Incime Statement Flashcards
True of false. Treasury stock causes BEPS to increase?
True. The denominator in BEPS calculation is based on outstanding shares. TS purchases decrease outstanding shares, which increases the EPS ratio.
How are discontinued operations reported?m in the income statement?
Separately net of tax, after results from continuing operations.
What is a single step income statement?
It provides one grouping for revenues and gains and one for expenses and losses.
What is the multi step income statement?
It reports operating revenues and expenses in a separate section from non operating items. It also has subtotals.
What is a condensed income statement?
Includes the section totals from the multi step format. Enhanced disclosure is in the notes.
COGM formulas?
Pg 25
Beg WIP+Sum of manufacturing costs minus Ending WIP. OR
End FG Inv + COGS- Beg FG Inv
How are assets and liabilities translated?
At the exchange rate at the balance sheet date.
How are revenues, expenses, gains and losses translated?
(Income statement accounts)
At the average exchange rate.
What are 2 alternatives for estimating standalone pricing?
Estimation of the price in the sellers market and residual approach.
Fun fact foreign currency
Balance sheet accounts are translated at the exchange rate. Income statement accounts are translated at weighted average.
How must incremental cost that are expected to be recovered be recognized?
As an asset and amortized in subsequent periods. In other words the asset was capitalized (recognized as an asset) and amortized or depreciated like capitalized assets always are.
How is variable consideration estimated?
By either expected value or most likely amount.
