far

CS outstanding

dont include PS convertable unless it has been converted

int exp of lease

use 12 as denominator doesnt matter lease term

WACSO

use term (6months, denom 6, 12 months 12 denom)

stock splits retrospective - include if after bs date but before issuance (dont include anything else in that time)

comparative IS eps calc. stock split affects previous yrs (yr 1 and 2 compared eps, stock split yr 2, adj yr 1 shrs outstanding for split also)

endowment received (DR)

endowment (if given that yr + appreciation + int inc. - spent (becomes not DR)

TS par

repurchase- apic-cs = MV issue date - par)

reissue - apic-cs = (reissue - par)

***if reissue price is less than par —> APIC-TS (MV issue date - MV repurch date)

TS cost

TS always at repurch $

APIC TS -reissue price - repurchase price

APIC -CS only on CS issuance and retirement (write off cs @par and ts @ repurch $) write off apic cs (og sp - par) and ts (repurch $ - par)

ARO

end aro = BB intial ARO + disct CFs + accretion exp - aro settled / paid

aro recorded at pv - increases by accretion exp= accretion rate * pv

dep exp /useful life = arc decreasing

escrow acct liability

bb+escrow receipts/pmts + int earned - pmts for taxs- fees = eb

quarter /intermidate reporting

use quarters not months as denominator ( each quarter seprate not cummulative)

intercompany profit

= SP - cost

cogs from parent still in sub EI

subs cogs that was from parent

finacing + opp lease recorded

rou asset @ PV

finaince - cash = pmt, lease liablity = amort, int exp =int pmt. rou asset /acc dep = pv/useful life or lease life ( lower if 3-5 met, useful life if 1,2 met) ; no alt use, 75% of useful life, 90% fv

opperating - cash + lease exp = pmt; acc amort and lease liabilty = amort exp

legal defense patent

no capitalizing unsuccessful legal fees - sometimes full patent is exp

capitalizing sucessful legal fees + patent exp, aquition fees

current asset cash balance

check not mailed add back ; net overdrafts cash checks

land sold at sp

ap balance

gross ap - discounts NOT taken

pledge

unconditional yrs away - DR at npv adj each yr - record

conditional - dont record until met

amt given as “good faith” return liability doesnt increase assets

revenue

= ar rev + u/r earned

Imp losses

PPE = cv>ufcf

• held for sale = nbv-nrv ; recovery up to imp losee ( nrv - cv)

• held for use = nbv - cv ; dep exp recorded cv/yrs

AFS/HTM securities = FV afs <amort costs

• pv (if not pp) - amort recorded on income statement

• only up to fv- amort

intangible assets= cv>ufcf

• cv - fv

cap cost for patent

cash paid + pv liab + fmv stock

allowance for credit loss

end bal = aging ar or % ar

add credit loss exp and recoveries

sub writeoffs and disposals

leases on CFS

opp - cfo

financing - cfo ( int pmts, non lease liab) ; cff( principle pmts)

trouble debt restructing

transfer of assets/equity =once trasfered estingished

• g/l on sale = FV- cost

• reconstruct g/l = total debt (pp+int) - fv settlement

• total = g/l

estingishement of bonds before maturity

Repurchase price (fv*%) - NCV ( og - unamort-bond issuance) = +loss /-gain

• gain = ncv > rp

• loss = ncv < rp

• BP (FV), prem /disct (og -unamort), cash (RP), loss/gain (plug)

bonuses

= B % ( NI b4 tax - (tax rate ( ni b4 tax - bonas))

incude bonases in wages paayble for that yr not the year they were paid

CF financing

purchase of TS, issuance, longterm debt pmt, loans, DR construct, div pmt, redemption of b/p

(lt construct not dr - opp)

net change in resticted/ not restricted donated stock

statement of activities

(BS is at a point in time)

consolidated earnings estingishement

C: C/S, APIC, ERE, change in fv, goodwill,div dec sub(equity)

D: invest in x, nci

record dep exp (on fv change), goodwill impariment, IS, and BS adj in sperate je

equity method

20-50 (significant influence)

BS - invest in x = NI % + cash paid - amort exp %(fv decrease)- dividend %

IS - equity in x = NI% - amort %(fv decrease)

• nothing from parent

• ignore stock div to parent

• FV doesnt matter

total consolidated RE

parent re (no nci)

split int agreements

charitable trusts ( 2 benifitarys from trust)

Fv- PV of pmts

freight in

ei /cogs

purchase

frieght out

selling exp

goodwill

pp- fv

or assumed pp = amt paid /% owned

ps retirment

par ps> retirement $ = gian apic creditied

par ps < retirement $ = loss re debited

program services

costs that are expensed and related to mission

(college = prof sal)

(never construction or inventory)

support services

fundraising, member development, general and admin

(never construction or inventory)

inc from cont opp

credit - debit * tax

anything but OCI, disct opp - segment ended

purchase option

dont include purchase option unless it says it will take it

current maturity date price

cv at date

• take out pmt for annuity due before anything else then start calc int

doner restricted

FV adj + earnings - spent (becomes w/o)

beneficial interest

no interrelationship + without variance /no control

• asset ; refund asset LIABLITY

• pass through

equity interest

interrelated interest or variance / control

• asset ; contribution

financially interrelated

invest in fv ; contribution - reciprient

invest in asset ; change in interlated NI - benificiary

statment of activites

gross rev / gross exp ; g/l net

• fundrasing rev, seprate fund exp(given to doners)

valuation allowance

no future inc. - cant get benifit of dta; increase tax exp; decrease dta ; make dta net of tax then subtract

DTA

tax inc>book inc

BDE, NOL carryforward, warrenty exp, advancements,set up costs

DTL

book inc> tax inc

installments, cip/ lt const, dep exp

EPS calc

whats in NI = seprate calc

disct opp = seprate calc

OCI no calc

no statemnt of cashflows calc

art revenue rec

no rev rec if meets collection, care, and selling obligation

allocating purchase price

use fv of assets to allocate to purchase price

market rate increases

market value of bonds decrease ( discount)

unamort disconts

smaller each year until maturity

afs / trading g/l

fv yr2 - fv yr 1

• unrealized for afs on oci ; credit loss on is ( only when sold do fv yr sold - og)

• realized for trading on is ; no credit loss adj

credit risk concerntration

must be disclosed

economic ablity to meet olgations

turnover on x / return on x

x is the denominator (average)

• return on N = NI or ebit

• turnover N = cogs or sale

quick ratio

cash + equiv + st market secutiries / current liabilities

times interest earned

ebit/ int exp

ability to cover int charges

total debt

liabilties /assets

assets finaced by customers

debt to equity ratio

liabilites/ equity

protection to creditors for insovlency

ebita

= sales -cogs- opp exp(excluding dep and amort)

= NI + tax exp+ int exp+ amort

cash to accrual

revenue = end a/r - beg a/r- end ur +beg ur

cogs = end ap - beg ap - end prepaid + beg prepaid

opperating exp= end acc liab - beg acc liab - end inv + beg inv

felxible budget

actual amt * budget price

variances

FBV - diff in $

VVB- diff in units

CIP

cip > billings - current asset

billings>cip - current liabiltiy

incurred costs + gross profit earned

contruction rev

const $ * % completed (inccured costs / total est costs ) - previous rev

recognize loss the yr it happens - (loss on LT construction, CIP)

constuction GP

(GP * % completed) - previous periods

capatilize const

additons, imporvements, extraordinary repairs

increase useful life - recuce acc dep

increase usefulness - capatilize

partnership

assets at fv

liabi at pv

sub assets and liab

full recognition by parent at fv if >50% ownership

sub at fv

parent at bv

partner advance payments

only use if that partner is negative

still negative allocate other parnters to get them to 0

dtl / dta

non current - net together (dtl-dta)

temp diff * future enacted tax rate = current yrs dtl/dta

temporary difference = deffered tax / tax rate

make dta net of tax before applying valuation allowance then retax

dividends

stock - not reported as rev

cash -

• equity - no rev rec; decreases investment

• fv - div rev/inc.

consolidated equity

parent cs+ parent apic + parent re - nci

current inc tax

tax inc * tax rate

total inc tax exp

te = t/p + change in DTL - change in DTA

(assuming dtl and dta increased)

subsidary NI

(beg re - div = ere) % NCI

sub’s payable

not on consolidated b/s

on subs b/s

warrenty exp

sales * est warrenty % not actual

current liability

PPE (fifo / WA)

lower of cost or NRV (sp-disposal) - for all items so add all cost and all nrv and then compart not each indivisual

loss imaterial - cogs , material - is disclosure

ppe lifo

lower of market value or cost

market value = middle value

• repurchase price

• ceiling = sales price - cost to complete (NRV)

• floor = ceiling /nrv - normal profir margin

cogs

bb inv + purch - end inv

lifo dollar value

$ index = ei at current yr/ei base value

current yr costs/ current price index = new cost - base yr cost = diff * current $ index = x

x + base yr = new base

fixed asset /ppe

at histoical cost

depreciate

cv

donated services

not for profit - nonopperating

debit expense - maintance or repaires (normally wouldnt cap)

debit asset - improves life or usually would cap

• without DR

non interest bearing note

always a discount

• market rate<implied/ effective rate = larger discount, lower pv

• market rate>implied /effective rate= smaller discount, higher pv

additional shrs for diluted eps calc

#of shrs - ((#shrs * excersize$)/average mrk $) = additonal shrs outstanding

• #of shrs in clac is the converting/options/shhrs that would be added in diluted eps calc

deffered tax exp for year

=((cumulative prev temp diff + current diff ) * current enacted rate))- (cummulative previous temp dif * old enacted rate )

recivied consigned goods - payable

= (units sold * sp) - commision

• commision = sold* sp *commision %

fixed asset capatilized

benifit over multipul yrs

comprehensive inc

NI + OCI ( exludicing ownership stock)

represents all changes in se that comes form nonownership sourses

software capatilization

only purchase price + instaliation costs (testing,coding, licencing fee)

• not training

int payable

look at date - for months between dated and issuance

= fv* stated rate * months (dated- issued)

total cash recipts from BI = PV + Int pay accured - bond issuance costs

property allocation

use pmt /cost of property to allocate/fv

retained earnings appropriation

doesnt affect IS

can be used to restrict earnings available for dividends

cash from note

(fv*intrate) + fv = martury value

matury value *(effective rate *months) = disct

matury vlaue - disct = cash from bank

consolidated bs

parent + sub - intercomp

• usually do revenue and then prorate for cogs and ei

subsequent event recognition

after bs date but before issuance

• loss from natural disaster DONT Recongnize - material disclose, non material don’t disclose

• customer that has bal. due from yr1 goes bankrupt, write off full amt.

• law suit from yr 1 settled yr 2, if already accrued in yr 1 (probable loss) adj for amt settled. if supposed to be a gain, and settled for the gain - no accrue, disclose. loss remote or possible - disclose and accrue full thing when settled,

• merger announced after yr1 bs date - dont recognize or disclose

issued a check

paying a check, decrease balances

exit and disposal costs

involentary employment termination, terminate non lease contract, realocate employees, consolidate/close facilities, moving ppe

• not retirment of Fixed assets

total exp related to ARO

dep exp (arc) + accretion exp (aro)

• from that yr

consolidating B/S TBQ

CAR IN BI

FV adj