FAR-Becker Flashcards
(236 cards)
1
Q
Should int or adv exp be included in G/A exp?
A
No, int exp is a separate line item and adv exp is selling exp
2
Q
How to calculate insurance proceeds?
A
Replacement costs-deductible clause
3
Q
Impairment loss test under GAAP
A
- Impairment = NCV>undisc CF expected
2. Impairment loss = NCV-FV (disc future CF)
4
Q
Cost incurred to maintain goodwill must be expensed/capitalized under IFRS and GAAP?
A
Expensed
5
Q
Research costs must be expense/capitalized under IFRS and GAAP?
A
Expensed
6
Q
How is goodwill calculated?
A
Excess FV (purchase price/% acquired) over FV of net assets
7
Q
SYOD method
A
(Cost-SV)*remaining life/SOYD
8
Q
Cash proceeds from issuance of convertible bonds should be reported as?
A
A liab for entire proceeds (NO accrued int)
9
Q
Lease pmts should be reported in SoCF as?
A
- Cash pmt to reduce debt principal = financing
2. Cash int pmt = operating
10
Q
Routine employer contributions from general fund to pension trust fund would be accounted for as _ in general fund
A
Expenditure
11
Q
Transfer from general fund to any other fund would be classified as _
A
Other financing uses
12
Q
Proceeds from issuance of general debt obligation bond would be accounted for as _
A
Other financing sources (face amount +/- disc/prem); related transaction costs (eg underwriter’s fees) = debt service expenditure, NOT netted against debt proceeds
13
Q
Statement of activities is?
A
Govt-wide FS to report rev/exp for biz-type activities (enterprise fund)
14
Q
Primary purpose of statement of activities of non-govt NFP org?
A
Report rev/exp, G/L, and reclassification between classes of net assets
15
Q
Primary purpose of statement of financial position of non-govt NFP org?
A
Report assets, liabilities, and net assets as of a specific date
16
Q
Revolving debt financing and gains on sale of assets are included/excluded from income-OCF recon
A
Excluded. They are non-operating items.
17
Q
Support services for a non-govt NFP org includes?
A
G/A costs, cost of membership development, and fundraising
18
Q
Fundraising exp for a non-govt NFP org includes?
A
Maintaining a donor list for contributions (to get them to donate more money)
19
Q
G/A costs for a non-govt NFP org includes?
A
Soliciting membership dues (admin collection function).
20
Q
Cost of membership development for a non-govt NFP org includes?
A
Soliciting prospective members and printing membership benefits brochures
21
Q
Level 1 inputs of measuring FV of A/L are?
A
Quoted prices in active market for IDENTICAL assets/liabilities when no adjs required
22
Q
Level 2 inputs of measuring FV of A/L are?
A
Quoted price in active market for SIMILAR assets/liabilities
23
Q
Level 3 inputs of measuring FV of A/L are?
A
Inputs based on reporting entity’s internal data
24
Q
Rev are inflows or ___ resulting from entity’s ___ ops
A
Enhancements of assets (inc)/settlements of liabilities (dec); major ongoing, NOT incidental
25
Under GAAP, public companies FS must report segment info about a company's major customers if that customers provides ___
10% or more of COMBINED revenue (internal and external) of ALL operating segments
26
Under equity method, div received is ___ .
Reduction in carry amount of inv
27
Under cost method, div received is ___ and ___ inv acct
Income; does NOT affect
28
Under equity method, any GW created in inv acct is ___.
Ignored (neither amortized nor tested for impairment)
29
Purchased GW is ONLY tested for impairment in ___
Acquisition of controlling int (> 50%) of another co
30
JE for temp unreal loss on AFS securities
Dr. Loss-OCI
Cr. Valuation account (contra)
Subsequent recoveries = reversal of JE
31
JE for perm real loss on AFS securities
Dr. Loss-IS
| Cr. Cost of security acct
32
Calculation of int cap
WAAE (expenditure*mo o/s/12 mo)*loan int
33
JE for collection of amt previously written off under allowance method
Dr. Cash
| Cr. AFDA
34
G/L on bond re-acquisitions/retirements is reported in ___
Income from continuing ops
35
Overfunded pension plans are reported as _ on BS
NON-CURRENT asset
36
Instead of being used in CF recon, int paid would be _
Disclosed in supplement section of SoCF
37
Increase in lease payable (non-cash) would be _
Disclosed in supplemental schedule of non-cash investing/financing activities
38
Purchase of BP is _ activity
Investing; it represents inv in the debt of other.
39
Proceeds from issuance of LT debt is _ activity
Financing
40
Payments on LT debt is _ activity
Financing
41
SoCF must be presented for all _ funds as part of a set of FS
Proprietary (eg public benefit corp., govt utilities)
42
Equity section in proprietary funds are called _
Net position (= fund equity)
43
Equity section in govt funds are called _
Fund balance
44
Property taxes and fines are examples of _ rev.
Imposed non-exchange
45
Sales tax and income tax are examples of _ rev
Derived tax
46
Environmental clean up is example of _
Govt-mandated non-exchange transactions that compel the collection of rev for certain activities
47
In statement of activities for a non-govt NFP org, all exp are reported as _
Decrease in unrestricted net assets
48
Budgetary comparison schedules must show _(4)_; _ are optional
Org budget, final amended budget, actual amt, variance computations; process descriptions
49
Most common functional classifications for non-govt NFPs are _(3)_
Program services, fundraising, mgmt/general
50
Interfund reimbursement receipts are _ CF
Operating
51
Operating transfers out are _ CF
Net non-capital financing
52
Capital outlay for water plant improvements are _ CF
Capital and related financing
53
Under IFRS, what happens when a revalued asset becomes impaired?
Reduce any revaluation surplus to 0 on OCI and remaining impairment loss on IS
54
What info should a public company present about rev from its reporting segments?
SEPARATE disclosure of amt of sales to unaffiliated customers and intracompany sales
55
What doc is used as part of due-process activities of FASB for amending FASB codifications?
A proposed accounting standards update
56
Gain in transaction that LACKS commercial substance?
Cash received=proportional gain to cash received; cash given=NO gain
57
Stock div on CS should/should not be recorded at FV under cost/equity method?
Should NOT be under either
58
Trading securities are reported at _ w/ unreal G/L included in _
FV; IS
59
DDB method
(Cost-AD)* 1/N *2
60
Adj cash bal = unadj cash bal _
+/- Bank errors, + int earned (credit memo), -ervice charges (debit memo)
61
Applying LCM to _ results in lowest inv amt
Separately to EACH item, NOT groups of similar items
62
What characterizes convertible debt under GAAP?
NO value is assigned to conversion feature b/c it cannot be sold/transferred separate from bonds
63
Investor has incentive to convert convertible bonds to equity when value of stock received is _ than market value of debt
Greater
64
_ are not required for contingent shares
Cash consideration, such as shares issuable upon exercise of stock option
65
_(3)_ are included in introductory section of local govt's annual report
Letter of transmittal, org chart, list of principal officers
66
Cash equivalents include highly liquid items that mature within _ of acquisition
3 mo
67
Company's 1st IFRS FS are required to include _BS, _SoCI, _IS, _SoCF, _ stmt of changes in equity, and _
3-2-2-2-2, explicit stmt re: compliance w/ IFRS
68
A derivative designed as FV hedge must be _(4 criteria)_
Specifically identified to hedged A/L/unrecog firm commitment; highly effective in offsetting changes in FV of hedged item (effectiveness is assessed every 3 mo);
normal documentation of hedging relationship btw derivative and hedged item; hedged item presentes exposure to changes in FV that could affect income
69
Cost associated with exit/disposal activities is _
Costs to relocate ee
70
Assets being actively marketed for sale will be valued at LOWER of _
BV or NRV (=FV-costs to sell)
| **Remember: they will NOT be valued at HC and they will NO longer be depreciated
71
Dep calc should be based on _ less _
FV (= cash equivalent price = cost), SV
72
Periodic/market/effective int rate on bond = _
Int exp/NCV of bond at BOP
73
Coupon/stated int rate on bond = _
Cash (int) actually paid/bond face amt
74
Market value of bond issued at a disc/prem is _ plus _ at _
PV of principal amt, PV of all future int pmts, market (effective) int rate
75
Current portion of provision of income taxes = _
Income tax payable (TI*CY's effective income tax rate)
76
Ee's compensation for future absences/vacations should be accrued if _(4 criteria)_
Services ALREADY rendered (they've worked), amt can be REASONABLY ESTIMATED, obligation relates to VESTED accumulative rights, pmt of compensation is PROBABLE
77
Div paid is _ CF
Financing
78
Financing activities include _
Getting funds from investors and providing them w/ return on/of their inv, eg paying div
79
Basic EPS = _
(NI-cum. PS div)/WA CS o/s
80
Exception to GR of expenditure accrual for govt funds under modified accrual basis relates to _
Treatment of int and principal pmts for LT debt; they are recorded when they become due/payable (GR: expenditures are recog when incurred b/c measurable)
81
Est rev control account is eliminated when _
Budgetary accts are closed
82
Donated capital assets to a govt unit are recorded at _
Est. FV when received (as if they had been purchased)
83
___ accounts for assets that have been internally designated by institution for a specific purpose
Quasi-endowment fund
84
Quasi-endowment fund would be displayed as _ net assets.
UNrestricted
85
A component unit uses BLENDED presentation when _
Board of component almost same as that of primary govt, component unit serves primary govt exclusively, component unit is NOT a separate legal entity
86
A component unit uses DISCRETE/SEPARATE presentation when _
Criteria for blended presentation are not met (discrete presentation=most common)
87
Test of component unit (SELF)
Separately-elected governing body, legally separate, financially independent of state and local govt
88
G/L on trouble debt restructuring = _
Debt amt cancelled-FMV of asset exchanged (CV of asset is adjusted to FV); ordinary G/L
89
Warranty costs are recognized when _
Sold, at the date of sale b/c they are probable and estimable
90
According to FASB and IASB, fundamental qualitative characteristics of useful financial info are _
Relevance, faithful representation
91
To be RELEVANT, financial info must have _
Confirmatory value, predictive value, materiality
92
To FAITHFULLY REPRESENT, financial info must be _
Complete, neutral, free from errors
93
Comprehensive income DOES NOT include _
Owner transactions/investments by/distributions to owners, such as div paid
94
R/D costs are _ unless they _ or _
Expensed when incurred, have alt uses, are reimbursable by others
95
Under cost method, div are recorded as _ by investor
Income
96
Cost basis inv is reduced ONLY IF _
Cum div>cum earnings (= return of capital), shares of stock are sold, sub incurs material losses that hugely reduced net worth
97
Acquisition method requires that _ of sub's assets FV be recognized
100%.
98
Cost method = _%
20 (NO consolidation)
99
Equity method = _%
20-50 (NO consolidation)
100
Acquisition method = _%
51-100 (Consolidate sub at 100% FV at acquisition date)
101
What is generally associated with terms of convertible debt securities?
LOWER int rate than that of NON-convertible debt b/c of value of conversion feature
102
Increase in prepaid insurance would cause DTA/DTL
DTL b/c deductible now (paid) but taxable later when expensed on books
103
Increase in rent receivable would cause DTA/DTL
DTL b/c taxable later when money is received
104
Increase in warranty obligations would cause DTA/DTL
DTA b/c/ deductible when paid later
105
_ issued by a public company should be reported on issuer's books as a LIABILITY on date of issuance
CS w/ UNconditional redemption feature (b/c obligation of not preventable CF in future)
106
Activities are required to be reported as an ENTERPRISE fund if _
Pricing policies establish fees/charges to recover costs (required by laws/regulations), financed w/ debt solely secured by rev from fees/charges
107
JE when taxpayers are billed for property taxes
Dr. Property tax receivable
| Cr. Rev (net of est. uncollectible)
108
Est rev are _ when est rev and appropriations are closed at fiscal YE
Credited
109
Inv, prepaid expenditures, or resources that are legally/contractually required to remain whole (eg permanent fund capital) are considered _
Non-spendable
110
Non-capital financing activities include _
Borrowing for non-capital purposes, CR from grants/subsidy (eg operating grant)/property taxes
111
Unassigned/unencumbered fund balance in general fund would be increased by _
Appropriations (approved spending/est expenditures) over actual expenditures
112
Recipients that do not have _ would recognized assets received as a _ to beneficiary
Variance power to determine use of funds received, liability
113
Govt activities column in govt-wide FS includes data from _ funds
GRaSPP and S (internal service from proprietary fund)
114
Conditions that did not exist and occurred after BS date are _ and they are _ on FS
Non-recognized subsequent events, NOT accrued/DISCLOSED in notes to FS
115
Temp market declines in inv are recognized/not recognized at interim when turn-around can be reasonably expected to occur before YE.
NOT recognized
116
G/L on abandonment of equip is reported in _
Income from continuing ops
117
Officer's compensation exp include _.
Salary accrual, bonuses not yet paid
118
Cost recovery method is used when _
There is no reasonable basis for estimating collectibility
119
Changes in current cost of non-monetary assets (ie equip/land) are NOT included in _ but are classified as _ in current cost stmts
Current cost income from continuing ops, holding G/L
120
NCI calc under IFRS PARTIAL GW method
NC=FV of sub net assets*NCI% (Remember: partial=>sub's net assets)
121
NCI calc under IFRS FULL GW method
NCI=FV of sub*NCI% (Remember: full=>entire sub)
122
GW calc under IFRS partial GW method
GW=acquisition cost-FV of sub's net assets acquired (Remember: partial=>net assets acquired)
123
Under IFRS full goodwill method, goodwill is calculated:
Goodwill = FV of sub - FV of sub's net assets
| **Remember: full => sub's entire net assets**
124
In biz combo accounted for under acquisition method, registration/issuance costs are _
Direct reduction to value of stock issued by reducing APIC
125
In a biz combo accounted for under acquisition method, direct out-of-pocket costs (ie legal/consulting fees) are _
Expensed
126
JE for biz combo accounted for under acquisition method
Dr. Inv in acquired biz
Dr. Out-of-pocket expenses (ie legal/consulting fees)
Cr. Cash (registration costs+out-of-pocket costs)
Cr. CS (issued shs*par value)
Cr. APIC (value of market>par * shs-registration costs)
127
Cash in money market account is included in _
Cash/equivalent (Remember: it's STILL cash)
128
Under GAAP and IFRS, bond issuance costs _
Reduce cash proceeds from bond issuance b/c they are netted against disct/prem and deducted from CV of bond
129
Life insurance premiums are _
Non-deductible, they are added back to arrive at TI
130
Municipal bond income is _
Non-taxable, they are subtracted to arrive at TI
131
Effective tax rate = _/_
Income tax exp (from TI)/Pretax income
132
Determine current/non-current liabilities of pension plan
CL=payable in 12 mo-FV of plan assets; non-CL=rest
133
When computing OCF, inc/dec in AFDA is _
Added/subtracted from NI (same direction)
134
Diluted EPS = _/_
(Income avail to CS shareholders+after-tax int exp)/WA # of shares o/s after conversion
135
After-tax int of dilutive securities = _ +/- _ * _
Int pmt on debt (face amount*stated int rate), disc/prem amort, (1 - tax rate %)
136
For capital projects fund, grants received are recorded as _
Revenue
137
For capital projects fund, transfer from general fund are recorded as _
Other financing sources
138
For capital projects fund, proceeds from general obligation bonds issue are recorded as _.
Other financing sources
139
Wages/salaries is example of program/function/activity/object classification
Object (= CoA titles)
140
Program classification groups _
Activities/ops/org unit directed to specific purpose/objectives
141
Function classification groups _
Activities aimed at accomplishing major service/regulatory responsibility
142
Activity classification provides _
Data for calculating expenditures per unit of activity, or specific/distinguishable line of work performed by org unit.
143
Fund acctg nables services/mission-driven orgz to monitor compliance with _
Spending PURPOSE (LEGAL restrictions), spending LIMITS (FINANCIAL control), other fiscal accountability objectives
144
T/F: Under GASB 34, budgetary comparison schedule must include either GAAP or budgetary presentation formats/basis of accounting
T, any format or basis of acctg may be used to present budgetary comparison schedule as long as a recon to GAAP is also prepared
145
Compute gain on restructuring for trouble debt restructuring involving only a modification of terms
Gain=CV of debt-total FUTURE cash pmts
146
Interim FS filed with SEC would NOT include _
SoCF for most recent fiscal qtr
147
Interim FS filed with SEC would include _
SoCF for PY YE-most recent fiscal qtr, SoCF for cum 12 mo b4 most recent fiscal qtr
148
Internally created GW is _
Expensed (eg hiring/training ee)
149
Intangible asset is amortized over legal remaining life/ability to renew indefinitely
Indefinite life, so NO amortization
150
Ending FV of plan assets is calculated as
Beg FV of plan assets+contributions-benefits paid +return on plan assets
151
Calc of TS-related APIC under cost method
(Reissuance price-bought back price)*# of shares reissued
152
Property taxes are recognized _ regardless of acctg basis
Net of uncollectible
153
_ is most restrictive classification of govt fund bal
Committed
154
Basic criteria used to determine reporting entity for a govt unit include _
Financial interdependency, selection of governing authority, designation of mgmt, ability to significantly influence ops, accountability of fiscal matters (financial accountability)
155
Under IFRS, exchanges of dissimilar assets are regarded as exchanges that _ and _
Generate rev, all G/L losses are recognized
156
Inv costs include _
Purchase price, freight-in
157
Selling exp includes _
Freight-out, salaries/commissions, adv
158
G/A expense includes _
Officers' salaries, acctg/legal fees, insurance
159
To correct inv NOT included from prior period, RE must be _
Increased by understatement amount, net of tax
160
Org costs are ___ under GAAP
Expensed when incurred
161
Dist on BP is ___ from CL
Deducted
162
Income taxes VA: ___ should be recognized in income from continuing ops in period of change
Effect of change in opening bal of VA/potential realization of DTA from change in circumstances
163
Required FS for biz-type activities (eg enterprise funds) are _
Stmt of net position (BS), stmt of rev/exp and changes in net position (IS), SoCF, footnotes, MD/A, RSI
164
JE for acquisition of FA through capital lease of govt unit
Dr. Expenditure-capital lease
| Cr. Other financing source-capital lease
165
FV hedge is recorded on _
IS
166
CF hedge (effective) is recorded on _
OCI
167
GAAP does NOT require intraperiod income tax allocation to _
Operating income
168
GAAP requires intraperiod income tax allocation to _(name 3)_
Income from continuing ops, discontinued ops, retroactive acctg principle changes
169
NI or RE will _ through TS transactions
Never be increased
170
Calc of G/L on disposal of asset (thru property div)
(FV of property div-BV of property div)*shares declared
171
Amort of bond disc is _ CF
Operating
172
Under IRC Sec. 457, deferred compensation plans for non-proprietary fund ee's should be reported in _ fund
Pension (and other ee's benefits) trust
173
___ is NOT a valuation technique used to measure FV of A/L
Impairment approach
174
Valuation techniques used to measure FV of A/L are _(name 3)_
Market, income, cost approach
175
Market approach uses _ to measure FV of A/L
Price/other market info from identical or comparable A/L
176
Income approach uses _ to measure FV of A/L
Discounted future CF or earnings
177
Cost approach uses _ to measure FV of A/L
Current replacement costs
178
Depreciable property constructed on leased land is depreciated over _ of _ or _
Lesser, term of lease, life of property
179
Net pension G/L are required to to be reported in AOCI until _
Recognized in net periodic pension cost through amortization
180
JE for CY amort of net pension gain
Dr. OCI
Cr. Net periodic pension cost
Dr. Deferred tax expense-NI
Cr. Deferred tax expense-OCI
181
Proceeds from sale of TS is _ CF
Financing
182
Interim income tax expense =
YTD income*est annual ETR-tax expense recognized in previous interim periods
183
Patent is capitalized and amortized over
Lesser of legal life or economic life
184
Asset's cash equivalent price is its
FV
185
When nonmonetary asset is exchanged for another nonmonetary asset for a loss, loss is
Recognized immediately b/c asset received should NOT be valued at more than their FV (cash equivalent price); value of asset received=BV of asset given up-cash received+cash paid-loss recognized
186
Combined FSs would be most appropriate for
Several corps owned by 1 individual
187
Consolidated FSs would be most appropriate for
Parent and sub
188
Consolidated FSs are prepared when one company has a controlling financial interest in another unless
Sub is in legal reorg or bankruptcy and/or sub operates under severe foreign exchange restrictions, control, and other govtally imposed uncertainties so severe that they cast significant doubt on parent's ability to control sub
189
Quick ratio =
(Cash+net AR+marketable securities)/CL
190
Aggregate amt of pmts to be made on UNconditional purchase obligations should be disclosed (in a FN to FS) for each of
5 years following date of latest BS
191
Under IFRS, past service cost is recognized
In period of plan amendment on IS (unlike GAAP, it is NOT reported in OCI therefore recognition in future periods thru amort is NOT required)
192
Basic EPS from income from continuing operations and NI are presented in
Simple capital structure
193
Basic AND diluted EPS from continuing operations and NI are presented in
Complex capital structure
194
When acquired, equipment, facilities, and services purchased previously included in est total current cost of closure and post-closure care should _ in govt-wide FS
NOT be reported as capital assets but as reduction of accrued liabilities in general LT liabilities
195
Any debt that is to be repaid from general resources should be recorded as
General LT liabilities in govtal activities column of govt-wide stmt of net position (BS)
196
Contributions from general fund to other funds are recorded as
Expenditure, NOT transfer out
197
Internal transfers are (usually?) classified as
Noncapital financing activities
198
2 inherent risks of int swap contracts are
Risk of exchanging a lower int rate for a higher int rate (market risk) and risk of nonperformance by counterpart of agreement (credit risk)
199
Segment _ is NOT reported under IFRS nor GAAP
CF
200
Equity instruments issued for ee services are to be valued at date of
Grant
201
Is bond prem/disc amortized in govt funds?
No, since measurement focus is sources and uses of financial resources
202
When collectibility is reasonably assured, excess of subscription price over stated value of no par CS subscribed should be recorded as
APIC when subscription is recorded/received
203
Loss from discontinued operations include
Operating loss, gain from sale of operation, related exit and disposal costs (ie, ee termination benefits, cost to terminate operating lease)
204
To be significant enough to report on, a segment must be at least 10% of
1. Combined revenues (intersegment or affiliated customers) 2. operating profit (of all segments not having operating loss), or 3. identifiable assets
205
Only sinking fund accounts (or the portion thereof) that are considered _ can be included within CA
To offset current bond liabilities
206
Fund structure of a govtal entity and number of funds used is a matter of
Judgment, min number of funds consistent with legal requirements and sound financial administration should be set up
207
Basic FSs and RSI for general purpose govts should consist of
MD&A, basic FSs, and RSI
208
Assets obtained thru capital lease should be reported in govt-wide stmt of net position as
General capital asset (as an asset and liability in full accrual acctg). In comparison, the asset would be recorded as expenditure and the lease as other financing source under modified accrual acctg
209
Liquidation basis of acctg is applicable to
Public, private, and NFP entities
210
Segment _ is NOT reported under IFRS
CF
211
What conditions must exist for impairment loss to be recognized under GAAP?
1. CV > FV 2. CV is not recoverable (FV would be recoverable but difference would not be)
212
Stock rights should be allocated between stock and stock rights using
Pro rata allocation based on relative FV of stock and stock rights (times value of stock purchased)
213
What supports interperiod equity as a financial reporting objective of a govtal fund?
Adoption of a balanced budget
214
Estimated revenues for general fund would include _
Property taxes, license and permits, intergovtal revenues (transfer in from other funds would be considered estimated other financing sources)
215
CR from grants or subsidies, property taxes are classified as _
Non-capital financing activities
216
Debt security registration costs are
Capitalized and amortized
217
What is factoring receivables?
Converting receivables to cash by assigning them to a factor, either with or without recourse
218
Treatment of profit/loss on sale/leaseback of capital lease?
Deferred and amortized in proportion to depreciation taken on leased back asset (asset VA)
219
Under GAAP, amortization of unrecognized prior service cost is calculated by
Assigning equal amount of cost to future periods of service of each ee (over average service life of however many ee accounted for) at plan amendment date
220
Where is internal service funds usually reported?
Govtal activities column of govt-wide stmt of net position and stmt of activities since they are generally established to service govtal funds
221
Contributions to NFP include transactions which are _
Unconditional (not requiring a future event to occur), non-reciprocal, voluntary, and not of an ownership investment
222
Govt-wide FS classification of net assets are
Net investment in capital assets, restricted, and unrestricted
223
NFP classification of net assets are
Permanently restricted, temporarily restricted, and unrestricted
224
Major fund for purposes of fund FS presentation means that it has to be _
Both 10% of its FUND category's assets/revenues/expenditures/expenses, or 5% of COMBINED govtal and enterprise assets/revenues/expenditures/expenses
225
General fund is always a _
Major fund
226
How should acquirer recognize a bargain purchase in a biz combo?
Gain in earnings at acquisition date (it'd be goodwill in statement of financial position when amount paid for net assets > FV of net assets acquired)
227
What is included in both cost and retail amounts of COGAFS under retail inventory method ?
Purchase returns (only in cost: freight in; only in retail: sales return and net markups)
228
Occupancy expense includes
Rent expense (includes amortization of lease bonus over life of lease) and depreciation of leasehold improvements over shorter of improvement life or lease term
229
Pension related items on AOCI that increase pension expense are _
Unrecognized prior service cost, transition obligations, net losses (recognized through amortization into net periodic pension cost-DR to AOCI)
230
Pension related items on AOCI that decrease pension expense are _
Unrecognized transition assets and net gains (CR to AOCI)
231
Treatment of TS "gains and losses"
Corporations are not allowed to report IS gains and losses from TS transactions; they are direct adjustments to SHE (gains-CR to APIC-TS; losses-DR existing APIC-TS to 0 then RE)
232
All TS transactions _ total equity
Decrease
233
For NFP, non-operating income items, such as _, are excluded from reconciliation from net income
Revolving debt financing ("current portion of bonded indebtedness") and gains on sale of assets
234
For NFP, operating income items, such as _ , are included in reconciliation from net income
Interfund receivables for services ("amounts due from other funds")
235
NFP investments in debt securities are displayed at _ at YE
FV ("quoted market price")
236
_ would be used to determine a segment's operating income
Sales to other segments (NOT income tax expense, G/L on discontinued operations, general corporate expenses, or equity in NI of another company unless they are included in determining segment profit reported to Chief Operating Decision Maker)
