far

CS outstanding

dont include PS convertable unless it has been converted

exchange cs for service - use the $ the stock is trading for - stock par = apic acct

int exp of lease

use when the lease was issued, not when pmt start.

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) - doesnt change capital stock or re

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)

board designated endowment growth = no reportable event

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

• loss and not enough apic -ts—> re

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

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

parents gp % (marked up for sale ; cost = sp/1+%mrked up)

= gp % * subs EI ( if they don’t have only parents inv in ei, only do % from parent)

+ eliminate parent intracompany sales - what was sold to the sub from the parent (full sales price)

• debit sales and credit cogs

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

• amort exp of finace lease = pv of pms / useful life

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 - DR

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

revenue

= ar rev + u/r earned

u/r = current liability

Imp losses

PPE = cv>ufcf

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

  • measured at lower of cv or fv- cost to sell

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

  • measured at cv

AFS/HTM securities = FV afs <amort costs

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

• only up to fv- amort

• (fv-amort) - (pv-amort) —> oci non credit loss for AFS not HTM

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

• cv liablity - fv

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)

• repurchase $ = retired $ + prem - disct

• NCV = retirment $ - pro rata unamort bond ( retired $/og$ * unamort BI costs)

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

NI before tax = NI after bonus +tax / (1-tax rate)

bonus = NI b4 tax * bonus %

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 decreases is abd bs), goodwill impariment, IS, and BS adj in sperate je

if only given beg of yr, chnage for ere and adj invest in x for increase in RE

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)

• fv adj dep exp decreases both equity and invest acct

• nothing from parent

• ignore stock div to parent

• FV doesnt matter

• div paid by company - ignore

total consolidated RE

parent re (no nci)

split int agreements

charitable trusts ( 2 benifitarys from trust)

Fv- PV of pmts(cv)

freight in

ei /cogs

purchase

frieght out

selling exp

goodwill

pp- fv

or assumed pp = amt paid /% owned ; total fv * % owned

dont use cv or pv

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

if its resonably certain to take then add po value to cv

doner restricted

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

beneficial interest

not interelated+ WITHOUT VARIANCE /no control

• asset ; refund asset LIABLITY

• pass thro

equity interest

interrelated and varance power

asset / contribution

financially interrelated

interrelated WITHOUT variance

invest in fv ; contribution - reciprient

invest in asset ; change in interlated NI - benificiary

statment of activites (IS)

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

The effect of a change in the opening balance of a valuation allowance that results from a change of circumstances ordinarily is included in income from operations.

DTA

tax inc>book inc

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

nol valued at future enacted rate- 80% of future yrs taxable inc. covered and whats left is a tax benifit dta

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

• like add all together and divide for %, then pp* %

if given % of assets to allocate - use purchase price not assessed value

market rate increases

market value of bonds decrease ( discount)

mr > std = disct

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; when sold, reverse the previous unrealized g/l)

• realized for trading on is ; no credit loss adj

• affected by changes in mrk rates — htm securities are not

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 inv + beg inv

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

felxible budget

actual amt * budget price

variances

FBV - diff in $

VVB- diff in units

CIP

cip > billings - current asset

billings>cip - current liabiltiy

CIP= incurred costs + gross profit earned

no depreciation exp when constructing

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 (for yr its expected to revese) = current yrs dtl/dta

temporary difference = deffered tax / tax rate

make dta net of tax before applying valuation allowance then retax

*when useful life is over write off the dtl by debit or dta by credit for remaining amt * current tax rate bc its getting reveresed

dividends

stock - not reported as rev (RE decrease, CS increase)

cash - (RE decrease, increase div pay)

• 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 RE

(beg re - div = ere) % NCI

sub’s payable

not on consolidated b/s

on subs b/s

warrenty exp

sales * est warrenty % not actual — same with vacation exp -estimated amt

current liability

detachable warrants —> sub total procdedues received to find total debt issuance

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

record at cost ( selling PPE, sell at FV/ Market value)

depreciate over cost - even if asset apprciates, use historcal cost for dep

• half yr convention means ½ yr 1 dep exp and ½ yr 6 ( 5 yrs useful life)

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 - recognize at pv ; unless less than 1 year recognize at FV (no disct)

• 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

• not testing or coding or salaries for proto type either

total cash recipts from Bond issuance

FV + int paid -BI costs

include BI in the amortization of disct/ prem costs using the effective int method

property allocation

use pmt /cost of property to allocate/fv

retained earnings appropriation

doesnt affect IS

= amt approprated thats not been spent (sub total amt approprated for project once done even if it didnt spend all)

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

• use revenue when asked for sales or revenue during the yr (also adj cogs/inv if for sale of inv)

• use a/r when asked for payables or unpaid sales

• elimiate intercomp gain, when asset is sold to outside org recognize the full gain(og cv - sp)

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 (current)

dep exp (arc) + accretion exp (aro)

• from that yr

consolidating B/S TBQ

CAR IN BI

FV adj based on BV - final fv

if re is from 1/1 —> find ere = bre + ni - div

if investment in x is from 1/1 —> find end = bb + Ni - div

statment of CF adj tbs

• increase CHANGE in net ar

• income tax paid = T/P

• interest paid - b/p (look for retiring and new)

  • only for opp section and actual paid not intpayable