[SELF ASSESSMENT] REVIEW OF FINANCIAL STATEMENTS Flashcards
CURRENT OR NON-CURRENT: Cash and Cash Equivalent
CURRENT
CURRENT OR NON-CURRENT: Property, plant and equipment
NON-CURRENT
CURRENT OR NON-CURRENT: Financial assets
CURRENT
CURRENT OR NON-CURRENT: Prepaid expenses
CURRENT
CURRENT OR NON-CURRENT: Long-term investments
NON-CURRENT
CURRENT OR NON-CURRENT: Intangibles
NON-CURRENT
CURRENT OR NON-CURRENT: Trade and other receivables
NON-CURRENT
CURRENT OR NON-CURRENT: Inventories
CURRENT
Cash on hand and cash in bank is valued at
face amount
Cash on hand and cash in bank is treated as
Current asset as part of line item cash and cash equivalents provided unrestricted for current operations
Cash in foreign currency is valued at
current exchange rate
Cash in foreign currency is treated as
Current asset as part of line item cash and cash equivalent provided unrestricted for current operations
Cash deposits in foreign countries is valued at
current exchange rate
Cash deposits in foreign countries is treated as
Current asset as part of line item cash and cash equivalent provided unrestricted for current operations
If subject to restrictions and amount is material, shown as part of non-current assets
Cash in closed-bank or under receivership is valued at
net realizable value
Cash in closed-bank or under receivership is treated as
Current asset as part of line item cash and cash equivalent provided unrestricted for current operations
Bank overdraft is valued at
excess amount drawn against deposit
Bank overdraft is treated as
Current liability and not offset against bank account with debit balance except (1) amount is immaterial and (2) there are two or more bank accounts maintained in one bank
Compensating balance is valued at
face amount
Compensating balance is treated as
Current asset as part of line item cash and cash equivalent provided not restricted for withdrawal.
If restricted and related loan is short term – presented as a separate item in current assets
If restricted and related loan is long-term – presented as noncurrent investment
Petty cash fund is valued at
net amount established
Petty cash fund is treated as
Current asset and part of line item cash and cash equivalent. Petty cash unreplenished vouchers should be excluded
Post dated checks are valued at
face amount of check
issued/received
Post dated checks are treated as
Post dated checks received from:
a. Customers – treated as receivables (part of line item trade and other receivables)
b. Suppliers/ creditors – liability
Accounts/ notes
receivable are valued at
Initially valued at face amount of original invoice price.
Subsequently valued at net realizable value
Accounts/ notes
receivable are treated as
Current assets and part of the line item trade and other receivable
Short-term loans and other receivables are valued at
fair value usually equal to original exchange price
Short-term loans and other receivables are treated as
Current assets and part of the line item trade and other receivable
Non-interest bearing long term loans and other receivables are valued at
face value
Non-interest bearing long term loans and other receivables are treated as
Noncurrent asset as long term investment or other noncurrent assets, whichever is
appropriate
interest bearing long term loans and other
receivables are valued at
Initially valued at present value.
Subsequent acquisition, valued at amortized cost
interest bearing long term loans and other
receivables are treated as
Noncurrent asset as long term investment or other noncurrent assets, whichever is
appropriate
Trading securities (debt or equity securities) are valued at
fair value usually equal to original purchase price plus all cost directly related to the acquisition
Trading securities (debt or equity securities) are treated as
Current assets as a separate line item after cash and cash equivalents
Available for sale securities are valued at
fair value
Available for sale securities are treated as
Usually classified as noncurrent asset unless held for less than 1 year in which case it will be shown as current assets
Held to maturity
securities are valued at
Initially valued at fair value
Subsequent to the acquisition, valued at amortized costs
Held to maturity
securities are treated as
Non-current assets
Inventories are valued at
lower of cost or net
realizable value
Inventories are treated as
Current assets as one line item INVENTORIES
Investment in equity
securities are valued at
cost
Sinking fund is valued at
cost adjusted for
other assets in the fund
Investment in equity
securities are treated as
Noncurrent asset as one line item LONG TERM INVESTMENTS
Sinking fund is treated as
noncurrent as part of line item long term investment. If related bonds payable is reclassified to current liabilities, sinking fund is shown as part of the current asset
Noncurrent funds are valued at
cost as adjusted for other assets in the fund
Noncurrent funds are treated as
Noncurrent asset as part of the line item LONG TERM INVESTMENT
Property plant and
equipment is valued at
cost of acquisition
Subsequent to acquisition, valued using cost model or revaluation model
Intangibles are valued at
Initially, valued at cost
Subsequently, valued using cost model or revaluation model
Intangibles are treated as
Classified as noncurrent assets as one line item INTANGIBLE
Liabilities are valued at
Initially, valued as fair value
Subsequently, measured at amortized cost
Liabilities are treated as
current if they meet the criteria for current liabilities, else classified as noncurrent liabilities
