Ch+4+PowerPoint+Slides+LAA+Part+II

Ch+4+PowerPoint+Slides+LAA+Part+II - Reporting Irregular...

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Chapter 4-1 Reporting Irregular Items Reporting Irregular Items Reporting Irregular Items Reporting Irregular Items I nte r e s t e x pe ns e (2 1,0 0 0 )        T otal othe r (4 ,0 0 0 )          I nc om e  b e f or e  tax e s 7 9 ,0 0 0         I nc om e  tax  e x pe ns e 2 4 ,0 0 0         I ncome f rom continuing operations 5 5 ,0 0 0         Discontinued operations: Loss f rom operations, net of tax 315 Loss on disposal, net of tax 189 Total loss on discontinued operations 504 I ncome bef ore extraordinary item 5 4 ,4 9 6         Extraordinary loss, net of tax 539 Net income 5 3 ,9 5 7 $       Reporting when both      Reporting when both      Discontinued Operations and         Discontinued Operations and               Extraordinary Items    are        Extraordinary Items    are  present.  present.  Discontinued  Operations Discontinued  Operations Extraordinary Item Extraordinary Item LO 4 Explain how to report irregular items. LO 4 Explain how to report irregular items. I ncome Statement (in thous and s ) Sales 2 8 5 ,0 0 0 $     Cos t of  good s  s old 14 9 ,0 0 0       
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Chapter 4-2 Unusual Gains and Losses Material items that are  unusual  or  infrequent , but not both , should  be reported in a separate section just above “Income from continuing  operations before income taxes.” Examples can include: Write-downs of inventories Foreign exchange transaction gains and losses The Board prohibits net-of-tax treatment for these items. Reporting Irregular Items Reporting Irregular Items Reporting Irregular Items Reporting Irregular Items LO 4 Explain how to report irregular items. LO 4 Explain how to report irregular items.
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4-3 Changes in Accounting Principles Retrospective adjustment Cumulative effect adjustment to beginning retained earnings Approach preserves comparability Examples include: change from FIFO to average cost change from the percentage-of-completion to the completed- contract method Reporting Irregular Items Reporting Irregular Items Reporting Irregular Items Reporting Irregular Items LO 4 Explain how to report irregular items. LO 4
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This note was uploaded on 03/02/2012 for the course AICS 3115 taught by Professor Lynnalmond during the Spring '11 term at Virginia Tech.

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Ch+4+PowerPoint+Slides+LAA+Part+II - Reporting Irregular...

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