FR&A - Balance Sheets Flashcards
Amortised Cost
The historical cost (initially recognized cost) of an asset, adjusted for amortisation and impairment.
Available for Sale
Under US GAAP debt securities. It classified as either held to maturity or held for trading securities. The investor is willing to sell but not actively planning to sell. In general, available for sale debt securities are reported at fair value on the balance sheet, with unrealized gains included as a component of other comprehensive income
Classified balance sheet
A balance sheet organized so as to o troop together various assets and liabilities into sub categories
Deferred tax assets
A balance sheet asset that arises when an excess amount is paid for income taxes relative to accounting profit. The taxable income is higher than accounting profit and income tax payable exceeds tax expense. The difference during the course of future operations when expense exceeds income tax payable
Deferred Tax liabilities
A balance sheet liability that arises when a deficit amount is paid for income taxes relative to accounting profit. The taxable income is less than the accounting profit and income tax payable is less than tax expense. The company expects to eliminate the liability over the course of future operations when income tax payable exceeds tax expense.
Fair Value
The amount at which an asset could be exchanged or a liability settled, between knowledgeable, willing parties in an arm’a length transaction; the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
Held-to-Maturity
Debt (fixed income) securities that a company intends to hold to maturity; these are presented at their original cost, updated for any amortization or discounts premiums
Income tax payable
The income tax owed by the company on the basis of taxable income
Investment property
Property used to earn rental income or capital appreciation (or both)
