Financial Statements Flashcards
An unusual AND infrequent nonrecurring event which has material effects–placed after discontinued operations on the income statement, net of tax effects
Extraordinary items
An income statement item that results from teh disposal of a business component and is placed as a separte category after income from continuoung operations
Discontinued operations
A program that is planned and controlled by management and materially changes eihter hte scope of the business undertaken by the company, or hte manner in which the business is conducted
Restructuring charges–treated before extraordinary items–not extraordinary
The sum of net earnings (loss) and other comprehensive income–requires disclosure of changes to equity during a period due to non-owner transactions including:
1) unrealized gains/losses on AFS investements and foreign currency items
2) any reclassification adjustments
3) any adjustements necessary to recognize the funding status of pension plans or other postemployment benefits
Comprehensive income
A component in the SE securion o the balance sheet–all components of OCI are closed into this balance sheet account, NOT Retained Earnings
Accumulated OCI
The average time between acquisition of materials and final cash realization
Operating cycle
Events occurring after the balance sheet date but before the financial statements and report are issued or available to be issued
Subsequent events