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65 Cards in this Set
- Front
- Back
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Balance Sheet Items
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Current Assets
(LT) Investments PPE Intangibles Other Assets Current Liabilities LT Debt Stockholder's Equity |
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Current Assets
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Cash
Trading securities Current securities AFS A/R Inventories Prepaid Expenses Current DTAs |
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Long-Term Investments
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Noncurrent securities AFS
Securities HTM Investments at cost or equity |
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Other Assets
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Deposits
Deferred Charges Non current DTA |
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Current Liabilities
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CUCA CASt
ST Debt A/P Accrued Expenses Current income taxes payable Current DTLs Current portion of LTD Unearned revenues |
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Long-Term Debt
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LT NP
BP Non current DTL |
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Stockholder's Equity
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P/S
C/S APIC R/E Accumulated OCI |
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Definition of Current Assets
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converted into cash or used up within the longer of: 1 year or 1 accounting cycle
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Definition of Current Liabilities
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Paid or settled OR requires use of current assets within the longer of: 1 year or 1 accounting cycle
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Under IFRS, short term obligations expected to be refinanced must be classified as current liabilities unless
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there is an agreement IN PLACE prior to the BS date.
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Significant Accounting Policy Disclosures
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Inventory Method (including inventory pricing but not composition)
Depreciation Method Criteria for Classifying Investments Method of Accounting for LT Construction Contracts |
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Definition of a subsequent event
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event occurring after BS date but before issuance.
2 types of events possible: 1. provide additional evidence about conditions existing at BS date - recognize in FS 2. provide evidence about conditions that arose subsequent to BS date - disclose in notes. |
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Related Party Transaction Disclosure Requirements
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NADD
Nature of relationship Description of transactions (including those assigned zero or nominal amounts) Dollar Amounts Amounts due to/from related parties, including terms and manner of settlement |
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Related-Party Transactions Disclosure Exceptions
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Salary
Expense Reimbursements Ordinary Transactions |
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Multi-Step Income Statement format
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Revenues
- Cost of Sales = GP - Operating Expenses ----Selling Expenses ----Gen/Adm Expenses = Operating income + Other income + Gains - Other expenses - Losses = Income Before Taxes - Income Tax Expense = Income from Continuing Operations +/- Discontinued Operations +/- Extraordinary Items = Net Income +/- Other Comprehensive Income = Comprehensive Income |
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Single Step Income Statement Format
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Revenues
+ Other Income + Gains = Total Revenues - Costs and expenses -----Cost of sales -----Selling expenses -----Gen/Adm expenses -----Other expenses -----Losses -----Income tax expense = Income from continuing operations +/- Discontinued operations +/- Extraordinary items = Net income +/- Other Comprehensive Income = Comprehensive Income |
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IFRS Income Statement Items
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NNIPS DTF
Income Finance Costs Share of P/L of associates/joint ventures accounting for with equity method Tax expense Discontinued Operations Profit or Loss NCI in P/L Net P/L attributable to equity holders in parent *No extraordinary items under IFRS |
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Errors in an ending balance affecting NI
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Asset (O) = (O) current, No effect prior
Asset (U) = (U) current, No effect prior Liability (O) = (U) current, No effect prior Liability (U) = (O) current, No effect prior |
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Errors in a beginning balance when ending balance is correct on NI
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Asset (O) = (U) current, (O) prior
Asset (U) = (O) current, (U) prior Liability (O) = (O) current, (U) prior Liability (U) = (U) current, (O) prior |
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Errors in a beginning balance when the ending balance is not correct on NI
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Asset (O) = no effect current, (O) prior
Asset (U) = no effect current, (U) prior Liability (O) = no effect current, (U) prior Liability (U) = no effect current, (O) prior |
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2 requirements for classification as extraordinary
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Unusual in nature
Infrequent in occurrence |
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If neither requirement for extraordinary item applies, where is the item listed?
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As a component of income from continuing operations
Specifically, it should be shown as a separate item in operating revenues or expenses and should be supplemented with a footnote. |
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Items which are NOT extraordinary
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WSCGG
Write offs of inventory or A/R Effects of major strikes or changes in value of investments G/L on sales of investments or PPE G/L due to changes in foreign exch rates Gain on retirement of debt |
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Definition of a component
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An asset group whose activities can be distinguished from the remainder of the entity both operationally and for financial reporting purposes
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Definition of disposal
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Either the assets have already been disposed of or they are being held for sale and the entity is actively searching for a buyer and believes a sale is probably at a price that can be reasonably estimated.
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Where do we report discontinued operations?
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After income from continuing operations but before extraordinary items
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What does the amount of discontinued operations include
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All activities related to the component from operations as well as gains and losses on disposal, net of income tax effects
Note: expected gains and losses from operations in future periods are not reported until the future period in which they occur. Impairment loss is also included in the current period when the FV of the component is believed to be lower than the carrying amount based on anticipated sales price in future period. *The sale of a plant/facility is not classified as a discontinued operation if similar operations are carried out at another location. |
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Definition of comprehensive income
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changes in equity from non-owner transactions
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Comprehensive income may be presented in one of two ways:
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As a part of the income statement
In a separate statement of comprehensive income |
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What is included in other comprehensive income?
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FRAMUH
CY unrealized G/L on securities AFS CY foreign currency translation adjustments CY unrealized G/L resulting from changes in MV of certain derivatives being used as cash flow hedges Reclassification adjustments Minimum pension liability adjustment Unamortized prior service cost |
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Components of OCI can be shown one of two ways:
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net of tax related effects
or before tax related effects with the aggregate income tax effects shown as one amount |
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Monetary creditor
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monetary assets > monetary liabilities
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Monetary debtor
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monetary liabilities > monetary assets
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In periods of rising prices, a monetary creditor will experience purchasing power ____ and a monetary debtor will experience a purchasing power ____.
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loss, gain
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Regulation S-X
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describes form and content to be filed
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Regulation S-K
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describes information requirements
Form S-1 Form 8-K Form 10-K Form 10Q Schedule 14A |
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Form S-1 (F-1)
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registration statement
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Form 8-K (6-K)
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material event
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Form 10-K (20F)
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Annual report
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Form 10Q
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Quarterly report
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Schedule 14A
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proxy statement
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Regulation AB
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describes asset backed securities reporting
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Regulation Fair Disclosure (FD)
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mandates material information disclosures
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Principle market
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greatest volume of activity
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Most advantageous market
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maximizes price received or minimized amount paid
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Valuation techniques for the fair value concept
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Market Approach
Income Approach Cost Approach |
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Market Approach
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Uses prices and relevant market transaction information
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Income approach
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converts future amounts to a single current (discounted) amount
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Cost approach
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Current replacement cost
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Fair value hierarchy
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Level 1 - quoted mkt prices
Level 2 - directly/indirectly observable inputs other than quoted market prices Level 3 - unobservable inputs |
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Fair Value Option
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Can apply to AFS, HTM, or equity method investments
LC POSSE Does not apply to pensions, leases, share based payments, consolidations, stock options, other postemployment benefits, or exit or disposal activities Required for: I TAG BAD investments derivatives asset impairments asset retirement obligations goodwill business combinations troubled debt restructuring NINCA Once elected, it is irrevocable Must be applied to all interests in the same entity Cannot be applied to a portion of a financial instrument Need not be applied to all instruments in the same classification. Can be elected on an instrument by instrument basis |
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If the FV option is not elected, where are unrealized losses on securities reported?
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OCI
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Where is AOCI reported?
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In the stockholder's equity section of the B/S.
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Accumulated depreciation is a ____ account because it relates to _____.
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nonmonetary, equipment
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Constant Dollar Calculation
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Historical Cost x (Price level adjusting to/Price level adjusting from)
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What kind of account is treasury stock?
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Contra-equity
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Amortization of discount on a note payable is recognized as an:
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additional interest expense
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Interest items that are NOT considered interest expense:
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Interest incurred for financing developments
Pension cost interest Deferred compensation plan interest |
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Definition of market risk
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Risk that the value of an investment will change due to economic changes.
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Under IFRS, interest and dividends may be reported on the statement of CF as either
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operating or investing activities
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What are the IFRS financial statements?
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Statement of Financial Position
Statement of Comprehensive Income Statement of Changes in Equity Statement of Cash Flows Notes |
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Why is a reclassification adjustment made?
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To avoid double counting in comprehensive income items that are displayed as part of NI for a period that had been displayed as part of OCI in that period or in earlier periods.
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Does IFRS allow extraordinary items?
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NO!
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Does the form 10Q present reviewed or audited quarterly information?
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Reviewed
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What criteria must be met to reclassify a liability from current to non-current under IFRS
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there must be an agreement executed before the BS date to refinance the item.
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