Far

Front 1

What does Roger is PC stand for?

Back 1

Relevance

- Predictive Value

- Confirmatory Value

Front 2

What does Fence Stand for?

Back 2

Faithful Representation

-Free from Error

-Neutral

-Completeness

Front 3

What does Cut Like a V Stand for?

Back 3

Enhancing Qualitative Characteristics:

-Comparability

-Understandably

-Timeliness

-Verifiability

Front 4

What does Dent Stand for?

Back 4

Other Comprehensive Income (OCI)

-Derivative cash flows

-Excess adjustment of Pension PBO and FV of plan assets at year end

-Net unrealized gains/losses on AVS Securities

-Translation adjustment for foreign currency

Front 5

What 3 elements does equity consist of?

Back 5

1. Contributions by owners

2. Distributions to owners

3. Other Comprehensive Income (OCI)

- DENT

Front 6

What are the 3 Levels of Input?

Back 6

Level 1: observable data from the field

Level 2: observable data but..

- The transaction did not occur in an active market

- The transactions relate to non identical assets/liabilities

Level 3: use of unobservable data

Front 7

Define:

1. Cost method (marketable securities):

2. Equity method (one-line consolidation):
3. Consolidation:

Back 7

1. 0 - 20%, no significant influence

2. 20 - 50%, and/or significant influence

3. 50% +, control

Front 8

With respect to trading securities, answer:

1. Current/non-current?

2. Basis?

3. I/S or B/S?

4. Debt or equity securities?

5. What kind of activity?

Back 8

1. Current

2. Cost, carried at FV

3. Unrealized, I/S. Realized, I/S

4. Both

5. Operating

Front 9

With respect to trading securities, answer:

1. Current/non-current?

2. Basis?

3. I/S or B/S?

4. Debt or equity securities?

5. What kind of activity?

Back 9

1. Usually non-current, depends on expected date of sale

2. Cost, carried at FV

3. Unrealized, B/S, OCI. Realized, I/S

4. Both

5. Investing

Front 10

How to calculate gain/loss on sale of:

1. Trading Securities?

2. AVS Securities?

Back 10

1. Proceeds - FMV = Gain (Loss)

2. Proceeds - Cost = Gain (Loss)

Front 11

With respect to held to maturity securities, answer:

1. Current/non-current?

2. Basis?

3. I/S or B/S?

4. Debt or equity securities?

5. What kind of activity?

Back 11

1. Non-current, only classified as HTM after 85% of principle has been recognized

2. Cost, carried at amortized cost (effective interest method)

3. I/S

4. Debt

5. Investing

Front 12

With respect to financial instruments, what does COD stand for?

Back 12

1. Cash

2. Ownership interests in an entity (I.E. stocks)

3. Derivative contracts

Front 13

Define:

1. Underlying

2. Notional

Back 13

1. Factor that effects derivatives value

2. Number of units

Front 14

3 Characteristics of Derivatives?

Back 14

NUNS

1. No net investment

2. An Underlying and Notional amount

3. Net Settlement

Front 15

Define: Fair Value Hedge

Back 15

A derivative hedging against a recognized asset or liability on the B/S or a firm purchase commitment, changes in FV are reported in income from continuing operations (I/S)

Front 16

Define: Cash flow hedge

Back 16

A derivative hedging against a forecasted transaction that is expected to take place in the future but which is not yet a legal contract. Changes in FV are reported in OCI (B/S)

Front 17

Define: Spot Rate

Back 17

The exchange rate that is effective on a particular date

Front 18

When is remeasurement appropriate?

Back 18

When a transaction occurs in some currency other than the functional currency

Front 19

When is translation appropriate?

Back 19

When the functional currency is not the same as the currency used for reporting

Front 20

Define:

1. Functional currency

2. Transactional currency

3. Reporting currency

Back 20

1. Greatest economic impact

2. Local (LCU)

3. Preparation of financial statements