FAR 1 Flashcards
What is included in comprehensive income?
Comprehensive Income is Net Income + OCI. This includes all changes to stockholders’ equity outside of distributions to owners or owner investments/contributions.
Gain/Loss on Discontinued Operations
Added/Subtracted from Income from Continuing Operations. Do not forget it is supposed to be net of tax.
OCI Components
Pension Adjustments, Unrealized holding gains from available for sale debt securities and Cash Flow Hedges, Foreign Currency Translation Adjustment, Change in Fair Value of Liabilities that use Fair Value Method
Treatment of Trading Securities
Realized and unrealized gains/losses go on the Income Statement
Tax Reporting of OCI
can be reported on a net of tax basis or before tax basis, the income tax expense/benefit for each OCI component can be disclosed on the financial statements where they appear or in the footnotes
What is a large accelerated filer and accelerated filer?
A large accelerated filer has outstanding common equity (OCE) that is held by unaffiliated parties at least $700 million as of the last day of the 2nd quarter in the fiscal year.
An accelerated filer has OCE held by nonaffiliates of at least $75 million but less than $700 million and annual revenues AND annual revenues of at least $100 million.
What are the Form 10-K filing requirements for large accelerated filers, accelerated filers and all other registrants after the end of the fiscal year?
LAF: 60 days
AF: 75 days
Others: 90 days
What are the Form 10-Q filing requirements for large accelerated filers, accelerated filers and all other registrants after the end of the fiscal quarter?
LAF and AF: 40 days
Others: 45 days
What is the formula for additional shares outstanding when computing the Diluted EPS for dilutive instruments?
Additional shares= Number of Shares- [(Number of shares * Exercise price)/Average market price]
What is the treatment for unusual and infrequent gains or losses?
If a loss is unsual or infrequent or both, it is reported as a part of income from continuing operations. Unusual and infrequent events require a separate disclosure. Usual an frequent events are still part of income from continuing ops.
How are property dividends treated?
If the fair market value of the property is greater than its carrying value, include the gain as part of continuing ops. Then it decreases retained earnings after distributed.
What is the treatment for stock options and contingent shares when calculating Basic EPS?
Stock options are not considered when calculating Basic EPS, but contingent shares are considered when all the conditions for issuance are met.
