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Flashcards in Deck 2 Deck (16):
1

Mnemonic IDA

Presentation order of Income statement and RE statement; I: income from continuing operations; D: discontinued operations (net of tax); and A: accounting principle change (net of tax)

2

A loss form discontinued operations can occur from 3 things:

1) Impairment loss; 2) gain/loss from actual operations; 3) gain/loss on disposal

3

Criteria for liability recognition for an "exit or disposal activity" includes:

Obligating event has occurred; present obligation to transfer assets; and entity has little or no discretion to avoid future transfer of assets (exit plan not enough)

4

Where do you report changes in an accounting principle?

Adjust beginning retained earnings in the earliest period presented

5

Available-for-sale security vs trading security; reported in:

AFS: OCI; Trading: NI

6

Purpose of reporting comprehensive income:

To summarize all changes in equity from non owner sources

7

PUFER (OCI)

Pension adjustments; unrealized gains/losses (AFS); Foreign currency items; Effective portion cash flow hedges; Revaluation surplus

8

Under the two-statement approach, what does the statement of comprehensive income begin with?

Net income and ends with comprehensive income

9

Total accumulated other comprehensive income is shown in:

The balance sheet

10

Losses are recored in full when they are both:

Probable and estimable

11

In order to calculate income tax expense on an interim statement, the appropriate methodology is to:

multiply year to date income by the effective tax rate and subtract from that the income tax expense recorded in the previous quarter

12

The 10% size test to be a reportable segment includes the follow three criteria:

10% of either: 1) total combined revenue; 2) profit/loss; 3) assets

13

Under IFRS and GAAP, what is not disclosed for an entity's reportable segments?

Cash flows

14

Segment operating profit (EBIT) =

Revenues - directly traceable costs - reasonably allocated costs

15

Form 10K

File annually by US registered companies; 60 days for large accelerated filers; 75 days for accelerate filers; and 90 days for anyone else

16

Form 10Q

Filed quarterly by US registered companies; 40 days for large accelerated filers and accelerated filers; and 45 days for anyone else