F1- Financial Reporting Flashcards
(27 cards)
A property dividend is recorded
AT FV of the property to be distributed
AND
Has to be adjusted to FV
The Adjustment affects earnings for the period
AFS DEBT SECURITY
Gain or Loss
Always go on OCI
AFS EQUITY SECURITY
Gain or Loss
Always go on IS
Amortization of Actuarial Pension Loss
Consider it as a Buffer account
Actuarial Pension Loss ( in other words it miscalculated and its paying you back)
So ADD IT
Actual Return on Pension Plan Assets
Guess what
Company doesn’t own the asset
It belongs to the 3rd party (kinda like Fidelity)
Acquisition of Treasury Stock
1) Decrease SE
2) Increase BV per share
Book Value / Outstanding share
So if you purch your TS Outstanding shares will reduce but the book value will also reduce by the cost of the purch of TS, BUT the overall effect is an increase in BV
Corp issued rights to its existing stockholders w/o consideration
Exercise price was in excess of par value, but less than the current market price
When stock rights are “issued” w/o consideration
NO ENTRY necessary
Just a disclosure by Issuer or the Recipient
When rights are exercised APIC would be CR if the purch price exceeded the par value
RE is NOT affected bc this is a capital transaction, not an Operations transaction
Form 10-Q
Quarterly report filed within 40 days for large corporations
45 days for small corporations after the end of the first three quarters of each fiscal year.
It must contain reviews of interim financial information by an independent CPA.
For a disposal
The Loss would be calculated
Operating Losses year 1
AND
Loss on Disposal Year 2
Form 10-K “accelerated filers”
75 days for Accelerated filers
*with a public float of greater than or equal to $75 million;
*subject to the Securities Exchange Act’s reporting requirements for greater than or equal to 12 months;
*that previously filed at least one report;
*which is not eligible to file quarterly and annual reports on Forms 10-QSB and 10-KSB.
CUMULATIVE PREFERRED DIVIDENDS
Deducted from NI in Basic EPS
Whether they are declared or NOT
CONVERTIBLE PREFERRED STOCK
Dividends are not deducted in Diluted EPS
Non-CUMULATIVE PREFERRED DIVIDENDS
Are deducted only if they are declared
Regulations S-X
Has the Form and Content requirements for interim and annual financial stmts to be filed with the SEC.
Translating a Foreign Financial Statement
(Under Remeasurement Method)
Under Remeasurement Method - Currency G or L is included in NI
Under the Translation Method, G or L goes to OCI
The amount of G or L is calculated as a “Plug” to make the FS balance
Large Accelerated Filer $700 million ( Common Equity ) or more
ALSO has 60 days to file 10-Q
Accelerated Filer $75 million ( Common Equity ) or more but less than $700 ALSO has 40 days to file 10-Q
A Smaller Common Equity of Less than $75 million
Annual Revenues of less than $100 million ALSO has 45 days to file 10-Q
Other Comprehensive Income Stmt
Cannot be shown as in the footnotes only
Can be shown in 1 Stmt of OCI
AND
Can be shown as a separate Stmt that follows the IS
FASB CONCEPTUAL FRAMEWORK
Treatment to Comprehensive Income
Comprehensive Income:
Change in Equity of a business during a period from transactions and other events and circumstances from non-owner sources
Includes all changes in equity except from investments by owners and distributions to owners
Repurchase of CS reduces TOTAL SE
AS WELL AS Total Capital available to firm
Results:
Higher Debt-to-total capital ratio as total debt remains unchanged
SIM
Before you figure if the Dilutive EPS
You need to do the Dilution Test
Potential Dilutive Shares / CS
Foreign Transaction Gain/Loss
Would go as an Unrealized Gain/Loss because its hitting the Currency Payables or Receivables
When a Fixed Assets is sold
G or L is recognized as part of income from Continuing Operations
JE for Donated/Gift Stock to Corp
Record TS at FMV on the donation date
Offsetting Credit to APIC
- Resulting in no net change to SE equity
PAR VALUE METHOD
WHEN MAKING TS PURCHASES:
APIC MUST BE HIT WITH ORIGINAL PRICE OF ISSUE - PAR VALUE
If still short hit RE with the remainder
Report a gain on Income from Continuing Operations if event is relatively Frequent and Predictable
Included in OPerating or NON-Operating
Is this item part of what the company normally does to earn rev?
Yes: Operating Section
NO: Non-Operating section
If classified as unusual or infrequent:
Report Separately as a Distinct Line item WITHIN Income from Continuing OPerations
Do not report NET of Tax - amt shown before tax
May require a disclosure - if material
