events
SEC companies are through the date the financial statements are issued on Non-SEC are through the date financial statements are available to be issued.
How to account if a significant event that occurs after balance sheet date can be estimated
Disclose the nature of the event along with the estimated financial impact
SEC filers vs non SEC filers
Non SEC filers need to report the evaluation period bullshit while SEC filers don’t need to
Where FV doesn’t apply
- share based compensation
- fv used for leases
FV Valuation techniques
Market approach
Income approach: converts future amounts into single discounted amounts
Cost: replacement cost
FV disclosures
- valuation techniques & inputs used
- uncertainty of FV measurements as of reporting date
- how changes in FV affect performance & cash flows
10% size test for segment reporting
- combined revenue
- combined profit & loss
- combined assets
What must a firm submit to the SEC when it issues new securities
- disclosures about securities being offered
- relationship of new securities to company’s other securities
- info similar to that file in annual filing
- audited financial statements
- description of business risk factors
For 10-k and 10-q rules
- 700 mill large accelerated has 60-40 days
- between 700 and 75 mill is accelerated and has 75-40 days
- under 75 mill has 90-45 days
Form 11-k
Annual report of company’s employee benefit program
Forms 20-F & 40-F
Forms for foreign private issuers; 40-F is for Canadians while 20-F is for everyone else and they are similar to form 10-K
What’s in form 10-K
- Summary of financial data
- Management’s discussion & analysis
- Audited financial statements
Form 6-k
Like form 10-q for foreign private issuers so doesn’t need to be audited