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9 Cards in this Set
- Front
- Back
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criteria for reportable segment |
10 % of total assets 10 % of revenue 10 % magnitude of total of profits or losses |
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2 types of subsequent events and what action to take |
subsequent event: events that occurs after FS date/YE but before FS are issued Type A: events that provide evidence of conditions in existence at end of reporting period -settlement of court case for different amount then company accrued for -customer bankruptcy indicates AR impaired at YE -sale of inventory for less than cost that indiciates impairment at YE -discovery of fraud or error that affects FS accuracy action: prepare JE at YE date to record event and adjust FS
Type B: events that relate to conditions that didn’t arise until after the reporting period -fire or flood -decline in FV of investment after YE -court case that started after YE -issuance of shares or bonds -purchase of a business action: don’t adjust current FS. if events have material effect - disclose in FS note: 1 -nature of event, 2-estimate of FS effect |
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x |
x |
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related party transaction treatment- IFRS |
-no adjustments to measurements -must disclose: nature of relationship amount of transaction outstanding balances and commitments mgmt compensation |
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related party transaction treatment- IFRS |
-no adjustments to measurements -must disclose: nature of relationship amount of transaction outstanding balances and commitments mgmt compensation |
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ASPE related party transactions measurements |
option 1: accounted for at regular exchange amount if: -monetary transaction and or has commercial substance AND -is in normal course of operations OR Change in ownership interest is substantive and exchange amount is supported by independent evidence
option 2(above criteria not met) -recorded at carrying amount (with difference between carrying amount recorded as shareholders equity- dr retained earnings for loser, cr contributed surplus related transactions for winner
**buyer: records asset acquired at CV, cr asset given up, cr contributed surplus to balance
**seller: record sale as normal except dr cont surplus if there is any, and dr Retained earnings to balance |
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define commercial substance: |
the transactions will results in change in future cash flows |
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explain vertical analysis: |
aka common size analysis -FS line items taken as a % of a total (IS=% of total revenue) (BS=% of total assets) |
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explain horizontal analysis: |
-FS line item %change from one period/year to another |
