FAR Mnemonics

Question 1

Primary Qualitative Characteristics for Relevance

Answer 1

Relevance (Roger is PC) but never Material Predictive Value Confirmatory Value Materiality

Question 2

Primary Qualitative Characteristics for Faithful Representation

Answer 2

Faithful Representation (Roger is never on the FENCe) free from Error Neurtality Completeness

Question 3

Enhancing Qualitative Characteristics

Answer 3

Related to relevance and faithful representation. (Roger is CUT like a V) Comparibility Understandibility Timeliness Verifiability

Question 4

Income Statement

Answer 4

ON-TIDe-N-OC

O- Operating Income (net of tax)

N- Non Operating Income

T- Provision for Income Tax

I - Income From Continuing Operations

De- Discontinued Component Unit

N- Net Income

O- Other Comprehensive Income

DENT

Derivative cash flow hedge gain/loss

Excess adjustment of PBO and FV of plan assets at year end

Net unrealized holding gains of AFS during period

Translation adjustment of foreign currency

C- Comprehensive Income

Question 5

Pension Expense (Pension Cost)

Answer 5

(A-SPIDER)

+ Service Cost

+ Prior Service Cost Amortization

+ Interest Cost

• Actual Return on Plan Assets

+ Deferred Gain (unrecognized pension plan G/L)

• Excess Amortization of Deferred G/L

+/- Amortization of Existing Net Obligation or Net Asset at Implementation

= Pension Expense

Question 6

Presentation of Stockholders’ Equity Section

Answer 6

P-CAN-RAT

Preferred Stock

Common Stock

APIC

Noncontrolling Interest in “S”

Retained Earnings (Appropriated/Unappropriated)

Accumulated OCI (DENT)

Treasury Stock

Question 7

Derivative Characteristics

Answer 7

NUNS

No net investment - no initial investments

_U_nderlying and a _N_otional amount - notional amount is the number of units (bushels, pounds) and the underlying is the factor that affects the derivitive’s value (interest rate, exchange rate)

Net Settlement - the derivitave can be settled in a net amount (receiving or paying a difference between agreed upon exchange rate or market rate)

Question 8

Foreign Investees

Answer 8

This Fucking Report

Transactional Currency (local/recording currency) is remeasured (I/S) to the Functional Currency (currency in which generates and spends cash)

Functional Currency is translated (B/S) to the Reporting Currency (currency that prepares F/S)

Question 11

Statement of Operations(Activities) - Hospital

Answer 11

PP-NO-ONE

Patient Service Revenue (hotel type, medical, lab)

(Provision for Contractual adj.) -Medicare, empl disc

Net Patient Service Revenues

+Other Operating Rev, G/L (earned)

Non-medical- parking, gift shop, food

Donated medicine and supplies

Restricted grants

NARFR used for operations

(Operating Expenses)- bad debts, drugs, doctors , G&A

Results from operations

+Non-Operating Revenues (Other Inc.) (unearned)

Unrestricted donations, gifts, bequests

Unrestricted interest & dividend income

Unrestricted grants

Donated services

Excess of Rev/Gain over Exp/Loss (Performance Indicatior) - operating inc., perf earnings, earned inc.

Items reported seperately from performance ind

Restricted dontations/contributions

Assets released from donor restrictions for PP&E

Restricted investment income

Change in net unrealized G/L (other than trading)

on unrestricted investments

Transfers to parents

Discontinued Operations

Increase in Unrestricted Net Assets (UNA)