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  1. post balance sheet date events 
    timeliness & RF 
  2. R & D 
    • neutrality - possible manipulation 
    • material differences - somewhat uniform 
  3. dividends in arrears 
    • voluntary distributions - RF
    • dosclosure & internal comparability 
  4. deferred income taxes 
    RF & understandability 
  5. effective interest method 
  6. $ value lifo method 
    • cost/benifit 
    • better matching 
    • going concern assumption 
  7. prior period adjustments 
    • RF & PC
    • timeliness to not letting itself reverse 
  8. goodwill 
    • verifiability & nuetrality issues
    • RF for not recording over 40 yrs 
  9. organizational costs 
  10. issuance of converible debt
    • part of the bond - neutrality and verifiability issues 
    • disclosure 
  11. treasury stock method presentation
    RF & PC 
  12. reporting depreciable assets on the b/s as cost minus acc dep. as opposed to merely reducing the dep asset. 
  13. what supports not reporting clearly material PP&E assets on b/s at the FV
    internal process- neutrality 
  14. what supports the argument that effective interest method for bond payable is preferable to straight line amortization of any discount or premium on bond? 
    RF and understanability 
  15. what supports the argument that the effective interest method for a bond payable is preferable to a valuation approach in which the market interest rates at the end of each acct period are used to revalue the bond & then use the revalued amount as the basis for interest expense? 
  16. what is most clearly diminished in which the issuance of converible bond payable is recorded under GAAP? 
    • RF 
    • jusified by verifiabiility with neutraility issues 
  17. whats most central in a positive manner to proper presentation regarding a sale of dep. assets? 
    PC - g or l on sale 
  18. what diminished by not utilizing a valuation approach to dep of PP&E assets 
    RF & TC 
  19. valuation approach
    more relevent with neutrality issues 
  20. properly capitalizing interest on debt borrowing for the specific purpose of self construction of a building? 
  21. what is directly involved in determining the proper acct for stock options granted to the CEO of a corp? 
    • relevance 
    • matching 
  22. recording a gain resulting form an exchange of similar productive assets in which a cash or boot is recieved? 
  23. interest expense recorded on debt while no analogious exp on invested funds
  24. income statment vs b/s definitions of operation 
    PC and TC for income statement 
  25. contingent gains versus contingent losses 
    neutrality and false analogy 
  26. using out of date info in measuring small stock dividends 
  27. use of allowance method for a/r while direct write off for n/r 
  28. utilizing  premium discount acct for bond payable but not for investment in bond 
    material scale 
  29. reporting current portion of long term debt but not current portion of equipment
  30. reporting some assets on a cost basis and others on fair value basis 
  31. reporting holding gains/losses on some assets but not on others like building 
    going concern 
  32. use of contra account of for PPE while not using contra acct for intangibles 
    RF & material of scale 
  33. inconsistency resulting form capitalizing other company profit when buying PPE but not capitalizing imputed profit when self construction an identical asset? 
  34. recognizing gain on bargain purchase of net assets in a business combination while otherwise never recognizing gains on purchase of assets? 
    • RF 
    • material of scale - whats true of one assets is not true of all 
  35. 366 days versus 364 for receivables 
    external comparability 
  36. inconsistencies in defining material 
    • external comparability
    • material of scale 
  37. a possibility for a  lease qualifiying for capital lease accounting for the lessee but operating lease accouting for the lessor
Card Set:
2012-12-13 10:18:45

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