Rev Rec, Inventory, PP&E, Financial Instruments, Bonds Flashcards
Percentage of Completion
Step 1: Contract Price -Estimated Total Cost =Gross Profit Step 2: Total Cost to Date / Total Estimated Cost of Contract Step 3: Step 1 x Step 2 Step 4: PTD at current FYE
Current year-to-date GP
Comprehensive Income
Net Income + Other Comprehensive Income
Most Advantageseous Market
Price - Transaction Cost (higher of)
Segment Profit (or Loss) Defined
Revenues
- directly traceable costs : Internal, external
- reasonably allocated costs: by management
Gets to Operating profit (or loss) “EBIT”
10 percent “Size” Test
Revenue: 10% or more of combined Revenue
P&L: Absolute amount of the segment’s P;L is 10% or more of the combined profits and losses of all operating segments
Assets: 10% or more of combined assets of all operating segments
75 Percent “Reporting Sufficiency” Test
75% of total external (consolidated) revenue reported by operating segments needs to be included in reportable section
Converting Cash Basis Revenue to Accrual Basis Revenue
Cash Basis Revenue \+Ending AR - Beginning AR - Ending Unearned Revenue \+Beginning Unearned Revenue
Converting Cash Paid (Basis) for Purchases to COGS Accrual Basis
Cash Paid for Purchases \+Ending AP - Beginning AP - Ending Inventory \+Beginning Inventory
Converting Cash Paid (Basis) for Operating Expenses to Accrual Basis Operating Expenses
Cash paid for operating expenses \+Ending Accrued liabilities - Beginning accrued liabilities - Ending prepaid expenses \+Beginning prepaid expenses
Accounts Receivable End Balance
Beginning Balance
+Credit Sales
- Write Offs, $ Collected, Convert to Note receivable
COGS Calcualtion
Beginning Inventory
+Purchases = CGAFS
-Ending Inventory (physical count)
Net Realizable Value
“Market Ceiling”
Net Selling Price - Costs to Complete
Market Value
Middle Value
Market Floor
NRV - Profit Margin
Weighted Average Method & Moving Average
Total cost of inventory available / total units of inventory available
*for moving average, do this after each purchase
Dollar Value LIFO, Price Index
Ending Inventory at Current year cost / Ending inventory at Base year cost
Gross Profit Method
Sales 100% then Gross Profit and COGS will make that up that total sales percentage
Cost Basis “Model” Carrying Value
Historical Cost - Accumulated Depreciation - Impairment
*Both IFRS and US
Revaluation Model Carrying Value
*IFRS only
*The “R” in OCI
Fair Value at Revaluation Date - Subsequent Accumulated Depreciation - Subsequent Impairment
Straight Line Depreciation
Cost - Salvage Value (Depreciable Base) / Estimated Useful Life
Sum of Years Digits Depreciation
(Cost - Salvage Value) x Remaining Life of Asset / Sum of yers digits
OR
N x (N+1) / 2 *where N = Estimated useful life
Units of Production Depreciation
Step 1: Cost - Salvage Value / Estimated Units or Hours = Rate per unit or hour
Step 2: Rate per Unit or hour x Number of units produced or hours worked = Depreciation Expense
Double Declining Balance Depreciation
(2 / Useful Life) x (cost - accumulated depreciation)
Depletion Base
Cost - Residual Value
OR
Cost to purchase property
+development costs to prepare the land for excavation
+any estimated restoration costs
- residual value of land after the resources are extracted
