FAR Deck 5 Flashcards
A donation of stock does NOT change shareholder’s _________. BUT, the # of common shares outstanding does go down and the book value per common share does go up.
EQUITY
To figure out the Net Income to use for Diluted Earnings Per share:
Take Net Income
ADD the interest expense from convertible bonds
(Example: 8% convertible bonds worth $1,000,000 > $1,000,000 * 8% = $80,000)
THEN deduct taxes!
So, Net Income $850,000
+ $80,000
- (24,000) > (80,000 * 30% tax rate)
= $906,000
Troubled debt restructuring GAIN = Carry Amount - total _______ ___________
FUTURE CASH PAYMENTS
For a compensatory stock option plan, the stock options outstanding are reduced at the ________ date
EXERCISE
When modified accrual accounting is used (probably for a government), don’t forget that interested is only accrued on the date it is _______ _______. It is not accrued at any interim dates.
LEGALLY DUE
Held to Maturity investments are reported at ______ ________ REGARDLESS of whether they are short-term or long-term.
AMORTIZED COST or CARRYING AMOUNT, same thing apparently
Order of an Enterprise Fund Cash Flow Statement:
Cash Flows from Operating Activities
Cash Flows from Noncapital Financing Activities
Cash Flows from Capital and Related Financing Activities
Cash Flows from Investing Activities
Then you have to show the Indirect Method as well (might be called Reconciliation of Operating INcome (loss) to net cash provided (used by operating activities)
To figure out a parents total stockholder’s equity, don’t forget to figure out and ADD the ____________ interest
NONCONTROLLING
Changes in deferred income tax liabilities/assets are subtracted/added to the current year income tax EXPENSE, NOT the total taxable ________
INCOME
The statement of changes in _______________________________________ is REQUIRED for BOTH defined benefit pension plans AND defined contribution pension plans.
NET ASSETS AVAILABLE FOR BENEFITS
When it comes to compensatory stock option/purchase plans that employers offer their employees, don’t forget that even though the GRANT DATE is when you know the compensatory stock was given, the journal entries TYPICALLY don’t start until the _______ ______
SERVICE PERIOD
To calculate the Note Receivable for an Installment Note at ANY GIVEN TIME, you would take the _______ value of the monthly payments discounted at the interest rate.
PRESENT
There appear to be three ways to classify a government entity when it comes to reporting:
1. Legally SEPARATE entity (this is where the SELF acronym comes in: Separately Elected governing body Legally separate entity Financially independent status)
2. If it doesn’t meet JUST ONE of the above requirements, or it is substantially the same as its Primary Government and services its primary government mostly, it is BLENDED
3. If it doesn’t meet either of the above criteria it is _________
DISCRETE
True or False: When it comes to acquiring land, buildings and equipment in one lump sum, when you are trying to figure out the percentages based off the appraised values, include the appraisal cost in the LUMP SUM PRICE
TRUE
Earnings per share is required to be disclosed for all PUBLICLY TRADED COMPANIES and also for companies that are preparing to ________ __________
TRADE PUBLICLY
