FAR 1 Flashcards
1
Q
What are the 3 characteristics of Relevance?
A
“Relevant P.C.M” Predictive value Confirmatory Value Materiality
2
Q
What are the 3 characteristics of Faithful Representation
A
“Faithful C.N.F” Complete Neutral Free from error
3
Q
Whats included in Selling expenses
A
Freight out Sales people salaries Commissions Advertising
4
Q
What are general and Admin expenses?
A
Accounting Legal Insurance Officer Salaries
5
Q
What are the 5 requirements for revenue recognition
A
“ISTAR” Identify contract with customer Separate performance obligation Transaction Price Allocate Transaction price Recognize Revenue
6
Q
Requirments for point in time recognition
A
Right to payment Legal title for asset goes to customer Physical possession transfers Rewards and risks transfers Asset is accepted by customer
7
Q
What are the qualifications for Discontinued operations
A
Major strategic shift Disposal of major geographical area Disposal of major equity method investment Disposal of major line of business
8
Q
What is the comprehensive income calculation
A
Net Income +Other comprehensive income
9
Q
What is managements requirement for Going concern?
A
Management is required to evaluate from one year of Financial statements being issued.
10
Q
What are mitigating factors that must be considered?
A
“M.I.S” Mitigating factors: whether its been implemented Whether the plans are successful
11
Q
What are the differences for going concern between GAAP and IFRS?
A
GAAP requires liquidation basis, IFRS Does not GC for GAAP is from FS issuance date GC for IFRS is from Balance sheet date
12
Q
What is the subsequent event evaluation date for ISSUERS/GAAP
A
“issuers=issued” evaluation date is through the date FS are issued
13
Q
What is the subsequent evaluation date for Non-issuers/private?
A
NON FS available Evaluation date is through the date the FS are available to be issued
14
Q
What is the principal market?
A
Is the market with the greatest volume or level of activity
15
Q
What is the most advantageous market?
A
highest price after subtracting transaction prices
16
Q
What is the most advantageous market?
A
highest price after subtracting transaction prices
17
Q
What are the 3 valuation techniques?
A
“M.I.C” Market approach-market prices for identical item Income Approach-discounted cash flows Cost approach-current replacement costs
18
Q
What are required disclosures for Fair value?
A
Valuation techniques-MIC and Inputs- level 1, 2, 3
19
Q
What are the 3 size tests for reporting segments?
A
“R.P.A” Revenue-10% of total segments revenue
Profit- 10% of larger of absolute value of loss/profit
Assets-10% of total segments assets
20
Q
What is a 10K?
A
Annual form, financial disclosures, MDA and Audited FS LA- within 60 days A-within 75 days Others- within 90 days
21
Q
What is 10Q
A
Quarterly forms, unaudited FS, interim MDA LA- within 40 days A-within 40 days Others- within 45 days
22
Q
What is 11k?
A
Annual employee benefit plan report
23
Q
What is 20F?
A
Non us version of 10,, mda, audited FS
24
Q
What is 40F
A
Canadian 10K, MDA Audited FS
25
Form 6 K
"SIx Semi" semiannual foreign private issuers, unaudited MDA
26
Form 8 K
Reports major events corporate acquisitions, disposals, changes in governance or management
27
What sets the content requirements for interim and annual FS for SEC?
"SEX for SEC" Regulation SX
28
What are the FS requirements for interim FS?
US 10 Q Form 6 K BS, IS and 1 CF
29
What are the requirements for annual FS?
2 BS 3 IS 1 CF
30
What are the accounts you use for Cash revenue to Accrual revenue?
Accounts receivable and Prepaid revenue
31
What are the accounts used for Cash purchases to accrual COGS?
Accounts payable and Inventory
32
What are the accounts you use for cash operating exenses to accrual operatin expenses?
Accrued expenses and prepaid expenses
33
What is the current ratio?
Current assets/Current Liabilities
34
Quick ratio?
(Current assets - inventory)/Current Liabilities
35
AR turnover
Net sales/Average AR net
36
Inventory Turnover
Cogs/Average inventory
37
Profit margin
Net income/net sales
38
Return on assets
Net income/Average total assets
39
How are assets valued in contributions to partnerships?
They are valued at fair value minus any debt on them
40
What is exact method of new partnership?
Is when a new partner is going to get a specific percentage so you calculate how much he would have to contribute.
41
What is the bonus method of a new partnership?
You calculate how much % they should have received base don their contribution. If they contributed less than the old partners have to split what they owe. If they contribute more, then the new partners can split the profit added to their capital
42
What is the goodwill method of a new partnership?
Basically you calculate what the value of the partnership should be based off what theyre contributing and the percentage they get. Then you compare that amount to what the new partnership amount is including their contribution.
43
What is a Large Accelerator?
common equity of greater than or equal 700 million
44
What is accelerator?
common equity greater than 75 Million but less than 700 million
45
What is others?
Common equity less than 75 million
46
What do you subtract from cash/book balance for Bank recs?
cash/book balance -bank service charges -NSFS -interest earned +any deposits that have gone to bank without company knowing = true balance
47
What do you add/subtract to Bank statement balance for Bank recs?
Bank balance +DIT -OS checks = true balance
48
Direct write off JE
DR bad debt expense CR Accounts receivable
49
AFDA method write off JE
DR AFDA CR AR
50
% of sales method
Uses a percentage of sales to calculate bad debt expense for that year. Added to Allowance. Income statement approach
51
% of Accounts receivable
Use percentage of AR that will be your ending AFDA balance.
52
Aging of receivables method
use the aging schedule that will be the AFDA.
53
Pledging
is when you use existing AR as collateral for a loan
54
Factoring AR
is when a company converts AR to cash with or without recourse
55
Notes receivable
presented at NPV
56
Discounting notes receivable
First calculate total maturity amount Then x maturity amount times discounted rate for the time left
57
Inventory write down reversals:
Are NOT allowed in GAAP Allowed in IFRS to extent of previous write down
58
What is Lower of cost or market?
Take middle of: Replacement cost NRV (Sales price - cost to sell/dispose) Market floor (NRV - gross profit) Then compare middle to cost
59
What is lower of cost or Net Realizable value
Compare cost to Net realizable value
60
FIFO
sell old, unsold are the newest Ending inventory and COGS are same in periodic or perpetual Rising prices- highest ending inventory, lowest COGS and highest net income
61
LIFO
Not allowed in IFRS Lowest ending inventory, highest cogs, lowest net income
62
Weighted Average
Periodic best for homo products and periodic inventory divide total cost of inventory /total number of units
63
Moving Average Cost
Perpetual similar to weighted average but calculate new average after every purchase
64
Price index for dollar value
"C.B" Current year/Base year cost
65
Dollar Value Lifo
You always multiply the layer added to base year by the price index. The difference between years is the layer. you always divide current year cost at end of year/base year cost at end of year
66
Gross profit method
Used for interim FS for periodic inventory system
67
How is Fixed assets valued under US GAAP?
Historical cost- cash price of obtaining the asset, bringing to location, and getting it into condition necessary for use
68
How are donated fixed assets valued?
At FMV plus any incidental costs incurred
69
What is the journal entry to record recieved fixed asset donation
DR Fixed Asset FMV CR gain on nonreciprocal transfer
70
What are the valuation methods for fixed assets under IFRS
cost model which is same as GAAP and Revaluation model Revaluation gains go on OCI Revaluation losses go on income statement
71
Costs that are included in land
All costs up to excavation, excavation is not included title fees legal fees clearing of brush and trees subtract proceeds from sale of existing buildings
72
Costs included in Plants (buildings)
Costs from excavation and forward. purchase price repairs ignored by previous owner architect fees
73
Equipment costs
invoice price freight in installation charges sales tax
74
Interest capitalization
Use weighted average for expenditures use loan rate for up to loan amount anything over loan amount use the averaged rates
75
Component Depreciation
depreciate a big unit by the individual units that make it up IFRS requires component depreciation
76
Composite or group depreciation
is averaging economic lives of a number of property units and depreciating the entire class of asset by one single life
77
Sum of years depreciation
Higher deprecation in early years, smaller in later years Base X (remaining life/Sum of years digit) Sum of years digit= (Useful life X (useful life +1))/2 Use the same base every year
78
Units of production depreciation
Deprecation base /estimated units or hours = rate per unit
79
What is the only depreciation method that ignores salvage value?
Double declining
80
Double Declining
(2/useful life) X NBV at beginning of period
81
What is the journal entry to sale an item during its useful life?
DR cash received from sale DR accumulated depreciation (up to date of sale) CR asset original cost DR/CR for loss or gain
82
How to record permanent impairment
DR accumulated depreciation per records DR loss due to impairment CR asset at full cost
83
Commercial substance
Future cash flows will change as result of transactions
84
Gain or loss with Commercial substance
FV - BV of old asset
85
Basis of new asset with commercial substance
FV of asset given up + cash paid
86
Lacks commercial substance
Future cash flows are NOT impacted
87
Steps for nonmonetary lacking commerical substance
1. do the math FV - BV old= potential gain 2. Determine if boot received or paid \*if boot received is greater than 25% recognize all, if less than 25% recognize the percentage \*No cash received= no gain \*if cash paid is more than 25% recognize gain, if less, no gain
88
Recording nonmonetary transaction with no commercial substance
1. Record cash 2. remove old asset 3. Remove accumulated depreciation 4. Record gain/loss 5. plug is the value of the new item
89
Intangible assets
ones that are purchased are capitalized including legal and registration fees
90
IFRS valuation for intangible assets
Allows cost or revaluation method Revaluation gains- OCI Revaluation losses- Net income
91
Research and Development costs
planned efforts to discover new information to create new product, service, process or technique or improve existing one
92
Internally developed intangible assets
Most are expensed. Except for capitalized: Successful legal defense registration or consulting design costs
93
Computer software development costs
Expense until Technological feasibility reached
94
Technological Feasibility
is when a detailed program design or working model is made
95
Impairment testing
2 step for finite life: Step 1 Carrying value- undiscounted future cash flow step 2 Carrying value- discounted future cash flow
96
Where is impairment loss recorded
As component of income from continuing operations
97
Equity securities
CAn not be treated the same as debt securities TS and AFS. Instead they are FVTNI Measured at fair value, all gains/losses in net income
98
Debt Securities- Trading Securities
cash flow from operating measured at FV Gains/losses on income statement
99
Debt Securities- Available for Sale
Cash from investing realized gains and losses on income statement Unrealized gains and losses on OCI
100
Debt Securities- Held To maturity
Cash from investing Amortized cost
101
Equity Method for investments
20-50% significant influence Income statement: % net income +% of gains -% of losses =income from investment
102
When is equity impaired?
When FV falls below CV and its not temporary
103
Equity Method on balance sheet
purchase price +% income -% amortization -% dividends
104
Fair Value method investements
No significant influence Less than 20% ownership
105
Fair Value on balance sheet
Report at FV and gains and losses reported in net income
106
Fair value on income statement
% of dividends received is considered income
107
Acquisition method
Used to account for business combos Acquisition price is FV at date of transaction close
108
Consolidation adjustments
CAR-common stock, APIC Retained earnings IN -investment in subsidiary, noncontrolling interest BIG-Balance sheet adjustment to FV, Identifiable intangible assets, Goodwill/gain
109
What fees are expensed during acquistion?
Finder fees, consultant fees legal fees due diligence costs
110
How are registration fees handled?
Reduce APIC
111
Noncontrolling itnerest
FV of subsidiary at acquisition date X noncontrolling interest
112
Partial goodwill method
Fv of net subsidiarys net assets X NCI %
113
Net identifiable assets
Subsidiary total assets - liabilities
114
BIG
Compare book values to Fair values on acuqisiont dates adjust book to FV Identify intangible assets leftover is goodwill/gains
115
Goodwill in aquisitoin
acquistion price\>100% of subsidiaries assets
116
IFRS goodwill impairment
Compares cash generating unit to nonrecoverable amount fv- costs to sell
117
Current portion of longterm debt
principal due within the next year
118
Exit or disposal costs
costs to terminate contract involuntary employee termination-severance pay
119
Asset Retirement obligation (liability)
legal obligation associated with retirement of tangible long lived asset
120
ARO
Recorded at FV Accretion expense interest expense
121
ARC
is the asset Depreciation expense
122
Probable loss contingency
Record
123
Reasonably possible
disclose
124
Remote contingency
ignore unless DOG Debt of other related parties Obligations of commercial banks Guarantees to repurchase receivables
125
Warranty Total liability
sales X estimated warranty expense
126
Warranty payable at year end
Total liability - actual expenditures
127
Present value of a $
used for principal of a bond used for salvage value of a lease
128
Present value of annuity
used for bonds- coupon payments used for leases- lease payments
129
Long Term liabilities
record at PV Interest can be stated or imputed
130
Coupon/cash payment for note payables
= stated rate x face value annual payment mentioned in problem
131
Interest expense
= effective rate x carrying value goes on income statement
132
amount to principal in note payable
coupon payment - interest expense
133
Imputed interest note payable
no cash payment/ no coupon Interest expense recorded
134
Bonds
the liability is Reported at Face Value and the asset is recorded at present value with offsetting discount or premium
135
Bond selling price
present value of future principal payments plus pv of future coupon payments
136
Coupon payment for bonds
= stated rate x face value \* the pv would use effective rate dont get tricked
137
Bond issuance costs
costs incurred when bonds are issued such as legal fees, accounting fees, underwriting commison and printing Subtracted from initial carrying value
138
Straight line amortization
results in constant interest expenses each period Not GAAP IFRS does not allow straight line
139
Bonds with premiums
Interest expense is less than coupon payment
140
Bonds with Discounts
interest expense is more than coupon
141
Bonds with accrued itnerest
you always use face value and stated rate to calculate the accrued itnerest
142
Requirements for lease classification
1. contract must depend on identifiable asset 2. contract must give right to control the lease
143
Lessee
Either Operating or financing (ownes)
144
Lessor
"O.S.D" Operating sales type direct financing
145
Criteria for Financing/Sales Type
"O.W.N.E.S" Ownership transfers from lessor to lessee Written option exits to purchase NPV of lese payments is 90% of assets fair value Economic life term is 75% of economic life of asset S specialized asset
146
included in Lease payments
"REPORT N GO" Required contractual fixed payments Exercise option Purchase price at end of lease Only indexed or rate variable payments Residual guarantees Termination penalties
147
Lease paymetns do not include
guarantees of lessor debt by lessee other variable lease payments
148
Rate used in leases
"imply, then increment" Implicit rate if known, if not incremental rate
149
Sales Leaseback
when a seller transfers control of an asset to buyer then leases it back from buyer If ownes, met, failed sale
150
Initial direct costs
capitalized in ROU asset
151
Operating lease
ROU asset ad Lease Liability LEase expense using straight line 1 expense under lease expense
152
Finance lease
ROu asst and liability capitalize direct costs two expenses on income statement depreciation based on how entity does it Asset is decreased by depreciation Liability by the principal
153
Sales type
Lessor Lesee gains control, lessor takes off books must record initial direct costs
154
Direct Financing
stays on lessors books gains are deferred and amortized losses recognized immediately
155
Amortization methods for leases
O.W- useful life NES- lower of useful or lease life
156
Operating leases cash flow
Operating- lease payments, Investing-cost preparing for intended use
157
Finance lease cash flow
Operating- interest payments, variable lease payments Investing- principal payments
158
Derivative requirements
1 underlying, notional amount no initial investment settlement
159
Long position
agrees to buy
160
Short position
agrees to sale
161
Deriviatve cash flow hedges
gains/losses on effective portion on OCI
162
Foreign currency fair value hedge
reported on IS
163
Foreign Currency Cash flow hedge
effective portion on OCI
164
Foreign currency transactions
reported on income statement
165
Foreign currency translations
"Translate OCI" reported on OCI
166
CAL
Current exchange rate for Assets and Liabilities
167
Historical exchange rate
used for capital accounts and equity
168
WIS
Weighted average rate used for income statement accounts
169
Foreign currency Remeasure
"remeasure IS" gain or loss on re measurement goes to INcome statement
170
Intraperiod tax allocation
within this years income statement IDA PUFIER
171
Total income tax expense
"Owe now + owe later" current income tax expense + DTL (-DTA)
172
DTA/DTL
= temporary difference X future exacted tax rate
173
Permanent differences
Interest on municipal bonds life insurance proceeds on officers key man life insurance premium when corporation is beneficiary DRD
174
DTA
Future taxable income is less than future financial income
175
DTL
Future taxable income is more than financial income
176
Accumulated Beneift Obligation
uses current and past compensation levels
177
Service cost
cost hat increases PBO for services performed
178
Interest cost
increases PBO due to passage of time
179
Return on plan assets
use either actual or expected returns
180
Amortization of unrecognized prior service cost
results from amendemnt of pension plan. Divide by average remaining service life gives you the amount amortized
181
Gains/ Losses
Unamortized amount is in AOCI Cooridor approach bigger of 10% of plan assets or PBO Subtract begining unrecognized gain or loss then divide the difference by remaining service life
182
Plan assets calculation
Beginning plan assets +contributions to plan + actual returns on plan(plug) - benefits paid to plan memebers = Ending plan assets balance
183
Overfunded assets
When FV of plan assets \> then PBO noncurrent asset
184
Underfunded PBO
aggregated as current or noncurrent liabilities
185
AOCI
All the unamortized amounts are held in this bucket, when amoritzed you decrease AOCI and increase OCI
186
Required FS for defined benefit pension plans
Statement of net assets available for benefits Statement of changes in net assets availble for benefits Statement of accumulated plan beefits Statement of changes in accumulated plan benefits
187
Stockholders equity
Captial stock +APIC +Retained earnings +AOCI +noncontrolling interest
188
Outstanding stock
issued stock, NOT including treasury stock
189
Issued stock
all shares including treasury shares
190
Book value per common share
Common shareholders equity/common shares outstanding
191
Retained earnings
Beg RE + net income, - net loss - dividends declared prior period adjustmnets retained earnings
192
Cost method of treasury stock
gain or loss calcualted when treasury stock is reissued/resold
193
Legal par method
gain or loss reissued immediately upon the purchainss of treasury stock
194
Stock subscriptions
contractual agreement to sell a specified number of shares at an agreed upon price on credit
195
Date of declaration
DR retained earnings CR dividends payable
196
Property dividends
adjust to FV on date of declaration. Record gain or loss Dr retained earnings CR dividend payable
197
Scrip dividend
Basically a note payable where coproation agrees to pay dividend at later time Dr retained earnings CR notes payable
198
Large Stock dividend
"large stock, PAR" greater than 20-25% DR retained earnings par CR common stock CR Apic
199
Small stock dividend
"S.F" less than 20-25% use FMV DR retained earnings CR common stock CR apic
200
Fiscal Accountability
showing that the government is using and following a budget
201
Government Wide
"G.O" Government wide FS have operational accountability
202
GASB
Government accepted accounting statndards board establishe accounting and reporting standards for governments
203
Characteristics of Governmental financial reports
UR MICE Understandability Reliability Relevance Timeliness Consistency
204
Governmental Funds
GRSPP General Fund Special revenue fund Debt Service fund Capital Project Permanent
205
Proprietary funds
SE Internal Service Enterprise
206
Fiduciary funds
CIPPOE Custodial Investment Private purpose Pension Other Employee
207
Governmental funds characteristics
modified accrual basis current financial resource focus
208
Proprietary fund characteristics
Full accrual basis economic resource focus
209
Fiduciary Fund characteristics
Full accrual basis Economic resource focus
210
Encumbrances
used to record purchase orders and is designed to monitor spending for increased budgetary control
211
Recording budget JE
DR estimated revenue CR budgetary control CR appropriations control
212
Categories of fund balances (NUCAR)
Nonspendable Restricted Committed Assigned Unassigned
213
Internal Funds Facts
Established to finance and account for services and supplies provided to other departments
214
Required FS for internal funds
Statement of net position RUN
215
Enterprise funds facts
Accounts for operations financed and operated in a manner similar to private business
216
FS for proprietary funds
INCASET income nonoperating income and expense Capital contributions Additions to endowments special items extraordinary items transfers
217
Fiduciary Funds characteristics
assets controlled by government assets not own source revenue
218
Cusotdial funds
collects cash to be held temporarily for an authorized recipient to whom it will later be disbursed
219
What FS do custodial funds use?
statement of fiduciary net position and statement of changes in fiduciary net position
220
Private purpose trust
Used to report trust arangements where pricipal and income are for beneift of specific individuals, private organizations or other governments
221
Private purpose trust
Used to report trust arrangements where principal and income are for benefit of specific individuals, private organizations or other governments
222
What does GASB 34 consider Basic FS
Government wide FS Fund FS notes to fs
223
CAFR
presentation designed by government finance officers assocaitiont aht adds an introductory ection and statistical section to beginning and end of GASB 34 basic FS
224
CAFR
presentation designed by government finance officers association that adds an introductory section and statistical section to beginning and end of GASB 34 basic FS
225
what is a primary government?
IT SELF seperately elected governing body Legally seperate Fiscally independent
226
what is a primary government?
IT SELF separately elected governing body Legally separate Fiscally independent
227
What qualifies as blended
component unit is a sperate legal entity component unit seves only the primary government
228
What FS are included in government wide?
Statement of net position Statement of activities
229
What qualifies as blended
component unit is a seperate legal entity component unit serves only the primary government
230
Whats included in government wide statement of net position
GRSPP + S Fiduciary funds not included component units are included
231
What is included in government wide statement of activities
full accrual Governmental activities (GRSPP + S) Business activities (enterprise) Component units
232
What is included in government wide statement of activities
full accrual Governmental activities (GRSPP + S) Business activities (enterprise) Component units
233
Basic EPS
income available to common shareholders/weighted average common shares outstanding
234
Stock dividends/splits
treated retroactively
235
What are some potentially dilutive securities
Convertible securites warrants and other options contracts contingent shares
236
Diluted EPS
income availble to common share holders + interest on dilutive securities (net of tax)/ WACSO + additional shares
237
Treasury stock method for options/warrants
basically exercise option to buy additional shares and then sell them back. the difference will be the shares added to the wacso
238
Dilutive
if market share price is higher than what you paid for it. dilutive becasue you would use your option then sell it on the market for more at the higher price
239
Convertible securities
is when I can trade a bond for shares. So you add the interest back to the net icome becasue you wont have the outstanding bond anymore. then you see how much shares are added to wacso.
240
Convertible preferred stock
does not effect income available to common shareholders
241
Direct method cash flow
start with cash collected ignores noncash items such as depreicaiton, amortization requires reconciliation from net income to net cash flows from operating activities
242
Indirect method
starts with net income net income +depreciation expenses +losses - gains
243
Interest received and dividends received
dividends recieved - cash flow from operating Dividends paid- cash flow from financing
244
Investing activities
selling AFS Buying HTM Making loans to other entities buying AFS buying ppe selling ppe
245
Financing activities
cash from noncurrent liabilities and equity activities money from issuing stock paying cash dividiends obtaining funds from creditors paying principal
246
Interest received
GAAP -CFO IFRS- CFO or CFI
247
Interest paid
GAAP CFO IFRS- CFO or CFF
248
Dividends recieved
GAAP CFO IFRS CFO or CFF
249
Dividends paid
GAAP CFF IFRS CFO or CFF
250
Taxes paid
GAAP CFO IFRS CFO/CFI/CFF
251
What are NFP required FS
FAC those NFP FS Statement of financial position Statement of activities Statement of cash flows
252
Functional classification
Functional PS Program services Support services
253
Support services
FDM fundraising management development
254
Statement of Financial Position
ALN Assets Liabiities Net assets (with and without restrictions)
255
Statement of activites
Revenues, expenses, gains, losses and reclassification of net assets from restricted to nonrestricted
256
Required parts of statement of activities
change in total net asset change in net assets without donor restriction change in net assets with donor restrictions
257
How are revenues in NFP classified
Increases to net assets without donor restrictions
258
Contribution
classified as revenue is when someone does something or gives you money without expecting anything in return
259
Educational institutions revenue
student tuition fees government aid gifts and grants
260
Educational revenue formula
assessed tuition - canceled fees = gross revenue tuition and fees
261
Health care organizations
POR patient service revenue Other operating revenue nonoperating revenue and support gains/losses
262
patient service revenue
Gross patient service revenue - charitable services = patient service revenue
263
Other operatin revenue
Tuition from schools donated supplies and equipment cafeteria revenue parking fees gift shops revenue
264
Nonoperating revenue and support
interest from investments gifts grants donated services
265
FIFO to Weighted average is:
Change in accounting principle handled retrospectively
266
Days in inventory
Ending inventory/(cogs/365)
267
Liquidating dividend
total cash dividend declared - retained earnings = liquidating dividend its the amount over the retained earnings balance
268
Interest revenue on noninterest bearing note
PV of note X market rate
269
Equity Securities
Are marked to fair value at balance sheet date
270
Fair value warrants
Calculate the total issuance of the bonds then subtract the warrant x fv per warrant. The difference will be allocated to bonds.
271
Derived tax revenues
nonexchange transaction that derives its revene from exchange transactions such as sales tax on sales and income tax on operting income
272
Imposed non exchange
property taxes adn fines
273
Voluntary nonexchange
grants
274
Retirment uner the bonus method
any premim paid to the retiring partner is allocated to remaining partners acounts based on profits and loss ratios
275
Retirement under the bonus method
any premim paid to the retiring partner is allocated to remaining partners acounts based on profits and loss ratios
276
Decommissioning is the same as ARO
any change in the value of the liability after it has been fully depreciated will be recognized in profit or loss
277
Loss from discontinued operations
Includes operating losses + impairment losses in the year its impaired.
278
Acquisiton method: FV of subs net assets- BV of subs net assets =
Asset fair value difference
279
Acquisiton price + NCI at FV - FV of subsidiary net assets =
Goodwill
280
Cash flows from operating
Operating income
less increases in assets
plus increases in liabilities
plus depreciation expense
= cash flow from operating
281
The Amortization of premiums on bonds payable
Reduces both interest expense and carrying value
282
What kind of cash flows are lease payments?
Cash to principal- financing cash flow
Cash for interest- operating cash flow
283
Advance cash received from related parties are ?
Are financing activities
284
Operating Activities in cash flow
short term asset and liability changes
285
Investing Activities in cash flow statement
deal with long term asset changes
286
Financing activities in cash flow
Deal with equity and long term liabilities
287
How is amortization of bond discount reported in cash flow
In operating activites as addition to income
288
How are premium amortization reported in CF statement
As reduction to icome in operating activities
289
290
Journal entry for amortizing of gain in pension plans
DR OCI
CR net periodic pension cost
291
Legal fees and due diligence costs
are expensed in the period incurred
292
Acquisition costs
are expensed as incurred
293
Assets in troubled debt restructuring
Ordinary gain or loss recognized from adjsuting to FV
The gain / loss on resstructing is FV compared to liablity carrying value
