Flashcards in FAR-Mnemonics Deck (10)
What is the acronym for the parts of the income statement?
Non-Operating Income (Gains and Losses, Interest Income, Dividend Income, etc)
Taxes (Current and Deferred Income Tax Expense)
Income from Continuing Operations
Discontinued (Is shown Net of Tax)
Extraordinary (Is shown Net of Tax)
Other Comprehensive Income (Goes to BS / Equity Account)
What goes into Other Comprehensive Income?
• Derivative Cash Flows (Foreign Currency Hedges and Fair Value Hedges)
• Excess adjustment of Pension PBO and FV plan assets at year end
• Net unrealized gains and losses on available for sale securities
• Translation adjustments for foreign currency (See FAR 6)
What are the three valuation techniques?
Market Approach: Information from market transactions
Income Approach: Analyzed future amounts in the form of revenues, cost savings, earnings, etc
Cost Approach: Involves measuring the cost that would be incurred to replace the benefit derived from an asset
What type of transactions are recorded in the investing section of the Statement of Cash Flows?
Loans: Principal collections or loans made by the entity.
Investments: Acquisition or disposal of available-for-sale or held-to-maturity investments.
PP and;E: Acquisition or disposal of property, plant & equipment.
What are the spelled out meanings of TT, BPO, 75, 90?
TT: Transfer of Title
BPO: Bargain Purchase Options
75: 75% of useful life
90: 90% of FMV
In Governmental Accounting, Financial Reports are used primarily to show which four things?
ACE The Financial Statements
A - Actual vs. Budget
C - Compliance with Finance-related laws, rules, and regulations
E - Efficiency and Effectiveness
F - Financial condition and results of operations
What is the mnemonic for Govermental Funds, and what does it mean?
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• General Fund (Ordinary Funds such as: ordinary operations, public safety, public works, etc)
• Special Revenue Fund (Earmarked revenues)
• Capital Projects Fund (Revenue for capital projects such as new bridges, etc)
• Debt Service Fund (Makes principal and interest payments on tax supported debts)
• Permanent Fund (Funds that cannot be spent—only interest on the funds may be spent. Interest from the fund investments are spent on items such as cemeteries)
What is the mnemonic for Proprietary Funds, and what does it mean?
• Internal Service
• Enterprise Fund
What is the mnemonic for Fiduciary Funds, and what does it mean?
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• Pension Trust (Employee Benefits)
• Private Trust (Fund for private persons, such as unclaimed funds tax refund, etc)
• Investment Trust (Pooled resources to be invested on behalf of multiple government entities)
• Agency (Holds fund that must go to others. Assets = liabilities)