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Chapter 4 4 changes in accounting estimate accounted

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Chapter 4-4 Changes in Accounting Estimate Accounted for in the period of change and future periods Not handled retrospectively Not considered errors or extraordinary items Examples include: Useful lives and salvage values of depreciable assets Allowance for uncollectible receivables Inventory obsolescence Reporting Irregular Items Reporting Irregular Items Reporting Irregular Items Reporting Irregular Items LO 4 Explain how to report irregular items. Explain how to report irregular items.
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Chapter 4-5 Corrections of Errors Result from: mathematical mistakes mistakes in application of accounting principles oversight or misuse of facts Corrections treated as  prior period adjustments   Adjustment to the beginning balance of retained earnings Reporting Irregular Items Reporting Irregular Items Reporting Irregular Items Reporting Irregular Items LO 4 Explain how to report irregular items. Explain how to report irregular items.
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Chapter 4-6 Relates the income tax expense to the specific items that give rise to the amount of  the tax expense. Income tax is allocated to the following items: (1) Income from continuing operations before tax (2)   Discontinued operations (3)   Extraordinary items (4)   Changes in accounting principle (5)   Correction of errors Special Reporting Issues Special Reporting Issues Special Reporting Issues Special Reporting Issues LO 5 Explain intraperiod tax allocation. LO 5 Intraperiod Tax Allocation
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Chapter 4-7 An important business indicator. Measures the dollars earned by each share of common stock. Must be disclosed on the the income statement. Special Reporting Issues Special Reporting Issues Special Reporting Issues Special Reporting Issues LO 6 Identify where to report earnings per share information. LO 6 Identify where to report earnings per share information.    Net income - Preferred dividends     Weighted average number of shares outstanding Earnings Per Share
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Chapter 4-8 Restricted Retained Earnings ? ? ? ? ? ? ? ?
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  • Spring '11
  • LynnAlmond
  • Comprehensive income, special reporting issues

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