FAR 3 Flashcards
An entity is required to disclose
Reconciliation
Effect of preferred dividends
Anti-diluted security
Income tax-basis financial statements differ from those prepared under GAAP in that income tax-basis financial statements:
recognize certain revenues and expenses in different reporting periods
when applying the lower of cost or market inventory method
the lowest total inventory amount is obtained the the lower of cost or market determination is made on an item by item basis because the lower value for each item is selected.
The governmental fund measurement focus is on the determination of
flow of current financial resources
The donation of a professional service is
would increase unrestricted revenues, gains, other support. Expense is also increased
To enhance the service potential of the asset by increasing its efficiency or capability
capitalize by debiting the asset account.
comprehensive income includes
all changes in equity during a period except those resulting from owner’s investments and distributions to owner.
other comprehensive income items include
Foreign currency translation gains
Unrealized gains on available for sale equity securities
The under fund pension liability represents
The projected benefit obligation - fair vale of the plan asset
Sum of years digits depreciation
Depreciation rate= remaining life/SYD
(Cost-Salvage value) * remaining life/SYD
Declining balance depreciation
BV* rate =depreciation for the period
Rate=100%/N=R
If double =2R
If 150% = 1.5R
N=useful life
Both the intrinsic value method and the fair market value method use—-date to measure the cost for stock issued to employees.
The grant date
the statistical section of a govt’s comprehensive annual financial report is
always considered part of required supplementary information
the proper measurement of an impaired asset held for sale is
lower of fair value less cost to sell or carrying amount
there are 3 acceptable method to report taxable income:
cash method
accrual basis
hybrid method
