Wrong Questions Flashcards
Income is constructively received and included in gross income if:
it is readily available to the taxpayer & actual receipt is not subject to limitations or restrictions
What is included in Other Comprehensive Income
"PUFER" Prior service costs or credits associated with pension Unrealized holding G/L on AFS securities Foreign currency translation adjustments Effective portion of cash flow hedges Revaluation Surplus (IFRS only)
In the F/S of employee benefit pension plans/trusts, the plan investments are reported at:
FMV.
The statement of net assets of a pension plan must include net assets reflecting all investments at fair value.
To determine the accounting treatment for a transaction, a governmental entity must refer to:
the Codification of Governmental Accounting and Financial Reporting Standards
Payment of dividends to stockholders is a(n) operating, investing, or financing activity
financing
What is the document that is typically issued as part of the due-process activityies of the FASB for amending the FASB Accounting Standards Codification
A proposed accounting standards update.
Private Company Decision-Making Framework is developed by
FASB
Changes in equity include:
column headings identifying individual stockholders’ equity accounts
events changing stockholders’ equity accounts are listed chronologically to the left
The body of the statement is presented in terms of the dollar impact various transactions and events
Impact on # of shares of stock (desc. on left)
Ending balances tie to the items presented in S/E
Does IFRS or US GAAP require more disclosure?
IFRS:
principle-based, with fewer rules and standards than GAAP. Consequently, disclosure of the reasoning behind the information on the financial statements requires a great deal of footnote disclosure, including a footnote for accounting policies.
What must be done when an entity is required to use the liquidation basis of accounting?
Recognize previously unrecognized items that the entity expects to sell.
Assets must be measured at the estimated amount of cash expected to be collected. Costs and Income should be recognized when it becomes apparent that liquidation is imminent.
According to the FASB conceptual framework, an entity’s revenue may result from:
a decrease in liabilities
US GAAP and IFRS. Which one is more rule-based and which one is more principles-based?
US GAAP: is more rule-based (standards)
IFRS: tends to be ased on principles rather than rules
Disclosure is required by publicly held companies if 10% or more of total revenues are derived from:
sales to a single customer
&
export sales
A liquidating entity must present what?
A statement of net assets in liquidation
&
A statement of changes in net assets in liquidation
Current Cost
amount of cash or its equivalent that would have to be paid if the same or equivalent assets were acquired concurrently
