FAR F1

F/S; FX; EPS

Classified B/S

Separates current/ noncurrent assets and liabilities

Contributed Capital

What stakeholders have given

(Ex: Common/ pref stock)

Operating Income defintion

Part of normal business activity

Ex: Wendy’s selling fries

Nonoperating Income definition

Not related to business activity

Ex: Wendy’s selling a microwave, interest exp

Is operating income gross amount or net?

Gross

Unexpired Cost

Capitalized as an asset for future and expensed periodically

Ex: Prepaid rent —> rent expense

Income from Continuing Operations defintion

Income related to business that is still ongoing

Income from Continuing Operations formula

Inc from Cont Operations = Operating Inc + Nonoperating Inc

Income Discontinued Operations is reported net of tax?

True

Income Discontinued Operations definition

Separate section for when selling off a product line or division of firm

Net Gain/ Loss formula

Net Gain/ Loss = Sell Price (SP/ Net Realizable Value (NRV) - BV

1-step I/S formula

All revenues/ gains

-All expenses/ losses

Pretax Inc

-Inc tax exp

Net income

Multi-step I/S formula

Sales

-COGS

Gross profit

-Operating expenses

Operating income

+/- Nonoperating gain/loss

Pretax income

-Income tax exp

Net Income

+/- Discontinued operations (net of tax

Net Income

Discontinued Qualifications

Disposed of during yr OR Held for sale (HFS)

What are the 6 Held for sale (HFS) qualifications?

1. Management commits to a plan to sell

2. Activity ready for immediate sale (could sell tomorrow)

3. Active plan to find buyer

4. Sale is probable —> expected within a yr

5. Item marketed at reasonable price relative to FMV

6. No major changes to sell plan expected

What happens if an HFS discontinued operation doesn’t meet a criteria?

Treated as held/ used asset

Net Realizable Value (NRV) formula

NRV = FMV - sell costs

Impairment Loss formula

Impair Loss = NRV - BV

Part of discontinued operations

When a disc op is HFS assets are still depreciated?

F

HFS on B/S measured at lower of NRV vs BV?

T

What is the maximum amount impairment loss can be reversed?

Can only be reversed to the extent it was written down

FX transactions between parent/ sub are still considered FX

F

Spot Rate

Exchange rate on current day

Direct Method

¥ → $

Indirect Method

$ → ¥

Comprehensive Income formula

Comprehensive Income = Net income + OCI

OCI

Special holding area for certain gains and losses that affect equity but that GAAP does not want included in net income yet

PUFI

P - Pension adjusment

U - Unrealized gains/ losses (Hedges, AFS debt securities)

F - FX Translation

I - Instrument specific credit risk

OCI includes equity changes except anything involving owners?

F

AOCI

Accumulated OCI from prior yrs

Similar relationship as net income → RE

10K large accelerated filer deadline

60 days

10K accelerated filer deadline

75 days

10K smaller filer deadline

90 days

10K Large Accelerated Filer criteria

• $700mil FMV

• Held by nonaffiliates

10K Accelerated Filer criteria

• $75 - $700mil FMV

• $100 mil annual revenue

MD&A defintiion

Management’s subjective insights on financial trends/ results/ estimates/ risks

Quantitative & Qualitative Disclosure on Market Risk definition

Discussion of inherent and market risk

10K B/S dates

2 most recent yrs

I/S and Cash Flows dates

3 most recent yrs

10Q Large Accelerated deadline

40 days

10Q Accelerated/ Smaller deadline

45 days

10Q B/S dates

Current Q compared with last yr’s

• Can include B/S of previous Q if seasonal

10Q I/S and Cashflows dates

Q and YTD

8K Purpose

Press release for major changes/ disclosing significant event

Ex: Bankruptcy, changing auditor, new CEO

8K filing deadline

4 days after day of event