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16 Cards in this Set
- Front
- Back
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Purpose of balanced scorecard
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Translate business strategies into strategic objectives and links them to processes
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Four tiers of balanced scorecard
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Financial
Customer Internal Learning & Growth |
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When can revenue be recognized
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Realized/Realizable
Earned |
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When can you use percentage completion
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Reasonable estimation of completion
Enforceable contract Buyer is expected to honor contract Contractor expects to perform contract |
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Cost-to-cost method
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Total costs incurred/Expected total cost
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CIP J/E for recognizing revenue
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CIP
___Wages CIP Construction expense ____Construction Revenue |
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Billings on CIP
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Contra-asset account that represents portion of CIP owned by the customer
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Billings on CIP J/E
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A/R
___Billings on CIP Billings on CIP ___CIP |
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J/E for expect loss on entire contract
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Construction Expense
___CIP (total expected loss + recognized profits) ___ Construction Revenue |
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What accounting concept requires the allowance approach?
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Matching principle
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FAS 157
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Fair Value Measurements
Establishes a definition of fair value when needed Creates a framework for measuring fair value Expands disclosure about the use of fair value |
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Three levels of valuation
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1. Quoted prices for identical products
2. Observable prices for similar products 3. Unobservable inputs based on reporting entity's own assumptions |
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Market participants in fair value
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Independent
Knowledgable Able to transact Willing to transact |
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Must identify for fair value
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Unit of account
Principal/most advantageous market Best use |
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Methods of valuation
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Market approach - MV
Income approach - NPV Cost approach - Replacement cost |
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FAS 159
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Fair Value Option
Option to change the value of FAS 157 Can't use on crucial/internal investments/equity |
