Gleim Flashcards
(165 cards)
impairment loss IFRS doesnt compare ?
impairment loss IFRS doesnt compare carry amount vs miscounted CF;;
wut r the limitation of financial reporting
use historical cost to measure asset/lia; use estimate; exclusion of some economic resources
impairment loss of asset group
1) carry amount vs sum of undiscount CF; 2) carry amount vs fair value
when to use units of production
use unit of production when asset service potential decline with use
an entity dispose of nonmonetary asset in a nonreciprocal transfer G/L recorded at when?
G/L recorded when it transfer to another entity and a shareholder ;; recorded at FV of asset transfered
lacked CS, paid cash < 25% , new book = ?
new book = carry value of old + cash paid
under direct write of method, write off entry?
Dr bad debt exp, Cr A/R
DEPS with income from continuing ops and loss from discontinue ops ?
income / (C/S + noncummulative converted to C/S)
inc - loss from discontinue / ((C/S + noncummulative converted to C/S)
risk of accounting loss vs off B/S risk
risk accounting loss = AR - allowance
off B/S risk = account loss cant exceed amount recog as asset (Ex: recourse obligation on receivable sold)
trade account receivable doesnt include wut?
trade AR doesnt inclue cash sale, doesnt inclue note receivalbe
if equipment is permanently impaired and that 70k recovered over the useful life
the 70k will be the new base
wut is the maturity amount for noninterest bearing note receivable ?
the maturity of a non-interest bearing note receivable is its face amount
infrequently occurring gain, net income, find comprehensive income ?
infrequently occurring gain already included in net income so do not add it when calculating comprehensive income
sold equipment for noninterest bearing note find G/L ?
compare cost vs present value of note
suffer loss on customer bankruptcy after B/S date before issuance date, recog ? dis ?
no recognition, disclose only
equity method, after date of acquisition, wut happen to investment account of investor ?
investment account increase/decreae by share of earning/loss of investee, decrease by its share of cash dividend received from investee
cash surrender value ?
cash surrender value = annual premium x year - total insurance expense
cash surrender value = is non current asset
when to use accelerated method ?
use accelerated method when asset is subject to rapid obsolescense
carry amount of bond vs unamortized dis vs unamortized pre vs unamortized issue cost
carry amount - unamortized dis + unamortized premium - unamortized issue cost
how to recog decommission lia (ARO) ?
the change in lia is recog in PnL , actual cost incurred vs carry amount of lia
issue by government unit bond ?
rev bond
wut bond pay interest only at maturity ?
deep discount bond (zero coupon bond) provide capital appreciation , not periodic interest income
amount of interest expense gonna be higher in wut bond ? yr 1 or yr 2?
interest will be higher in year 2 as discount is amortized , because carry amount of bond increase , lead to higher interest rate
find stated interest rate on bond under effective interest method ?
stated interest rate = cash paid / face amount ;; if semi, get cash paid x2