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Uni Work Flashcards

1
Q

How to Identify Revenue Recognition

A

Contact With Customer
Performance Obligations
Transactional Price
Price = Obligation
Recognise When Objectives are Met

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2
Q

Where is Revenue Recognised

A

Statement of Comprehensive Income

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3
Q

For Revenue Recognition - What do you do if the item ISN’T Distinct?

A

Adjust Revenues

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4
Q

Revenue Recognition - What are they types of Warrenties

A

Assurance and Service

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5
Q

Revenue Recognition Warrenties - How do we recognise Service based sections

A

They are treated separately

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6
Q

What are the three measures of recognising PPE

A

At Cost Value
Bringing to location and making operational
Dismantling and building

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7
Q

How do we recognise profit before use of PPE

A

In the Profit and loss statements
or
Statement of Financial Position

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8
Q

What are the initial measurements of PPE

A

Capitalisation of the borrowing costs

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9
Q

What are the subsequent measures of PPE

A

Cost Model
or
Revaluation Method

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10
Q

For the Revaluation Method how do we recognise and increase or decrease

A

Increase = Revaluation surplus
Decrease = Revaluation Loss

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11
Q

How do we deal with Government Grants

A

We need Reasonable assurance of economic benefit

Deferred Income and Deduction of Carrying amount

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12
Q

What are the three measures of intangible assets

A

Future Economic Benefit
Measured Reliably
Measured at initial cost

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13
Q

What are the types of intangible assets

A

Purchased
Internally Generated

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14
Q

How do we measure Purchased intangible asset

A

At Fair Value

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15
Q

How do we measure internally generated intangible assets

A

Net assets - Hard to Measure

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16
Q

How do we measure Internal Research Costs

A

Expense when incurred

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17
Q

How do we measure development costs

A

Intangible assets when Criteria is met

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18
Q

What is the 6 criteria for capitalisation costs

A

Feasibility
Intention to complete
Intention to use and sell
Economic Benefit
Resources to complete
Measure Expenditure

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19
Q

How do we measure assets with a finite life

A

Straight line depreciation method

20
Q

How do we measure assets with indefinite life

A

Revaluation method

21
Q

How do we recognise assets purchased separately

A

Good Will

22
Q

How do we recognise assets purchased separately that can be measured accurately

A

Capitalised Separately

23
Q

How do we measure Brands

A

We can capitalise them

24
Q

Can we measure internal brands

A

No - These cannot be capitalised

25
Q

How do we measure goodwill increases and decreases

A

Increase = Increase asset
Decrease = Gain in income statement

26
Q

How do we measure goodwill

A

No amortisation and impairment reviews

27
Q

What is a provision

A

Contingency for a liability for uncertainty in timing and value

28
Q

How is a provision recognised

A

Present Obligation due to past event
Probable transfer of economic benefit to settle
Reliable estimate

29
Q

What events determine a provision

A

No realistic alternative to settle

30
Q

How do we measure a provision

A

Best estimate
Likely Outcome
Analysis
Present Value

31
Q

When can we not do a provision

A

To prevent a future loss

32
Q

When can we do provisions

A

bad contracts and restructuring due to a change of scope

33
Q

What is a contingent Liability

A

Possible outcome from a past event

34
Q

What is a contingent asset

A

Possible outcome from a past event

35
Q

Contingent Liability - example

A

Bad payment

36
Q

When is a contingent asset not recognised

A

Economic benefit is probable
or
if the outcome is less than probable

37
Q

When does a contingent liability need to have happened

A

Present obligation

38
Q

How to disclose a contingent liability

A

In the notes unless probability is remote

39
Q

Give examples when an adjusting event would be necessary

A

Fraud
Court Case
Reciept of new information

40
Q

Give examples when an adjusting event WOULDN’T be necessary

A

Dividends
Major share increases
Forex changes
External factors such as a pandemic
Acquisition or subsidiary acquisitions

41
Q

Examples of comprehensive income changes

A

Revaluation surplus
Actuarial gains or losses
Translating Foreign income statements
Hedging Investments

42
Q

What are the four steps to calculating EPS

A

1) Theoretical Ex Rights Price
2) Bonus element
3) WANOS
4) BEPS

43
Q

What is the formula for the Theoetical Ex Rights Price

A

Average Price of Shares AFTER Rights Issue

44
Q

What is the formula for the Bonus element

A

Market value / Theoretical Ex Rights Price

45
Q

What is the Formula for WANOS

A

Starting no. Shares + (New Shares Issued x Weight Factor) - (Shares bought back x Weight Factor)

46
Q

What is the formula for the BEPS

A

Profit or loss for shareholder / WANOS

University Work (1 decks)

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