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9 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Is Goodwill capitalized or expensed? Is it amortized? What about improvements to Goodwill? |
Goodwill is capitalized, internal improvements are expense. Goodwill is not amortized but subject to an impairment test |
F2 class question 4 |
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How is capitalized software cost amortized? |
Pick the greater of the straight-line amortization for the year, or the sales revenue from the software for the period ÷ percentage of expected sales for the period |
F2 cq 5 |
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Describe the impairment process under IFRS? |
The amount of impairment will be the DIFFERENCE between the carrying value and the "recovery amount," which can be the greater of VALUE IN USE or FV |
F2 cq7 |
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Define "commercial substance" in a transaction |
A transaction has commercial substance if the future cash flow of the entities involved changes as a result of the transaction. |
F2 cq 11 |
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Explain the accounting for a non-monetary and monetary transaction with commercial substance |
The transaction is accounting for using the FV of the asset surrendered or received, AND gain and losses are recognized. |
F2 cq 11 |
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Where are remeasurement and translation of foreign transaction reported? |
Remeasurement is reported in the IS, and translation in the OCI |
F2 cq 13 |
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Undiscounted future cash flow |
Potential cash-in the entity can generate |
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Recoverability test |
Asset's undiscounted future cash-in flows compared to asset's book value) |
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Functional currency |
Currency used in the primary economic environment where an entity operates |
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