Rcg Far Chapter 1 Segment Reporting

Front 1

Describe the 10% test for identifying reportable segments.

Back 1

If any of the following occur than it is a reportable segment:

1- Revenue reported revenue, including both sales to external customers and inter segment sales or transfers. Is 10% or more of the combined revenue, internal and external, of all operating segment.

2-reported profit or loss- The absolute amount of its report profit or loss is 10% or more of the grater in absolute amount of :
* the combined reported profit of all operating segments that did not report a loss.
* the combined reported loss of all operating segments that did report loss.

3- Assets- Assets are 10% or more of the combined assets of all operating segments.

Front 2

what are the guidelines for interim reporting ?

Back 2

1- use same accounting principles that were used in the most recent annual report.

2 - allocate expenses to the interim period benefited.

3-revenues are recognized in the period in which they are earned and realized or realizable.

4-a total for comprehensive income in condensed financial statements of interim periods

Front 3

what are the disclosure requirements for reportable operating segments?

Back 3

for each reportable segment, the entity must report:

1-identifying factors
2-products of services
3-profit or loss details
4-assets details
5-liability details (IFRS only)
6-Measurement criteria
7-Reconciliations

Front 4

What is the 75% Test for identifying reportable segments?

Back 4

1- combined external (consolidated) revenue of all reportable segments must be at least 75% of the total consolidated revenue of the entity.

2- the practical limit is 10 segments, but this is not a precise limit.

Front 5

Name two quantitative thresholds used in identifying reportable operating segments.

Back 5

1- the 10% size Test

2- the 75% reporting sufficiency test

Front 6

Define operating segment

Back 6

Distinct revenue-producing components of the enterprise about which separate financial information is produced internally, and whose operating results are regularly reviewed by the enterprise.

Determined using a "management approach"

Front 7

name the four required disclosures for segments of an enterprise

Back 7

1-operating segments
2-product and services
3-geographic areas
4-major customers

Front 8

indicate any special accounting treatment for development stage enterprises

Back 8

Same generally accepted accounting principles as established operating enterprises with additional disclosures.

1- identify statement as those of a development stage enterprise
2-accumulated losses identifies as deficit accumulated during development stage
3-in the income statement show revenue and expenses and cumulative total of both amounts from company's inception.
4-in the statement of cash flows, include cumulative amounts of cash inflows and outflows from enterprises inception and current amount of cash inflows and outflows for each period presented.
5-issues a separate statement of stockholders equity indicating shares issued date of issuances, dollar amounts assigned, and noncash consideration, if any.

Front 9

what is the date of an entity's transition to IFRS

Back 9

The date of the opening balance sheet.

Front 10

describe the form 10-k the form 10-Q. What level of assurance must be provided with the financial statement submitted in these forms?

Back 10

10 - K filed annually by US registered companies. Include a summary of financial data. MD&A and audited financial statements prepared suing US GAAP.

10-Q filed quarterly by US registered companies. include unaudited financial statement, interim MD&A, and certain disclosures.

Front 11

Define development-stage enterprise

Back 11

Enterprise that devote substantially all of its efforts to establishing a new business and either planned principal operations have not commenced or no significant revenue has been generated therefrom.

Front 12

In reporting discontinued operations, how is a component of an entity defined under US GAAP and IFRS

Back 12

US GAAP
1-an operating segment
2-a reportable segment
3-a reporting unit
4-a subsidiary
5-an asset group
IFRS
1-a separate major line of business or geographical area of operations .
2-a subsidiary acquired exclusively with a view to resale.

Front 13

how are error corrections reported

Back 13

reported as prior period adjustments to retained earnings and all comparative financial statement presented are restated.

Front 14

describe the related party disclosures required under US GAAP and IFRS

Back 14

1-Material related party transactions
2-Related party notes/accounts receivables
3-control relationship

note- IFRS requires disclosure of key management compensation US GAAP does not require this disclosure.

Front 15

what are the US GAAP disclosure requirements for risks and uncertainties

Back 15

1-nature of operations
2-use of estimates
3-siginifcant estimates
4-current vulnerability due to certain concentrations.

Front 16

Identify the contents of the summary of significant accounting policies note to the financial statements.

Back 16

Summary of the Significant Account Policies . Identify and describe.

1-measurement bases used in preparing the financial statements
2-principles and methods
3-crteria
4-policeis
5-pricing