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Flashcards in Deck 2 Deck (16):

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)


A loss form discontinued operations can occur from 3 things:

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


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)


Where do you report changes in an accounting principle?

Adjust beginning retained earnings in the earliest period presented


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

AFS: OCI; Trading: NI


Purpose of reporting comprehensive income:

To summarize all changes in equity from non owner sources



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


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

Net income and ends with comprehensive income


Total accumulated other comprehensive income is shown in:

The balance sheet


Losses are recored in full when they are both:

Probable and estimable


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


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


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

Cash flows


Segment operating profit (EBIT) =

Revenues - directly traceable costs - reasonably allocated costs


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


Form 10Q

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