F2

Question 0

Intangible assets rec at cost, expense internal developed ones, can cap:

Answer 0

Legal fees, registration/ consulting fees, design cost

Question 1

Non monetary exchanges with chimerical substance

Answer 1

Gain or loss is the FV -BV

The cash given up is used to calc the new asset basis

Question 2

Patent is amortized over shorter of est. life or remaining legal life.

Answer 2

Use SL method .

Question 3

Finite intangibles reported at cost less amortization and impairment.

Answer 3

IFRS allows cost or revaluation model.
Revalue loss in IS
Gain OCI
Impairment first reduce surplus then loss to IS

Question 4

PV of amount paid for franchise is the amount or cv of the intangible asset.

Answer 4

Amortize over life of franchise.

Expense cont franchise fees as they incur.

Question 5

Organizational cost

Answer 5

Expense right away

Question 6

Maintains goodwill, developing and restoring

Answer 6

Expense it!

Question 7

Materials that have other uses in RD don’t expense them instead,

Answer 7

Cap and dep the assets over their useful lives.

Also don’t expense rd done for others, treat them as inventory.

Question 8

Marketing research,
routine periodic design or troubleshooting
Quality control
reformulation of chemical compound are NOT

Answer 8

R&D

Question 9

Computer software developed to be sold leased or licensed..

Answer 9

Expense before tech feasibility
Cap after feasibility..

Amort cap software cost by the greater of :
1. %rev= cap amount(current rev/ total rev)

2. SL= total cap amount(1/Econ life)

Question 10

Cap software cost are reported at lower of cost or market where

Answer 10

Market is NRV

Question 11

Is developed software internally for internal use and you then decides to sell it out use cost recovery system

Answer 11

To recognized revenue.

Question 12

IFRS impairment choose the greater of value in use or FV

Answer 12

Restoration is allowed … For asset held for disposal impairment cost include the impairment loss and cost of disposal

Question 13

Goodwill impairment are calculated at reporting unit level under us GAAP and CGU under IFRS.

Answer 13

2 steps:
1. if FV is less than cv = impaired
2. Assign FV to identifiable assets and liabities.. Excess is goodwill,
Compare both goodwill to get impairment..ppF2-25

IFRS is just a 1step.. Compare cv to greater of value in use or FV

Question 14

Installment sales rev is rec when cash is received.

Answer 14

Gross profit= sales - COGS
GP%= gross profit/ sales price
Earned GP= cash collectedxGP%
Deferred GP= installment recxGP%

Question 15

Use installment sales when there is no reasonable basis for est. collection

Answer 15

Only use cost recovery when there’s is no reasonable basis to est collection over extended period of time. Most conservative!!!! At sale there is a deferred gross profit.

Question 16

OCBOA – no cask flow statement

Answer 16

Cash basis or modified
Tax basis
Regulatory basis

Question 17

Cash basis—

Statement of cash and equity– cash is only asset

Answer 17

Statement of cash receipts and disbursments

Question 18

Modified cash basis —

Statement of assets and liabilities

Answer 18

Personal FS— Individual or family
1 statement of financial condition —assets and liabilities at est. current cost rather than historical cost.
Assets and liabilities rec on accrual basis .

Personal net worth is diff bet asset and liabilities.

Assets reported at FV
Life insurance loans are netted against cash given

Assets and liabilities that is a large part of total assets are not reported separately
Vested pronation plan at FV