| 2 Components of an Income Statement | 1) Income from Continuing Ops
2) Income from Discontinued Ops |
| 2 Components of Continuing Operations | 1) Operating Rev/Exp
2) Non-Operating (Other Rev/Exp, Gain/Loss) |
| Elements of Other Comprehensive Income | Pension, Unrealized G/L on Debt Securities, Foreign Currency Translation, Instrument Specific Risk, Effective Portion of CF Hedge, Revaluation Surplus (IFRS ONLY) |
| Comprehensive Income Calculation | Net Income (after tax) + OCI [PUFIER] (net of tax) |
| Single-Step Income Statement vs Multiple-Step | Single Step: Revenues - Expenses
Multiple Step: Multiple Subtotals |
| Changes in Accounting Estimate are adjusted: | Prospective - DO NOT RESTATE |
| Change to LIFO or Depreciation Method is adjusted: | Prospective - DO NOT RESTATE |
| Changes in Accounting Principle or Error Correction: | Retrospectively- Adjust Beginning RE NET OF TAX (earliest period presented) |
| Going Concern: Management should evaluate the entity's going concern within one year of ??? | The BS ISSUE date NOT Statement date |
| Going Concern: Results of management's evaluation should be disclosed unless ??? | There is no substantial doubt |
| Subsequent Events:
1. When should subsequent events be recognized?
2. When should they be recorded/disclosed? | 1. Recognize if they have existed at the BS Date
2. JE and Disclosure if they occur before the BS Date, Disclosure only if afterwards |
| OCBOA: Presentation Guidelines: (2) | -Don't use GAAP terms
-Statement of CF not required |
| OCBOA: Cash Basis vs Modified Cash Basis | Modified cash basis has expenses and revenues, but does not have receivables or payables |
| OCBOA: How should non-taxable revenues and expenses be reported on an Income Tax Basis F/S? | As separate line items, additions/deductions to NI, or a disclosure |
| Cash to Accrual Basis: | For AR and Unearned Revenue:
- Add Good (Increase in A or Decrease in L)
- Subtract Bad (Decrease in A or Increase in L)
For Everything Else:
- Subtract Good (Increase in A or Decrease in L)
- Add Bad (Decrease in A or Increase in L) |
| How should contingency Gains/Losses be accounted for if they are:
1) Probable
2) Reasonably Possible
3) Remote | 1) Gains = Disclose; Loss = JE and Disclose
2) G/L = Disclose Only
3) G/L = Ignore (Unless guarantee of indebtedness to others, then disclose) |
| How should contingencies be accounted for if a range of potential losses is given? | Choose the lowest amount |
