aFar_0point Flashcards
(54 cards)
IFER Rules
- Intangible -
surplus -> OCI
Offset OCI if go down later - Impairment loss: BV > recoverable amount. (Greater of FV-Cost to sell) and (PV of future Cash Flow)
GAAP: BV > future cash flow -> no impairment
Expenses or Capitalized
1. Indefinite life
- Training stuffs use of the patent
- IFER: development cost to successful patent - not research
- Developing a product that was patented during the year - development of new product idea
- testing to establish of technological feasibility? ???
- equipment for current and future projects
- cost of producing product Masters for training materials - Capital; duplicating - Inventory
- RD direct costs reimbursable by govt.
- No amortization expenses
- Expenses
- Expenses
- Expenses
- capitalize
Insurance proceeds treat as
Gain contingency and not recorded until received
Consolidated BS and IS
Consolidated BS and IS
FASB Accounting Standards Update, amended the accounting standard codification, is issued only after …
Majority vote by members of FASB
Purchase discount are not included in Revenue, but ..:
Reduce COGS
- Inventory Cost: COGS
- Selling Expenses
- G n A
- Non-Operating
- Freight In
- Freight Out
- Legal, insurance
- Interest; Gain/Loss
Insurance deductible
自掏腰包的钱
Deposit received from customers
Leila be report in liability,
NOT current asset.
Deferred Revenue =
Unearned Revenue (Liability)
Expense or Capitalized
Cost try to satisfied performance obligations - Expenses
Design cost to modify customers specific request - Expenses
Discounted operations should include
Employee relocation costs associated with the decision
Additional pension costs associated with the decision to dispose
Bond: pay interest semiannually
-> use HALF% + (2 * Year) period -> use MARKET %;
PV principle + PVFOA internet = Bond Issue $
contingency:
Gain - record when receive $;
Recognizes Loss only ->
Probable: record minimum $ and Disclosure
Possible: Disclosure only
Remote: nothing
Operating lease is treated like …
Finance lease is treated like …
Operating lease is treated generally like RENTING.
the lease payments -> operating expenses -> asset does NOT show on the B/S.
Finance lease is treated like LOAN generally. Here, the asset ownership is considered by the lessee and so asset appears on the B/S.
Operating lease is treated generally like RENTING. That means, the lease payments are treated as operating expenses and the asset does NOT show on the B/S.
Finance lease is treated like LOAN generally. Here, the asset ownership is considered by the lessee and so asset appears on the B/S.
Operating lease is treated generally like RENTING. That means, the lease payments are treated as operating expenses and the asset does NOT show on the B/S.
Finance lease is treated like LOAN generally. Here, the asset ownership is considered by the lessee and so asset appears on the B/S.
Gain contingency:
Probable
Reasonable possible
Both Disclosure
PV =
FV / (1+i)n
Lease
One or the other, not both, has the right to terminate.
Between Sign - commencement date = footnote
Short term debt refinancing =
Long term debt + notes
Consolidated Equity =
= Parent Equity + FV NCI%
Sub Equity-> eliminate
Consolidated Assets = parents BV asset + sub FV
Consolidated RE, NI, CS = same as parent
recognize Goodwill BV or FV?
Goodwill has been created in the purchase of a business, acquired company’s FV over NBV
Software Amortization begins
Once the product is “release for sale”, NOT technology feasibility is established.
Registration Fees for Equity …. in changing in Equity or NI
Security Issued
Decrease Equity, reduce APIC,
no affect on I/S
