The flashcards below were created by user cingeme on FreezingBlue Flashcards.

  1. Who is the accounting standard codification single source of GAAP?
  2. What is the Authoritative Literature in the codification? (FEDPRIA)
    • FASB
    • Emerging Issues Task Force
    • Derivative Implement Group Issues
    • Accounting Principles Board Opinions
    • Accounting Research Opinions
    • Accounting Interpretation
    • AICPA
  3. Who issues IFRS standards?
  4. What are the two pervasive constraints(US)?
    • Cost Benefit
    • Materiality
  5. What are the three pervasive constraints(International)?
    • Cost Benefit
    • Timeliness
    • Balance between qualitative characteristics
  6. What are the primary qualities of decesion usefulness?
    • Revelance-Pass Feels Terrific
    • Predictive Value
    • Feedback Value
    • Timeliness

    • Reliability
    • Nobody Belies on Financials unless Verfied

    • Neutrality
    • Represenation Faithfulness
    • Verfiabilty
  7. What are the secondary characteristics?
    • Comparabilty
    • Consistency
  8. What is the presentation order of an Income Statement
    Income from Continuing Operations(Gross)

    Income from Discontinued Operations(Net)

    Extraordinary Items(Net)

    Acumulative Effect of Change in Accounting Principles(Net)
  9. What is included in Discontinued Operations? When?
    • Impairment Loss
    • Gain/Loss from Actual Operations
    • Gain/Loss on Disposal

    Period Incurred
  10. What is a component under GAAP?
    Lowest level of an entity for which operations & cash flows can be clearly distinquished both operationally and Financially

    • Operating Segment
    • Reporting Segment
    • Reporting Unit
    • Subsidiary
    • An Asset Group
  11. What is a component under IFRS?
    Major line of business or geographical areas

    Subsidiary acquired exclusively with a view to resale
  12. What is the criteria for 'Held for Sale'(GAAP)?
    • All Criteria must be met:
    • Mngt commits plan to sell component
    • Available for immediate sale
    • Active Program to locate a buyer has been initiated
    • Actively Marketed
  13. What additional criteria for 'Held for Sale' (IFRS)?
    Before can be classified as 'Held for Sale' individual assets and Liabilties of component must be measured with applicable standards

    GAINS/LOSS must be recognized

  14. When should results from operations be reported in discontinued operations?
    • Component has been disposed of
    • Is classified as 'Held for Sale'
  15. What items should be included in discontinued operations for a period?
    • Results of operations
    • Gain or loss on Disposal
    • Impairment Loss

    • NET OF TAX
    • All booked period incurred
  16. Should discontinued operations continue to be depreciated/amortized?
  17. What else must be recoginized for discontinued operations under GAAP?
    Liabilties for

    • Involuntary Employee termination
    • Costs to terminate contracts(Rent etc.)

    • Obligating event has ocurred
    • Results in a present obligation
    • Little or no discretion to avoid the future transfer of assets
  18. How do you recogize Extraordinary Items?
    Unusual and Infrequent(GAAP)

    Not recognized for IFRS
  19. What are the accounting principle Changes and how are the handled?
    • Changes in Accounting Estimate
    • Handle prospective - don't restate

    • Changes in Accounting Principle
    • Handle retrospective

    • Changes in Accounting Entity
    • Restate
  20. When there is a change in accounting Principle how do you handle retrospectively(IFRS)?
    Must present 3 BS and 2 of all other FS
  21. What are the exceptions to Accounting Principle changes?
    • If impractical to Calc
    • LIFO to FIFO

    Handle prospectively

    Beg Inv of the year of change is the first FIFO Layer
  22. What is change in Accounting Entity?
    Only recognized by GAAP

    Occurs when entity being reported has changed composition

    If occurs in current year all previous FS should be restated

    Full Disclosure required

    I.e. consolidated or combined FS presented in place of Individual companies
  23. How do you handle error corrects in FS?
    Correct info on FS if statement presented otherwise adjust R/E

    under IFRS Only if impracticak to determine cumulative restate prospectively
  24. What is Comprehensive Income and what are they?
    Non-Owner transactions which are closed to the BS at period end

    • Pension Adjustment
    • Unrealized gains or losses
    • Foreign currency items
    • Effective portion of Cash flow hedge
    • Revaluation Surplus(IFRS Only)
  25. How is comprehensive income displayed on the BS?
    • Net Income
    • +Other Comprehensive Income(PUFER)
    • Comprehensive Income
  26. What types of companies does Comprehensive Income apply to?
    Only FOR profit

    Should not be reported on per share basis
  27. Where should comprehensive Income be reported?
    Single Statement of Comprehensive Income + Net Income

    Income statement followed by seperate statement of Comprehensive Income

    A statement of changes in Equity(US only)
  28. How is the section of Stockholder Equity displayed on the BS?
    • Capital Stock
    • Pref Stock
    • Common Stock
    • Paid in Capital in excess of PAR

    • R/E
    • Accum other Comprensive Income

    Treasure Stock at Cost
  29. What does IFRS require as a note in the FS?

    Footnotes for IFRS?
    requires explicit and unreserved statement of compliance

    requires disclosure of judgement and estimates that mngt has amde in the process of applying accounting policies

    • Footnote
    • Loans to officers and officers salaries disclosure
  30. What does GAAP require as a note in the FS?

    Footnotes for GAAP?
    Requires disclosure of significant estimates

    • Footnotes
    • Off BS transactions
    • Pensions plan descriptions
    • Discontinued segments
    • Loans to officers
  31. Who requires Interim Financial reporting?
  32. What is the minimum reporting requirements under IFRS?
    • Condensed BS
    • Condensed Comprehensive Income
    • Condensed Changes in Equity
    • Condensed Cash Flows
  33. How are taxes Calced under IFRS/GAAP?
    IFRS allows effective tax rate to be estimated

    GAAP Enacted rate only
  34. Who uses segment reporting?
    Public Companies only
  35. What is a reportable segment?
    • 10% size test
    • Revenues
    • Assets
    • Profits/Loss

    75% reporting efficiency test

    segmented cash flows not reported under IFRS and GAAP
  36. What is Fair Value?
    • GAAP standardized definition except for
    • Share based compensation
    • Inventory pricing
    • measurements based on specific objective
    • FV measurements for used for lease classification measurements

    FV does not include transaction costs but does include transportation costs

    IFRS has not standardized FV
  37. How do you measure Fair Value?
    Use principal market with greatest volume for FV

    Use most advantageous market if no principal market exists(Net of transaction costs)
  38. What is the Fair Value Measurement Framework?
    GAAP established for measuring FV

    Valuation techniques

    • Market Approach - assets or liabilties
    • Use identical or comparable assets

    • Income Approach - assets or liabilities
    • convert to one future amount including cash flows for discounted amount

    Cost Approach - current replacement cost of Assets
  39. What is the hierarchy of Inputs?
    Level 1(Most reliable) - Commodity in active market

    Level 2 - Not active market

    • Level 3 (Least Reliable) Mngt Inputs
    • Unobservable Inputs
  40. What must be included for first time adoption of IFRS?
    • 3 BS
    • End of current period
    • End of prior period
    • Beginning of Prior Period
    • 2 IS
    • 2 CF's
    • 2 Changes in Equity

    Book Adjustments to R/E

    • Disclose
    • How transition from GAAP to IFRS affected reported financial position, performance and cash flow

    • reconciliation from GAAP to IFRS
    • reconciliation of total comprehensive income

    • Opening IFRS BS uses FV for:
    • financial Assets
    • Fixed Assets
    • Investments in Joint Ventures

    Use lower of cost or NRV for Inventory
  41. What are the SEC Reporting Requirements?
    10k filed annaully

    10Q quarterly

    11k -Annual report of employee bene plan

    • 20F Foreign issues similiar to 10k
    • 40F

    6k - Foreign private issuers

    8k - Major Corporate events

    Forms 3,4,5 Owning more than 10%

    Reg 2-x form and content of requirements for interim and annual financial statement to be filed with SEC
  42. What are the requirements for annual FS?
    • GAAP
    • 2 BS
    • 2 IS
    • 2 equity
    • 3 CFs

    • IFRS
    • 2 BS
    • 2 IS
    • 2 Equity
    • 2 CF
  43. Under US GAAP is the cumulative effect of an inventory pricing change on prior year earnings report on the FS for LIFO to Weighted Average?
    Yes. Only when going TO LIFO is an adjustment made to R/E
Card Set:
2011-10-14 22:02:32

Becker F1
Show Answers: