F1 Flashcards
(28 cards)
Regulation S-X
sets forth the form and content of and requirements for interim and annual financial statements to be filed with the SEC.
Regulation S-T
sets forth rules governing electronic filings.
Regulation S-K
sets forth non-financial reporting requirements for various SEC filings used by public companies.
Regulation S-B
sets forth the disclosure requirements for small business issuers.
When calculating EPS and preferred stock is cumulative..
the dividend accumulated during the period must be subtracted from net income whether they are paid or declared.
When prior service costs associated with a company pension plan are initially recorded, they will reduce other comprehensive income. But as they are amortized
, other comprehensive income (and as a by-product, accumulated other comprehensive income) will increase.
Dividends on cumulative preferred stock is
not reported as a liability until declared. The company would only disclose the dividends in arrears.
For the 10Q report,
both large accelerated and accelerated filers have 40 days to issue the report.
all other filers have 45 days.
Contingent shares (that are dilutive) are
included in the calculation of basic earnings per share (EPS) if (and as of the date) all conditions for issuance are met.
Stock options do not enter into the calculation of basic EPS, but will enter into the calculation of dilutive EPS if dilutive (i.e., the average market price of the common stock during the period exceeds the exercise price of the option).
prior year EPS data needs to be adjusted
for stock splits/stock dividends occurring in subsequent years.
Foreign Currency Transactions:
Receivable (asset)- FC will be collected
Payable (liability)- FC must be paid
Determine Gain/Loss?
DIRECT METHOD - DOMESTIC PRICE OF ONE UNIT OF ANOTHER CURRENCY $1.47 / 1 EURO - SO $1.47 BUYS 1 EURO OR 1 EURO BUYS $1.47
INDIRECT METHOD - FOREIGN PRICE OF ONE UNIT OF THE DOMESTIC CURRENCY 1 EURO/$1.47 - SO 0.68 EURO BUYS $1 OR $1 BUYS 0.68 EURO
Receivable (asset)- FC will be collected
If FX rate depreciates vs $ (more FC per $)- Loss (you receive fewer USD)
If FX rate appreciates vs $ (less FC per $) - Gain (you receive more USD)
Payable (liability)- FC must be paid
If FX rate depreciates vs $ (more FC per $) - Gain (you pay fewer USD)
If FX rate appreciates vs $ (less FC per $) - Loss (you pay more USD)
The donation of stock by a shareholder to the company results in
no change in total shareholders’ equity on the balance sheet as an increase in treasury stock is offset by an equal increase in APIC.
However, the number of common shares outstanding declines with a proportional increase in the book value per common share.
Common stock that contains an unconditional redemption feature should be reported on the issuer’s books as
a liability on the date of issuance because there is an obligation of a cash outflow in the future that the company has no ability to prevent.
Under U.S. GAAP, unrecognized prior pension service cost and unrecognized net gains or losses must be
reported in accumulated other comprehensive income, net of tax, until recognized as part of pension expense through amortization.
Prior service cost increases pension expense and is recorded as a debit to OCI. Net gains decrease pension expense and are recorded as a credit to OCI.
Gains and losses on a fair value hedge are reported in
in current income
Gains and losses on a cash flow hedge are
deferred and reported as a component of other comprehensive income until the hedged transaction impacts earnings.
Form 10K deadlines
Larger accelerated filers (MV 700 mil+) - 60 days
Accelerated filers (MV 75-700 mil/ 100 + mil rev) - 75 days
All others ( MV less than 75 mil/ less than 100 mil rev) - 90 days
Book value per share
Common shareholders equity / common shares outstanding
common equity = assets - liabilities - preferred equity - dividends in arrears
stock options (dilutive/higher aver price) would be calculated
Number of shares * exercise price / average market price = additional shares
Interim financial statements filed with the SEC should contain balance sheets as
of the end of the most recent fiscal quarter and as of the end of the preceding fiscal year.
Interim financial statements filed with the SEC would not include a statement of cash flows for the most recent fiscal quarter, but should include statements of cash flows for the period
between the end of the preceding fiscal year and the end of the most recent fiscal quarter, and for the corresponding period for the preceding fiscal year.
The financial statements may also present statements of cash flows for the cumulative 12 month period ended during the most recent fiscal quarter and for the corresponding preceding period.
Interim financial statements filed with the SEC should contain income statements for
the most recent fiscal quarter, for the period between the end of the preceding fiscal year and the end of the most recent fiscal quarter, and for the corresponding periods of the preceding fiscal year.
The financial statements may also include income statements for the cumulative 12 month period ended during the most recent fiscal quarter and for the corresponding preceding period.
BV per share of common stock =
Total equity - preferred stock (liquidating value) - preferred stock div in arrears = total value available for common stock / common shares outstanding
Items reported in OCI are reported
Gross presentation with tax effects shown separately on face.
Net-of-tax presentation - OCI items may be shown net of tax, but in this case, the total tax effect must be disclosed in the notes.
The tax effect must be disclosed either on the face of the statement or in the footnotes
