Major Components of the Income Statement
I.D.E.A
Income (Loss) from Continuing Operations
Income(Loss) from Discontinued Operations
Extraordinary Items
Cumulative Effects of Change in Accounting Principle (RE)
Comprehensive Inome
P.U.F.E.R
- *P**ension Adjustment
- *U**nrealized gains and losses (available for sale securities)
- *F**oreign currency items
- *E**ffective portion cash flow hedges
- *R**evaluation surplus (IFRS)
Business Consolidation - Acquisition Method
CAR I.N. B.I.G.
- *C**ommon Stock, APIC, and Retained Earnings are eliminated
- *I**nvestment in Sub is eliminated
- *N**oncontrolling Interest (NCI) is created
- *B**alance Sheet of Sub is adjusted to FV
- *I**dentifiable Intandgible Assets of the Sub are recorded at FV
- *G**oodwill (or Gain) is required
Noncontrolling Interest after acquisition date
B.A.S.E
- *B**eginning noncontrolling interest
- *+**NCI share of sub Net Income
- *-**NCI share of sub dividends
- *=E**nding NCI
Capitalize Lease for Lessee
O.W.N.S.
- *O**wnership (asset life)
- *W**ritten (asset life)
- *N**inety % FV (lease life)
- *S**eventy-five % life (lease life)
Capitalize Lease for Lessee (IFRS)
O.W.E.S. F.A.C.S
- *O**wnership
- *W**itten Bargin
- *E**conomic Life
- *S**ubstantially all of Fair Value (Present Value)
- *F**luctuation of Fair Value (Gains and Losses) accrue to the lessee
- *A**bility to continue the lease; rent lover than market rent
- *C**an cancel the lease but losses are lessee’s
- *S**pecialized in nature
Pension Benefit Payment
B.A.S.E
Beginning progected benefit obligation
Add: Service Cost
Add: Interest Cost
Add: Prior Service Cost
Add: Actuarial losses incurrec in the current period
Subtract: Actuarial gains incurred in the current period
Subtract: Benefits paid to retirees
Ending projected benefit obligation
Pension - Income Statement Formula
S.I.R A.G.E
Current Service Cost
Interest Cost
Return on Plan Assets
Amoritization of Prior Service Cost
Gains (losses)
Amoritization of Existing Net Obligations
Net Periodic Pension Cost
AGE is unamoritized in AOCI
Governmental Funds
G.R.a.S.P.P
General Fund
Special Revenue Fund
and
Debt Service Fund
Capital Projects Fund
Permanent Fund
Proprietary Funds
S.E. P.A.P.I
Internal Service Fund
Enterprise Fund
- *P**ension Trust Fund
- *A**gency Trust Fund
- *P**rivate Purpose Trust Fund
- *I**nvestment Trust Fund
General Purpose Government Units - Primary gov. entity must meet all: S.E.L.F
- *Separate-E**lected government body
- *L**egally Separated
- *F**iscally Independent of other state and local government
Net Position
R.U.N
- *R**eserved
- *U**nreserved
- *N**et Position
Statement of Activities - Program Revenue Category Types
S.O.C
Charges for Services
- *O**peration Grants and Contributions
- *C**apital Grants and Contributions
Reconciling Financial Statements - Government Fund to Government-wide (Balance Sheet)
G.A.L.S. B.A.R.E.
GRaSPP
+Asset
-Liabilities
+Service (Internal) fund net position
- *B**asis of Accounting
- *A**ccrued
- *R**evenue
- *E**xpenses
Reconciling Financial Statements - Government Fund to Government-wide (Statement of Revenues, Expenditured, and Changes in Fund Balance)
G.O.E.S B.A.R.E
GRaSPP
-Other Financing Sources
+Expenditures
+Service (Internal) fund net income
- *B**asis of Accounting
- *A**ccrued
- *R**evenue
- *E**xpenses
Donated Services - Recognied some of the time
S.O.M.E
- *S**pecialized Skills
- *O**therwise needed
- *M**easurable
- *E**asily valued
