U.S. GAAP
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U.S. GAAP
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25 Questions

1. All gains and losses included in OCI

2. Finite life intangibles - two step process: compare carrying amount to undiscounted cash flows - then if carrying amount exceeds cash flows - impairment amount is the difference between carrying amount and fair value of asset. For indefinite life - c

3. Segment profit or loss - assets.

4. Valuation allowance is recognized when it is more likely than not that part or all of the deferred tax asset will not be realized.

5. No separate recognition is given to the conversion feature when convertible bonds are issued. Bonds are recorded in same manner as non-convertible bonds.

6. Cost model: historical - accum. depr. = impairment

7. Effective interest method is required - unless the straight-line method is not materially different from the effective interest method. Amortization is done over the contractual life of the bond.

8. Recorded as an asset and amortized using the straight-line method.

9. Recognition of gains is dependent on the rights of the leased property retained by the seller-lessee.

10. Interest and dividends received - interest paid and taxes paid are CFO. Dividends paid are classified as CFF.

11. Must disclose nature of operations - use of estimates - estimate of a change in estimate - vulnerability of the risk f near-term severe impact from a material concentration.

12. Impairment losses recognized in income statement and cost basis is reduced. If held-to-maturity - subsequent changes are not recognized. If available-for-sale - subsequent income is included in OCI.

13. Asset not required to be remeasures - but does get tested for impairment once classified as held-for-sale

14. All adjustments for changes in deferred tax balances due to changes in tax laws or rates are recognized on the income statement.

15. Should be classified as current or non-current based on the classification of the related asset or liability. If no asset/liability - timing of the reversal is used. All assets/liabilities must be netted (one net current and one net non-current).

16. Components of net periodic pension cost are SIRAGE: service cost - interest cost - return on plan assets - amortization of prior service cost - gain/loss amortization - existing net obligation/asset amortization.

17. Enacted tax rate only.

18. Considered non-compensatory if they meet certain requirements.

19. No impracticality exception for error corrections.

20. Unusual in nature and infrequence in occurrence and material.

21. Contracts that may be settled in cash or stock are not included in diluted EPS if circumstances indicate that eh contract will be paid in cash.

22. Lessees--operating or capital leases. Lessors--operating - sales-type - or direct financing leases.

23. Existing condition - situation - or set of circumstances involving varying degrees of uncertainty that may result in the decrease in an asset or the incurrence of a liability. A provision for a loss contingency should be accrued with a charge to inco

24. (Balance sheet - income statement - SOCF) as of the most recent fiscal quarter and as of the end of the preceding fiscal year.

25. Revaluation is not permitted.

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