FAR Mnemonics Flashcards
Roger likes to surf on the tide in orange county
ON-TIDe-N-OC
Operating income (COGS - Gross profit or sales - SG&A)
“+/-“ Non-operating income (other) (REGL from the sale of noninventory, write-downs, write-offs
“+/-“ Taxes (current/deferred)
Income from continuing operations (net income)
“+/-“ Discontinued operations (net of tax)
Net income
“+/-“ Other comprehensive income (OCI) - DENT or PUFI
Comprehensive income
REGL wants ALE but needs ID
REGL ALE ID
Elements of Financial Statements
IS
1. Revenues - operating
2. Expenses - operating
3. Gains - non-operating
4. Losses - non-operating
BS
5. Assets
6. Liabilities
7. Equity
Excluded from Comprehensive Income
8. Investments by owners
9. Distributions to owners
DC ADE LER
Debits Credits
Asset Liability
Draw Equity
Expenses Revenue
Highlight Asset, Liability, equity for balance sheet
OCI Not on the income statement
PUFI
PUFI items
Pension Adjustment
Unrealized Gains and Losses (Available for sale Debt Securities and Hedges)
Foreign Currency Translations
Instrument-Specific Credit Risk
ONTIDENOC YOU GOONPIN DN disturb me!
Sales
- COGS
——————-
Gross profit
-
Operating expenses
———————————-
Operating income
-
Non operating (gains) and (losses)
——————————————-
Pretax income
-
Income Tax expense
——————————
Net income
+/- Discontinued Operations (Net of tax)
———————————————–
Net income
I am a STAR
Revenue recognition Five Step Approach
I STAR
Step 1: Identify the contract with the customer
Step 2: Separate performance obligations to be identified in the contract
Step 3: Transaction price: Determine the transaction price
Step 4: Allocate the transaction price to the separate performance obligations.
Step 5: Recognize revenue when or as the entity satisfies each performance obligation
DO BINSE
What is this for?
Simple Bank Reconciliation
E for - Errors
Add or Deduct depending on cause of error
FV Valuation Techniques: MIC
AIR
PPE Capitalize AIR
