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12 Cards in this Set
- Front
- Back
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What does NCI stand for and mean? |
Non-controlling interest (NCI), also known as minority interest, is an ownership position whereby a shareholder owns less than 50% of outstanding shares and has no control over decisions. Non-controlling interests are measured at the net asset value of entities and do not account for potential voting rights. rights. |
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What are discontinued operations and what criteria must ops meet to be classified as such |
Discontinued operations are a component of a company’s core business or product lines that has been disposed of, and is reported separately from continued operations on the income statement.Discontinued operations are reported under generally accepted accounting principles (GAAP), as long as two conditions are met. First, the disposal transaction will result in the operations and cash flows of the component being eliminated from company operations. Second, once it has been discontinued, a company must have no significant continuing involvement with the operations of the component |
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What is a revaluation reserve? |
Revaluation reserve is an accounting term used when a company has to enter a line item on its balance sheet due to a revaluation performed on an asset. This line item is used when the revaluation assessment finds that the current and probable future value of the asset is higher than the recorded historic cost of the same asset. asset. |
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What is a non-adjusting event? |
An event after the reporting period that is indicative of a condition that arose after the end of the reporting period. [IAS 10.3] |
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How are dividends accounted for? |
Two movements: The first entry occurs on the date that the board of directors declares the dividend. In this entry the account Retained Earnings is debited and Dividends Payable is credited for the amount of the dividend that will be paid. Retained Earnings is a stockholders' equity account and Dividends Payable is a current liability account. Some corporations debit a temporary account Dividends instead of debiting Retained Earnings. Then at the end of the year, the Dividends account is closed to Retained Earnings. The second entry occurs on the date of the payment to the stockholders. On that date the current liability account Dividends Payable is debited and the asset account Cash is credited. |
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What is PUP? |
If there has been trading between a group and an accosiate, then any profit on inventory sold between parties that is still held at the reporting date will need to be removed, however we adjust for the group share only. |
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PUP accounting movements? |
If parent sells to associate. Dr. Group retained earnings/cost of sales Cr. Investment in associate (reduce goods to cost to the group) If the associate sells to the parent. Dr. Group retained earnings/share of profit of associate Cr. Group inventory (reduce goods to cost to the group) |
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What type of account are expenses and what type of account are losses? |
Both debit accounts |
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What are retained earnings? |
Profit which has not been paid out of business |
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What is ppe |
Property, plant equipment |
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What are fluctuating assets |
Assets which can change seasonally, dont have a reserve. |
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Curtailment meaning?
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Significant number of employees leave a pension scheme, assets/libils revalued in P&L
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