General Flashcards
What rate is used to discount PV in stock-based compensation?
Risk Free Interest Rate.
When does an entity measure the cost of employee services in exchange for an award of equity interest?
Date granted.
When you sell treasury stock for more than the acquisition price, the gain you recognize is…
You recognize ZERO GAIN.
Price Earnings Ratio
Market price per share / EPS
Which government/non profits use a statement of cash flows?
All non-profits/ no governmental.
What’s used by stockholders to acquire unissued or treasury stock?
Stock Warrants.
Dividends per share payout ratio…
Dividends per share / Earnings per share.
Price Earnings Ratio
Market price per share / EPS
A liquidation dividend is a dividend that….
Exceeds RETAINED EARNINGS.
How is equity affected by a stock dividend?
Stockholder’s equity remains the same, it’s just a shift between issued stock and retained earnings.
Stock rights are only recognized in common stock when…..
Exercised, yo.
When calculating APIC on exercised stock options, remember to take into account….
Compensation expense on the stock options.
Which govvy funds require budgets in the CAFR (annual statement)?
General & special revenue. Enterprise & fiduciary do not have legal budgets.
Which of these are derived or imposed govvy revenues: Fees, income tax.
Fees are imposed and income tax is derived. You do not derive fees from actions, you impose.
In a modified accrual govvy fund, the paying of a matured principle is accounted as an…
Expenditure.
Funds held by a county for a school is a _____ fund.
Agency.
Which government/non profits use a statement of cash flows?
All non-profits/ no governmental.
What is the focus of government wide statements, current financial or economic?
Economic.
What type of one sided exchange is a grant given from the state to a smaller government?
Voluntary.
When reporting foreign translation accounts, monetary items or items carried at market value are reported as _____________ and items reported at cost are reported as __________.
Current rate, historical rate.
Gains from currency changes in receivables and payables are _________. Gains from currency differences in assets are________.
Transaction, translation.
On restructuring of troubled debt, a gain is realized if the carrying amount of the debt…
Exceeds the future cash payments of the settlement.
What is the process of bifurcation?
Separating a derivative from a “host” security.
How is the pension asset (liability) calculated.
The excess of the amount funded (service cost + funding of prior service cost) over the pension expense (service cost + amortized service cost)
What do you do with the discount rate when calculating pension obligations?
Multiple the discount rate by the actuarial estimated projection.
What rate is used as a discount rate when calculating pension obligations?
The market rate for high quality bonds.
What does the interest included in net pension expense represent?
Increase in projected pension benefits due to the passage of time.
How do you treat capital leases that are renegotiated into an operating lease?
As a sale-leaseback.
At what point does a capital lease turn into a financing lease?
When the risk of ownership is completely transferred to include a bargain purchase option.
Under a lease with a bargain purchase option, the lease liability is the….
PV of the lease payments and PV of the bargain purchase option calculated separately, then added.
If electing fair value option, unrealized gains and losses from AFS securities is reported….
On the income statement (along with trading securities).
If not electing fair value option, unrealized gains and losses from AFS securities are reported…
As other comprehensive income or loss.
T/F - You can elect to report the fair value method on securities on a security by security basis.
TRUE
AFS securities, when fair value method is not elected, temporary losses go to ______ while non temporary losses go to ______.
Other comprehensive income, income statement.
On the statement of cash flows, dividends from investment stock are…..
Operating cash flows, yo.
Under a sales type lease, gain is recognized…..
In the first year.
What type of hedge is recognized by GAAP, but not by IFRS?
Foreign currency hedge.
Where are gains/losses for fair value hedges/cash flow hedges reported?
FV= income statement CF = other comp inc
In a sale leaseback, the gain is….
Amortized over the life of the loan.
On the statement of cash flows, dividends from investment stock are…..
Operating cash flows, yo.
Study partnerhip buy in/ buy out goodwill method and bonus method….
seriously…
Unrealized gains on AFS securities electing not to use the fair value method are….
Presented only in the footnotes.
If not electing fair value, a temporary decline in AFS securities is ________ while a permanent is ________.
Temporary - other comprehensive, permanent - income
Under a sales type lease, gain is recognized…..
In the first year.
AFS securities recognize an unrealized loss in comprehensive income. When sold the next year, what number is used to calculate the loss?
The original purchase price. The loss is reversed as a gain in other comprehensive income, then the loss is recognized after.
Under IFRS FVTPL method of reporting securities, held to maturity changes in market value are reported….
In current earnings.
In a sale leaseback, the gain is….
Amortized over the life of the loan.
Stock dividends received are recorded as….
Nothing.
