Random Flashcards
(21 cards)
Capitalize equipment that have future uses in R&D, but
It’s dep should be part of R & D
Continuing operations includes
Non operating and operating.
Reason for waiting for the sale to take place is
Objectivity
Compare to accrued basis cash understates income by decrease in accrued expenses only NOT
Decrease in A/P
Economic Value is
PV
Expense is
Cost that Benefit current period or allocate to current period.
6K semiannual and not
Audited!!!!
Gross profit%=
Gross profit/ sales price
Earned gross profit =
Deferred Gross profit=
Cash collections X Gross Profit%
Installment receivables X Gross Profit%
Impairment. US
- If CV>undiscounted cash flows= impairment
- CV vs. FV
IFRS 1 step= CV vs greater of FV or value in use
Depreciable property constructed on leased land is dep over the life of the property or the term of the lease, whichever one is shorter
So eg. Cost of building / remaining lease years = annual dep!!
To find inter company COGS in order to find CV of inter company inventory when 37.5% is still in sub’s hands you
- Find GPP then you know the COGS%
- Multiply COGS% by inter rev = interCOGS
- CV of inventory = 37.5%* inter COGS
COGS% = 100 - GPP
Inter company COGS is {inter rev * COGS %}
When calculating for current assets and check is written to vendors and mailed after BS sheet date …
You add the written check back to calc for current asset!
Checks are not considered a disbursement until mailed and land held for resale is a current asset
PV rate X annual payments = FV
So If FV is 20000 and PV value is 3.992 , then annual payment is 5010.
20,000/3.992= 5010
Net income + OCI =
Comprehensive income
Net income is close to RE and OCI is closed to
Accumulated other comprehensive income
Reportable segment test: 10% rev
10% reported loss or profit
10% assets.
The 75% test- if total external revenue is less than 75% of total external revenue add more operating segments even if they don’t meet the test of 10%.
Rev- include inter company and external sales, should be 10% or more of combined rev in and out of all operating segments.
The greater of:
If profit is 10% or more of combined of all operating segment profit or
The loss is 10% or more of combine loss of all operating segments.
Assets- 10% or more of combined assets.
Must disclose segment profit/ loss, assets and certain related items. Cash flow not required
IFRS require segment liabilities is the segment is major
Reclassification of trading securities: transfers are accounted for at FV
Transfer from trading–unreal gain or loss are already in earnings shall not reverse
To trading – unreal gain or loss at date must rec in earning right away
Held to mat to available for sale– rec gain or loss to OCI
Amortize over life excess of FV over BV of identifiable asset
Do not amort or impair goodwill when using equity, the total equity investments should be tested for impairment instead .
