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Flashcards in 21 Deck (20)
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1
Q

how do we get sales revenue from a sales revenue account that has accrued for sales tax?

A

credit sales rev/ (1+ tax%)) = sales rev

*advance payments are netted against sales tax collected

2
Q

when is real estate taxes payable accrued?

A

from the beginning of the closing statement to the payment date or YE

*if it is to payment date, debit real estate taxes payable and any excess to a PPD exp account

3
Q

are periodic payment of interests and “secured by collateral” classified as A/P?

A

no:

  • periodic payment of int. = accrued L / debt
  • secured by collateral = loan payable
4
Q

what is the classification of a DTL?

A

all DTL’s are non-current

5
Q

what is the classification of a note payable that was prepaid before refinancing?

A

it should be included in CL’s

6
Q

what is the classification for a balloon note?

A

the full note is due at maturity, so it is either all a CL or a non-CL

7
Q

what is the ARO final year JE with addition of increased demolition and dismantling costs?

A

Dr: ARO Liability
Dr: Demo. exp.
Cr: cash or A/P

8
Q

how is accretion exp. calc’d?

A

BB ARO * risk-adj’d rate = accretion exp.

9
Q

what is a decommissioning liability and how is it recog’d?

A
  • IFRS term for ARO

* change in value of liability after being fully dep’d is recog’d in P/L (IS)

10
Q

what is the action for initial recog. of an ARO?

A

*record an ARC which increases CV of the LT asset as well as ARO

**amt of both = FV of ARO (det’d by disc. FCF)

11
Q

how are interest earned and maintenance fees based on int. earned treated in regards to escrow L accounts?

A

int. earned increases the escrow account, and % of maint. fee decreases the account

12
Q

when should you accrue vacation days and sick pay for compensated absence liability?

A
  • vacation pay is accrued if vested/accu’d

* sick pay is accrued only if it vests

13
Q

req’s for employee comp. for future absences to be accrued:

A

(1) svc’s already been rendered
(2) obl. relates to vested/accu’d rights
(3) amt can be reas. est’d
(4) pmt is probable

14
Q

if a N/R is sold with recourse, is there a contingent liability?

A
  • yes, seller is contingently liable

* note is not disc’d for footnote liability purp’s

15
Q

when should warranty costs be recog’d?

A

at the date of sale when costs are probable and estimable

16
Q

how is a svc. contract reported when it is sold?

A

the entire proceeds is treated as def’d rev.

17
Q

how is liability for coupons calculated?

A

expected redemption * coupon costs - amt. paid = liability

18
Q

how is SE reported in a consolidation?

A

P + NCI

*NCI = sub’s SE * NCI%

19
Q

what do encumbrances rep?

A

commitments to PO’s for G/S

20
Q

what items are not available for FV measurement option?

A

(a) invest in sub for consol
(b) VIE interest for consol
(c) pen ben A/L
(d) lease related A/L
(e) deposit L’s
(f) fin. instruments class’d as comp. of SE (temp. equity, convertible debt sec.)