non monetary exchange Flashcards
disclosures for related party transactions are ______
mandatory. you need to disclose what the transactions are what the related parties are magnitude how these transactions are being recorded
IFRS differences
IFRS does not need to disclose management compensation
IFRS definition does not include affiliates
all Research and development costs are ______under US GAAP
expensed
if intangible assets like equipment is purchased for a research and development lab, and that equipment has alternative uses (other uses) then that equipment should be capitalized but the depreciation is going to be ______.
if the equipment does not have alternative uses and can only be used for research and development then its not capitalized and tho who things is a______.
salaries and wages for r&d are also _____.
R and D performed by others can be ______
indirect costs such as cleaning and maint. can’t also be _________
research and development expense
r&d expense can be disclosed on face of income statement or _____
in the footnotes
what is considered r&D
- lab research aimed at discovery of new knowledge
- searching for applications of new research findings
- conceptual formulation and design of possible product or process alternatives
- testing in search for or evaluation of product or process alternatives
- modification or design of a product or process
- design construction and testing of preproduction prototypes and models
- design of jigs, models, molds and dies involving new technology
- design construction and operation of a pilot plant not useful for commercial production.
- engineering activity required to advance the design of a product to the manufacturing stage
what isn’t R&D
engineering followthrough in a early phase of commercial production
quality control during commercial production including routine testing
trouble shooting breakdowns during productions
routine ongoing efforts to refine, enrich, or improve the qualities of an existing product
adaptation of an existing capability to a particular requirement or customers need
periodic design changes to existing products
routine design of tools, jigs, molds and dies
activities including design, construction, engineering related to the construction relocation rearrangement of startup of facilities
or equipment.
legal work on patent applications, sale licensing or litigation
acquisition development or improvement of a product or process for use in selling or admin services.
IFRS difference between us gap for r&d
research is expensed and development is capitalized.
going concern disclosure
the fasb now requires disclosure if there if conditions give rise to substantial doubt about the entities ability to continue as a going concern
nature of operation disclosure
info about firm product firm geo region key markets
estimate disclosure
anything that may have a material effect
nature of uncertainty
estimated effect in change of estimate
vulnerability disclosure requirements
is it present at bs date
the entity is vulnerable because of the concentration, to the risk of severe impact that could cause significant financial disruption in near term
is it reasonably possible it may happen in the near term
a reportable segment is a segment that meets three quantitative tests.
75% rule
- operating segment revenue>= 10? of the combined revenue
- compute two amounts and use the larger of the absolute value of the two.
combined operating profit of all operating segments reporting positive profit.
or
combined operating loss of all operating segments reporting an operating loss.
if the absolute value of the operating profit or loss is>= to 10% of the larger amount above then its a reportable segment.
- an operating segments identifiable assets that are >=10% of the combined assets of all operating segments.
if the segment does not meet the three criteria then you can check for the 75% rule.
if
sales to unidentified customers/consolidated revenues >= 75% of consolidated revenues then it’s a reportable segment
reportable segment disclosures
description of the segment factors used to identify asset types of products and services earnings, total assets external rev and interval rev int rev/expense depn amort depletion unusual and infrequent expense income tax expense client with 10% these disclosures are for interim reporting also
entity can capitalize the cost related to internal development of computer software once the software has reached
technological feasibility
