F2 Flashcards
which forms DO NOT require AUDITED FS?
- 6K: a semiannually by foreign private companies
- 10Q: filed quarterly by US registered companies. Due in 40 days for large accelerated and accelerated filers
What are the 3 levels used to measure FV of assets/liabilities?
- Level 1: use quoted price in active market of identical assets/liabilities
- Level 2: use either observable or unobservable inputs of similar assets’ values
- Level 3: use unobservable inputs such as entity’s judgement/assumptions
What is regulation S-X?
It is form and content requirement for interim and annual FS to be filed with the SEC. It includes 2 BS of most recent years, IS, Equity statement, 3 preceding fiscal years of cash flow statements
what is regulation S-K?
It is non-financial reporting requirement filed with SEC used by public company.
what is regulation S-B and S-T
S-B is for small business
S-T is for governing electronic filing
what does “time interested earned” measure?
- It measures the ability of a company to cover interest charge. The greater the ability, the lesser the risk of bankruptcy.
- income before interest expense and income tax expense/interest expense
What is days in inventory formula?
Ending inventory/(COGS/365)
what is return on assets formula?
Net income/average total assets
what is AR turnover formula?
Sale (net)/average AR
when is a segment required to be disclosed?
when it meets at least 10% of any one of the following:
- Assets
- Revenue
- P&L
How many days can an accelerated issuer file with SEC?
max is 75 days
what is a “size” test and what is “reporting sufficiency” test for report segment?
- A “size” test is at least 10% of total revenue, assets, or P&L
- A “reporting sufficiency” test is at least 75% of total external revenue
