Flashcards: F4 - F7
(75 cards)
GAAP Refinanced before F/S issuance
Book as non-current
IFRS Refinanced before F/S issuance
Leave as current until refinanced
Restricted Cash Classification
To pay current = Current Cash; To pay non-current = Noncurrent Cash
Apply A/R Trade Discounts
Apply discount % first and then 2nd % discount on balance
A/R Expected Returns
Book nothing; only book allowance % based on past experience
Allowance for Doubtful Accts Entry
DR: Bad Debt CR: Allowance for Doubtful Accounts
W/O Specific Bad Debt Entry
DR: Allowance for Doubtful Accounts CR: Accounts Receivable
A/R Subsequent Cash Collections
GAAP: Reverse W/O DR: A/R CR: Allowance, Book Cash: DR: Cash CR: A/R
Pledging A/R as Collateral Entry
Footnote Disclosure Only
Pledging A/R w/Recourse
Footnote Disclosure Only
Pledging A/R w/out Recourse
Book sale as final; book loss on sale to I/S
Perpetual vs. Periodic
Perpetual = continuous, Periodic = at end of period, FIFO same for both
Calculate Moving average Inv. Cost
Compute weighted avg. after each purchase
Calculate Price Index Inv. Cost
(End Inv. @ Current/End Inv. @ Base) x Base - LIFO
Capitalize Add, Impr to Equip
Usefulness Incr = Incr Asset; Life Extended = Reduce Accum Depr.
Capitalize Land Costs Except
All costs up to the digging (excavation)
Treatment Land Improvements
Capitalize and depreciate
Capitalize Building Costs
Excavation forward; Purchase, neglected repairs, improvements, architecture
IFRS Investment Property Treatment
Capitalize @ Cost less depr. OR book @ Fair Value no depr.
Construction Interest
Cap. during construction only; use weighted avg. expenses to calculate int.
Sum of Years Depr.
N(N+1)/2 = sum all years, highest year 1st divided by sum of years x base (cost - salvage)
Declining Balance Depr.
2/N(years) x NBV (ignore salvage)
Asset Impairment Test
GAAP: Step 1 - Undisc. Cash flow
Calculate GAAP Asset Impairment
Step 2: Fair Value or Disc. Cash Flow minus carry value
