Five elements of Present Value
- Est Future CF
- Expectations about timing variations of future CF
- Time Value of Money
- Price of bearing uncertainty
- Other Factors
How are sold fixed assets recognized?
Income from continuing operations
What expenses are included in Exit and Disposal Cost?
- Cost to relocate employees
- Involuntary employee termination benefits
- Costs to terminate a contract- not a capital lease
- Other cost associated with exit and disposal costs
What is the criteria for Liability recognition?
- obligating event
- event results in a present obligation to transfer assets or to provide services in the future
- entity has little/no discretion to avoid the future transfer of assets or providing of services
What are some examples of non-extraordinary items?
- Foreign currency devaluation
- G/L from sale or abandonment of PP&E
- Large write-downs
- foreign currency transactions or translations
- LTD extinguishment
- Losses from major strikes
How are infrequent or unusual items?
Separate component of income from continuing operations
How should revised life of depreciation be recorded?
Revised life should be used as the beg of the year of the change.
How to account for a change in accounting principle inseparable from a change in estimate?
Treat as a change in estimated
Ex: A change from the installment method to immediate recognition
-Change in inventory cost flow to LIFO
What is included in OCI?
PUFER P-Pension adjustments U-Unrealized g/l (AFS) F-Foreign currency items E-Effective portion of cash flow hedges R-Revaluation surplus
What is AOCI apart of?
Stockholders equity
How does IFRS account for extraordinary items?
They don’t. Extraordinary items are not permitted under IFRS.
What is the formula for CI?
NI + OCI = CI
What is included in the BS disclosures significant accounting policies?
- basis of consolidation
- depreciation method
- amortization of intangibles
- inventory pricing
- accounting recogn of profit on LT construction contracts
- Recogn of rev from franchising or leasing operations
- Criteria for determing which investments are treated as cash equivalents
What is the 10% segment reporting test?
- Revenue - includes both unaffiliated customers and intersegment sales (excludes interest income)
- Reported Profit or loss (greater in absolute amt)
- Assets
What is the 75% reporting sufficiency test?
Total operating reportable segments would need to be at least 75% of external revenues
How are organizational cost accounted for?
Expensed
How does financial reporting by a development stage enterprise differ from fin reporting for an established operating enterprise?
Footnote disclosure Only
How should inventory be reported under IFRS?
Lower of cost or NRV
10-K?
Annual and audited
- 60days -large accelerated filers
- 75days -accelerated filers
- 90days-others
10-Q?
Quarterly and unaudited
- 30days for small corp
- 40days -large accelerated filers and accelerated filers
- 45days -all other registrants
11-K
Annual report of employee benefit plan
20-F and 40-F
Audited
-foreign private issuers
6-K?
- Unaudited
- Semi-annually by foreign private issuers
8-K?
Major corporate events
