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17 Cards in this Set
- Front
- Back
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Presentation Order of Major Components of Income and RE statement |
1) Income (Loss) from Continuing Operations 2) Income (or Loss) from Discontinued Operations 3) Extraordinary Iterms |
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How is Income (or Loss) from Continuing Operations presented |
Individual line items gross of tax, then total reported net of tax |
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How is discontinued operations and extraordinary presented |
Net of tax |
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Cumulative Effect of Change in Accounting Principle presentation |
Reported in Retained Earnings - Net of Tax |
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Held for sale criteria (all have to be met) |
1) commit to plan to sell 2) available for sale immediately 3) Active program to locate buyer 4) sale is probable and expected within one year 5) actively marketed 6) unlikely significant changes wil be made |
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Extra-ordinary items defintion |
Unusual and infrequent 1) Material in nature 2) Of a character significantly different from the typical or customary business 3) Not expected to recur 4) Not normally considered in evaluation the ordinary operating results |
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Expropriation of a plant by the government |
Extraordinary |
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Gain or loss from sale of poperty |
Continuing operation |
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Large write down or write offs |
Continuing |
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Gain or loss from foreign currency transaction whether from a major devaluation or otherwise |
Continuing |
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Prohibition of a product line by newly enacted law or regulation |
Extraordinary |
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Extinguishment of debt, not part of recurring operations |
Extraordinary |
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Major strike |
continuing |
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Material Unusual OR infrequent |
Report as separate line item as part of income from continuing opeartions (Gross) -Disclose in footnotes -Non operating |
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Reporting Changes in an Accounting Principle |
Adjust beginning retained earnings in the earliest period preseented |
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IFRS Requirement for change in accounting principle (retrospective change) |
- Present 3 Balance Sheets (End of current period, end of prior period, and beginning of prior period) -Two of each other financial statements (Current period and prior period) -Adjustment to beg. RE on BS for Beg prior period |
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Error Correction |
COMPARATIVE -Correct if year is presented -Adjust beginning RE of the earlier year presented if the year is not presented Not Comparative -Adjust RE |
