Reporting the Results of Operations & IFRS Financial Statements Flashcards
earliest point at which Envoy should report the small appliance group as a discontinued operation
When Envoy classifies it as held for sale
general and administrative expenses
accounting and legal fees
officers’ salaries
insurance
selling expenses
Freight out and sales representatives’ salaries are selling expenses.
cost of sales
Freight-in is included in the cost of inventory and, ultimately, cost of sales.
Comprehensive income =
net income + other comprehensive income (OCI)
loss on disposal of a segment includes
operating losses from the measurement date to the date of disposal, and is referred to as operating losses during the phase-out period.
These operating losses will include costs associated with the disposition, such as employee relocation costs and additional pension costs.
Form 10-Qs (quarterly reports) are due when for large accelerated filers?
due 40 days after the end of the fiscal quarter for large accelerated filers.
10-K
annual report that is filed with the SEC
8-K
the “current report” companies must file with the SEC to announce significant events shareholders should know about.
10-Q
he quarterly report that is filed with the SEC.
S-1
initial registration statement under the 1933 Act.
other comprehensive income OCI (DENT) =
1) Derivatives and cash flow hedges
2) Excess adjustment of Pension PBO and FV of plan assets at year end
3) Net unrealized gains or losses on “available-for-sale” securities, and
4) Translation adjustments for foreign currency.
The items making up components of other comprehensive income are unrealized gains and losses on investments in marketable securities classified as available for sale, adjustments to recognize the difference between the projected benefit obligation and the fair value of plan assets of a defined benefit pension plan, unrealized gains and losses on derivatives that are accounted for as cash flow hedges, and foreign currency translation gains or losses. Dividends paid to shareholders reduce retained earnings.
Regulation S-X
contains the regulations for the financial statement presentation and disclosure requirements of SEC filings.
two-statement approach
Under the two-statement approach to presenting comprehensive income, the income statement is first presented, followed by a second statement, a statement of other comprehensive income, which begins with net income (loss) and displays the components of other comprehensive income.
No matter which approach is used, several items are required it be stately separately as part of comprehensive income.
These items include: translations gains and losses from foreign currency transactions; net unrealized gains and losses on available-for-sale financial securities; excess adjustment of pension PBO and FV of plan assets; and derivative cash flow hedges.
