FAR Flashcards
(30 cards)
Transaction Cost & Transportation Cost Considerations In Fair Value.
Both Are Considered To Determine Most Advantageous Market(When Principal Market is Absent) but Fair Value Is Not Adjusted By Transaction Cost.
What is the revenue classification for Fines & Forfeiture for a Local Government?
Charges for Services or Programs. Because they result from charges to those who are directly affected by the Service or Program even though they receive no benefit.
Governmental Accounting: What is the method required for Statement of Cash Flow?
Indirect Method
IFRS vs GAAP
IFRS is more principle based vs GAAP is more rule based.
Inventory valuation 2015 ASU
Inventory measured under FIFO or Avg Cost should be reported at lower of Cost or NRV. Inventory under LIFO or Specific Identification should be reported Lower of Cost or Market.
10-K, 10-Q filing deadlines
10-K 10-Q
Large Accelerated filers 60 40
Accelerated filers 75 40
Non Accelerated filers 90 45
Statement of Functional Expenses is required for what kind of NFP entities?
Voluntary Health and Welfare Organizations. VHWOs
Govt Accounting: What is the treatment of Debt Issuance Costs?
Debt Issuance Costs are expensed in current period. Exception: Prepaid Insurance.
Governmental NFP entities: Treatment of Cash from Grants to finance Operating deficits.
They are listed under Non financing activities
Treatment of Overdrafted Bank A/c
Treated as current liability. It is not netted against other Bank balances.
NFP: Treatment of restricted cash from contribution for long term assets on SCF?
Financing Activities
Govt: What funds use Other financing Sources & Other financing Uses accounts?
Governmental Funds
What basis do Governmental Fund Budgets use?
Modified Accrual Basis. The same as the what Governmental funds use.
For what funds Budgetary comparisons are required?
Governmental funds. Budgetary comparison statements can be part of Basic Financial Statements or RSI-Required supplemental Information.
Treatment of 3 month Treasury bill purchase on SCF
No treatement. 3 month T bill is cash equivalent.
Segment reporting: Disclosure is required when
10% or more revenue comes from one customer or 10% or more revenue comes from export sales
NFP entity’s accounting policy to imply time restriction on gifts of long lived assets affects
the depreciation of the contributed asset. Donated asset is considered Temporarily restricted asset(Time) The depreciation is unrestricted assets reclassified from that Temp restricted asset. NFP also depreciated other long lived assets and the treatments would be similar.
Govt: Enforceable legal claim
it determines the recognition of imposed non exchange revenues(property taxes) as assets. However, property taxes are susceptible to accrual and usually recognition takes place even if the legal claim does not arise immediately.
IFRS When govt grant can be recognized as revenue
there is reasonable assurance that
- entity will satisfy with conditions of grant
- the grant will be received
govt: MD&A is part of
RSI
NFP Pooling of investment of contributions with different kinds of restrictions is allowed?
Yes, but realized and unrealized G/L must be allocated based on donor restrictions. board policies and relevant laws
NFP investement earnings may be reported net of expensed as long as
disclosure of the expense is made elsewhere in financial statements
cash basis statements are sometimes provided to creditors and investors
it happens
Cash basis accounting
no current deductions for cap exp.
