FAR Review Flashcards
How to record Stock Rights?
No entry, only memorando entry
How to Calculate Aquisition Goodwill Methods & NCI?
- Full Goodwill ( GAAP) = FV Sub - FV of SUB Net Assets
- NCI= FV sub * NCI
- Partial Goodwill (IFRS preferred) = Acquisition Cost - FV net identifiable Assets
- NCI= FV sub net identifiable Assets * NCI
Net Periodic Pension Plan Calculation & Entry?
Net Periodic Pension Cost=
S ervice Cost
+ I nterest = Beg PBO * Disc. Int.
- R eturn on Asset= Beg. FV Plan Asset * Expected Rate
+ A mortization of Unrecognize Prior Service Cost = unrecog. Prior Service Cost / Ave. Remaining service life
- G ain and + Loses= (Unrecog. G or L - 10 % Greater of PBO FV Plan Asset ) / Ave. Remaining Service Life
E xisting Net Obligation Amortization= funded status / greater of 15 years or ave. remainin service life
- JE:
Pension Compensation Expense (Service Cost)
Net Pension Cost
Pension Benefit Liability- Current (SC)
Other Comprehensive Income (NPC)
Reconciliation from Gov. Fund to Statement of Net Position (BS)
Total Gov. Fund Balance \+ C apital Assets - A ccumulated Depreciation - N on Current Liabilities \+ S ervice Fund Net Position \+ I nterfunds \+ T ransfers = Net Position from governmental Activities
Extras:
- Deferred Inflows
- Accrued Int. Payable
Reconciliation from Funds to Statement of Activities
Net Change in fund balance- total govenmental funds \+ C apital Outlay Expenditures \+ P rincipal PMT on Debt - A sset disposed NBV - S ource Other Financing \+ R evenue measurable but not available - I nterest Expense Accrued - D epreciation E xpense \+Service Fund Changes in Net Position \+Interfunds \+Transfers =Change in Net Position of Governmental Activities
JE Percentage of Completion vs Completed Methos
A. % of Completion
1. Record Materials:
CIP (Cost & GP)
Materials , Cash, etc.
- Record Billing:
AR
Progress Billing ( Billed to date)
3. Record PMT:
Cash
AR
4. Record Est. GP:
Expense/Cost of LT Construction (Materials)
CIP (GP)
Revenue
- Closing Entries
Progress Billings
CIP
B. Completed Method (GAAP Only)
JE 1 to 3 SAME as % of Completion
1. Close Billing to rev
Progress Billing
Rev
2. Close CIP to Exp.
Cost of LT Construction
Exp
How to Determine if it’s a Liability or an Asset in % of Completion Method
Current Asset= CIP > Progress in Billings
Current Liability = CIP < Progress in Billings
Goodwill Impairment GAAP vs IFRS
A. GAAP:
- Qualitative Evaluation: perform quantitative evaluation if the following factors failed:
a. Macroeconomic conditions b. Overall Financial Performance
c. Entity- Specific Events: Bankrupcy,litigation etc.
d. Industry & Market Conditions - Quantitative Evaluation:
a. Reporting Unit NBV vs FV
b. FVRU identifiable - unidetifiable assets= max. goodwill impairment
B. IFRS
1. Recoverable Amount, greater of:
NRV vs PV of Future $ Flows
2. Cash Generating Unit NBV vs CGU Recoverable Amount
Intangible Impairment GAAP vs IFRS
A. GAAP
- NBV vs undiscounted future $ Flows
- NBV vs FV
B. IFRS
1. Recoverable Amount, greater of:
NRV vs PV of Future $ Flows
2. NBV vs Recoverable Amount
FOB shipping Point vs FOB Destination
- FOB Shipping Point= Freight IN= COGS
2. FOB Destination= Freight Out= Selling Expense
Fundamental Qualitative Characteristics
- Relevance = Predict & Confirm your Material Value
2. Faithful Representation= Completely Neutral is Free From Error
Enhancing Qualitative
U nderstandability
C omparability
T imeliness
V erificability
Assumptions
P eriodicity
G oing Concern
M onitary Unit
E ntity
Principles
R ev. Recognition
E xp. Recognition
F ull Disclosure
M easurement
SEC Forms
- Form 10 K= US Annual
* L= 60 d ; A= 75 d; O= 90 d - Form 20 F = Non US Annual
- Form 40 F=Canadian Annual
- Form 10 Q= US Quarterly
- L & A= 40 ; O= 45
- Form 6 K= Foreign Semmi Annual
- Form 8 K= Major Events
- Form 11 K= Annual Report Employee Benefit Plan
- Form 3, 4 &5 = 10% owners
