FAR 1

Question 0

What items are included in Other Comprehensive Income (OCI)?

Answer 0

Pension Adjustments
Unrealized gains and losses
Foreign currency items
Effective portion cash flow hedges
Revaluation surplus (IRFS Only)

Question 1

What are the three classifications of accounting changes? And how are they reported on the financials?

Answer 1

Changes in accounting estimate - prospectively
Changes in accounting principle - adjust beginning retained earnings of earliest year presented for the cumulative effect of the change. (Exceptions LIFO under IFRS). Retrospective.
Changes in accounting entity- restate all previous years. Error correction - correct the info in the prior period financials, if year is not presented then adjust beginning retained earnings.

Question 2

What is IDEA?

Answer 2

I - Income (or loss) from Continuing Operations
D - Income (or loss) from Discontinued Operations
E - Extraordinary Items
A - Cumulative Effect of Change in Accounting Principle.

Question 3

What is PUFER?

Answer 3

Other Comprehensive Income
P - Pension Adjustments
U - Unrealized Gains and Losses
F - Foreign Currency Items
E - Effective Portion of Cash Flow Hedges
R- Revaluation Surplus (IFRS Only)