mnemonics Flashcards
study on exam day
PUFER
- Pension adjustments in funded status
- Unrealized G/L on AFS debt sec’s
- Foreign/cumulative currency translation G/L
- Effective portion of CF hedge
- Revaluation surplus (IFRS)
OWNS
- Ownership transfer
- Written purchase (BPO)
- Ninety % FV (PV is 90%+)
- Seventy-five % econ life
- (OW) = dep. with econ life
- (NS) = dep. with lease life
SOY digits DE:
depreciable base
*(remaining life/SOY)
*SOY digits = n(n+1)/2
DDB DE:
(base - AD) * 2/n
GW IL
GAAP + IFRS
*GAAP = RU level
(1) if CV > ID’d NA’s FV,
then there is potential IL
(2) GW IL = FV - implied GW FV
* IFRS = CGU level
(1) GW IL = CV - recov. amt
- recov amt = greater of FV or NRV
C-VUT
- enhancing qual. char’s:
- Comparability
- Verifiability
- Understandability
- Timeliness
PCM
- for relevance:
- Predictive value
- Confirmatory value
- Materiality
CAR IN BIG
*eliminating JE’s for consol.:
Dr: CS, APIC, RE Cr: Invest in sub Cr: NCI Dr: BS adj. Dr: IA's at FV Dr: GW/ Cr: Gain
price-to-earnings ratio
mkt price per share / EPS
for bond amort. tables, when is int exp higher/lower?
- higher for discounts
- lower for premiums
treatment of P/L under IFRS for cap and op leases:
- cap lease = defer all G/L
* op lease = recog. P/L immediately (no deferral)
treatment of P/L under GAAP cap and op leases:
*cap lease:
- PV is less than 10% of FV
= recog. all G/L - PV is 10-90% of FV
= defer all PV and recog. G/L leftover - PV is 90%+ of FV defer all gain
derivative items:
- forwards
- futures
- options
- swaps
conversion rates for translation method (local currency is reporting)
- IS = WA rate
- BS = YE rate
…APIC + SE = HC rate
conversion rates for remeas. method (reporting currency, not local)
- IS = WA
…but related BS items is HC - BS = monetary at YE rate
..nonmonetary = HC rate
(FA, inv, invest, IA, SE)
what are the reporting date requirements for SEC filers for 10Qs and 10Ks?
*10Q:
- large accel = 40
- accel = 40
- all others = 45 days
*10K:
- large accel = 60 days
- accel = 75 days
- all others = 90 days
SIR AGE
*DBPP calculation:
- Svc cost
- Int cost
- (R)eturn on plan assets
- Amort of PSC
- (G)/L unam’d prem/disc
- Existing amort. net obl.
- S = given
- I = BB PBO * discount rate
*(R) = actual or expected
- expected - use % rate
- actual - % rate or BASE
..BB+contr+actual-pmt=EB
*A = unam PSC/avg svc life
*(G) = unam G/L
(10%PBO/FVP)
-------------------
excess
/avg svc life
-------------------
= amort. of unam G/L
*E = (PBO - FV plan A)
————————-
= initial unfunded obl.
/15Y or avg job life
————————-
= min amort.
faithful representation items:
(faithful rep+relevance
= fundamental qual. char’s)
Completely Neutral, Free from error
Permanent differences:
(a) nontaxable
- tax-exempt muni/state bonds
- life ins. proceeds on key officers
(b) nondeductible
- life ins. premiums
- penalties/fines
- nondeductible entertainment exp (50%)
(c) special tax allowance
- DRD
- excess % depletion over cost depletion
forms of DTA:
gift certificate
- PPD rent/int/royalties (unearned rev) - BDE - est'd L's and warranty exp - startup costs
forms of DTL:
- installment sales
- contractors accounting
- equity method (distr div)
- depreciation/amort.
- PPD exp (deductible now)
full COGS calc:
BI \+Purch \+freight-in \+transportation to consignee -EI - held by consignee ------------------------------ = COGS
SELF test
- Separately Elected board
- Legally separate
- Fsically indep. of other state/local gov’s
CANS
reconc. of gov funds
- C = Cap. A’s added
- A = AD subtracted
- N = non-CL subtracted
- S = int. Svc additions
(affects statement of NP)
..also subtract def. inflows for recog’d rev’s and subtract accrued L for I/P
