mnemonics Flashcards
study on exam day
PUFER
- Pension adjustments in funded status
- Unrealized G/L on AFS debt sec’s
- Foreign/cumulative currency translation G/L
- Effective portion of CF hedge
- Revaluation surplus (IFRS)
OWNS
- Ownership transfer
- Written purchase (BPO)
- Ninety % FV (PV is 90%+)
- Seventy-five % econ life
- (OW) = dep. with econ life
- (NS) = dep. with lease life
SOY digits DE:
depreciable base
*(remaining life/SOY)
*SOY digits = n(n+1)/2
DDB DE:
(base - AD) * 2/n
GW IL
GAAP + IFRS
*GAAP = RU level
(1) if CV > ID’d NA’s FV,
then there is potential IL
(2) GW IL = FV - implied GW FV
* IFRS = CGU level
(1) GW IL = CV - recov. amt
- recov amt = greater of FV or NRV
C-VUT
- enhancing qual. char’s:
- Comparability
- Verifiability
- Understandability
- Timeliness
PCM
- for relevance:
- Predictive value
- Confirmatory value
- Materiality
CAR IN BIG
*eliminating JE’s for consol.:
Dr: CS, APIC, RE Cr: Invest in sub Cr: NCI Dr: BS adj. Dr: IA's at FV Dr: GW/ Cr: Gain
price-to-earnings ratio
mkt price per share / EPS
for bond amort. tables, when is int exp higher/lower?
- higher for discounts
- lower for premiums
treatment of P/L under IFRS for cap and op leases:
- cap lease = defer all G/L
* op lease = recog. P/L immediately (no deferral)
treatment of P/L under GAAP cap and op leases:
*cap lease:
- PV is less than 10% of FV
= recog. all G/L - PV is 10-90% of FV
= defer all PV and recog. G/L leftover - PV is 90%+ of FV defer all gain
derivative items:
- forwards
- futures
- options
- swaps
conversion rates for translation method (local currency is reporting)
- IS = WA rate
- BS = YE rate
…APIC + SE = HC rate
conversion rates for remeas. method (reporting currency, not local)
- IS = WA
…but related BS items is HC - BS = monetary at YE rate
..nonmonetary = HC rate
(FA, inv, invest, IA, SE)
what are the reporting date requirements for SEC filers for 10Qs and 10Ks?
*10Q:
- large accel = 40
- accel = 40
- all others = 45 days
*10K:
- large accel = 60 days
- accel = 75 days
- all others = 90 days
SIR AGE
*DBPP calculation:
- Svc cost
- Int cost
- (R)eturn on plan assets
- Amort of PSC
- (G)/L unam’d prem/disc
- Existing amort. net obl.
- S = given
- I = BB PBO * discount rate
*(R) = actual or expected
- expected - use % rate
- actual - % rate or BASE
..BB+contr+actual-pmt=EB
*A = unam PSC/avg svc life
*(G) = unam G/L
(10%PBO/FVP)
-------------------
excess
/avg svc life
-------------------
= amort. of unam G/L
*E = (PBO - FV plan A)
————————-
= initial unfunded obl.
/15Y or avg job life
————————-
= min amort.
faithful representation items:
(faithful rep+relevance
= fundamental qual. char’s)
Completely Neutral, Free from error
Permanent differences:
(a) nontaxable
- tax-exempt muni/state bonds
- life ins. proceeds on key officers
(b) nondeductible
- life ins. premiums
- penalties/fines
- nondeductible entertainment exp (50%)
(c) special tax allowance
- DRD
- excess % depletion over cost depletion
forms of DTA:
gift certificate
- PPD rent/int/royalties (unearned rev) - BDE - est'd L's and warranty exp - startup costs
forms of DTL:
- installment sales
- contractors accounting
- equity method (distr div)
- depreciation/amort.
- PPD exp (deductible now)
full COGS calc:
BI \+Purch \+freight-in \+transportation to consignee -EI - held by consignee ------------------------------ = COGS
SELF test
- Separately Elected board
- Legally separate
- Fsically indep. of other state/local gov’s
CANS
reconc. of gov funds
- C = Cap. A’s added
- A = AD subtracted
- N = non-CL subtracted
- S = int. Svc additions
(affects statement of NP)
..also subtract def. inflows for recog’d rev’s and subtract accrued L for I/P
what is “CPAS RIDE” for reconc. of gov funds?
+SIT
- C = cap. outlay added
- P = “P” pmt added
- A = cap. A’s BV subtracted
- S = OFS’s subtracted
- R = add recog’d rev’s that are meas. but unavail.
- I = accrue int. exp
- D+E = record DE
- SIT:
- S = add int. svc. fund change in NP
- I+T = interfund transfers
(elim. interfund)
what is the full equation for CPAS RIDE or SIT?
net change fund bal total \+ Cap outlay (A's purch'd) \+"P" pmt on LTD - Asset disposal (NBV) - Sources OFS-debt proceed \+ Rev (meas, unavail) - Int exp (accrued) - DE \+int. Svc. fund net rev ------------------------------- = change NP of gov act's
*for NBV,
proceeds - gain = NBV
what are supp svc’s?
- fundraising
- mgt + gen (admin exp)
- membership dvp.
what are program svc’s (exp’s)?
- universities (edu + research)
- hospitals (patient care +edu)
- union (labor nego. + train)
- day care (child care)
SOME test for donated svc’s:
*record as exp and contr w/o restriction if criteria met:
(1) enhances a phys. asset
(2) req. specialized skills that would be purch’d by NFP:
- Specialized
- Otherwise needed
- Measurable
- Easily
what is the GR calc. for patient svc rev?
gross patient svc rev (BDE) (charitable svc's) -------------------------- = patient svc rev
what is included in “other op rev” for rev’s recog’d in HC Org’s?
- tuition from schools, rev from edu programs
- donated supplies and equip for specific purp. grants
- rev. from aux act’s
(cafeteria rev), parking fees, gift shop rev, and med transcription fees
what are non-op rev and supp G/L’s? (recog’d as w/o restrictions)
- int and div. income from invest act’s
- gifts and bequests, grants
- income from endowments, income from board desig’d funds
- donated svc’s
what are the characteristics of gov. FR’ing?
“U R MICE”
U - understandability R - reliability M - make a diff. - relevance I - in timeliness C - consistency yr over yr E - entity-to-entity comparab.
what is the hierarchy estab’d by GASB 55?
A - GASB statements and interpretations
B - GASB bulletins, AICPA audit guides, and AICPA statement of pos.
C - AICPA practice bulletins
D - (lowest) implementation guides
what is in the BS for gov funds?
determines fin. pos.
CA + def'd outflows ================= CL + def'd inflows \+ fund bal. --------------------------- = total CL, def'd inflows, and fund bal's
how is CFO under direct method calc’d?
- use accrual –> cash
(1) find cash rec’d from cust’s
(2) cash int rec’d
(3) cash div rec’d
(4) CR of ins. proceeds + law settlements
(5) cash rec’d from sale of trading sec’s class’d as CA
(6) cash paid to supp’s/emp’s
(7) int paid
(8) IT paid
(9) cash paid to acq. trading sec’s if class’d as CA
(10) other op. cash pmt’s (SGA)
how is CFO calc’d under indirect method?
NI \+dep/amort \+losses/IL -gains/amort. bond prem - equity earnings - (+/-) change OA (inv, A/R, TS, PPD exp) \+ (+/-) change OL (DTL) --------------------------------------- = CFO
classification of gov. expenditures:
- Function/Program
= public safety, edu - org. units
= police/fire dept (in safety) - activity
= drug/highway (in org unit) - characteristic
= cap outlay/current expend/ debt svc (expend’s) and intergov (OFU) - object
= salaries and wages, etc
JE for the acq and retirement of shares:
cost method
Dr: APIC (par)
Dr: CS (par)
Cr: cash (PP)
Cr: APIC-TS (plug)
JE for retirement of TS:
cost method
Dr: CS (par)
Dr: APIC (par)
Dr: RE (plug)
Cr: TS (cost) - reacq. price
JE for retirement of TS:
par method
Dr: CS (par)
Cr: TS
is moving from being a marketable equity sec. to HTM eligible?
no, it is uneligible
FED
underwater endowments
“F”V endowment
(“E”ndowment OG amt)
———————
= “D”eficiency (disclose)
*OG amt is higher than FV = deficiency
