Concepts CH 5 Flashcards
(21 cards)
Control in another entity < 20%
Fair Value
Control between 20% and 50%
Equity Method or FVO control considered significant
Control > 50%
Consolidated FS
Measure of Securities - Equity
Unrealized Hold gain in Income statement
Measure of Securities - HTM
Measured at amortized cost w/ NO G/L reported
Measure of Securities - Trading Securities
FV thru net income (unrealized)
Measure of Securities - AFS
FV through OCI (unrealized), realized in income statement
Equity Method Goodwill
Not separately stated included in carrying amount of investment
Equity Method - Share of Income
Increases investment
Equity Method - Share of Dividends
Reduces Investment
Disclosures - Equity Investment
1) names and company’s % ownership each investment
2) Difference if any of carrying amount of investment and underlying asset
3) Accounting method applied to the difference
AFS to HTM
amortization of unrealized holding gain or loss at transfer
Leases
Not eligible for FVO
Application of FV measure should be on
instrument by instrument basis
Accrued interest paid
does not affect carrying amount of bond
IFRS when significant influence is lost
any retained investment is measured at FV
Transfer Trading Securities to any other - Unrealized Holding Gain/Loss
Is not reversed
Trading Securities
To be sold in the near term
Available for Sale
To sell in the future not near term
Total interest revenue over term of bond
(Annual Interest x Term) + Discount
(Annual Interest x Term) - Premium
Restricted Cash
Assets set aside for retirement of LT Debt should be presented separately
