practice sets Flashcards
when is a transaction considered a financing arrangement?
when repurchase price is > original price and market value price
when a building is actively held for sale, how is it valued?
lower of BV or NRV
how do you test for goodwill impairment loss?
CV - FV
what are contingent shares?
shares issuable at no cash consideration after the occurrence of specified condition
is goodwill tested under the equity method of an investment?
no
are relocation costs included in acquisition costs?
no
change in depreciation methods and useful lives are treated:
prospectively
what are the qualitative characteristics for faithful representation?
completeness
free from error
neutral
what are the qualitative characteristics for relevance?
predictive value
confirmatory value
materiality
return on assets
net income / average total assets
when a CEO and CFO work on research projects, under what conditions are their salaries charged under “operating expense?”
when their time spent on the research projects were not tracked
when a company performs R&D on behalf of another, where do they treat their expenses?
as operating expenses
what inventory method should “lower of cost or NRV” be applied on?
FIFO
what condition must be presented for a contract modification to be considered a separate contract?
the scope of the original contract increases through the addition of distinct goods and services
contingent liabilities on related party transactions must be:
disclosed only
