FAR

Question 1

Major Components of the Income Statement
I.D.E.A

Answer 1

Income (Loss) from Continuing Operations
Income(Loss) from Discontinued Operations
Extraordinary Items
Cumulative Effects of Change in Accounting Principle (RE)

Question 2

Comprehensive Inome
P.U.F.E.R

Answer 2

• *P**ension Adjustment
• *U**nrealized gains and losses (available for sale securities)
• *F**oreign currency items
• *E**ffective portion cash flow hedges
• *R**evaluation surplus (IFRS)

Question 3

Business Consolidation - Acquisition Method
CAR I.N. B.I.G.

Answer 3

• *C**ommon Stock, APIC, and Retained Earnings are eliminated
• *I**nvestment in Sub is eliminated
• *N**oncontrolling Interest (NCI) is created
• *B**alance Sheet of Sub is adjusted to FV
• *I**dentifiable Intandgible Assets of the Sub are recorded at FV
• *G**oodwill (or Gain) is required

Question 4

Noncontrolling Interest after acquisition date
B.A.S.E

Answer 4

• *B**eginning noncontrolling interest
• *+**NCI share of sub Net Income
• *-**NCI share of sub dividends
• *=E**nding NCI

Question 5

Capitalize Lease for Lessee
O.W.N.S.

Answer 5

• *O**wnership (asset life)
• *W**ritten (asset life)
• *N**inety % FV (lease life)
• *S**eventy-five % life (lease life)

Question 6

Capitalize Lease for Lessee (IFRS)
O.W.E.S. F.A.C.S

Answer 6

• *O**wnership
• *W**itten Bargin
• *E**conomic Life
• *S**ubstantially all of Fair Value (Present Value)
• *F**luctuation of Fair Value (Gains and Losses) accrue to the lessee
• *A**bility to continue the lease; rent lover than market rent
• *C**an cancel the lease but losses are lessee’s
• *S**pecialized in nature

Question 7

Pension Benefit Payment
B.A.S.E

Answer 7

Beginning progected benefit obligation
Add: Service Cost
Add: Interest Cost
Add: Prior Service Cost
Add: Actuarial losses incurrec in the current period
Subtract: Actuarial gains incurred in the current period
Subtract: Benefits paid to retirees
Ending projected benefit obligation

Question 8

Pension - Income Statement Formula
S.I.R A.G.E

Answer 8

Current Service Cost
Interest Cost
Return on Plan Assets
Amoritization of Prior Service Cost
Gains (losses)
Amoritization of Existing Net Obligations
Net Periodic Pension Cost

AGE is unamoritized in AOCI

Question 9

Governmental Funds
G.R.a.S.P.P

Answer 9

General Fund
Special Revenue Fund
and
Debt Service Fund
Capital Projects Fund
Permanent Fund

Question 10

Proprietary Funds
S.E. P.A.P.I

Answer 10

Internal Service Fund
Enterprise Fund

• *P**ension Trust Fund
• *A**gency Trust Fund
• *P**rivate Purpose Trust Fund
• *I**nvestment Trust Fund

Question 11

General Purpose Government Units - Primary gov. entity must meet all: S.E.L.F

Answer 11

• *Separate-E**lected government body
• *L**egally Separated
• *F**iscally Independent of other state and local government

Question 12

Net Position
R.U.N

Answer 12

• *R**eserved
• *U**nreserved
• *N**et Position

Question 13

Statement of Activities - Program Revenue Category Types
S.O.C

Answer 13

Charges for Services

• *O**peration Grants and Contributions
• *C**apital Grants and Contributions

Question 14

Reconciling Financial Statements - Government Fund to Government-wide (Balance Sheet)
G.A.L.S. B.A.R.E.

Answer 14

GRaSPP
+Asset
-Liabilities
+Service (Internal) fund net position

• *B**asis of Accounting
• *A**ccrued
• *R**evenue
• *E**xpenses

Question 15

Reconciling Financial Statements - Government Fund to Government-wide (Statement of Revenues, Expenditured, and Changes in Fund Balance)
G.O.E.S B.A.R.E

Answer 15

GRaSPP
-Other Financing Sources
+Expenditures
+Service (Internal) fund net income

• *B**asis of Accounting
• *A**ccrued
• *R**evenue
• *E**xpenses

Question 16

Donated Services - Recognied some of the time
S.O.M.E

Answer 16

• *S**pecialized Skills
• *O**therwise needed
• *M**easurable
• *E**asily valued