FAR 1 Flashcards
Fundamental Qualitative Characteristics
Relevance
- Predictive Value
- Confirming Value
- Materiality
Faithful Representation
- Completeness
- Neutrality
- Freedom from Error
Enhancing Qualitative Characteristics
- Comparability
- Verifiability
- Timeliness
- Understandability
Excluded from Comprehensive Income
Investments by Owners
Distributions to Owners
Items on Income Statement Presented Net of Tax
Discontinued Operations
Extraordinary Items
Cumulative Effect of Change in Accounting Principle
Components of Other Comprehensive Income
P.U.F.E.R.
P.- Pension Adjustments U.- Unrealized gains & losses (available for sale) F.- Foreign currency items E.- Effective portion cash flow hedges R.- Revaluation surplus (IFRS only)
Comprehensive Income
Net Income
+Other comprehensive income
=Comprehensive Income
OCI Passkey
At end of accounting period, all components of comprehensive income are closed to the balance sheet. Net income is closed to retained earnings and OCI is closed to accumulated OCI.
Quantitative Thresholds for Reportable Segments
10% Size Test
- > = 10% revenue (both external & internal sales)
- > =10% profit ( of segments not reporting loss)
- > =10% loss (of segments that did report loss)
- > =10% assets
Must include 75% of external (consolidated) revenue for segments even if criteria above does not apply.
Financial Statements to be included in 1st time adoption of IFRS
3 - BS
2 - all others
B/S- end of current period, end of prior period, beginning of prior period Comprehensive Income Income Statements SCF Changes in Equity Related Notes
Financial Statements required to be filed with SEC (Reg S-X)
2 B/S
3 - I/S, changes in owner’s equity, cash flows
Accounting Changes
- Changes in accounting estimate - prospective
- Changes in accounting principle - retrospective
- Changes in accounting entity - retrospective, restate
