F1 Flashcards
(24 cards)
What is the difference between single step IS and multi step IS?
Multistep reports operating revenues and expenses separately from nonoperating revenue and expenses. Single step combines
Recording the disposal of a major/unusual/infrequent item on the IS
Listed under NONoperating.
G/L is just sales price - carrying value at time of sale
When is the sale of something reported on the IS?
It is recorded in the year it is held for sale.
G/l is not recorded until it is sold
PUFI =
Pension adjustments
Unrealized g/l- only from available for sale, or CASH FLOW hedges
Foreign transaction adjustments
Instrument specific credit risk
Where is accumulated OCI reported?
Balance sheet. OCI for current year on IS
Form 10-k deadlines and threshold
60 days- large accelerated (over $700m market value)
75 days- accelerated ($75m - 700m market value OR 100m revenue)
90 days- all others (less than 100m revenue)
Form 10-Q deadlines
40 days- large accelerated and accelerated
45 days- all others
(thresholds listed on 10-k)
Rules for reporting EPS on statements
ALL public entities must report EPS on face of IS
If you have simple capital structure, only need Basic EPS
Complex structure or if you have discont. op. = must present basic and diluted EPS
Basic EPS formula
Net income available to shareholders (NI - preferred dividends) / WACSO
Components of Comprehensive Income
PUFI and net income + other comprehensive income
Trigger to know if EPS will be diluted
Only if average price > strike price
What is dividends in arrears?
the dividends that must be paid to preferred sh before common sh get any
JE for Treasury stock- original issue to Shareholders
Dr: cash
Cr: common stock (shares x par value)
APIC: plug
JE for Treasury stock- company buys back
Dr: treasury stock
Cr: cash
JE for Treasury stock- Reissue above cost
Dr: cash
Cr: treasury stock (total repurchase price)
Cr: APIC (plug)
JE for Treasury stock- Reissue below cost
Dr: cash
Dr: APIC (shares x par value)
Dr: RE (plug)
Cr: Treasury stock (plug)
Difference between issued and outstanding stock
Issued stock is all shares sold to investors, including outstanding and treasury stock
Outstanding is all shares held by investors less treasury stock
Percent thresholds when you treat a dividend as a small stock dividend vs large, and what you use to value it at
small- less than 20-25%. use FMV value
large- >20-25%. use PAR value
Comprehensive income includes all changes in equity during a period except..
anything involving the owners of the company
when computing EPS, how are stock dividends that occurred thru the year treated?
As if they occurred at beg. of year
Are gains and losses from discontinued operations included in revenue total?
No
What is added to EPS when calculating DILUTED EPS?
All POTENTIALLY dilutive convertible bonds and preferred stock are used
what entry is made when rights are issued for stock sales to shareholders
NO ENTRY
