Becker FAR > F1 > Flashcards

F1 Flashcards

(55 cards)

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1
Q

Types of Accounting Treatment for Changes in:

  • estimate
  • principle
  • entity
  • error correction
A
  • estimate = prospective
  • principle = retrospective
  • entity = retrospective
  • error correction = prior period adjustment/restate
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2
Q

Two Exceptions to Change in Principle

A
  1. change in depreciation method (prospective)

2. change to LIFO (no records will exist; prospective)

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3
Q

Non-owner Transactions

A
  • everything except for things relating to stocks & dividends
  • shareholders = owners
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4
Q

How is OCI and the resulting AOCI presented?

A

net of tax

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5
Q

Does comprehensive income have EPS?

A

no

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6
Q

Two options for Comprehensive Income

A
  1. single statement with NI

2. separate statement

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7
Q

Where is the tax benefit/expense from OCI items showed?

A

*on the face of the statement or in the notes

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8
Q

Reportable Segment Requirements

A

10% of

  1. assets
  2. profit (separate out losses in separate column)
  3. revenue (do not eliminate intercompany transactions)

*must have 75% of external revenues

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9
Q

75% Test

A

*relates to segments; must report at least 75% of external revenues

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10
Q

First Time Adoption of IFRS Requirements

A

3 years of balance sheets

2 years for everything else

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11
Q

What tax rate should be used at the interim date?

A

the enacted rate that will apply

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12
Q

Presentation of Financial Statements under GAAP

A

2 years balance sheet

3 years for cash and income

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13
Q

Do you report items when they are recognized or realized?

A

realized AND recognized

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14
Q

What does the Joint Framework establish?

A
  • it establishes a common set of objectives and concepts

* does NOT establish GAAP

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15
Q

When is an Accounting Standards Update issued?

A

*when it has been approved by a majority of the members of FASB

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16
Q

5 Elements of Establishing Present Value

A
  1. estimate of future cash flow
  2. expectations about timing variations of future cash flows
  3. time value of money
  4. price for bearing uncertainty
  5. liquidity issues and market imperfections
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17
Q

Fundamental and Enhancing Characteristics

A

Relevance (Passing Confirms Money)

  • predictive value
  • confirmatory value
  • materiality

Faithful Representation (Completely Neutral is Free From Error)

  • completeness
  • neutrality
  • free from errors

Enhancing

  • comparability/consistency
  • verifiability
  • timeliness
  • understandability
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18
Q

Two Underlying Assumptions under IASB

A
  1. accrual accounting

2. going concern

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19
Q

When can an exposure draft be issued under IASB?

A

*it must be approved by at least nine members of the IASB

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20
Q

What type of expense is freight out?

A

a selling expense

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21
Q

When are cumulative changes made?

A

*at the beginning of the year no matter when they were made in the current year

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22
Q

What must a discontinued operation be deemed as?

A

held for sale

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23
Q

Do purchase discounts affect inventory and COGS or revenue?

Study These Flashcards
A

inventory and COGS

24
Q

Do prior period adjustments appear on the income statement?

25
Change in estimating bad debts is accounted for?
prospectively
26
Can you capitalize organizational costs?
no
27
Is comprehensive income reported on interim financials?
yes
28
Are trading securities reported in income or comprehensive income?
income
29
What is the purpose of comprehensive income?
To explain ALL changes in equity from non-owner transactions
30
Purpose of financial notes?
provide disclosures REQUIRED by GAAP
31
Would loans to officers and key management compensation require disclosure under IFRS?
yes
32
Are intercompany sales related party transactions?
no
33
Related Party Disclosure Requirements
1. amount due | 2. amount during the year
34
What should you disclose in relation to a large investment in a subsidiary?
*the method used to account for the investment
35
What is a required disclosure for segment reporting?
*disclosure of an entity's major products or services and markets
36
Interim reports are ______ parts of an annual period
integral
37
When estimating tax for the interim, use ________
the rate that would be effective in the entire year
38
Inventory Losses and the Interim
1. expected to recover = no record 2. not expected to recover = book in fourth period 3. permanent decrease = record in interim period
39
Should discontinued operations and extraordinary items be recorded at interim dates?
yes
40
Should significant estimates be made when it is reasonably possible that they will change in the near future?
no
41
Do unaffiliated and intercompany sales need to be disclosed?
yes, separately
42
Should unallocated expenses be included in the segment's income statement?
No, it specifically has to be allocated by the CFO
43
Disclose customers who provide more than
10% of ALL revenues (not just segment revenues)
44
Segments must report to __________ to be considered a segment
the CFO
45
Which companies are required to report on segments?
only public companies
46
Is segment cash flow reported under IFRS?
no
47
Date of transition to IFRS will be shown on ______
the earliest statement shown
48
Where do all adjustments for going to IFRS go?
directly to R/E in the first period
49
IFRS equivalent of Balance Sheet
*statement of financial position s
50
SEC Filing Due Dates
10-K * large company accelerated: 60 days * accelerated: 75 days * non-accelerated: 90 days 10-Q * large accelerated: 40 days * others: 45 days
51
Without fluctuations, a form 10-Q should include balance sheets from
*the end of the preceding fiscal year
52
Usually need a __________ to accompany a cash flow statement for a recent fiscal quarter
*complete fiscal year comparison
53
XBLR has modified liability for
24 months from the time the filer is required to file
54
Two Types of Segments that cannot be Reportable Segments
1. headquarters | 2. pension plan
55
Discontinued Operations and Extraordinary Items are presented
NET OF TAX
Becker FAR
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