Personal Financial Statements Flashcards
How are assets estimated on personal financial statements
Current values using FMV, NRV, discounted cash flows, appraisal
How is estimated amount of income tax liability calculated
Difference between estimated current values and current amount of assets and liabilities plus unpaid current tax liability
How is a future interest in nonforfeitable asset recorded
Discounted cash flows
How are non vested contributions reported on PFS?
Not included in investment until vested
How are life insurance contracts reported on PFS
At cash value less loans against
How are investments in limited business activity not conducted in business entity reported on PFS?
As separate asset and liability
How is a non cancelable personal commitment reported on PFS?
Reported at discounted cash flows
What criteria must be met to report commitment on PFS?
Commitment must be
Fixed amount
Not contingent on others’ life expectancy or event
No future performance by others required
At what amounts are liabilities presented on PFS?
Lesser of discounted amount of cash to be paid or cash settlement amount
Required documents in PFS?
Statement of financial condition
Statement of changes in net worth
