Frame, Overview, Statements Flashcards
(316 cards)
1
Q
General rule converting from Cash to Accrual
A
Add beginning liability balances and subtract ending liab balances: also subtract beginning asset balances and add ending asset balances
2
Q
A $20 AR decrease implies that cash received on account was $20 ……….. Than accrual sales. Therefore Cash basis income is $20 …….. than accrual.
A
Greater
3
Q
A $16 increase in AP leads to a ……. In cash basis income versus accrual because ……
A
Increase, because it implies that more inventory was purchased and included in accrual cost of goods sold than was paid.
4
Q
Collection of a note receivable from a related party is what kind of activity in the Cash flow statement
A
Investing
5
Q
What are inflows of economic resources only
A
Revenues…. Purchase discounts are netted against purchases not sales the recovery of accounts written off is not revenue it is an adjustment to the allowance for uncollectable accounts.
6
Q
A dividend payment is what kind of activity on the cash flow statement?
A
Financing
7
Q
Does the income statement contain all items of revenue expense gain and loss?
A
No this is included in the statement of comprehensive income.
8
Q
The total amount included in cash or in cash equivalents in the statement of cash flows must be the same title and groups of accounts sed in the statement of financial position T or F
A
True
9
Q
Name the 3 GAAP Principals
A
Recognize- when
Measure - how
Disclosure- additional info
10
Q
Name the Statements that must comply with GAAP
A
BS statement of share equity
statement of cash flows
IS
Statement of Comp Income
11
Q
The first three steps in the FASB standard setting process
A
1 add to agenda
2 research and issues DM
3 public hearing
12
Q
The Second three steps in the FASB standard setting process
A
1 Issue exposure draft
2 modifies exposure draft
3 finalize and issue ASU
13
Q
Are FASB concepts AICPA issues PAPERS and IFRS authoritative GAAP?
A
NO
IFRS is accepted by the SEC but not GAAP
14
Q
Cash before earned is a….. Cash before exp is a…..
A
Deferred Revenue (liab) Deferred Exp (asset)
15
Q
Rev before earned is a…. Exp incurred before cash is paid is a……
A
Accrued Rev (asset) Accrued Exp (liab)
16
Q
LT Receivables measure in?
A
PV of future cash flow
17
Q
Available for sale securities measure in?
A
Current MV
18
Q
Equipment measure in?
A
Historical cost unless liquidation is taking place
19
Q
Warranty Obligations measure in?
A
Net realizable value or settlement rate
20
Q
ST payable measure in?
A
Historical Cost
21
Q
A/R measure in?
A
Net realizable value or settlement rate
22
Q
Bonds payable due in 10 years measure in?
A
PV of future cash flow
23
Q
Trading Securities measure in?
A
Current MV
24
Q
What kind of entry is this?
Dep exp
Acc dep
A
Defferal
25
What kind of entry is this?
Int Rec
Int Rev
Accrual
26
What kind of entry is this?
Rent Exp
PPD Rent
Defferal
27
What kind of entry is this?
Unearned rent
Rent Rev
Defferal
28
What kind of entry is this?
Wages Exp
Wages Payable
Accrual
29
Statement of Comp Inc reports what?
Non owner changes to equity over a pd of time.
30
Fasb Codification official name?
ASC accounting standards code
31
Are ASU's GAAP?
Not GAAP but how updates to GAAP are communicated.
32
How is the codification organized?
Areas-topics-subtopics-sections-subsections-paragraphs
Sections are standardized.
33
What happens to accrual vs cash sales when A/R decreases
Accrual sales declines
34
How to calculate the amount of insurance left in PPD?
Expense for the year-Beginning+Left in PPD
35
Which accounting characteristic of information allows users of financial statements to generate predictions?
Relevance because this term captures predictive value.
36
What cost basis is used for Equipment when a firm is in liquidation?
Net Realizable value. only the amount that will be recovered because going concern no longer applies which is why Historical cost was in place before liquidation.
37
According to the conceptual framework the usefulness of providing information in financial statements is subject to the constraint of?
Cost- Benefit. When the cost of the information exceeds the benefit it should not be reported even if useful!
38
When a parent and subsidiary relationship exists consolidated financial statements are prepared in recognition of what accounting concept?
Economic Entity.
| consolidated fin statements are trying to account for the economic entity that comprises more than one legal entity.
39
Conceptual Framework
Guides the standard setting process based on the over riding decision of financial reporting. Decision making. Has two primary and four enhancing characteristics.
40
What are the Primary Characteristics of the Conceptual Framework?
Faithful Representation and Relevance.
41
What are the components of the primary characteristic to Conceptual framework of Faithful Representation?
1. Free from error
2. Complete
3. Neutral
42
What are the components of the primary characteristic to Conceptual framework of Relevance?
1. Predictive Value
2. Material
3. Confirmatory Value
43
What are the enhancing characteristics of the conceptual framework?
1. Comparable
2. Verifiable
3. Timely
4. Understandable
44
What are the 4 accounting assumptions?
1. entity- separate and distinct
2. going concern- indefinite life
3. unit of measure- measured in a stable monetary unit no inflation
4. Time period- life broken to frames such as yr qtr month
45
What are the 4 accounting principles?
1. Rev Recognition- wen realized earned and recorded.
2. Exp Recognition- matching principal must be in time pd with rev generated.
3. measurement- value that we record normally cash equivalent
4. Full disclosure- foot notes
46
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Measurement Info:
Land
PP&E
AR
Inventory
Bonds
Investments
```
```
Historical Cost
Amortized Cost
Net realizable value
replacement cost
net present value
fair value
```
47
What are the two ways to use Cash Flow for Present Value?
1. Discounted Cash Flow: CF value using the risk adj rate
| 2. Expected Cash Flow: Probability weighted CF discounted using a risk free rate.
48
How do you calculate estimated FV?
summation of diff is $ times probability times rate equals $ then add if more than one and that is the FV.
49
Current Asset
12 months or operating cycle whichever is LONGER
50
NCA=
| NCL=
Intangibles
| bond, pension
51
Retained Earnings=
NI-Dividends
52
Income Statement Order
Revenues, Expenses, G&L
53
Net Income=
Sales-COGS=GP-op exp-G&l- interest=Income from contin ops b4 tax - inc tax= income after tax -discontinued-extraordinary=NI
54
Statement of Comprehensive income=
NI+other comp inc
| EX: unrealized gl for AFS securtities pensions currency trans and derivative transactions
55
Operating Activity Examples
Sale of trading sec, dividend income, cash from customer, interest income, pay suppliers, purchase trading securities, interest exp, other op exp, payroll, inc taxes, lawsuits
56
Investing Activity Examples
Sales PPE just cash, Sale debt and equity sec, collect loan principal, purchase PPE just cash part, purchase debt and equity sec, maturity and AFS, Sale of patent, lending, purchase patent, loans to other
57
Financing Activity Examples
Sale of Own stock, proceeds from borrowing(bond, notes, etc), repurchase own stock (treasury stock), paying back lenders only principal, payment of dividends
58
Cash Flows presentation options
Direct- presents by classes and uses shows rec and paid
| indirect- presents by adjusting accrual NI to op cash flow
59
Indirect Cash flow method conversion Equation for NI and Sales
```
#Cash=#L+#E-#other assets
You must add back any Non Cash exp:dep,loss,amort and subtract any non cash gains
Based off of Change in assets = change in liabilities plus change in owners equity
```
60
Indirect Cash flow method conversion Equation for expenses and Sales/ NI
Exp= - increase in liab + increase in assets
| Sales & NI= + increase in liab - increase in assets
61
Increase in A/P implies what related to COGS
That more COGS taken from sales on accrual basis leading to higher cash sales when compared
62
Who decides reporting ways
Parents even if the sub differs the parent can report how they chose for their purposes
63
Large accelerated filer for form 10 Q
Large Accelerated= 700 mill or more
| They have 40 days
64
Ratio Purpose: Liquidity / solvency
ability to meet maturing obligations
65
Ratio Purpose: Operational
Efficiency of operations
66
Ratio Purpose: Profitability
operational results
67
Ratio Purpose: Equity
sources of equity
68
ROA
NI / Avg total asset
69
Profit Margin
NI / Sales
70
Total Asset TO
Sales / Avg total asset
71
Short term liquidity ratios
CR, WCR, QR
72
Long term solvency
Debt to equity, interest coverage
73
ROE
NI / Ave share equity
this considers how is financed
74
Leverage
Avg total asset / avg share equity
75
Profit Margin
NI / Sales
76
Asset Turnover
Sales / total average assets
77
WC
CA - CL
If positive CR will be greater than 1
If negative CR will be less than 1
78
CR
CA / CL
79
Acid/quick Ratio
cash + AR + mark sec / CL
80
Times Interest Earned
NI + int exp + tax exp / Int exp
81
AR Turnover
Net credit sales (or use) / Avg AR (must be net AR)
82
days in Receivable
365 / AR Turnover
83
Inventory Turnover
COGS / Avg Inv
84
days in Inventory
365 / Inv turnover
85
Changes in CA and CL to Ratios
increase CA only = higher wc
increase CL only = lower wc
if wc greater than 1 = increases in ca and liab decrease wcr decreases increase wcr
if less than 1= increase then increase and decrease then decrease
86
EPS (profitability ratio)
NI - Pref div / weighted avg common shares out (common stock plus RE avg) Past info
87
Price Earned Ratio
Stock price per share / EPS
| Future info
88
Dividend payout ratio
DPS / EPS
89
CGS
BI + purchases - end inv
90
Debt to equity leverage
L/E is L times E
E/A is financed by
L/A is financed by
91
What statements are included in personal fin statements
BS (stmt fin pos)
Statement of changes in NW (NW= CA-CL)
(BNW +- #in A+-# in L= ENW)
Measure items at current value and use accrual basis
92
Value of life insurance
| Value of Securities
Cash value - loans against ins
| Market quote current
93
Inc Tax provision equation
Tax rate X(CV of A- CV of L- CV tax basis)
94
How are liab valued on personal fin stmts
lower of settlement value or liab
95
Private Company Council (PPC)
```
Little GAAP anything not public
Subsidiary is always public if parent public
Goodwill amort over 10 yrs
Hedge only swap diffs
intang not requ to disclose
```
96
Liquidation of Liab
Recorded in compliance with GAAP do NOT assume these will leave
97
IASB Structure
Monitoring board- oversees all org involved in setting IAS formal link btw IFRS and public.
IFRS Foundation- contains trustees on 3 yr term most important appoints members of the council trustees provide oversight
IFRS Interp comm- aids in interp and sees issues appointed by IASB
IFRS Adv Council- Appointed by IFRS reps diff countries and committees
98
IASB Goal
Develop single set of standards globally accepted and promote acceptance.
99
IASB Info
Standard setting body no enforcement power replaced the IASC in 2001
100
ASAF
All over the world simply helps with input on standards
101
Hierarchy of International
Mont board (accountibility)-found trustees (governce and oversight) -foundation -IASB (standard setting) -interp commitee
102
Hierarchy in using IAS
1. IFRS
2. Definition, criteria, look to frame
3. other countries standards
103
SME's are
Small and medium sized entities that are not publicly traded can use for 3 years
104
IFRS Standard Setting Process
Research - discuss paper - proposal - Exposure Draft - Publish IFRS - impl review
105
Primary and Secondary Characteristics under GAAP and IFRS
Faithful Rep- Complete, neutral, free from error
| Relevance- predictive value comfirmatory value material
106
Enhancing Characteristics GAAP
Comparable Verifiable Timely understandable
107
IFRS Assumptions
Going concern
| Accrual
108
IFRS General Purpose Fin Statements
Bs, Is, Stmt comp inc, stmt cas flow
109
Diff between Fin statements
IFRS requires comp periods only 1 GAAP doesnt but SEC does so both have.
Change in equity IFRS must be in separate Stmt not footnote
Extraordinary not allowed
DPS is a required disclosure
IFRS permits reval of PPE through OCI must go through OCI not NI and per share measures on comp inc is not prohibited.
110
Stmt of Cash Flows under IFRS:
| Interest Paid
Operating or Financing
111
Stmt of Cash Flows under IFRS:
| Interest Received
operating or investing
112
Stmt of Cash Flows under IFRS:
| Tax Paid
operating or inv or fin ( if with specific item)
113
Stmt of Cash Flows under IFRS:
| Dividend Received
operating or investing
114
Stmt of Cash Flows under IFRS:
| Dividend Paid
Operating or Financing
115
Stmt of Cash Flows under IFRS:
| Cash and Equivalents
May include bank overdraft GAAP doesnt allow that unless netting allowed.
116
What accounting methods can be used for Income Tax Basis
Modified Cash
| Accrual
117
On personal Fin Stmt how should est inc taxes in excess of cv of assets be reports in stmt fin condition
between liab and NW
118
IASB Parent to ?
IFRS Foundation
119
Does the IASB have enforcement power?
NO
120
In IASB framework Income is defined as
increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases in liab that lead to increases in equity other than those relating to contributions of equity.
121
Defensive interval is a measurement of?
how long available cash and highly liquid assets can support normal cash requirements.
= Quick assets / daily oper expenses
122
Converting Cash to Accrual Equation
= - BA + EA + BL - EL
123
Change in estimate is treated?
Prospectively
124
Accounting Error Requires
A prior pd adjustment
125
A change in reporting entity requires
all prior periods to be restated
126
Unacceptable Acct Principle
Error
127
What do you do when change in principle and estimate are unseperable
assume estimate and report in pd of change and prospectively
128
Sum of years digits equation
yrs rem at beg of ye/ og yrs(ogyrs+1)/2
129
What type of activity is a dividend pmt
Financing
130
Governmental Closing Entry
DR:app
CR:expend
CR: encumb
CR: bud fund bal
131
Where is acc other comp inc reported?
Stock equity section of BS
132
Summary of accting policies should include
ALL methods and principles
133
Purpose of Comp Inc Stmt
Report a measure of overall enterprise performance
134
How do we get FV when no principal market exists
market with lowest est transaction fees is deemed most advantageous and gives us FV
135
Extraordinary losses are shown net of ?
Income tax so
| loss-(loss*tax)
136
G&L from extinguish of debt is reported where?
IS
137
Fv is based on?
Price received to sell an asset
138
Income approach determines FV by
future cash flows of assets
139
8-K shows what?
Information on material events
140
10 Q is
Reviewed and not audited
141
Purchase discount account
contra account not related to net sales
142
Installment sales rev is calculated by
amount received in that year. GP is that amount times GP %
143
Int exp on borrowing
$x full % rate x # month passed/12
144
GP
Net sales- COGS
145
Principle change gets what kind of application
Retrospective
146
Dividends pd on CS do not affect what?
Comprehensive Income
147
Is TS and surrender value of ins an asset?
TS- NO
| Surrender- Yes
148
Unreal G&L for A for S recognition
reported in OCI till sold then reported in NI so affect on OCI becomes zero at sale
149
NI from RE #s requires
add Dividend back
150
End RE
Beg RE + NI -div
151
Int expense is part of what activity
Operations
152
Net Sales
GM# - cogs
153
days sales in inventory
AVG inv @cost / avg sales per day at cost
154
% complete income
Cost incurred / est cost ( Contract price - Est Cost)
155
When net method of cost is recorded you take out?
the net 2% ex: 2/10 discount
156
Completed contract method is used
when there is a lack of dependable estimates or hazards cause forecasts to be doubtful
157
Shipping in =
| Shipping out=
inventory exp
| Selling exp
158
Which method maximizes profits in a pd of rising prices
FIFO
159
```
Recognize these items where?
G sale of MS
unreal loss A for S sec
unreal gain trading debt sec
Int rev trading sec
unreal gain on held to maturity
unreal loss on trading sec
```
```
inc stmt inc from ops
other comp inc
inc stmt inc from ops
in stmt inc from ops
not on fin stmts
inc stmt inc from ops
```
160
Ceiling is?
| Floor is?
NRV
| NRV -NP
161
NRV=
SP- cost to sell
162
Cash collected on acct and bond and dividend for A for S sec are what type of activity
operating
163
Cash received from sale of A for S activities
investing
164
Personal Fin stmts include?
Change in NW and stmt of fin position
165
```
Exchange rate translations:
inventory at cost
BP
Marketable Sec at MV
Common Stock
Accrued Liab
Land
```
```
Historical Cost
Current
Current
Historical
Current
Historical
```
166
What is used when translating IS from one currency to another
Weighted average
167
Hard and fast rule for translation
when at cost use historical when at mv use current
168
when func currency is local currency bs accounts are remeasured at what rate?
Current and if func was us it would be the mixture hard and fast rule
169
When us is func currency means all BS and IS
are trans at HRates
170
If func currency is local currency use.... for trans
weighted average current to trans IS
| rate at bs date for BS
171
Remeasure GL is recognized in IS when
func currency is not local currency
172
Consignor
owns goods
173
Ceiling
Selling cost- disposal
174
Sales commissions are not factored in
GM
175
Total cost incurred
Current % x est cost - prev yrs
176
Cost
| Market
Cost is OG cost
| Market is Rep cost
177
Composite Depreciation on a group is a group of
heterogeneous assets no gl for retirement of single assets
178
For impairment compare
CV to FV
179
When no commercial sub record at?
BV and no GL Comm sub means diff in cash flows
180
Goodwill is not
AMORTIZED unless private then you can less than 10 or equal to
181
Paid in capital calc
NYSE ( or what is traded) x share - Par x shares
Use whatever is more reliable NYSE wins normally
182
Impairment on Fixed assets
NOT REVERSED
183
Sale of AR is called
Factoring
184
An IFRS provision is
Probable and measurable
185
Servicing A and L are recorded at
FV
186
When loss is not known you accrue what amount in the range given?
Lowest
187
Working capital goes down on what dividend date?
When declared
188
If current ratio is greater than 1 then pmt of curr liab ending in equal top and bottom affect with do what to CR?
Increase
189
Entry when previously written off amount is collected
DR: ar
CR allow restab AR then
DR cash
CR ar
190
Sale of AR is called
factoring
191
IFRS provisions are
probable and measurable
192
Servicing A and L are recorded at
FV
193
When no best guess and best guess of loss
accrue lowest and best guess
194
Working capital does what when divided declared on what date
goes down on declared date
195
If current ratio is greater than one an equal change top and bottom will do what to CR
increase
196
What is the entry when previous written off account is collected
reestab AR this increases the allowance account
DR: ar CR: allowance
DR: cash CR:ar
197
change in FV of servicing assets is reported in?
earnings stmt
198
weighted average interest -=
$x%(days/days in yr)
199
when recording BP expense you what happens to the allowance account
it is credited
200
Is commercial paper a cash equivalent?
YES
201
of days in AR=
365/(net cred sale/Avg net AR)
202
Acid test ratio (quick) =
cash + temp inv+ mark sec+net rec/Cl
203
What do you do with negative bank balances
they are a liab do not net btw banks
204
When do you record note at FV
is inc borrowing rate is higher than stated rate
205
Effective interest rate calc
PV note x going rate
206
annuity due concept
first payment is due when first established
207
BV method never records g or l on conversion what happens?
Bonds are removed at BV and stock is then recorded at the removed BV
208
Interest method calc for bonds
Int exp = bv of bonds out x yeild rate
int pd cash amt= face of bonds x stated rate
diff between these is bond disc amort if exp is higher
Face amount= $ x #bonds and amort disc total is face amount - amount issued for.
209
If stated rate is less than effective rate bonds are at a
discount
210
Issue price of bonds =
face value x PV +(facexstated)(ord rate)
211
Is interest for EIM less or more than SL in early years
LESS
212
Are convertible interest rates more or less than non
LESS
213
Int Exp =
| Int Pay=
BV x yeild x time
face x state x time
diff is discount if expense is larger
214
Allocating to warrants and bonds
FMV without war/ FMV w war x purch price=amort to bond
215
Bond Premium
amt assign to bond-face value bonds
216
Interest rec=
state rate x state value
217
Int Rev=
| Cash of int rev=
amt pd x yeild
| face amt x face %
218
BV conversion method never records what?
G or L
219
Carry amount =
Face + unamort bond premium
220
Gain on debt restructure=
CV of note- FMV of what was pd
221
When do you recog pension A and L on BS?
when Fv of plan A is less than obligation
222
IFRS pension method
projected unit credit method
223
Interest exp on a lease=
pv of the annuity x %
224
What rate is used to compute lease interest
implicit
225
Capital lease criteria
90% FV is PV of pmts or 75% of life
226
How is lease bonus income treated
amort over the life of the lease
227
Lessee records an asset at (leased)
lower of pv of pmts or fv of leased asset
Liab recorded should not exceeed the FMV of leased prop
228
Liab for operating lease=
| Liab for Capital lease=
Cash amount
| PV of pmts
229
Sales type lease info
Title transfers at lease begin date
Inc is received in the yr of sale
If sale back lease is cap then profit is deff and amor over lease term.
230
IFRS deferred tax A & L are only
NONCURRENT
231
Where is tax bene from disc ops recorded
Inc from cont ops
232
Is dividend a CL
| Is interest a CL
NO
| YES
233
Effect of stock dividend
decreases RE by debiting and does not effect stock holder equity
234
What date do you record when equity interest is paid for service?
grant date
235
Basic EPS=
NI-Pref Div / weighted avg cs out
236
Preffered dividend calc
% x par of pref out
237
APIC is recorded for subscription when?
recorded
238
Getting TS does what to stock holder Equity
reduces under cost and par
239
What does a liquidating dividend declaration effect?
decreases RE and APIC
240
Vest options hit
| non vest options hit
RE
| Compensation exp
241
PIC is a what normal balance account
credit
242
Recorded subscribed stock when?
contracted for
243
A stock dividend is treated how?
Outstanding for the whole year
244
Equation to see if situation would be dilutive
Interest which is %*$ of 1 bond - tax / shares
| If less than EPS then dilutive
245
TS gets what and not what when rebought and recorded
NO G or L
| gets PIC and RE
246
What approach does IFRS segment reporting use
MGT approach
247
Enterprise wide disclosures include
products and services not depreciation
248
External sales should be what percent of unaff rev
75%
249
COGS is not a required segement disclosure
YOU CAN DO IT :)
250
In partnership assets are at what value when formed
FV
251
Amount to be contributed when a partner comes in =
Partner interest % x (capital of existing+ amt cont)
252
When do you report as a segment
If contributes more than 10% of entity wide profit/loss, Revenue or Assets.
253
Gain on sale of an asset in the indirect method is what part of cash flow
Operating
254
BV of CS per share=
Total OE- Pref stock
255
Amount of stock allocated to pref stock
par of ps out+Div in arrears
Div in arrears is (total value par pref stock x %)
256
Dividend less than 25% is small use FV of stock on date that it was declared DR RE and CR CS for out x par and rest is APIC if large then par trans from RE.
You can do it!
257
What method of accounting does Gov use for Rev
Accrual
258
What amount is AP measured at when a government files for bankrupcy
Plan adjustment
259
Permanent funds
sources restricted so that only earnings can support other operations
260
Agency Funds
are for assets held by a gov unit as an agent for individual private organizations other funds and units.
261
Property taxes are recorded in what fund for Gov
General
262
Budget for gov Rev entry includes
DR: Est rev
CR: Approp
CR: Budgetary fund balance
263
What fund records depreciation for gov
internal service fund
264
What is a unrestricted grant recorded as for gov
revenue
265
Apps are recorded as for gov
non operating rev
266
Reserve for encumbrances is a what balance
credit
267
What happens when PO is approved for encumbrance accounting
DR: Encumb
CR: res for encumb
268
Gov Wide has what activities
gov activities, business activities, and component units
269
Propriety Funds use what accounting
FULL accrual
270
Special reserve is closest to what fund accounting
general
271
Internal serv is closet to what fund accounting
enterprise
272
What funds use accrual for gov
enterprise internal service and pension trust
273
A loss is deduction in NI but must be added back when determining cash flows
ALmost there
274
Bond Discount is what cash flow section
operating
275
Dividends Rec is what cash flow section
operating that increases cash
276
Operating Expense =
Exp per NI+increase in PPD -dep-increase in accrue exp
277
Purchase of TS is what cash flow act
Financing
278
Interest pmts are what cash flow
operating
279
Sale of PPE is what cash flow
investing
280
Amort of Bond disc and prem are
deductions from NI
281
Making and collecting on loans is what cash act
investing
282
Cash equivalents like T bills do not effect cash flow stmt
:)
283
Sale of A for S and held for mat is what cash act
Investing
284
Collection of note rec is what cash act
investing
285
Increase in cash from operating activities =
NI-AR+AP+inc in allow+ dec in ppds
286
Inc tax and int are reported as what for indirect method of cash
supplemental disclosures
287
Invest cash flow=
inc in NC assets + inc in marketable sec
288
Fin Cash flow=
inc in NP+ inc in CS
289
Conditional Promise is a
liab and subject to return
290
Non for P stmts include
stmt fin pos
stmt of act
stmt of cashflows
and Health must provide a change in net assets stmt
291
Non for P investments are reported at
FV this is updated at YE
292
Charity care is accounted for how?
only disclosed in the notes
293
Governmental does not require a cash flow stmt
:)
294
Term and regular endowments are restricted how?
```
Term= Temp
Reg= perm
```
295
Cash rec from perm invest is what activity
financing
296
Change in FV of Trading goes to what stmt
NI
297
Change in A for S is on what stmt?
OCI then on NI if FV option is selected also is lowered in NI if decrease in value is PERM
298
For equity method CS div reduces anchors investment acct by % own and NI goes up by % owned Pref div inc is inc by % owned. What about for FV?
For FV NI increases by percent for both div and NI
299
Life ins policy exp=
Cash surr Beg V- cash surr end V - Cash
DR:plug
CR:cash surr B-E value
CR: Cash
300
Hedge effectiveness is evaluated when?
Every time stmts are sent or at least every 3 months
301
Foreign currency hedge does not exist under?
IFRS
302
Ins cash value surrender value =
Difference between Exp charged and annual premium amount
303
FV is used when for reporting instead of Equity?
When no sig control and own less than 20%
304
Allocation values for stock with warrants
W/S+w price x purch price=warr alloc
| S/ s+w price x purch price = stock alloc
305
Equity method affect of Pref Div
Increase in Rev
| CS is a decrease in the investment account
306
Liquidating dividend is what affect on Finances
Deduction in Rev
307
Record Div Inc when?
Declared
308
At sale of sec rec loss in amount of begin to sale.
other times is is written down as unreal
309
Shares of stock div given as div is account as?
NOT as Revenue or div inc
310
put options can be sold when?
At anytime.
311
Any dividend that exceeds RE is what type?
Liquidating by the amount it exceeds RE
312
Stock Dividend JE
DR: RE (FV x shr) CR: CS (Shr x Par) CR: PIC ( plug)
313
Retained Earnings =
Income- Cash Div – Stk Div
314
RE decreases by FV of Stk given out when issued or declared if FV is available
You can do it!
315
Conversion entry of PS to CS
DR: Pref Stk DR: APIC Pref Stk CR:Comm Stk (parxShr) CR: PIC CS (Plug)
316
Cash Div what happens to RE?
Debit RE then CR cash and Dividend Payable
