FAR 17 - REPORTING RESULTS OF OPS & IFRS Flashcards
When an entity decides to dispose of a segment, should additional pension costs associated with the decision be included in the entity’s loss on disposal?
Yes.
When an entity decides to dispose of a segment, should employee relocation costs associated with the decision be included in the entity’s loss on disposal?
Yes
When an entity decides to dispose of a segment, should operating losses during the phase-out period be included in the entity’s loss on disposal?
Yes
When an entity decides to dispose of a segment, should operating losses of the current period up to the measurement date (aka “prior to the measurement date”) be included in the entity’s loss on disposal?
No. Operating losses occurring prior to the measurement date are a part of loss from discontinued OPERATIONS, but not part of loss on disposal
is net income reported after tax or before tax?
net income is reported after tax
ONT-I-De-N-OC; -N- is net income
when a buyer has the unlimited right of return, are sales still included on the income statement?
No. When a buyer has unlimited right of return, and is not obligated to pay the seller until the goods are sold to a third party, the revenue recognition requirements have not been met and the entity cannot recognize any revenue
what is the difference between concentration of market risk and concentration of credit risk?
concentration of market risk = when an entity has multiple assets that are valued on the basis of similar market criteria, like an interest rate
concentration of credit risk = when an entity’s customers share common characteristics, like when all customers operate in the same industry
What are the deadlines for 10-K SEC Filings?
Large accelerated: 60 days
Accelerated: 75 days
Non-accelerated: 90 days
What are the deadlines for 10-Q SEC Filings
Large accelerated: 40 days
Accelerated: 40 days
Non-accelerated: 45 days
Does IFRS use the same treatment as GAAP fro changes in accounting principle/police?
Yes; by using applying it retrospectively
How is a change from FIFO to LIFO method treated?
since it would be cumbersome to try and re-create all historical lifo layers, a change from FIFO to LIFO is treated as a a chance in estimate as must be applied from the earliest prospective application to the extent it is practicable
Should the nature of related parties be disclosed, even if there are no transactions between the parties?
Yes
